0517200540
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special Call Budget Work Session on Tuesday, May 17,
2005, at 8:00 a.m. in the Dunn Municipal Building. Present was Mayor J. Dal Snipes, Mayor Pro-
Tern Donnie Olds, Council Members Buddy Maness, Bryan Galbreath, Billy Tart, Billy R. Godwin,
Jr. and Joey Tart. Also present was City Manager Michael Uskiewicz, Assistant City
Manager/Public Works Director Ronnie Autry, Human Resources /Safety Officer Moses Gallion,
Finance Director Renee' Daughtry, Chief Building Inspector Mike Blackmon, Recreation Director
Perry Hudson, Fire Chief Austin Tew, Police Chief Tim Benware, City Engineer Ed Powell, City
Attorney P. Tilghman Pope, and City Clerk Debra West.
INVOCATION
Mayor Snipes opened the meeting at 8:10 a.m. and asked Council Member Godwin to give the invocation.
Afterwards, the pledge of allegiance was repeated.
Mayor Snipes yielded to Manager Uskiewicz.
Manager Uskiewicz asked that the council add to the agenda: Blocking of street for Sacred Heart Catholic
Church -May 29, 2005 -1:00 p.m. to 1:20 p.m. in order that a Eucharistic Procession take place around the
church in observance of the Catholic feast day-of Corpus Christi.
Council consensus to add this item of business to the agenda.
Motion by Council Member Maness, seconded by Council Member Godwin to grant the request by Sacred
Heart Catholic Church to block the street around the church on May 29, 2005 from 1:00 p.m. to 1:20 p.m.
Motion unanimously approved.
Manager Uskiewicz pointed out that an expenditure of $24,210.00 for the Highway 421 expansion was
omitted in the proposed budget received by council. To balance the budget, he is proposing to drop the
initial cost of living raise from 2.25% to 2% and to defer the ETJ boundary survey and annexation projects
for one year. The following account numbers will be affected as follows:
10- 443 -5901— salary & wage adjustment from $83;295.00 to $70,000.00
10 -550 -0400 — consulting fees from $26,000.00 to $15,000.00
Council consensus was to go through the budget page by page with concerns identified and addressed.
Manager Uskiewicz gave an overview of the budget message. Issues addressed and identified in the
Retreat 2004 include:
• Employee issues
• Staffing issues
• Paid benefits
• Recreation Center enhancements
• Annexation issues (now removed to adjust budget)
• Upgrading water and sewer services
• City appearance
• Downtown revitalization
• Expansion of Library services /facilities
• Improving police operations
NEW REVENUE SOURCE
Interlocal Agreement for
Building Inspection Services
Town of Angier — Manager Uskiewicz explained that the Town of Angier has requested that the City of
Dunn provide building inspections services beginning July 1, 2005. The City of Dunn will provide
inspection services for approximately 15 hours per week at an annual fee of $33,000. This is the same
proposal that was offered to the Town of Erwin and later rejected by them. This is a 3 year agreement.
The council discussed the impact that this revenue would have on the inspection department should the
agreement dissolve at a later time. They discussed with Building Inspector Blackmon, services that will be
requested by Angier. Angier is averaging four to five inspections per day. Code Enforcement will also be
provided.
Discussion was held about the time required to perform inspections in Angier and if 15 hours a week is
realistic. If hours exceed an average of 15 hours per week, the agreement states that the City of Dunn shall
be under no obligation to commit more than 15 hours per week. This is a good partnership. The City Clerk
was directed to move this issue to the June Council Meeting.
Health Insurance —10- 420 -5900 — Manager Uskiewicz explained that another key component in this budget
is Health Insurance costs. If post -65 employees were moved into a Supplement J Plan, health insurance
premiums would increase 5 %. This is a substantial savings to the City of Dunn. From $84,000 to
$28,885.00.
United Health Care has proposed a 5% increase — consistent good service.
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Blue Cross Blue Shield (BCBS)— submitted proposal lower that UHC, however, single employees' rates
were higher- concerned that BCBS rates will increase if they were chosen to provide health insurance.
According to Human Resources Officer, Moses Gallion, the majority of municipalities are offering
supplement plans for post -65 employees while some municipalities offer no insurance coverage once an
employee turns 65 and receives Medicare. The City of Dunn is paying a full premium rate for post -65
employees, yet when claims are filed, United Health Care is considered secondary because Medicare pays
80% of the bill. The negative side is that the retired employee covered by a supplement would lose their
drug benefit and will pay a higher cost for prescription drugs. However, by switching to a supplement plan,
the City would save approximately $56,000. Eight employees post -65 would be affected by this change.
If the post -65 retirees are left on the plan, it would result in a 10% rate increase.
Finance — 10- 443 -5901 — Salary and Wage Adjustment — Decreased proposed cost of living raise from
2.25% to 2 %. This line item will be reduced from $83,295 to $70,000.
Longevity pay is factored in 10- 443 -6000.
Professional Audit — 10- 443 -0400 — Line item amount of $30,000 will be adjusted once proposals are
received for bids to perform the City audit — seventeen RFP's have been sent out to both local and other
outside firms. Hope to find a firm that is strong in GASB 34 (Govemmental/Municipal Reporting). Bids
are due May 26, 2005.
Finance — 10- 443 -7000 in the amount of $13,200 is for the purchase of a Talley Printer for the Finance
office — used for checks.
Buildings and Maintenance — New line items created - 10 -500 -1700 at $8,000 for city-wide website
through Harnett County and 10 -500 -3400 at $78,625 for city-wide computers /copiers operating lease.
Police Department — Proposed police vehicles, promotions and merit increases An assistant at the animal
shelter and elevating two (2) part-time positions to full -time positions. Discussion was held about various
grants proposed within the budget.
Police Athletic League (PAL) — Wage adjustments to pay part- timers a higher wage. Six (6) PAL Programs
in the state. 290 -310 kids enrolled in the PAL program. Strong PAL program for the size of Dunn. PAL
program has been in place for ten (10) years.
Fire - Proposed budget reflects one (1) additional full -time employee — Total of five (5) full -time
employees. Discussed protective gear purchases — 10 -530 -3700 — Equipment needs within the Fire
Department. Council consensus was that the request for additional turn-out gear (10 -530 -3700) and radio
equipment (10 -530 -4700) be incorporated into the proposed budget. Reduced overtime account line item
�l (10- 530- 0201) by $5,500.
10:08 a.m. (10 minute break)
Building Inspections — Revenue generating department. Proposed vehicle for Code Enforcement Officer.
Deduct $5,000 in over -time account line item #10 -540 -0201.
Planning & Zoning — Eliminated ETJ and annexation expenses under consulting fees account 10 -550 -0400
with remaining $15,000 reserved for National Historic District. Eliminated plotter for mapping. Reduced
telephone account line item 10 -550 -1100.
Recreation — New position was funded in the present budget for a supervisor at the new Recreation Center.
This position will carry over in the proposed budget. Recreation Director Hudson requested an additional
employee at the new Recreation Center. The City Manager suggested that the additional full -time position
be delayed in the proposed F/Y 05 -06 budget until it is known how additional personnel will be required to
run the new facility. The council discussed paving by the community building and Recreation Center with
a projected cost of $40,000. Capital Outlay request for a new mower at $9,000. Discussion held about
hiring sufficient personnel to run the new Recreation Center. An additional position may be required at the
center before the current budget year is over. Revenues projected for the new facility would fund another
position. Recreation Director Hudson would prefer another full -time position as opposed to paving the
parking lot. Further discussion was held about maintaining the new Recreation Center, parking issues at
the community and Recreation Centers and the need for additional parking.
Senior Center— Steadily growing - no concerns with budget line items proposed
Library — Budget is consistent with last year. In the process of hiring a Library Director and will let the
new director determine and evaluate the organization to determine number of part-time positions needed.
E -911— Money received for 911 budget can only be spent on 911 purchases. Money comes from 911 tax.
Chief Benware explained how wire /wireless E -911 fund operates. Telephone companies collect fees and
funds are forwarded to the City. Money is collected from wire and wireless accounts.
Summer Hours — Manager Uskiewicz asked council to consider proposed summer hours as was approved
last year. It is proposed to change the regular city office hours from 8:00 a.m. — 5:00 p.m. to 7:30 a.m. -4:00
p.m. during the summer period of June 1, 2005 through August 31, 2005. Council stressed that all
departments and employees abide by these hours. All employees are expected to be on the job at 7:30 a.m.
Discussion was held about the advantages and disadvantages of operating under summer hours. Notify the
public of the change in hours via notices on the water bills, government channel and post signs. Motion by
Council Member Galbreath, seconded by Mayor Pro -Tem Olds to approve the summer hours of operation-
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7:30 a.m.-4:00 p.m. during the period of June 1, 2005 until August 31, 2005. Motion unanimously
approved.
Motion by Council Member Joey Tart, seconded by Council Member Maness to add a closed session to the
meeting. Motion unanimously approved.
12:10 p.m. — Motion by Council Member Galbreath, seconded by Council Member Godwin to go into
closed session pursuant to a personnel and legal matter. Motion unanimously approved.
Closed Session
1:00 p.m. — Closed Session adjourned
No action taken during Closed Session 1
Motion by Council Member Billy Tart, seconded by Council Member Maness to approve the minutes of the
closed session as taken by Attorney Pope.
1:00 p.m. — 1:45 p.m. Lunch Break
Meeting reconvened at 1:50 p.m.
City Manager Uskiewicz recapped on the following budget issues addressed:
• Adjustment made to reduce the employee raise from 2.25% to 2%
• Planning Department Consulting Fees (10 -550- 0400) - Eliminated annexation and ETJ projects
• Council has requested $7,100 for Fire Department Turn out gear line item
• Council has requested $12,710 for Fire Department Radio line item
• Added into the budget $19,810
• Deducted from the budget $13,800 from (4) different sources
• $6,010 away from funding items of concern
• ABC Board has implied they may be willing to fund additional revenue
Street Department — This budget reflects modest increases and decreases. Overall budget is down
compared to last year. Capital Outlay Account 10 -560 -7403 to purchase a tire changer/balancer for garage.
City will recoup the cost back in (3) years. Increase for Christmas decorations -Have not purchased
decorations in years. There are now approximately (135) Christmas pole decorations. Proposing to buy
approximately (50) new fixtures and phasing out at least (10) old fixtures. Discussion was held about street
pole maintenance paid to Progress Energy in maintaining the Christmas decorations. -
Council Member Godwin returned to the meeting at 2:13 p.m..
Street lighting account 10 -560 -1301 was reduced by $5,000.
Tipping Fees 10 -560 -4501 — These fees are used to pay landfill tipping fees for condemned structures that
are demolished by the city. The council discussed tipping fees paid and the process to recoup those fees
when structures are ordered demolished by the City. City Attorney Pope explained that once the City
condemns a structure, it is recorded in Lillington as a lien against the property. Once recorded, the City
tears down the structure and all of those costs are absorbed by the City. All of those costs are then a lien
against that property by that recorded ordinance. He further explained that in order for the City to collect
on that lien, they have to file a lawsuit to have the property sold in order to recoup those expenses. In most
circumstances, the expense of going through that process is greater than what the property is going to be
sold for and it is unfortunate that the city must incur the expense; however, it is necessary to clean up the
city.
The Council discussed the option of having controlled bums instead of demolitions. Fire Chief Tew
explained that to bum most of these houses would be unsafe. Also it would require owner's permission and
often asbestos is present in the structures.
Account 10 -560 -3402 Materials- Cemetery was reduced by $1100.00 — Discussed paving streets in
Resthaven Cemetery.
Account 10 -560 -6000 Curb and Gutter revolving fund — to cover cost of concrete should curb and gutter be
installed. Curb and gutter project on Bruce Drive may be forthcoming.
Sanitation Department — Modest increase of $3,000.
Powell Bill Fund — Budgeted $180,000 for Juniper Creek drainage. Resurfacing budget was reduced.
Discussion about paving streets and alleys, especially Pearsall and Sampson Street, Brunswick Drive and
alleys located downtown especially where commercial trucks drive through.
Debt Services — Summary given of loans for Capital Expenditures
General Fund Recap — To allocate additional funding for the following items:
Fire Dept. $7,100 for turn out gear
Fire Dept. $12,710 for radios
TOTAL $19,810.00
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Deducted from the following accounts to allocate additional funding for the Fire Department:
Fire Dept. OT
$5,500
Insp.OT
$5,000
Planning Dept.
$1800
Street Lighting
$5,000
Lighting
$1100
TOTAL
$18,400
Enterprise Fund — Economic Development 30- 720 -7404 is for Downtown Redevelopment- comprises 8 -10
blocks - $160,000 design for infrastructure downtown. Progress Energy would bury utility lines
downtown.
Water /Sewer Operations — Discussed water tank maintenance contract and update of this project.
30- 810 -1501— maintenance for water tanks (budgeted $136,183)
�✓ 30- 810 -1400 — travel, meetings, schools — increased to $4,500 to meet requirements to certify employees as
ORC operators
30- 810 -7407 — Capital Outlay amount of $24,000 for purchasing (2) trucks
Water Supply — Pumping- Filtering — Proposed new position. Withradded position, budget is still less than
previous year. Contract Services 30 -811 -4500 increased to $54,000 to add additional hauls of alum sludge.
Sewer Treatment Plant — 30- 821 -7400 (Capital Outlay) to obtain 4 -wheel drive unit such as a gator to use
to go downhill to pull samples from the river.
Water Rate Proposal — 3% across the board water rate increase to customers consuming 3,000 and above
gallons of water per month— Plans to obtain NC Clean Water Trust Fund Grant without impacting the
minimum water user on a fixed income. Senior citizens and fixed income citizens usually consume
minimum usage and they will see a decrease in their bill. Dropped minimum water consumption bill from
3,000 to 2,000 gallons @ $10.50. Customers consuming 3,000 and above would have a rate increase of
3 %. Water bill for 5,000 gallon user = $35.95 which would qualify the City for consideration of receiving
the NC Clean Water Trust Fund Grant.
Water Plant — Projects — The following repairs need to be made at the water plant. These combined
projects have a projected cost of approximately $250,000:
• Replace modulating valves that regulate how much water goes through the filters
• Rehabilitate one filter in anticipation of replacing media in all four filters
• Additional sterilization upgrades
Replace leaking fluoride tank
• Repairs to high service pump
• Replace discharge valves at raw water pumping station
• Replace track vac
• Replace tube settlers
There are no additional monies to accomplish these projects. It would take an additional 5% water rate
increase to accomplish these repairs. The council discussed the seriousness of these issues.
Waste Treatment Plant — Did not receive 3 million grant to help with sewer system overflows. The
following permits are required:
Permit for Water Treatment
Permit for Waste Treatment
Permit for Land Application Program
Permit to operate a Wastewater Collection System (This collection system is subject to overflows)
Can resubmit another application to obtain the NC Clean Water Trust Fund Grant funding. Millions of
dollars down the road to upgrade the WWTP. State revolving loan fund (SRF) provides loans to upgrade
and expand WWTP. The current interest rate offered through this fund is 2.3% for (20) year payback.
Proposing a 201 amendment to position the City to accomplish projects (equalization program to stop the
overflows) in year 2011. Nine (9) million dollars may be needed in 2011. Discussion held about obtaining
NC Clean Water Trust Fund Grant, and the urgency in addressing the needs of the water and wastewater
plants. Highest priority is the Clean Water Trust Fund Grant and adjusting the water rates.
Council discussed that an 8% water rate increase would pay for project priorities. If an 8% water increase
was implemented this budget year, the City of Dunn would be less competitive in the rate charged to bulk
users. The average 5,000 gallon water user's rate would increase to $37.12 with an 8% increase.
4:00 p.m. (10 minute break)
Further Discussion held about water rate schedules.
Drainage — Discussion held about ditch between Divine and Pearsall Street — ditch runs behind homes -
$180,000 to repair entire ditch — Suggested funding this project in phases - $100,000 for I" phase -
Discussion with City Attorney about special assessing these property owners. Attorney Pope explained that
if the City imposed the problem upon the property owners, then the property owners can not be assessed
and the city would be responsible. The City rerouted the drainage lines in past years.
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Tax Rate Increase — Discussion held about the current tax rate. Will not propose a tax rate increase this
year since water rates will be increased; however, a tax rate increase may be proposed for budget year
06 -07.
Revenues - Manager Uskiewicz and Finance Director Renee' Daughtry explained revenue projections as
addressed by the council. The council discussed the Powell Bill surplus fund and the projects it could be
used for.
Manager Uskiewicz will provide the council with a revised budget with the proposed changes discussed
today. The council will set a date for another special call budget work session meeting. Suggested date
was Friday morning, May 27, 2005.
With no further business to discuss, the meeting was adjourned at 5:40 p.m.
A� tt n est: ,
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F"�'�- V.
Debra G. West
City Clerk
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U. al Snipes
Mayor