0527200545
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special Call Budget Work Session on Friday, May 27,
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, Finance Director Renee' Daughtry, Fire Chief
Austin Tew, City Attorney P. Tilghman Pope, and City Clerk Debra West.
INVOCATION
Mayor Snipes opened the meeting at 8:15 a.m. and asked Council Member Billy Tart to give the
✓ invocation. Afterwards, the pledge of allegiance was repeated.
Mayor Snipes yielded to Manager Uskiewicz.
Manager Uskiewicz gave an overview of the revisions made to the proposed budget. The revised budget
resulted in an additional $20,000 in revenue, thereby reducing the prior year's surplus by $20,000. This
was accomplished by a donation from the ABC Board.
He further explained that the council has been provided calculations that were requested with regard to
water and sewer revenues and the rates that would reflect those necessary changes. Some modifications
were made to capital expenditures, and as a result, he is asking that $155,000 be pulled from the fund
balance on a one -time basis. Mr. Uskiewicz stated that this budget is now available for council's
deliberation.
Mayor Snipes opened the floor for further discussion.
Mayor Snipes asked if there were any concerns about the changes that were made during the budget work
session on May 17, 2005.
Engineering Design
Downtown District
Council Member Maness asked for specifics as it pertains to the $160,000 engineering fee for water and
sewer replacement in the downtown district. What will the $160,000 engineering study consist of? He
asked if the engineering can be accomplished in phases.
" Manager Uskiewicz responded that it is not a study, but a design document to create as -built plans whereby
blueprints could be created for placing this project out for bid.
Council Member Maness questioned if the water and sewer fund would be paying for the downtown
development.
Mr. Uskiewicz explained that whenever the sidewalks, curb and gutter, pavement, etc. is removed for water
and sewer replacement, then the water and sewer fund may be used to place it back.
Mayor Snipes stated that he understood Mr. Maness' concern; however, this engineering fee has nothing to
do with the design of a brick sidewalk.
Council Member Maness asked if this council would be implementing these changes within the next one to
two years. If not, the result will be a $160,000 blueprint sitting on the shelf. He added that he is concerned
about spending $160,000 on an engineering plan that may not be implemented.
Mayor Pro -Tem Olds stated that he would hope that if this council allocated funds for a project, it would be
accomplished in a timely manner.
Mayor Snipes stated that City Engineer Ed Powell made the council aware that water and sewer
replacement for the downtown district is long overdue. He asked for Assistant City Manager/Public Works
Director Ronnie Autry's comments.
Mr. Autry stated that water and sewer is definitely needed. He added that it has always been put in place to
tie in the replacement with any other downtown revitalization. Mr. Autry stated that as Mr. Uskiewicz
explained earlier, when water and sewer is replaced, pavement will be removed. If the council proceeds
with the engineering design, it would actually entail designing and profiling the streets to locations of
buildings, sidewalks, curb and gutter. Everything would be totally designed in a package so at that time,
the council would be able to do any other improvements.
Mr. Autry pointed out that they would not want to install new water and sewer, tear up the streets and pave
it back if they plan to come back to re- grade, realign the curb and gutter or change the sidewalk. This
would all be entailed in the engineering design. The design would involve everything that would have to
be removed or altered in any total downtown revitalization.
Council Member Maness stated that it would cost approximately 2.5 million dollars just to accomplish the
water and sewer for downtown.
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In response to Mr. Maness, Manager Uskiewicz stated that he was correct. Discussions were held with
City Engineer Ed Powell about looking at different finding resources. Mr. Uskiewicz reminded the council
that Mr. Powell identified many funding sources the City could pursue such as state revolving funds and
low interest money with twenty year paybacks.
Mr. Maness stated that if this is implemented, water and sewer rates may need to be increased again next
budget year (F/Y 2006 -07). An additional 2.5 million dollars in revenue sources will be needed for the F/Y
2006 -07 budget. He pointed out that the council should carefully consider if something is a need or a want.
Council Member Godwin stated that part of the reason for increasing water and sewer rates is to qualify the
City to receive additional grants to offset costs.
Further discussion was held about downtown revitalization, obtaining grant funds and water /sewer rate
increase projections.
Mayor Snipes asked if the council was satisfied with the changes made to the General Fund and
Water /Sewer Fund. Council consensus was satisfied. Mayor Snipes reminded the council that included in
the budget proposal was the 2% COLA increase and changes in healthcare provided to retirees.
Water /Sewer Rate Increases
Mr. Uskiewicz made the following recommendations for water /sewer rate increases in order to reach the
council's goals:
Option #1 - 4% Increase for Bulk Customer and 7% Increase for residential customer or
Option #2 - 3% Increase for Bulk Customer and 8% Increase for residential customer
Discussion was held about minimizing the impact increased water rates will have on the citizens.
Discussion was also held about Dunn's competitiveness in keeping rates lower than surrounding areas.
Council consensus was to direct the City Manager to bring forth in the proposed FY 05/06 budget, a 4%
water rate increase for bulk customers and a 7% increase for residential customers. Mr. Uskiewicz stated
that these revenue adjustments will be reflected in the proposed budget that will be adopted on June 2,
2005.
Expenditure Proposals/Projects
Mayor Snipes recapped on the following expenditure proposals ($165,000) within the budget. Dollar
amounts are approximations.
• $20,000 for the Old Machine and Welding Building
• $90,000 for the purchase of real property (Fisherman's Paradise)
• $15,000 to hire a consultant to process an application to place the downtown district on the
National Historic Registry
• $15,000 for paving streets in Resthaven Cemetery
• $25,000 for repairs to the Divine Street Ditch
Manager Uskiewicz explained that the ABC Board is increasing their donation to the City by $10,000.
After meeting with the ABC Board, the City will be receiving $70,000.
Council Member Maness pointed out that surplus from last year was a result of increased revenues. It did
not include any of the Recreation Center donated funds. Last year's surplus was created because the City
had more revenues than expenses.
Finance Director Renee' Daughtry explained that currently the recreation center donated funds are in the
capital project funds. Once the facility is completed, the funds will close out and everything will roll over
into the General Fund.
Mr. Maness responded that he understood but it is not accurate for Mr.,Uskiewicz to say that the City is
going into the fund balance for $155,000. He does not agree with this statement in principle. The City is
spending the entire budget surplus from last year to balance this budget before addressing the items outside
the budget. Unless you have another budget surplus at the e_ nd of this fiscal year, the City will be short
$205,000.
Mayor Snipes stated that his perception is that everything will continue to get better, that ABC revenues
will continue to increase as well as property taxes and other revenues. They must be mindful of the current
budget year and next year, but history shows that the City has always budgeted very conservatively on the
revenue side.
Further discussion was held about revenues, and the progress being made in the City.
Discussion was held about the possibility of purchasing the Fisherman's Paradise property in the downtown
area to create a green space, parking area and marketing the building.
After further discussion about this property, motion was made by Mayor Pro -Tem Olds, seconded by
Council Member Galbreath to direct the City Manager to include in the proposed budget, the projects
before the council at this budget workshop and included within the Manager's budget summary.
Mayor Snipes asked if there was further discussion.
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Discussion was held about dipping into the fund balance. Appreciation was expressed to Council Member
Maness for the points and concerns he has raised with reference to dipping into the fund balance. To
achieve some of the goals set by this council, it may require dipping into the savings. Sometimes you must
spend money to make money. If the revenue streams decrease, then the council will cease spending.
Council Member Maness pointed out that the City of Dunn's group weighted average fund balance has
been decreasing consistently compared to their peer group (municipalities with a population of 2,500-
9,999). The peer groups weighted average on their fund balance is at 62% while Dunn is at 41 %. Dunn is
21% below the group average of their peers. Once the City of Dunn hits the halfway point indifference
between their fund balance group weighted average and those of their peers, then they go on alert with the
state treasury department. There is a reason that it is important to keep the fund balance growing instead of
depleting it. Mr. Maness stated that he is in favor of progression, but the council also has the responsibility
of being fiscally conservative in maintaining those ratios. A disaster, such as a hurricane, could put the
City in a very precarious position. When looking at the numbers, the trend and the pattern, there is a reason
to be concerned.
Mayor Snipes asked if there was further discussion on the motion. Hearing none, motion unanimously
approved.
Discussion was held about the City's appearance, blighted areas and downtown beautification projects.
Information
Attorney Pope announced that the downtown revitalization committee of the Dunn Area Chamber of
Commerce is organizing a retreat on Tuesday, June 7, 2005 to attend a presentation pertaining to downtown
revitalization — "empty storefronts before and after revitalization" in the City of Clinton. The City of
Clinton Planner will give the presentation. Mr. Pope will notify the council once the date is confirmed.
Council Member Godwin pointed out that he would like to see the Greyhound Bus Stop moved from its
current location on E. Cumberland Street.
Manager Uskiewicz responded that he just received notification that effective June 21, 2005, Greyhound
Lines, Inc. will discontinue service to Dunn. Greyhound is willing to coordinate with any governmental
officials as they may seek to develop or subsidize alternative transportation options.
Mayor Snipes explained that Greyhound was terminating about ten stops in various towns.
Mayor Snipes announced that the North Carolina League of Municipalities will be holding a Youth Summit
meeting in Hickory, NC on October 15, 2005.
Council Member Galbreath suggested that the City look into advertising tourism on billboards along I -95.
Council Member Billy Tart responded that the tourism authority has used billboards in the past but found
that it wasn't productive. The tourism group can look at this issue again. He pointed out that the tourism
authority money comes from the motel tax.
Mayor Snipes commented that he thinks once the Hampton Inn's signs are placed, it will attract many
tourists to stay in Dunn.
Public Works Director Ronnie Autry announced that the Tyler Park parking lot is being paved.
With no further business to discuss, the meeting was adjourned at 9:30 a.m.
Attest:
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Debra G. West
City Clerk
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