05182015 BUDGET WORK SESSION138
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special Call Meeting/Budget Work Session on Monday,
May 18, 2015, at 8:30 a.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris,
Council Members Buddy Maness, Carnell Robinson, Frank McLean, Billy Tart, and Billy Barfield.
Also present was City Manager Ronnie Autry, Assistant City Manager Steven Neuschafer, Chief
Building Inspector Steven King, Planning Director Samantha Wullenwaber, Finance Director Drew
Holland, Interim Recreation Director Brian McNeill, Police Captain Robert Jenkins, Police Captain
Johnny Royal, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Human
Resources Director Anne Thompson, Librarian Mike Williams, City Attorney P. Tilghman Pope,
City Clerk Debra West and Daily Record Reporter Keilah Goff.
Absent: Mayor Pro Tem Chuck Turnage
INVOCATION
Mayor Harris opened the meeting at 8:30 am and gave the invocation. Afterwards the Pledge of Allegiance
was repeated.
AGENDA ADJUSTMENT AND APPROVAL
Motion by Council Member Billy Tart and seconded by Council Member McLean to adopt the May 18,
2015 meeting agenda with changes, if any, as listed below.
Items Added to the Agenda:
• none
Agenda Items Removed:
• none
Motion unanimously approved.
ITEMS FOR DISCUSSIONAND/OR DECISION
Fiscal Year 14-15
Budget Update
Finance Director Holland provided the following status report for the current budget year (FY 2014-15):
• General Fund Balance estimated surplus ending June 30, 2015 - $73,139
FY 2015-2016 Budget
Ad Valorem taxes are projected at $3,538,000 (increase based on construction of Rooms To Go).
Discussion was held about the $600,000 tax credits which have not been factored into the budget. Should
those credits not be reinstated by the State of North Carolina, the City will have to fund this debt beginning
in FY 16-17. Mayor Harris explained that Representative David Lewis is continuing to work on behalf of
the City of Dunn to obtain funding toward the Harnett Training School Campus project for which the tax
credits were intended.
Manager Autry summarized the highlights of the proposed budget
Revenues: General Fund
• Ad Valorem Taxes: Figures are based on an approximate tax base of $715,341,846 keeping the
existing tax rate of $0.50. per $100 valuation at a 98.94% collection rate. Tax base includes 40%
completion of the Rooms To Go project.
• State Revenues: The majority of the state revenues have been projected to remain the same as
previous years' or with a slight increase based on the current year's collection estimate. We
continue to monitor the state's progress on all revenues and their impact on the City.
• Solid Waste Fees: There is no increase in monthly garbage or recycling collection fees. The
monthly fee will remain at $13.95 and $3.05 respectively.
• Fund Balance: Powell Bill Fund balance was used to cover projected capital costs of the signals
and gates at the Pearsall Street railroad crossing.
Expenditures: General Fund
• General Fund operations are comparable to the FY 14-15 budget.
• Employee benefits include a 2% 401 (k) contribution, longevity and a state -mandated retirement
of 6.67% (decreased from 7.07% for FY 2014-15). Police officers receive a 5% 401 (k)
contribution and state -mandated retirement of 7.15% (decreased from 7.41% for FY 2014-15).
Health insurance cost increased by 4%.
• One (1) new position has been proposed in the General Fund. A Fire Inspector position is
proposed in the inspections department. This position has been proposed as a half year position to
begin in January 2016; however, Manager Autry stated that a letter has been received from Dunn
Emergency Services advising the City that they would be eliminating this position in October of
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2015 but they will work with the City until this position is filled by the City. The inspections
department may be restructured mid -year after evaluation.
All debt service requirements have been appropriated in this budget to meet our debt obligations.
Police tasers and in -car dash cameras have been budgeted however the City will wait to see if
grant funding will be available for these items before the City purchases them. The Police
Department currently has body cameras for each officer and they have been updated by means of
funding from the ABC Board.
Capital items have been addressed and a list of items proposed for funding is as follows:
Planning Department - Large format
multi -functional plotter (1/2 from Wtr/Swr Fund) $ 7,500
Police Vehicles (5 @ $29,000)
$145,000 (combined USDA Grant
& Loan)
Aminal Shelter Quarantine
$ 40,000
Public Works — Zero Turn Mower
$ 7,500
Cemetery - Zero Tum Mower
$ 7,500
Cemetery Pick Up Truck
$ 25,000
Airlock for Library entrance
$ 18,000
Manager Autry explained that there is a state regulation for the Animal Shelter Quarantine which will
separate potentially diseased animals from other ones. Discussion was held that Harnett County does not
currently contract animal control service for the City of Dunn as they provide to other municipalities in
Hamett County. Discussion was held if it would be feasible to look at the possibility of having the County
provide this service to Dunn for a fee as they provide to other towns. It was discussed if the level of service
the County provides for this service would equate to the current service given by the City to its' residents.
Discussion was held if the City could contract with local veterinarians for quarantine service instead of
expending the money to build this facility.
Discussion was held that the City contracted with a landscape contractor to cut right of ways and areas
around city buildings and city parking lots to see if there is an overall improvement to the appearance of the
City. This will allow the cemetery crew to concentrate only on the maintenance of the cemeteries.
Nathan Harris Athletic Complex at Tyler Park Phase II debt service of $88,690 has been factored into the
budget. When offset by the pledges received for this project, the debt is reduced to approximately $85,000.
Discussion was held that monies have been allocated to improve the street signs through -out the City.
Manager Autry stated that he is waiting for the completion of the "Welcome to Dunn" signs with the All -
America City emblem and "Gateway to Campbell University" language.
Discussion was held about the need for pick ups and dump trucks in the Public Works Department and a
pick up for the Recreation Director.
Discussion was held that the City will be accepting applications to replace two (2) police officers that
recently resigned to work in the private sector. Manager Autry stated that with the consolidation of the
communications department with the County, the City retained one individual which the Chief stated he
needed. He added that the Mayor has questioned if this position could be used in conjunction with helping
in the Manager's office. This issue will be discussed with the Police Chief to evaluate this position along
with another position in the Police administration office. It was discussed that a police lieutenant position
and a support services coordinator which transferred from the communications department currently have
combined salaries and benefits of $112,700 that could be placed in a contingency fund and used to
reallocate in the Police Department after consultation with the Chief. Mayor Harris stated that these two
positions could be eliminated and used for the reorganization process. Council Member Maness stated
that he would like to hear the recommendation of Chief Pope and how elimination of these positions may
or may not impact his operation. Mayor Harris stated that Manager Autry will meet with Chief Pope to
develop what is best for the department.
Discussion was held that NCDOT will be landscaping the round -a -bout in the summer of 2015 and the City
will be installing an irrigation system in-house.
Break: 10:00 —10:15 am
Manager Autry recommended that a storm water fee be implemented due to increasing monies being used
to correct storm water issues. Replacement of older piping can be costly. The storm water study has been
completed and once the informational booklets are received from Davis -Martin -Powell, they will be
distributed to the Council. Many municipalities already charge a storm water fee to their residents. A
proposed fee of $1.50 to each household would generate annual revenues of approximately $60,000-
$70,000 and would allow the City to fund storm water projects. Consensus of the Council was to
implement a storm water fee of $1.50 per household in the proposed fee schedule. Discussion was held
that if a fee is implemented, it should be allocated in a restricted fund within the budget.
Assistant Manager Neuschafer provided updates for downtown revitalization. The City is currently
working with DOT for sidewalk replacement on E. Cumberland Street from Clinton Avenue to Magnolia
Avenue. Monies would come from the fund balance to complete the sidewalk replacement along Magnolia
Avenue from Cumberland Street to Edgerton Street. Discussion was held that the bricks will need to be
realigned downtown, trees trimmed and grass removed from the sidewalks. A budget amendment in the
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amount of $350,000 from the Powell Bill Fund and/or General Fund balance will be forthcoming to the
Council to complete the downtown revitalization project including Magnolia Avenue.
Assistant Manager Neuschafer provided an update of renovations for City Hall. He is awaiting bids from
the contractors for improvements to include a new front door system, raise the front patio, work on the
handicap ramp at the front entrance, bathroom upgrades in the front lobby, improve the drive thru window
in the finance office, and install energy efficient lighting through -out City Hall. They need to move
forward to complete the renovations to City Hall so the loan can be closed for the Harnett Training School
Project.
Revenues: Water & Sewer Fund
• Water & Sewer Rates: A 5% increase is proposed for the inside city limit water rate from $3.89
per 1,000 gallons to $4.08 per 1,000 gallons and outside city limit water rate from $7.78 per 1,000
gallons to $8.16 per 1,000 gallons. The minimum water rate of $12.75 for the first 2,000 gallons
will not change. A 10% increase is proposed for the inside city limit sewer consumption rate from
$3.63 per 1,000 gallons to $3.99 per 1,000 gallons and outside city limit sewer consumption rate
from $7.26 per 1,000 gallons to $7.99 per 1.,000 gallons. The sewer base rate will not change.
• Fund Balance: Fund Balance was not required to balance the budget.
Sampson County is currently using their well system and they have advised that they will not be using bulk
water which will result in a $250,000 loss in revenues; however, they are aware that should they need water
in an emergency situation, then they will be charged at a higher rate.
It was discussed that $100,0004200,000 should be annually appropriated for unexpected water & sewer
line replacements due to the aging system through -out the City.
Expenditures: Water & Sewer Fund
• Water & Sewer Fund operations are comparable to the FY 14-15 budget.
• Employee benefits include a 2% 401 (k) contribution, longevity and a state -mandated retirement
of 6.67% (decreased from 7.07% for FY 2014-15). Health insurance cost increased by 4%.
• No new positions have been proposed in the Water & Sewer Fund.
• All debt service requirements have been appropriated in this budget to meet our debt obligations.
• Capital items have been addressed and a list of items proposed for funding is as follows:
Hand-held meter readers (2 @ $1,325)
$
2,650
Spartan 758 Trailer Jet
$
17,000
3' Trash Pump
$
3,000
Tracer HL 5000 Leak Detector
$
5,000
VM -810 Locator System
$
3,500
Mini Air Hammer
$
3,500
Lift Station — SCADA Upgrade
$
6,500
Eastside LS—Self Cleaning Wear Plates & Impellors
S
5,000
Large format multi -functional plotter (1/2 from
General Fund)
$
7,500
Water Plant Pick Up Truck
$
20,000
Water Plant— 4 mgd finish water pump
$
30,000
Sewer Plant — Storage cubicle
$
1,500
Sewer Plant — 8" Super T circulation pump
$
11,500
Sewer Plant — 4" Grit pump
$
7,500
Sewer Plant — SCADA software upgrade
$
7,500
Proposed Fee Schedule for
FY 15-16
The proposed fee schedule was presented to the Council.
Storm Water fee of $1.50 per household will be added to the schedule based upon Council deliberation.
Manager Autry pointed out that Cemetery lot fees are proposed to increase. Privilege License fees have
been eliminated based on the legislature; this resulted in the loss of $65,000 in revenue. A business
registration fee is now being considered by the legislature.
Dunn Area History Museum
(Community Service Contribution)
Mayor Harris explained that a letter has been received from Mr. Robert Carr, President and Mr. Mark
Johnson, vice president of the Dunn Area History Museum, officially requesting a donation of $7,500.00
from the City of Dunn to financially assist the association in acquiring a 501 (c) (3) classification to
continue their work in creating a history museum.
Additionally, they are seeking a long-term monetary commitment from the City of Dunn to help establish a
permanent location for the museum. These funds would be used solely for the maintenance and upkeep of
the museum facility, insurance, building rent, utilities, signs, security, ADA compliance, display
equipment, showcases and maintenance.
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Manager Autry stated that community contributions have not been allocated in the proposed budget.
Council Member Robinson stated that he doesn't see how the City can commit long term funding above the
initial $7500.00 for this organization to incorporate.
Council consensus to appropriate up to $7500.00 in the FY 15-16 Budget for the Dunn Area History
Museum to acquire a 501 (c) (3) classification and take into consideration their request for a long-term
monetary commitmentat the appropriate time. Manager Autry was directed to take this appropriation from
the contingency fund. Council Member Barfield stated that Harnett County is also considering a donation
to this organization.
Special Olympics
Council Member Barfield stated that Harnett County will be contributing to this organization and he would
like for the City of Dunn, to once again, invest in this cause. Council Member Robinson concurred that he
would also like the City to make another contribution to Special Olympics. Mayor Harris stated that this is
an investment back into our community.
Resurfacing
Mayor Harris reminded the Council that there will not be any funds appropriated for resurfacing in the
proposed budget.
Cemetery Renovation and Maintenance Guidelines
Mayor Harris stated that this document will be proposed again on the June 9, 2015 agenda.
Council Member Maness pointed out that many of the guidelines in this document had associated costs and
will require further discussion by the Council.
Manager Autry recommended that the Council conduct a short work session to discuss these guidelines.
Special Call Meeting Date Set
Mayor Harris recommended that the Council meet one on one with the City Manager to address their issues
of concern with the Cemetery Renovation and Maintenance Guidelines prior to a Special Call Meeting
which Mayor Harris called for Tuesday, June 2, 2015 at 8:30 am to discuss it further and prepare to make a
decision about the document at the June 9"' Council meeting. If necessary, Mayor Harris stated that the
Council may discuss additional budget issues at the Special Call Meeting on June 2na
With no further business to discuss, a motion was made by Council Member Barfield and seconded by
Council Member McLean to adjourn the meeting at 11:35 am. Motion unanimously approved.
Attest:
Debra G. West C
City Clerk
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Oscar N. Harris
Mayor