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05132002MM MINUTES CITY OF DUNN DUNN, NORTH CAROLINA THE CITY COUNCIL OF THE CITY OF DUNN HELD A SPECIAL CALL BUDGET WORKSESSION ON MONDAY, MAY 13, 2002, AT 6:00 P.M. IN THE DUNN MUNICIPAL BUILDING. PRESENT WAS MAYOR ABRAHAM OUDEH, MAYOR PRO -TEM MIKE WOMBLE, COUNCILMEMBERS GEORGE ROBINSON, JOEY TART, TOBY SUMNER, AND PAUL BASS. ALSO PRESENT WAS INTERIM CITY MANAGER RONNIE AUTRY, INTERIM HUMAN RESOURCES OFFICER MOSES GALLION, FINANCE DIRECTOR RENEE' DAUGHTRY, CAPTAIN MORRY DENNING, CAPTAIN RONNIE RADCLIFFE, RECREATION DIRECTOR PERRY HUDSON, PUBLIC UTILITIES DIRECTOR JOE CAMPBELL, PUBLIC WORKS SUPERINTENDENT THOMAS JERNIGAN, CHIEF BUILDING INSPECTOR SHANE HUDSON, FIRE CHIEF AUSTIN TEW, CITY PLANNER/CODE ENFORCEMENT OFFICER KELLY BOLLINGER, CITY ATTORNEY P. TILGHMAN POPE, DEPUTY CLERK DEBRA WEST, AND DAILY RECORD REPORTER LISA FARMER. INVOCATION MAYOR OUDEH OPENED THE MEETING AT 6:01 P.M. AND ASKED CAPTAIN MORRY DENNING TO GIVE THE INVOCATION. AFTERWARDS, THE PLEDGE OF ALLEGIANCE WAS REPEATED. INTERIM CITY MANAGER AUTRY REVIEWED THE HIGHLIGHTS OF THE PRELIMINARY 2002- 03 BUDGET. REVENUES! GENFRAT, A. AD VALOREM TAXES: FIGURES ARE BASED ON A 98% COLLECTION RATE WITH AN APPROXIMATE TAX BASE OF $424,016.251.00 WITH A TAX RATE OF .46 PER $100.00 VALUATION. B. THE PROJECTED STATE REVENUES ARE $747,000.00: IT APPEARS THAT NONE OF THESE FUNDS WILL BE AVAILABLE AND HAVE NOT BEEN BUDGETED AT THIS TIME. C. $339,119.00 HAS BEEN OBLIGATED FOR THE TRANSFER FROM THE WATER FUND TO THE GENERAL FUND TO COVER JOINT COSTS OF PERSONNEL, MATERIALS, INSURANCE AND ASSOCIATED COSTS. D. $1,018,193.00 HAS BEEN APPROPRIATED FROM PRIOR YEAR'S UNAPPROPRIATED FUND BALANCE TO COVER OPERATING EXPENDITURES. E. $187,000.00 HAS BEEN OBLIGATED FROM AVERASBORO FIRE DISTRICT REVENUES FOR OPERATING AND CAPITAL COSTS FOR FIRE SERVICE. REVENUES: WATER A. WATER AND SEWER RATES FOR RESIDENTIAL AND BULK WATER CUSTOMERS WILL NOT BE INCREASED NEXT YEAR. EXPENDTTURF.S: GENERAL A. GENERAL FUND OPERATING HAS BEEN REDUCED COMPARABLE TO THE FY 01 -02 BUDGET. B. EMPLOYEE HOSPITALIZATION INSURANCE HAS BEEN BUDGETED AT $275.00/ EMPLOYEE WHICH IS AN INCREASE OVER OUR CURRENT $254.00/EMPLOYEE. THIS INCREASE IS PROBABLY NOT ADEQUATE. UPDATED FIGURES ARE SUPPOSE TO BE AVAILABLE DURING THE MONTH OF JUNE. THE HOSPITAL INSURANCE LINE ITEM FOR THE GOVERNING BODY HAS BEEN ELIMINATED. UPDATED INSURANCE INCREASES FOR ALL OTHER INSURANCE POLICIES ARE EXPECTED IN SEVERAL WEEKS. C. ALL CAPITAL EXPENDITURES HAVE BEEN REMOVED FROM THIS BUDGET. D. ALL DEBT SERVICE REQUIREMENTS HAVE BEEN APPROPRIATED IN THIS BUDGET TO MEET OUR DEBT OBLIGATION. OUR STATEMENT OF DEBT IS ATTACHED FOR YOUR REVIEW. EXPENDTTTIRES: WATER. A. ALL DEBT SERVICE REQUIREMENTS HAVE BEEN OBLIGATED IN THE FY 2002 -2003 BUDGET TO MEET OUR DEBT RESPONSIBILITIES. MR. AUTRY STATED THE PROPOSED BUDGET DOES NOT PROVIDE FOR A COST OF LIVING INCREASE, BUT FUNDS HAVE BEEN APPROPRIATED FOR THE LONGEVITY SUPPLEMENT. HE ADDED THIS IS A PRELIMINARY BUDGET THAT WILL REQUIRE EXTENSIVE DISCUSSION BY THE MAYOR AND COUNCIL. HE FURTHER STATED OPTIONS WILL HAVE TO BE DISCUSSED TO LOWER THE FUND BALANCE APPROPRIATION, WHETHER IT IS BY (I) REDUCTION IN SERVICES, (2) REDUCTION IN WORK FORCE, (3) PROPERTY TAX INCREASE OR (4) A COMBINATION OF ALL OR SOME OF THE ABOVE. INTERIM CITY MANAGER AUTRY STATED WITH THIS BUDGET, THREE (3) VACANT POSITIONS IN THE POLICE DEPARTMENT HAVE BEEN DELETED, TWO (2) FULL TIME AND b41 ONE (1) PART -TIME POSITION IN THE PUBLIC WORKS DEPARTMENT HAS BEEN DELETED AND ALSO SUMMER HELP MONIES FOR WEED EATING AND MOWING LOTS HAVE BEEN DELETED. COUNCILMEMBER BASS ASKED MR. AUTRY WHAT WAS THE CITY GOING TO DO ABOUT CUTTING ALL THE WEEDY LOTS IN TOWN. MR. AUTRY RESPONDED CREWS WILL HAVE TO BE TAKEN OFF OTHER JOBS TO CUT LOTS. MR. BASS SUGGESTED MAKING THE LOT OWNERS PAY TO HAVE THESE LOTS CUT. MR. AUTRY STATED THAT CITY ATTORNEY TILGHMAN POPE IS WORKING ON MODIFYING THE LETTER THAT IS SENT TO PROPERTY OWNERS OF WEEDY LOTS AND WITH THE COLLECTION PROGRAM SET UP BY THE FINANCE OFFICE, THE CITY SHOULD START RECEIVING PAYMENT FOR MOWING THESE LOTS. COUNCILMEMBER ROBINSON ASKED MR. AUTRY HOW MANY MECHANICS DID THE CITY HAVE. MR. AUTRY STATED THAT ONE MECHANIC POSITION WAS ELIMINATED LEAVING TWO MECHANICS AT THE GARAGE. MR. ROBINSON STATED THAT THE CITY NEEDED ANOTHER MECHANIC. COUNCILMEMBER BASS AGREED. MAYOR PRO -TEM WOMBLE STATED THAT HE AGREED WITH MR. AUTRY'S SUMMARY THAT DIFFICULT DECISIONS WOULD HAVE TO BE MADE BUT AT THIS POINT HE SUGGESTED WORKING BACKWARDS ON THE BUDGET. HE ADDED THAT IF THE COUNCIL COULD DECIDE ON THE AMOUNT OF DEFICIT THE BUDGET COULD END WITH, THEN THEY COULD WORK BACKWARDS FROM THERE AND DETERMINE WHAT KIND OF COST TO CUT AND /OR TAXES THAT MAY NEED TO GO UP TO BRIDGE THAT GAP. MAYOR PRO -TEM WOMBLE STATED THEY NEEDED TO PROJECT WHAT THE MINIMUM FUND BALANCE SHOULD BE ON JUNE 30, 2004. HE ADDED THAT WOULD BE BASED ON WHAT THE STATUTORY MINIMUM FUND BALANCE IS PLUS WHATEVER ADDITIONAL CUSHION THE COUNCIL THINKS IS NECESSARY. HE FURTHER STATED THEN THEY COULD SEE WHERE THE FUND BALANCE IS NOW AND THAT GIVES THEM THE MAXIMUM AMOUNT THAT THE FUND BALANCE COULD GO DOWN. HE STATED THAT AMOUNT COULD BE PLUGGED INTO THE BUDGET AND THAT WOULD HELP DETERMINE THE MAGNITUDE OF CUTS THAT NEED TO BE MADE. MR. WOMBLE STATED IF ESTIMATED EXPENDITURES WERE 6.5 MILLION, THE STATUTORY MINIMUM FUND BALANCE IS 8% OF ANNUAL REVENUES. HE ADDED IF WE HAD ANOTHER HURRICANE, THEN 8% WOULD NOT BE ADEQUATE. HE FURTHER STATED IT WOULD BE FAVORABLE TO HAVE 20% MINIMUM. MR. WOMBLE ASKED FINANCE DIRECTOR RENEE' DAUGHTRY WHAT THE FUND BALANCE WOULD BE AT THE END OF THIS YEAR. SHE RESPONDED 2.8 MILLION. MR. WOMBLE STATED WITH 20% BEING THE MINIMUM, THEN 1.8 MILLION DOLLARS WOULD BE THE MOST THE FUND BALANCE COULD GO DOWN. MR. WOMBLE STATED THAT IF WE COULD WORK BACKWARDS TO DETERMINE WHAT THE TOTAL OF EXPENDITURES NEEDS TO BE, THEN WE COULD BACK UP AND THEN SAY IF THE POLICE DEPARTMENT IS 20% OF THE TOTAL BUDGET, HOW CAN THEY REDUCE 20% OF THE DEFICIT. HE ADDED THIS IS ONE METHODOLOGY TO HELP US DETERMINE HOW WE WILL GET TO WHERE WE NEED TO BE. MR. WOMBLE STATED THE BEST WAY TO PROCEED IS BY THE COUNCIL DECIDING WHAT PERCENTAGE OF REVENUES THEY WANT TO REMAIN IN THE FUND BALANCE ON JUNE 30, 2004 AND IF THEY CAN DECIDE UPON THAT FIGURE, THEN THEY CAN TAKE THAT DIFFERENCE, DIVIDE BY TWO AND THAT WILL BE THE MAXIMUM DEFICIT THAT CAN BE ON THIS BUDGET. HE ADDED FOR AN EXAMPLE, IF THE DIFFERENCE CAME TO $700,000.00, THEN TAXES WOULD HAVE TO BE RAISED OR CUT SPENDING BY $400,000.00. HE FURTHER STATED THEN DISCUSSIONS COULD BEGIN ON HOW TO DO THAT, WHICH WILL BE MOST DIFFICULT. COUNCILMEMBER BASS STATED THAT WITH PEOPLE OUT OF WORK, THEY NEED NOT EVEN THINK ABOUT RAISING TAXES. MR. WOMBLE STATED IF THE CONSENSUS WAS NOT TO RAISE TAXES, THEN $400,000.00 WORTH OF PAYROLL WOULD HAVE TO BE CUT. INTERIM CITY MANAGER AUTRY STATED IN REFERENCE TO YEAR 2004, THEY ARE NOT TAKING INTO CONSIDERATION THE %, CENT SALES TAX REVENUE THAT THE STATE WILL START GIVING MUNICIPALITIES NEXT JULY. MAYOR PRO -TEM WOMBLE STATED HE DID NOT WANT TO SEE THEM REPEAT THE MISTAKES OF THE GENERAL ASSEMBLY IN TAKING IN ACCOUNT REVENUES THEY DO NOT HAVE. FINANCE DIRECTOR RENEE' DAUGHTRY STATED SHE HAD PROJECTED THAT ON JUNE 30, 2004, THE CITY MAY HAVE APPROXIMATELY $600,000.00 AT THE CURRENT RATE THEY ARE GOING. SHE ADDED THAT GENERAL STATUTES WOULD REQUIRE APPROXIMATELY $550,000.00. SHE FURTHER STATED IF A HURRICANE OR FLOODING OCCURRED, FUNDS WOULD NOT BE THERE AND CASH FLOW WOULD BE DEPLETED. 842 MAYOR PRO -TEM WOMBLE STATED BECAUSE OF THE FUND BALANCE ON HAND DURING HURRICANE FRAN, THE CITY WAS ABLE TO RESPOND QUICKLY AND THE COUNCIL CAN'T LOSE SIGHT OF THAT. MR. AUTRY STATED THAT JUNE 30, 2001 THEY HAD 3.6 MILLION. HE ADDED THAT THE PROJECTED BALANCE FOR JUNE 30, 2002 WILL BE 2.8 MILLION. MR. WOMBLE STATED THAT WHAT HAPPENS IS YOU CAN GO INTO THE HOLE ABOUT $588,000.00 EACH YEAR, THAT WOULD LEAVE 1.625 MILLION IN FUND BALANCE ON JUNE 30, 2004. HE ADDED IF THAT'S THE CASE HERE, THEN WE HAVE $509,000.00 TO DEAL WITH, WHICH WE EITHER HAVE TO REDUCE SPENDING OR INCREASE REVENUES. MAYOR PRO -TEM WOMBLE STATED THAT THE COUNCIL NEEDS TO DECIDE IF THEY AGREE ON 25% OF EXPENDITURES OF FUND BALANCE TO REMAIN AT JUNE 30, 2004. HE ADDED THIS WILL BE THE FUND BALANCE LEFT FOR THE CITY WHEN THIS COUNCIL LEAVES OFFICE. COUNCILMEMBER BASS STATED HE AGREED WITH MR. WOMBLE, BUT YOU IIAVE TO KNOW THE AMOUNT NEEDED TO OPERATE WITH. COUNCILMEMBER TART STATED THAT CUTS HAVE ALREADY BEEN MADE FROM THIS BUDGET AND THEY WILL HAVE TO GO BACK TO EACH DEPARTMENT FOR ADDITIONAL CUTS IF TAXES ARE NOT RAISED. INTERIM CITY MANAGER AUTRY STATED IF THIS BUDGET WAS CUT ANOTHER $400,000.00 TO $500,000.00, THEN THEY ARE TALKING ABOUT CUTTING BIG NUMBERS WHICH MAY INCLUDE CUTTING PROGRAMS, SERVICES, PAL PROGRAM, ETC. HE ADDED HOW WERE THEY GOING TO DO IT. HE FURTHER STATED IF CITIZENS ARE PAYING MORE TAXES, THEN THEY EXPECT THE SAME OR MORE SERVICE. FINANCE DIRECTOR RENEE' DAUGHTRY STATED THAT ALL CAPITAL REQUESTS WERE CUT FROM THIS BUDGET, BUT THERE WOULD BE ITEMS THAT WILL HAVE TO BE PURCHASED IF THE NEED ARISES. SHE ADDED THIS BUDGET DOES NOT HAVE SUFFICIENT APPROPRIATIONS. COUNCILMEMBER BASS STATED HE COULD FIND $7,000.00 TO $10,000.00 SAVINGS BY CUTTING OUT THE INSURANCE COVERAGE FOR COUNCILMEMBERS. MR. AUTRY STATED THAT HAS BEEN DONE. COUNCILMEMBER ROBINSON STATED HE WOULD BE WILLING TO FORFEIT HIS COUNCIL ✓ PAY. COUNCILMEMBER BASS AND MAYOR OUDEH AGREED. MAYOR PRO -TEM WOMBLE STATED THE PROBLEM HE HAS WITH THIS IDEA IS THAT IN THE FUTURE PEOPLE THAT WANT TO RUN FOR OFFICE WILL INCUR EXPENSES TO RUN AND SHOW UP FOR MEETINGS. HE ADDED THIS PAY AFFORDS THOSE PEOPLE WHO GET PAID BY THE HOUR, THE OPPORTUNITY TO SERVE THE PUBLIC. HE ADDED THAT WHEN TALKING ABOUT HEALTH INSURANCE AND PAYMENTS TO VOLUNTEERS, HOPEFULLY THIS IS A SHORT TERM PROBLEM, AND THEY SHOULDN'T CUT OFF THEIR ARM TO MOVE FORWARD. MAYOR OUDEH ASKED MR. WOMBLE TO FORFEIT HIS PAY FOR THE NEXT TWO YEARS. MR. WOMBLE RESPONDED IT WOULD BE POLITICALLY IMPOSSIBLE FOR THE NEXT BOARD TO GET IT BACK. HE ADDED HE WOULD LIKE TO SEE THE PLANNING BOARD AND BOARD OF ADJUSTMENTS RECEIVE COMPENSATION BUT RIGHT NOW IT WAS NOT POSSIBLE. MAYOR PRO -TEM WOMBLE STATED HE KNEW COUNCILMEMBER BASS DISAGREED, BUT THEY NEED TO GET A CONSENSUS ON WHAT THE FUND BALANCE SHOULD BE ON JUNE 30. 2004 SO THEY CAN WORK BACKWARDS TO KNOW EXACTLY WHAT KIND OF NUMBERS THEY'RE DEALING WITH. COUNCILMEMBER BASS STATED HE WASN'T AGAINST THIS AND AGREED WITH MR. WOMBLE. HE ADDED THAT RAISING TAXES WAS NOT IN HIS MIND. HE FURTHER STATED TO RAISE TAXES WOULD BE SUICIDE AND HE FELT THEY NEEDED TO WORK THEIR OWN PROBLEMS OUT WITHOUT RAISING TAXES. COUNCILMEMBER SUMMER STATED THAT MR. AUTRY AND MS. DAUGHTRY IIAVE CUT THE BUDGET AS MUCH AS THEY POSSIBLY COULD AND IT WOULD BE UP TO THE COUNCIL TO CUT LINE ITEM BY LINE ITEM. COUNCILMEMBER ROBINSON STATED WHEN YOU START CUTTING THE POLICE DEPARTMENT, PUBLIC WORKS AND FIRE DEPARTMENT, IT'S BAD. COUNCILMEMBER TART STATED HE DID NOT WANT TO RAISE TAXES. HE ADDED THEY ALL MAY BE AGAINST RAISING TAXES, BUT STILL HAVE TO DO IT. MAYOR OUDEH ASKED MR. WOMBLE TO EXPLAIN WORKING BACKWARDS. 843 MR. WOMBLE STEPPED TO THE BOARD AND EXPLAINED TO THE COUNCIL THIS APPROACH: 7 -1 -01 (3.6M FUND BALANCE) 6 -30 -02 (- 800,000.00) 7 -1 -02 (2.8M FUND BALANCE) 6 -30 -03 (MUST DETERMINE THIS #) ($588,000.00) 7 -1 -03 (2.2M FUND BALANCE) 6 -30 -04 (MUST DETERMINE THIS #) ($588,000.00) 7 -I -04 (25 %= 1.625M FUND BALANCE) BASED ON THESE FIGURES, THE CURRENT DEFICIT OF $1,018,193.00 WOULD HAVE TO BE REDUCED TO $588,000.00 WHICH WOULD MEAN $430,000.00 MUST BE FOUND BY ADDITIONAL CUTS IN SPENDING OR BY RAISING TAXES. COUNCILMEMBER BASS STATED 25% WOULD BE GOOD BUT THEY MUST ALSO BE REALISTIC. HE ADDED HE AGREED WITH 25% AS LONG AS TAXES WERE NOT RAISED. HE FURTHER STATED YOU CANNOT CUT THIS BUDGET BY ANOTHER $430,000.00. MAYOR PRO -TEM WOMBLE STATED HE WAS ONLY ASKING IF THIS IS THE PROCESS THE COUNCIL WOULD LIKE TO USE, AND IF SO THEY MUST COME UP WITH THIS PERCENTAGE. INTERIM CITY MANAGER AUTRY STATED HE THOUGHT MR. WOMBLE'S CONCEPT WAS DEFINITELY GOOD AND 25% IS NOT UNREALISTIC. HE ADDED HIS THOUGHTS ARE WHEN YOU LOOK AT THE DIFFERENCE BETWEEN THE TWO YEARS EVEN THOUGH YOU CAN'T TAKE MONEY TO THE BANK THAT'S NOT THERE, THAT HE DOESN'T SEE HOW THIS BUDGET CAN BE REDUCED MUCH MORE. HE FURTHER STATED BY USING MIKE'S CONCEPT, IF THEY TOOK 75% OF THE MONIES THIS YEAR AND 25% OF THE MONIES NEXT YEAR, THEN THE MONEY THEY WOULD USE FOR THIS YEAR'S FUND BALANCE WOULD BE AROUND $881,000.00 VERSUS 1 MILLION. COUNCILMEMBER TART ASKED MR. AUTRY WHEN WOULD PROPERTY RE- EVALUATIONS TAKE EFFECT. MR. AUTRY RESPONDED JULY I, 2003. COUNCILMEMBER TART ASKED MS. DAUGHTRY IN CASE OF A NATURAL DISASTER, WHAT DID SHE THINK THE MINIMUM FUND BALANCE SHOULD BE. SHE RESPONDED 25% IS A GOOD NUMBER BUT THE COUNCIL WILL HAVE TO MAKE THAT DECISION. SHE STATED AS YOU DEPLETE THE FUND BALANCE, INTEREST INCOME STARTS TO FALL DRASTICALLY AND EVERYTHING BECOMES COMPACTED. CAPTAIN RONNIE RADCLIFFE STATED MR. AUTRY AND MS. DAUGHTRY HAD WORKED VERY HARD ON THIS BUDGET. HE ADDED THEY HAD BEEN TO EACH DEPARTMENT HEAD' AND HAD CUT THEIR BUDGETS AND IT WILL BE HARD FOR THE COUNCIL TO GET THIS MONEY FROM THE POLICE OR PUBLIC WORKS. HE FURTHER STATED THAT HIS DEPARTMENT HAS SEEN A DECREASE IN SPENDING SINCE THEY STARTED USING A PRE - APPROVAL FORM FOR EACH PURCHASE. COUNCILMEMBER BASS AND MR. WOMBLE THOUGHT THIS WAS A GREAT IDEA. MAYOR PRO -TEM WOMBLE STATED THIS COUNCIL MUST DECIDE WHAT KIND OF FUND BALANCE THEY ARE WILLING TO FACE THE PUBLIC WITH. HE ADDED THIS IS THE NUMBER THEY MUST START AT AND HE DOESN'T KNOW ANYONE ON THE COUNCIL WITH INTENTIONS OF RAISING TAXES OR CUTTING SPENDING BECAUSE THEY HAVEN'T GOT THAT FAR YET. HE FURTHER STATED ALL THEY ARE TRYING TO DECIDE IS AT THE END OF TWO FISCAL YEARS, WHAT WILL THE FUND BALANCE BE. COUNCILMEMBER BASS STATED HE UNDERSTOOD WHAT MR. WOMBLE WAS SAYING BUT HE COULDN'T SEE 25% MORE BEING CUT FROM THIS BUDGET. MAYOR OUDEH ASKED MR. WOMBLE WHY WAS IT MORE LOGICAL TO HAVE 25% VERSUS 20% SUGGESTED BY COUNCILMEMBER TART. MAYOR PRO -TEM WOMBLE STATED THE REASON HE SAID 25% WAS THAT IF WE HAD A NATURAL DISASTER, HE DID NOT WANT THERE TO BE LESS THAN THE STATUTORY MINIMUM WHICH IS $480,000.00 LEFT IN THE FUND BALANCE. HE ADDED IF $480,000.00 ADDED TO I MILLION (WHICH IS WHAT WAS SPENT DURING HURRICANE FRAN) THEN THAT GIVES YOU I MILLION, 480 THOUSAND DOLLARS AND SO 25% IS 1.5 MILLION. FINANCE DIRECTOR RENEE' DAUGHTRY STATED THE OTHER THING TO KEEP. IN MIND WITH 25 %, IS IT IS ONLY ABOUT THREE MONTHS OF CASH FLOW. COUNCILMEMBER TART REMINDED THE COUNCIL THAT 25% IS ONLY A GOAL AND IF THIS GOAL CAN'T BE REACHED THEN THEY WILL HAVE TO BACK UP. 844 i s , MOTION BY MAYOR PRO —TEM WOMBLE, SECONDED BY COUNCILMEMBER ROBINSON TO ADOPT AS A PLANNING GOAL TO HAVE A MINIMUM 25% FUND BALANCE BASED ON ANTICIPATED EXPENDITURES OF 6 MILLION JUNE 30, 2004. MOTION CARRIED 4 -1. AYES NOES WOMBLE BASS ROBINSON TART SUMNER INTERIM CITY MANAGER AUTRY STATED IF THIS IS THEIR GOAL AND PLANNING FOR TWO YEARS WITH THE DIFFERENCE OF 1.3 MILLION USING 6 MILLION. HE ADDED THEN HOW DO THEY SPLIT THESE TWO YEARS UP. HE FURTHER STATED WITH THIS LARGE AMOUNT OF MONEY, HE DID NOT SEE HOW THEY COULD SPLIT THIS AMOUNT 50150. MAYOR PRO —TEM WOMBLE STATED HE WOULD OFFER 60140. MR. AUTRY STATED THAT WOULD MEAN AN ADDITIONAL $240,000.00 MUST BE CUT FROM THIS YEARS BUDGET AND $520,000.00 FROM NEXT YEAR. MR. WOMBLE STATED THAT ONCE FINANCE DIRECTOR RENEE' DAUGHTRY CONFIRMED 6 MILLION AND FROM THERE HAVE MR. AUTRY GO BACK TO THE DEPARTMENT HEADS FOR THEM TO MAKE ADDITIONAL CUTS AND THEN BRING THIS BACK TO THE COUNCIL. HE ADDED THE DEPARTMENT HEADS CAN COME UP WITH THIS NUMBER BETTER THAN THE COUNCIL. HE FURTHER STATED THE DEPARTMENT HEADS WILL HAVE TO BE INNOVATIVE IN FINDING CUTS, MAYOR PRO —TEM WOMBLE STATED HE DID NOT WANT THE COUNCIL TO FORGET THE DISPATCH ISSUE AND A SUBSTANTIAL AMOUNT OF THIS MONEY COULD BE GAINED FROM THIS ONE ISSUE. HE ADDED THAT IN MOVING FORWARD THEY DO NOT NEED TO FORGET ABOUT THIS. HE FURTHER STATED DUNN WAS THE ONLY CITY IN THE COUNTY THAT FUNDS DISPATCH AT THEIR OWN EXPENSE WHICH INCLUDES HELPING TO PAY FOR EVERYONE ELSE IN THE COUNTY. HE STATED HE THOUGHT AN EXCESS OF $150,000.00 COULD BE SAVED. COUNCILMEMBER BASS DISAGREED BECAUSE THEY DO NOT KNOW YET WHAT THE COUNTY WILL CHARGE FOR THIS SERVICE. MAYOR PRO —TEM WOMBLE STATED HE CALLED THE COUNTY TODAY TO ASK ABOUT THE DISPATCH ISSUE AND WAS TOLD A RESPONSE WAS FORTH COMING. INTERIM CITY MANAGER AUTRY ASKED IF THE COUNCIL WOULD LIKE FOR RENEE' AND HIMSELF AND THE DEPARTMENT HEADS TO LOOK AT THE 60140 SPLIT AND COME BACK IN THE NEXT WEEK OR TWO. HE ADDED A FORMAL BUDGET MUST BE PROPOSED BY JUNE 1, 2002. RECREATION DIRECTOR PERRY HUDSON ASKED WITH THE MONEY CUTS, WOULD THIS MEAN THEY NEED TO CUT BACK ON SERVICE ALSO. MAYOR PRO —TEM WOMBLE RESPONDED AT THIS POINT, THE DEPARTMENT HEADS NEED TO BE INNOVATIVE WITH THE DIRECTION OF MR. AUTRY IN MAKING FURTHER CUTS. HE STATED THAT WITH THERE BEING NO INTEREST IN INCREASING TAXES, IT WILL HAVE TO COME FROM REDUCTION IN SPENDING. HE ADDED THAT DURING THIS FIRST ROUND, THE DEPARTMENT HEADS WILL HAVE TO EXPLAIN WHAT THEY HAD TO TRIM TO GET THEIR FIGURE AND THEN THE COUNCIL WILL HAVE TO DECIDE IF THIS IS WHAT THEY WANT. MOTION BY COUNCILMEMBER BASS, SECONDED BY MAYOR PRO —TEM WOMBLE TO RECESS THIS BUDGET WORKSESSION TO THURSDAY, MAY 23, 2002 AT 6:00 P.M. MOTION UNANIMOUSLY APPROVED. WITH NO DISCUSS, THE MEETING WAS ADJOURNED AT 7:41 P.M. % %%,- O RAT i _ ararr SEA- lif 9 � a DEBRA G. WEST DEPUTY CLERK ATTEST: AM GImFH—