06092003972
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special Call Budget Work Session on Monday, June 9,
2003, at 6:00 p.m. in. the Dunn Municipal Building. Present was Mayor Abraham Oudeh, Mayor
Pro -Tem Michael Womble, Council Members Toby Sumner, George Robinson, Joey Tart, Donnie
Olds and Paul Bass. Also present was City Manager Michael Uskiewicz, Public Works Director
Ronnie Autry, Recreation Director Perry Hudson, Fire Chief Austin Tew, Captain Morry Denning,
Captain Ronnie Radcliffe, Finance Director Renee' Daughtry, City Engineer Ed Powell, City
Attorney P. Tilghman Pope, City Clerk Debra West, and Daily Record Reporter Lisa Farmer.
INVOCATION
Mayor Oudeh opened the meeting at 6:00 p.m. and asked Donnie Olds to give the invocation. Afterwards,
the pledge of allegiance was repeated.
Mayor Oudeh yielded to Manager Uskiewicz
Manager Uskiewicz updated Council on the proposed budget issues, which include rising health insurance
cost, Interstate 95 lighting partnership with the Tourism Authority, Capital Improvement Plan, and Central
Dispatch. He added that this proposed budget reflects a modest deficit of $55,107.00 and reminded
Council that the public hearing for the budget will be held on June 12, 2003.
Manager Uskiewicz mentioned two (2) modifications to the proposed budget. Those modifications
include:
1) Capital Improvements — Previous request to purchase (4) vehicles needs to be amended to (5)
vehicles. This is because the City has received insurance checks from (2) damaged vehicles. This
will increase this budget line item from $112,000.00 to $132,000.00.
2) Grant Opportunity for (2) patrol officers — Grant will pay 100% for personnel cost and 75% total
equipment cost for the first year. The City's match would be $20,000.00 for equipment. The
program gradually decreases each year in expenses covered. This program is similar to COPS.
Manager Uskiewicz asked Mr. Dal Snipes, Chairman of the Recreation Committee, to step forward to give
an update on the committee's fund raising efforts. Mr. Snipes reported that this committee is aware of the
hardships that local municipalities are currently under but they also recognize the need for a new facility for
the children and adults in the City of Dunn. He stated that although it is the City's responsibility to provide
this center, the recreation committee would like to partner with the City in acquiring this 1.1 million dollar
multipurpose center.
Mr. Snipes stated that this committee is requesting that the City accept the Parks and Recreation Trust Fund
Grant (PARTF) in the amount of $250,000.00. He reported that this committee has received pledges in
excess of $400,000.00 to date. He stated that by the time the ground is broken, it is their hope that all
$600,000.00 will be pledged.
Mr. Snipes stated that this new recreation center will generate revenue for the City, as well as boost tourism
and economic development.
Manager Uskiewicz stated that the City insurance carrier, Selective Insurance, has recommended closing
down the present civic center and there is a possibility that the City may have to relocate activities currently
held in the civic center to a different location, until the new proposed recreation facility is built.
Mr. Snipes stated that the majority of the money was pledged before grant approval, which is an indication
that the people of Dunn want this center.
Council Member Bass stated that he has received several calls from residents in the Tart Park area,
concerned about the proposed center being built too close to their home. He added that the City needs to
first secure the area, to satisfy the neighbors.
Recreation Director Perry Hudson stated that he has received quotes for fencing the area. He added that
there are people within the Sunrise Estate Subdivision that are in support of the Recreation Center. He
further stated that the proposed Recreation Center would not be as close to the fence line as the Community
Building is.
Mr. Hudson stated that they will make every effort to satisfy the surrounding area of Sunrise Estates. He
added that with two facilities located within a hundred feet of each other with 15,000 square feet of open
space area, the City can house any event they would ever want to have, adding it's a win -win situation.
Mr. Hudson stated that this facility will not just be a gymnasium, but a recreation center which will offer
different activities for the young and old. He added that a taller fence could be installed, but he did not
want to stop a project that so many people in the Dunn area want.
Manager Uskiewicz stated that price quotes have been received for fencing and if Council is in agreement,
he can add this issue to the June 12 agenda.
Mayor Oudeh was concerned about having a larger recreational facility but not enough current staff to
maintain it. Mr. Hudson stated that he is appreciative to have a maintenance staff of four (4), however, a
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comparable town, Fuquay- Varina, has a maintenance staff of nine (9). He further stated that they will
eventually need more than a staff of four (4).
More discussion was held concerning the maintenance of the new facility, additional yearly cost to
maintain the center and prevention from allowing it to fall into disrepair as the present civic center.
Recreation Director Hudson stated that he expected additional staffing to consist of one (1) maintenance
person and a part -time gym attendant, and if they build this center, it will be maintained.
Council Member Donnie Olds stated that it is clear that the citizens are in favor of this project. He added
that if anyone is looking at this center as just a place to play basketball, they are looking at it from a narrow
cone, adding that a civic center is more than just basketball. He further stated that a new facility would be a
tremendous addition to the City of Dunn.
Council Member Womble asked Mr. Dal Snipes that once the City begins to move forward with this
project, what will be done to secure the pledges, so that the City will actually collect the anticipated amount
toward the project.
Mr. Snipes stated that at the time the Council approves securing the grant money, the committee will go
back to receive signatures for the pledges, which will be a ten (10) year commitment. He added that these
pledges are just like church pledges; an act of faith, but he felt these individuals will provide their pledge.
More discussion was held concerning the Council budgeting maintenance and staff for the proposed new
center.
Mr. Snipes stated that it is not the citizen's responsibility to raise funds for this center, but parents want a
nice facility for their children, and if the City can obtain a 1.1 million dollar building with a $250,000.00
cost, then finding $30,000.00 for maintaining this facility is a nice position for the City to be in.
It was Council consensus to add to the June 12 agenda, the purchase of a fence for Tart Park, at a cost not
to exceed $3800.00.
Manager Uskiewicz asked if Council had any concerns thus far with this budget.
Council Member Olds stated that he would like to see the flooding problems addressed in this budget for
the areas of Carolina Drive and Johnson Street. Manager Uskiewicz stated that he will look further into
this problem area.
Mayor Pro -Tern Womble stated that he doesn't like the way this budget is put together, adding that if this
budget stands as is, the citizens of Dunn will receive a City tax bill with a 30% increase in August. He f
added that this budget still reflects a deficit.
Manager Uskiewicz stated that the City needs a recovery period from previous fund balance deficits; he is
asking that the Council not reduce the .46 cents tax rate, which is the lowest in the County. He added that
based on the activity being generated in the community, he doesn't think there will be a budget deficit.
Discussion was held concerning the long term insurance for retirees, including coverage at 100% this year
but next year the City will have to start looking at 90/10, 85/15 and 80/20 coverage.
Mayor Pro -Tern Womble challenged anyone that disagrees with the 30% tax increase, to come up with
another idea than the Central Dispatch issue, which would trim $200,000.00 to $300,000.00 dollars from
the budget, without sacrificing services.
Council Member Bass challenged Mr. Womble to show him how the City would save $200,000.00 to
$300,000.00 with Central Dispatch.
Back to the insurance issue, Council Member Tart asked Manager Uskiewicz how much the City is paying
toward the retiree's insurance premium. Mr. Uskiewicz responded $380.00.00.
Discussion was held about health insurance, which included:
• Current coverage for retirees,
• City policy currently pays $380.00 per month for retirees
• Council's decision to adjust the amount the City pays for retirees
• Post 65 employee's insurance premium will increase to $429.00 per month
• Possibility of the City providing supplemental insurance for retirees in the future. F
Council Member Olds mentioned the proposed lighting partnership with the Averasboro Tourism Authority
and the possibility of improving the appearance of East Broad Street as well, adding that the East Broad
Street area close to City Hall would be an embarrassment should a tourist travel this street. Manager
Uskiewicz stated that the City is addressing these problem areas.
More discussion was held about blighted areas in town and why the City has not picked up mixed garbage
out by the roadsides. Public Works Director, Ronnie Autry explained that most of the garbage by the street
sides are mixed, meaning that if they take it to the landfill, the City would be charged tipping fees for
disposal. He added that if the Council wants the City cleaned up, funds would need to be appropriated to
pay these tipping fees.
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Further discussion was held about clean-up of the City, procedures in issuing citations for removing mixed
garbage and improved appearances within the City, especially areas of town that tourist see.
Manager Uskiewicz passed out documents to the Council pertaining to the Capital Improvement Plan
(CIP). He added that when it comes to raw sewage spills into river and streams, the City of Dunn ranks #5
in the State, which is not good at all. He further stated that Council will need to look at a Capital
Improvement Plan to keep the State satisfied.
Manager Uskiewicz advised Council that they will be asked to approve the CIP at the June 12 meeting,
along with a water conservation policy to maximize the point system in making it favorable in receiving the
Rural Center Grant.
Manager Uskiewicz yielded to City Engineer Ed Powell.
// Mr. Powell stated that he fears the City may be facing enforcement from the State. He briefed the Council
on areas to target including Juniper Creek, and ways to enhance the City's ability to secure this grant.
Council was given a Capital Improvement Plan to view and Mr. Powell gave the Council some options on
how to fund this plan. He added that he doesn't know how to fund this project unless water and sewer rates
are raised. He further stated that the revenues presently received from water and sewer is only enough to
maintain the system but is not enough to fund needed repairs.
Mr. Powell informed the Council that the City needs to generate enough money to get the City out of
trouble, noting that there are some users buying water for less than it cost the City to produce.
Mr. Powell briefed the Council on the chart given to them for various projects to address as part of the
twenty (20) year Capital Improvement Plan. He added that this is a very basic CIP that did not include
growth areas.
More discussion was held about the projected timeline dates for various projects addressed in the Capital
Improvement Plan presented to the Council, the daily water usage and how the City must take steps to
reduce rainwater from infiltrating the system.
City Attorney Pope asked Mr. Powell to explain the severity of potential fines the City could face for
overflow violations.
Mr. Powell responded the fines are up to $25,000.00 per occurrence, adding that during the month of May,
the City of Dunn was in violation every day and could have faced fines of up to $30,000.00 for that month.
He added that the City needed to start working on their problem areas.
Mr. Powell explained the existing water and sewer rate structure for water billing and identified users in the
system. He added that the City of Dunn needs to generate $400,000.00 of revenue each year for the Capital
Improvement Plan, but because he didn't think the Council would go with that amount, he proposed rates
which would raise approximately $200,000.00 each year in revenue. He farther stated that the water and
sewer rates have not been adjusted in years.
Mr. Powell explained that his proposal would raise the water and sewer rates by 4.9% for the low end
users, 15.9% for the high end users and a 10% increase for the bulk users, which will generate
approximately $200,00.00 for the water and sewer fund.
Mr. Powell gave a summary of the minimum water and sewer usage fees charged by surrounding counties
and towns.
City Manager Uskiewicz stated that with the water and sewer rate increases proposed, Dunn's rates would
still be lower than other area towns. Mr. Uskiewicz asked for Counbil's consensus to consider the CIP and
water conservation policy at the June 12 meeting.
Council consensus was to add two (2) additional items to the June 12 agenda, including the fence
installation at Tart Park and consideration of the Capital Improvement Plan.
Mayor Oudeh voiced concern about the police cars being driven home, adding that police cars are seen
outside the City Limits and outside Harnett County. He further stated that he would like for City Manager
Uskiewicz to speak with Police Chief Benware about officers driving their personal vehicles to work, and
leaving the police cars parked.
Council Member Bass agreed. He stated that cars are being driven all the way to Autryville, and they need
�—� to utilize the cars they have. He added that fuel expenses could be saved.
Mayor Pro -Tem Womble stated that the Council should be concerned about the 30% increase proposed in
this budget and he doesn't feel they should be budgeting the deficit.
Manager Uskiewicz responded that the City has received additional revenue in this fiscal year above and
beyond what was budgeted and he is simply asking to re -use the unanticipated money one more time as the
City continues to recover. He added that the 27% tax increase is across the County. He further stated that
other cities are looking at maintaining their same tax rate.
Mr. Uskiewicz stated that he cannot propose a reduction in the .46 cents tax rate. He added that they
cannot continue to make cuts to the budget.
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Mayor Pro -Tem Womble stated that if the Council is not in favor of cutting $200,000.00 to $300,000.00
from this budget, they need to discuss other options.
Council Member Olds stated that he understood Mr. Womble's position but he also understands that when
the citizens ask for additional services, the City is expected to provide it. He added that citizens need to
realize that to get services, they must pay for them. He further stated that while no one likes taxes, it is a
part of our life and system.
Mr. Womble stated that he is not opposed to tax increases, but there is spending in this budget that he does
not agree with. He added that he doesn't think a tax increase is appropriate.
Manager Uskiewicz stated that other than the central dispatch issue, the only other cuts he could make to
this budget is reduced benefits for the employees, take away longevity and raises, and cut personnel.
Public Works Director Ronnie Autry stated that over the last three (3) years of budgeting, approximately
$200,000.00 to $300,000.00 has been taken out of the fund balance for actual operating expenses only.
He added that this Council should leave the .46 cents tax rate alone, to bring the City back in line with the
$200,000.00 to $300,000.00 in expenditure that the City will get back in the operating budget. He further
stated this Council is left with the burden, because taxes have not been increased over the previous years.
Mr. Autry stated that services have been cut and there is nothing else to take out of this budget.
Mr. Womble stated there are unnecessary expenditures in this budget, and he doesn't think the citizens
should pay more taxes, until these expenditures are eliminated. He added that if no one else agrees with the
Central Dispatch issue, then make another suggestion to save the same amount of money.
so there comes the question of the level of service. He further stated that he cannot recommend more cuts,
because then you will eliminate services.
Manager Uskiewicz stated that tonight this Council has asked the City to take care of garbage issues, and
enforcement issues. He added that he would like more personnel to take care of these issues but he can't,
Council Member Tart stated that they have talked about the County re -val for a couple of years, knowing it
was coming and that eventually it would fill a gap they have faced for the last three years. He added that
they need to keep the .46 cents tax rate to get the General Fund back where it should be. He further stated
that if it was Council consensus, he is willing to look further into the central dispatch issue, and if not, they
need to stop talking about it.
Discussion was held about the Central Dispatch issue among the Council, Captain Morry Denning, and Fire
Chief Austin Tew. The majority of the Council did not support moving Central Dispatch to the County.
Manager Uskiewicz suggested that if the Council is against the Central Dispatch issue, then the only other
issue to discuss among the Council is the re -val. He added that Dann's .46 cents tax rate is the lowest in
the County.
With no further business to discuss, the meeting was adjourned at 9:08 p.m.
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Debra G. West
City Clerk
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Mayor
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