Board of Commissioners

TOWN OF BURGAW BOARD OF COMMISSIONERS BUDGET WORKSHOP DATE: May 10, 2018 TIME: 4:00 PM PLACE: Burgaw Municipal Building BOARD MEMBERS PRESENT: Mayor Kenneth Cowan Mayor Pro-tem Wilfred Robbins Commissioners Jan Dawson, Bill George, Vernon Harrell and James Murphy STAFF PRESENT: Joseph Pierce, Town Manager Sylvia W. Raynor, Town Clerk Zachary Rivenbark, Town Attorney Alan Moore, Director of Public Works Louis Hesse, Building Inspector Jim Hock, Chief of Police Clay Jasper, Deputy Fire Chief Wendy Pope, Finance Officer Karen Dunn, Planning Administrator Kim Rivenbark, Flood Plain Administrator Kristin Wells, Deputy Clerk Zachary White, Parks/Recreation Coordinator MEDIA PRESENT: None Mayor Cowan called the meeting to order at 9:00AM. Joseph Pierce, Town Manager presented a PowerPoint presentation (below) in conjunction with a prepared overview (below) that has been presented to the Board and staff. BOC Budget Workshop May 10, 2018 1 BOC Budget Workshop May 10, 2018 2 BOC Budget Workshop May 10, 2018 3  Date: May 10, 2018 To: Mayor Kenneth Cowan and Members of the Board of Commissioners From: Joseph Pierce, Town Manager Re: Fiscal Year 2018-2019 Budget Message INTRODUCTION In accordance with Chapter 159-11 of the North Carolina General Statutes, I am pleased to submit the proposed Fiscal Year 2018-19 Annual Budget Ordinance for the Town of Burgaw. The proposed budget continues last year’s tax rate of $0.46 cents per $100 of valuation and based on current valuations, .01 cent generates approximately $29,290. Highlights of the FY 2018-19 budget include the following:  No proposed increase in ad valorem tax  No proposed increase in water or sewer fees  No increase in residential solid waste trash fees  No increase in residential solid waste garbage fees  No increase in residential solid waste recycling fees  A 2% cost of living allowance (COLA) increase for eligible town employees  A $10,000 merit pool for eligible full time permanent employees  A recommended increase in one part time employee as a Customer Service Representative. This position can be funded from the water fund.  Fund balance appropriations are made for general fund expenditures for the following purposes:  $306,000 for a new Fire Department apparatus  $45,500 for sanitation and drainage improvements  $5,000 Depot sock board replacement  $6,000 Police Rifles  $4,000 Planning Department computers  A 4.5% increase in health insurance  No rate increase in dental insurance  An estimated 11% decrease in workers compensation insurance, which will result in a decrease of $4,400 in annual premium BOC Budget Workshop May 10, 2018 4  REVENUES AND EXPENDITURES Estimated revenues for FY 2018-19 were based on conservative estimates in view of the modest growth in ad valorem, Powell Bill, and sales tax revenues. For the next fiscal year, the ad valorem levy is expected to increase 1%, the Powell Bill is expected to remain flat, and the sales tax revenues are expected to increase by just over 4%. A significant portion of the revenue sources within those line items, are expected to remain relatively flat. A few that are anticipated to increase or decrease over prior year estimates are outlined below: % Change (FY 2017-18 to FY FY 2017-18 Revenue 2018-19) Budgeted FY 2018-19 Budgeted Ad Valorem 1.1% $ 1,332,515 $ 1,347,359 Local Option Sales Tax 4.2% $ 827,551 $ 862,198 Hold Harmless -1.5% $ 271,597 $ 267,595 Room Occupancy Tax -22.2% $ 9,000 $ 7,000 Utility Franchise Tax -5.0% $ 198,900 $ 189,000 DOT Railway Reimbursement 0.0% $ 12,000 $ 12,000 ABC Distribution 2.2% $ 46,000 $ 47,000 The Town of Burgaw’s employee health insurance renewal quote reflects a 4.5% increase for FY 2018-19. No changes to the coverage levels or deductibles are proposed for the health insurance based on the renewal quotes provided. In regards to workers compensation insurance our renewal quote reflects an 11% decrease from the premium paid in FY 2017-18. The town has been successful at reducing worker compensation premiums by more than 60% in the last 3 years. The renewal decrease is a reflection of the reduced claims in the Town. CAPITAL IMPROVEMENT PLAN In February 2017, the Board of Commissioners held a Capital Improvement Plan (CIP) Planning Session to discuss the capital priorities for the next five years. The product of that meeting was a CIP established to serve as a guide during the budget process for the five subsequent years. For FY 2018-19 the following capital purchases and priorities were budgeted for: Capital Item Estimated Cost • Depot Dock Boards $5,000 • Police Tablets $6,768 • Police Computers Replacement Schedule $8,000 • Town Clerk Computer Replacement Schedule $1,840 • Planning Computers Replacement Schedule $4,000 • Aging storm water Drainage Pipe $10,000 • Storm water drainage pipe at Durham’s House $10,000 • Yard site debris removal (twice) $25,500 • Police Rifles $6,000 • Fire Engine Purchase $306,000 • Sewer Manhole Rehab (I&I) $10,000 • Mini Excavator $37,000 • Upgrade SCADA @ Lift Stations $31,000 • SCBA Equipment (3 of 3) $40,000 • Depot Interior Paint $8,000 • Contract for Pretreatment Coordinator $4,500 • Intern/ Fellow $10,000 • COLA 2.0% • Merit Pool $10,000 The following items were purchased with funds from FY 2017-18: Capital Item Estimated Cost BOC Budget Workshop May 10, 2018 5  • New Holland Tractor with loader and blade $40,000 • Slope Mower $18,000 • RTV Kubota Utility vehicle $12,600 • Public Works Security Camera System $3,499 • F- 350 Truck $34,500 • Sewer Camera with push camera and locator $70,040 • Salt Spreader $3,000 FUND BALANCE In FY 2009-10 the Board of Commissioners established a goal of retaining a fund balance goal of 25% of the town’s annual operating expenses. Based on numbers provided (as of June 30, 2017) by the Town’s auditing firm, S. Preston Douglas & Associates, LLP, it is estimated that the water and sewer fund spendable net position is $2,523,507 and the fund balance for the general fund is 99%. SUMMARY In summary, the proposed FY 2018-19 budget insures the personnel and resources are retained to sustain the high level of services the residents have come to expect of the staff for the Town of Burgaw. This year the Town has continued its concerted effort of exploring innovative ways to reduce operating costs within its various departments. Over the last several years the Town has undertaken several proactive cost-cutting measures that have enhanced the sound financial standing the Town has commonly been known to possess. These measures have provided the Town with the ability to maintain the rate of ad valorem taxes with no expected increase, while maintaining the current level of service. Respectfully submitted, Joseph R. Pierce Town Manager Upon completion of the Mr. Pierce’s presentation, there was much discussion regarding the fitness instructors and recommended changes in the way they are compensated. Attorney Rivenbark advised in his opinion Option 3 is the best choice and the most beneficial to the town. After more discussion, the Board was in agreement to have Attorney Rivenbark review the options and bring back a recommendation at the regular Board of Commissioners meeting. Karen Dunn, Planning Administrator Ms. Dunn presented an update on the pedestrian and road improvements that have been ongoing and recently requested by the Board to be looked into further. Ms. Dunn presented a PowerPoint presentation regarding crosswalks, pedestrian activated flashing beacons, signage, bulb-outs, ADA ramps, sidewalks, traffic flow improvements, etc. She advised she has met with NCDOT Division 3 engineers during several site visits to look at areas of concern. Ms. Dunn requested that the Board consider review of these projects and prioritize the areas that they favor to start working on improvements. Ms. Dunn advised that the re-write of the UDO is coming up and she requested that the Board consider contracting with the Council of Governments to review the final draft and do some graphics for the updated UDO at a cost of $90.00 per hour not to exceed $10,000. She said depending on how fast the re-write moves forward she may be asking for funding later for the review and graphics. Mayor Cowan asked the Board to take the improvement recommendations from Ms. Dunn into consideration and bring back their priorities for the next board meeting. Jim Hock, Chief of Police Chief Hock spoke briefly about the need for rifles. Chief Hock said that currently each officer carries his own personal rifle. He advised he is requesting six rifles in FY 18-19 and six rifles in FY 19-20. Commissioner Robbins was in favor of purchasing the twelve rifles that are needed because he doesn’t feel we need to compromise safety by not having what is needed. After discussion, the Board was in agreement to move forward with purchasing six rifles now in the current fiscal year from fund balance and purchase the other six in the upcoming year. Commissioner Harrell asked about the Health and Wellness Incentive. Chief Hock presented a PowerPoint presentation giving an overview of the program. Chief Hock said health and wellness is a very important of law enforcement. He presented statistics that represent health issues incurred by law enforcement due to the day to day requirements of the job. BOC Budget Workshop May 10, 2018 6 Mayor Cowan commented that officers can receive grants to pursue grants for furthering their education at the community college level. Chief Hock stated that he has a couple of officers that are interested in furthering their education. Chief Hock spoke briefly regarding uniform needs, tablet and computer needs etc. Final Comments Mr. Pierce advised we have presented a balanced budget. He advised the public hearing for approval of the budget will be held at the regular meeting on June 12. Commissioner Harrell asked Mr. White about the $1,000 budgeted for a New Year’s Eve celebration. Mr. White explained this is a kid friendly event that will be held at 7PM. It is being held early so the children can go home and get to bed earlier than if it was at midnight. Commissioner Harrell commented that he is more interested in programs that have a long term benefit or ongoing programs with a direct benefit for the residents. There was a lengthy discussion about the kinds of programs that Commissioner Harrell wants to have. Mr. White also advised he is working with Pender County to have some ongoing programs. He commented that we don’t have a facility for long term events. Commissioner Harrell said if we are going to spend $1,000 on a one time program he would rather put that money on an ongoing program. Mayor Cowan said he is in favor the New Year’s event and if necessary the Blueberry Festival could commit some funding for the event. Commissioner Robbins said he supports the New Year’s Eve event and he would like to see some long term events as well. Mayor Cowan called for a five minute break at 11:04AM. Louis Hesse stated there was a roof leak at the old jail again. He said that the tourism office was flooded but the other rooms seem to be okay. Mr. Hesse advised he has found an issue that is causing the flooding behind the downspout. He said the roof has been on the CIP list for a while now but time has come to do a replacement. He advised Needham Hall has looked at the roof and has given a price of $12,000 plus more to fix the downspout area. He said $15,000 should take care of it. After much discussion, the Board was in agreement to start the process of repairing the roof on the old jail but wanted Mr. Hesse to get some more bids and bring those back later. Ms. Pope commented that if they can hold off until after July 1, it will make the budgeting process much easier. Mr. Hesse asked if the Board could be polled with the results of the bids and move forward with the roof repair. Mayor Cowan said he would like to ask the county manager if they would be willing to help with the cost. He advised Mr. Hesse to wait until he speaks to Mr. Woodruff and after that time if necessary the Board can move forward. Mr. Hesse said the roof at the bank building has been leaking as well and will need to be repaired. Mr. Hesse advised that Mr. Hall has looked at the roof and advises a new roof is needed and would cost $28,760. Mr. Hesse said we need to get the roof repaired before we have bigger issues including mold issues. Mr. Hesse advised he has done research on replacement of the lights on the courthouse square. He spoke at length regarding the options. His final recommendation was to stay as we are with the $11,000 per year contract with Duke Energy and Duke Energy will do some upgrades to improve the lighting by adding LED bulbs and new fixtures. Mayor Cowan said it makes sense to not try to do this on our own and to continue with the contract. Mr. Hesse advised he will get with Duke Energy and work things out. Mayor Cowan commented that he and Commissioner Murphy have discussed the triangle area at Timberly Lane and Bridgers Street which is overgrown with vegetation. He said even though it is on NCDOT right of way, it is the gateway to the Town and needs to be cleaned up. He said he has asked Mr. Moore to see seek permission from the State to clean up that area. There was a brief discussion regarding the on-going paving issues. Commissioner Robbins requested that Kim Rivenbark get with Emily Baker to work out the needs for the sound equipment at the depot because the system does not work well. Ms. Rivenbark advised she has spoken with Mr. Harvey to see if he has any ideas. Mayor Cowan said Ms. Baker may have some information. BOC Budget Workshop May 10, 2018 7 There being no further discussion, Mayor Cowan declared the meeting closed at 11:55AM. _________________________________________ Kenneth T. Cowan, Mayor Attest: __________________________________ Sylvia W. Raynor, Town Clerk BOC Budget Workshop May 10, 2018 8