Board of Commissioners

BOARD OF COMMISSIONERS February 8, 2024 MINUTES BOARD OF COMMISSIONERS SPECIAL MEETING - 9:00AM The special meeting was held at the Cain Center for the Arts, 21348 Catawba Avenue, Cornelius 1. CALL TO ORDER Mayor Washam called the special meeting to order at 09:11AM. A. Opening Remarks - Mayor Washam and Manager Grant Mayor Washam and Manager Grant gave opening remarks on the planning session materials and budget process. 2. DETERMINATION OF A QUORUM All commissioners were present at the meeting. Commissioner Sansbury left the meeting at 11:38AM and returned at 1:30PM. 3. FY25 BUDGET OPERATING GOALS AND CIP ITEMS (Attachment 1) A. Citizen Budget Survey Round #1 Communications Manager MaeLynn Joyner presented the results from Round 1 of the budget survey showing transportation, public safety, parks and recreation, and public works as the top four priorities. Commissioner Osborne asked if nothing else is done with the budget, would there be a need for a tax increase. Manager Grant explained that to maintain service levels, investments in operating and capital will increase; therefore, additional revenue generation will be necessary. Commissioner Johnson stated that she would like to see the demographics on the responses received. Mayor Washam agreed. Ms. Joyner stated that she would send that information. Commissioner Sansbury asked if there has been an appreciable difference in responses over the last three years. Ms. Joyner stated that the top 4 priorities have stayed the same; however, the degree of the priorities varies every year. B. Fire Chief Barbee presented the following for the fire department: Operating Goals • Add two full-time positions (equivalent of 6 FTEs) to daily staffing - $447,968 o Reduces part-time shifts from 16 per day to 14 per day. 02/08/24 Budget Planning Session Page 1  o Net savings of $138,700 annually. • Hire fire department administrative staff, Phase 2 o Town Deputy Fire Chief - $143,073. o Part-time Administrative Assistant - $22,000. o Fully fund Fire Chief position (funded ½ year in FY24) - $62,803 gross net. • Operational cost for FTE firefighters - $101,800 o Increase overtime - $40,000. o Increase travel/training - $5,000. o Gear and uniforms for 7 additional FTEs - $49,000. o Physicals and evaluations - $7,800. • Increase fuel budget 15% - $7,515 • Market adjustment and seniority pay plan - $250,000 gross net ($111,300 net cost) • Non-resident part-time employee incentive - $30,000 FY25 CIP Requests • SCBA replacement - $549,500 • Radio upgrades - $64,000 • XE500 remote speaker microphones - $31,000 • Second set of gear - $85,000 o Year 3 of 3 project; 16 sets of gear at $4,500 = $72,000. o 100 particulate filtering hoods - $13,000. • New mattresses (22) - $13,000 • Equipment upgrades - $43,350 o Training equipment - $15,500. o Portable ground monitors - $10,000. o Deployed logix (DLX) ASAP 18 Shelter - $17,850. • Paratech Model 245 air bag kits (10) - $20,000 • Staff vehicles - $148,000 o Deputy Chief vehicle - $80,000. o On duty officer - $68,000. Mayor Washam asked what the industry norm is for coverage. Chief Barbee stated that coverage is not always 100% but that he does not have that data from other agencies. Commissioner Johnson asked if it takes 4 firefighters to staff a truck, how often are three trucks needed. Chief Barbee stated that three trucks are needed all the time for overlapping calls. Commissioner Higgins asked how many communities have a fire tax district. Manager Grant stated that it depends on whether communities have unincorporated areas (ETJ) within their towns/cities because those have fire district taxes. If they do not have ETJ areas, then fire coverage comes through the municipalities directly. Commissioner Sansbury asked Chief Barbee when he will transition to a full-time fire chief. Chief Barbee stated that upon his retirement from the Charlotte Fire Department in July 2028 he will then become full-time with Cornelius. 02/08/24 Budget Planning Session Page 2  Commissioner Sansbury asked if there was capacity for a more regional approach to fire fighting. Manager Grant explained that there are some opportunities for regionalism; however, they are met with challenges. He believes that the mutual aid that is provided between the three towns is a type of hybrid approach. Commissioner Carney asked if there’s a good grasp on what mutual aid is coming from Huntersville and Davidson. Manager Grant stated that resources are being shared equally. Commissioner Johnson asked about the gear costs for firefighters. Chief Barbee explained the reasons for the 2nd set of gear. Any part-time firefighters that become full-time, requires only 1 extra set of gear be purchased. C. Police Chief Baucom presented the following for the police department: • Fleet - $625,000 o Replace 8 fully equipped police vehicles. • School Resource Officer (½ year funding) - $43,000 • Police radios - $268,000 o Replace 40 of 75 radios utilizing asset forfeiture funds. o Remaining radios will be replaced in future years. • Upgrade all 150 radios (handheld, mobile, console) to TDMA Flash - $75,000 • Mental Health Clinician - $172,000 o Co-responder contract with CriSys. • Office Furniture - $22,000 • Facility improvement - $6,500 o Access ramp in rear parking lot. • Field training officer software – Power DMS - $8,500 o One time setup fee - $4,000. o Annual subscription - $4,500. • AXON Body worn cameras (year 2 of 5 project) - $20,000 annually • AXON In car cameras (year 2 of 5 project) - $43,500 annually • AXON Taser replacements (year 1 of 5 project) - $14,000 annually • Police facilities architectural needs assessment - $55,000 Commissioner Osborne asked what the assessed value is for the police department. Manager Grant stated that he did not, but the cost of purchasing land and constructing a new facility is far greater than upfitting the current police department. The needs assessment will address expansion. Commissioner Carney asked if there was an opportunity to have a satellite office. Mayor Washam asked if there was some potential if a new fire station is built. Manager Grant stated that he and Chief Baucom have considered some type of sub-station and there might be some potential to incorporate space in a new fire station. 02/08/24 Budget Planning Session Page 3  Commissioner Higgins asked for more information/priorities for the mental health clinician. Chief Baucom stated that because there are so many intricate pieces it is so important to contract with CriSys as the clinician’s skill set is fully vetted and they become part of the community. Commissioner Higgins asked if the PD has a hostage negotiator. Chief Baucom stated that is part of the SWAT team that Cornelius is part of with Huntersville and Davidson. Commissioner Carney asked if calls related to mental health situations are more dangerous than other calls for service. Chief Baucom stated that they are because officers are responding to calls where irrational decisions are being made by someone in crisis mode. D. ElectriCities ElectriCities Systems Supervisor David Lucore presented the following for ElectriCities: • FY25 major capital projects o AMI metering (if Federal Grant is approved) - $292,829. o Caroline Subdivision (100 townhomes) - $200,000. o Catawba Springs (mixed use) - $55,000. o GPS mapping - $87,500. o Greenway Gartens (346 multi-family/14 townhomes/commercial) - $300,000. o Holiday Lane roundabout (relocate utilities) - $100,000. o Mills Market (mixed use) - $345,000. o Pole replacement (replace old poles) - $100,000. o New substation (construction expenses) - $2,037,500. o The Venue on Main - $65,000. o Unanticipated projects/unprojected projects - $125,000. o Vehicle replacement (1 pickup truck) - $45,000. • Operating Cost Increases o Market wages – Line Workers +10% and other personnel +8%. • Reallocation of Costs o FY24 cost allocation (65% Huntersville, 35% Cornelius). o FY25 cost allocation (70% Huntersville, 30% Cornelius). • Wholesale power rate reduction o 5% reduction in wholesale power costs for FY25 due to purchase power agreement with Central Electric Power Cooperative in SC. • Electric rate changes/rate schedules o Renewable Rate Rider 2 – a new billing method for customers who install solar panels. o EV Charger Rate – a new billing method for EV chargers installed on the electric system. Commissioner Higgins asked if there is a preventative maintenance program. Mr. Lucore stated that is covered in the operational budget. Commissioner Johnson asked if there are costs passed on to developers for projects. Manager Grant explained that every time infrastructure is installed for developments, it is 02/08/24 Budget Planning Session Page 4  built into their rates “cost recovery”. Mr. Lucore stated that they try to recover the costs within eight years. The Board consensus was to evaluate a developer cost share policy. E. Communications Communications Manager MaeLynn Joyner presented the following: • Content Coordinator position (20hrs/week) - $31,330 The Board discussed the use of AI on the town’s website as an additional tool. F. Parks and Recreation Parks Director Troy Fitzsimmons presented the following for the parks department: FY25 Operating Budget Goals • Summer Day Camp expansion - $0 net o Revenue to offset expenses - $50,400. • Park maintenance and improvements funding increase - $60,000 • Special event entertainment increase - $3,500 net o Entertainment increase - $6,500. o Revenue increase - $3,000. • Cain Arts Center lease repairs - $20,000 FY25 Capital Budget Goals • Park maintenance rolling stock replacement - $70,000 o New John Deere Gator. o New parks truck. • Legion Park playground replacement - $500,000 • JV Washam scoreboard replacement - $20,000 • Bailey Road Park track renovations - $300,000 Commissioner Osborne asked if the scoreboard replacement is a shared expense with CMS. Parks Director Fitzsimmons explained that scoreboards are not a requirement in elementary schools, so the Town is responsible for the cost. G. Planning Planning Director Rox Burhans presented the following for the planning department: • Permitting/IT investment - $8,215 o Accella Permitting System (annual license for 5-seats). • Downtown Master Plan - $5,000 o Printing and community engagement. • Community engagement - $5,000 o Incorporate planning concepts into elementary schools. Commissioner Johnson asked if the Senior Planner position has been elevated to Asst. Planning Director. Planning Director Burhans stated that the open position has been elevated to an Asst. Planning Director position as part of the succession planning process. 02/08/24 Budget Planning Session Page 5  Mayor Washam asked how sign compliance is managed. Planning Director Burhans explained that call-in complaints are addressed when received and sign sweeps are done a few times a week. H. Public Works Asst. Town Manager Beardsley presented the following for Public Works: • Update Comprehensive Pedestrian Plan - $25,000 o Applying for CRTPO grant funds in fall of 2024. • Stormwater fee increase (year 4 of 4) • Town Building Maintenance Reserve Fund contribution (year 5 of 8) - $10,000 • Street resurfacing (use of Powell Bill funds) - $950,000 • Dana’s Branch stream restoration - $600,000 o Town will continue investigating grant funding sources. • New leaf machine - $135,000 o Replace an unreliable 1997 machine. • Town Hall bathroom upgrades - $50,000 • Crosswalk improvements - $90,000 • Fire Station 1 & 2 maintenance o Lighting upgrades/replacement - $43,790. o Bay fans - $15,400. o Water fountain replacements - $13,500. • Police Department maintenance o Paint stairwells - $11,000. o Replace gate openers at property and evidence sallyport - $11,000. o Replace carpet in administrative area - $16,000. o Door replacement (wood/metal) - $6,200. Commissioner Osborne asked if there would be a match to the CRTPO grant. Deputy Manager Herron stated that there could be some type of match. Commissioner Johnson asked who replaces burned out streetlights. Asst. Manager Beardsley stated that the utility providers are responsible for replacing the lights. Commissioner Carney asked who was better at servicing the streetlights. Asst. Manager Beardsley said he believed Duke Energy, ElectriCities then Energy United. I. TechOps IT Manager Matthew Taylor presented the following for IT: • On-prem + Cloud backup refresh - $36,000 annually Manager Grant stated that the Town has been working on improving the backup component of our cyber security for approximately three years. This component is key and will allow us to have 100% confidence that the backup data is good in the event of another cyber incident. 02/08/24 Budget Planning Session Page 6 J. Grant Writing Deputy Manager Herron presented writing grants at federal, state and local levels that will help the Town win grants. • National Firms – are primarily focused on federal grant programs. Each firm has a very high success rate on obtaining grant dollars for Federal programs, but none had any relationships on the State level or did any local grants. • State Grant Experience – several firms had experience and relationships on the State level and depending on the grant (Commerce or NCDOT) it made the difference with each firm and their relationships. • Local individual – there are numerous individuals locally that have experience writing grants, but none had any relationships on the State level. Staff investigated bringing on board a staff grant writer, but it is not practical due to difficulty in retention and very high salary demands, and a single grant writer will not have the expertise for all types of grants. Deputy Manager Herron stated that staff has identified a firm that has good relationships on federal, state, and local levels. The firm’s model revolves around the firm preparing grant applications at a pre-determined hourly rate. The initial application rate is determined based on the willingness to hire the firm for assistance and/or grant administration after receiving a grant award. Therefore, Manager Grant is recommending to budget $50,000, as a placeholder, to be utilized for submitting grant applications and potentially for grant administration. Grant applications of interest are the SAFER Grant (for firefighters); Sustainability (sustainability plan, fast charging stations, electric vehicles, facility improvements); road projects (NC Dept. of Commerce); and affordable housing. Commissioner Sansbury asked if the police have applicable grants. Deputy Manager Herron stated that there are, and he will meet with Chief Baucom to identify department needs to see what grants are available. Manager Grant stated that grants mentioned earlier are “big ticket” items. Commissioner Osborne asked if Deputy Manager Herron will act as the grant coordinator. Manager Grant stated that Mr. Herron will be the coordinator between departments and hired firm. Commissioner Higgins asked if the firm’s key to success is due to their partnerships with various groups that have been successful in the past. Deputy Manager Herron stated that they have been successful with different agencies because of the relationships that they have. Manager Grant added that to be successful it will take everyone’s involvement. Commissioner Johnson asked how grants impact the budget. Manager Grant explained that the grant money would go towards that budget line item and the budgeted item funds would be reallocated. For example, the comprehensive plan or pedestrian plan grant of $25,000 would be applied for in the fall after the budget has been adopted. So, he recommends putting $25,000 in the budget and if the grant is awarded the Town would most likely have to match a portion and the rest would go into the fund balance to be used next year. 02/08/24 Budget Planning Session Page 7 K. Human Resources HR Director Andrea Clemmer presented the following for HR: • 2024 public sector HR top five priorities trends o Retention. o Recruitment. o Employee Engagement. o Leadership Development. o Operational Efficiency. • 2024 Market Survey Data • Succession Planning and Career Development • 2024 HR Goals o Utilize market survey data to maintain fair and competitive salaries - $118,770. o Prioritize career development for growth and succession planning - $56,632. Mayor Washam asked how we adjust to the different generations coming into the workplace. Ms. Clemmer stated that the Gen Zs that are coming into the workforce have expectations of flexibility like how businesses operated during COVID; however, that flexibility does not work for every position so we need to be clear on our expectations, as well as being open to what changes can be made as the 8AM-5PM model is probably not going to be the norm moving forward. Manager Grant explained that the $118K recommendation for FY25 shows the downward trend of market salary adjustments by staying current with the market survey data and staying competitive. Mayor Washam asked how important the State Employees Retirement benefit is. Ms. Clemmer stated that it’s more important to some than others. The State benefit will be 1 of 3 sources in retirement; however, some ask if it’s mandatory to contribute to the retirement system vs. getting that portion in their pay. L. Administration/Finance Finance Director Julie Niswonger presented the following for Finance: • Financial system transition to cloud solution - $35,000 (recurring) Manager Grant presented the following for Administration: EDC • Formed in 2003 by an interlocal agreement between Cornelius, Davidson and Huntersville • One employee who is employed as a Huntersville employee with benefits • Funding is a % based on population of each town • 2024 the EDC has three employees (Huntersville employees) with benefits o Personnel liability risk relative to how personnel is managed, and policies are administered. o EDC is essentially a government entity; therefore, the EDC Board does not have ultimate authority. 02/08/24 Budget Planning Session Page 8  o Three towns fund 45% of the $595K budget ($265K). o Private sector funds 16% of the $595K budget ($95K). • Efforts are underway to create a new independent entity that is not a government entity o Independence from government is a best-practice.  Higher private economic development gains.  Increased potential for private investment % in the EDC. o EDC’s cost for the following may increase:  Payroll/bookkeeping.  Workers compensation insurance.  Retirement. Mayor Washam stated that the EDC change must happen. Commissioner Carney stated that it is dramatically imbalanced and should be 60% private to 40% public. Commissioner Johnson asked if the EDC employees are aware. Manager Grant stated that the employees are aware that there is re-organization being discussed. Commissioner Johnson asked what will happen to the retirement portion. Manager Grant explained the different options. Mayor Washam asked if they will become a 501c3 or 501c6. Commissioner Carney stated that if done correctly, an EDC can become a 501c3. Inflation (C-CPI-U) index tracking • CPI Average for o 2021 = 4.5% o 2022 = 7.7% o 2023 = 4.1% • Average Merit & COLA for FY24 o Merit = 3.2% o COLA = 3.9% • Inflation comparison o 2021 CPI = 4.5% FY23 COLA = 2.5% o 2022 CPI = 7.7% FY24 COLA = 4.0% o 2023 CPI = 4.1% FY25 COLA = 2.0% - 2.25% Commissioner Sansbury asked if the totals equate to Ms. Clemmer’s salary market adjustments. Manager Grant stated that they are two separate buckets the market study adjustments vs. merit and COLA. Mayor Washam suggested doing an assessment of the efficiencies of the Town Hall to determine where we stand. Commissioner Osborne stated that Cornelius operations are lean; however, maybe it’s time to look outside the box and explore options that do not include cutting costs or raising taxes. Commissioner Sansbury stressed the importance of controlling the narrative so that the community understands prior to any budget changes. Commissioner Carney stated that the same focus that the Town has placed on having high quality services and staff should now switch how to grow revenue and growth. Manager Grant stated that staff is as efficient as it gets and we will waste money on hiring a 02/08/24 Budget Planning Session Page 9  consultant to do an efficiency assessment; however, from an economic development standpoint the Town needs to maximize it as much as possible. The challenge is if the Board is willing to do it. 4. TOWN BOARD PRIORITIES Manager Grant asked the Board if they had any additional priorities that have not yet been discussed. There being none, he continued to park bonds. 5. PARK BONDS DISCUSSION Manager Grant presented an update on the Parks and Greenways Master Plan, the current needs, and future needs. He gave an overview of the financial factors in considering a parks bond referendum, bond capacity, and the bond referendum schedule to get it on the November ballot. He asked the Board if they were interested in moving forward with the bond referendum process. The Board consensus was to move forward with the parks bond referendum. 6. BOARD OF COMMISSIONERS DISCUSSION Mayor Washam asked the Board how they felt about the day’s session. The Board consensus was that it was a great session and very informative. 7. ADJOURNMENT There being no further business to discuss, Commissioner Higgins made a motion to adjourn the meeting at 5:04PM. Commissioner Johnson seconded the motion and it passed unanimously, 5-0. Approved this 6th day of May 2024. Woody Washam, Jr., Mayor ATTEST: Lori A Harrell, Town Clerk 02/08/24 Budget Planning Session Page 10  Attachment 1 FY25 Budget Workshop Call to Order and Opening Remarks The Cornelius Way “Consistently striving to reach above and beyond the “high bar ”, we will uphold the qualities we see and hope to inspire in our citizens, to serve Cornelius with loyalty, integrity, innovation, resilience and courage.” Cornelius Vision Statement - Consideration of Approval “Cornelius is a vibrant and inclusive small community on Lake Norman dedicated to promoting the highest quality of life for all residents.” Financial Condition Fund Balance Breakdown Citizen Budget Survey Approved Development Revenue Cost of Turnover Revenue Generation and Cost Efficiencies What has the Town done and is currently doing to generate revenue and expense efficiencies? Prior 10 years; Not exhaustive In addition to traditional taxes, fees, and interest earnings: • Total Recurring Revenue and Expense Efficiencies = $9.7M+/year = 8.3+ cents on the tax rate (Note: Draft FY25 Budget Total Revenue = $36.4M; 1 cent on the tax rate generates $1,171,444) • Total $583.9M One-Time Revenues and Efficiencies  What has the Town done and is currently doing to generate revenue and expense efficiencies? Revenue Generation Current Recurring Revenues (Items greater than $50K; Draft FY25 Budget) – Total ~$34M o Highlighted in blue if Town has practically 100% control over setting rate/fee • $20M Property Tax (59%) • $6.4M Sales Tax (19%) • $1.8M Utility Franchise Tax (5%) • $920K Prepared Food & Beverage Tax (3%) • $920K Stormwater Fees (3%) • 11%  $858K Powell Bill  $807K Park Program Fees  $805K Police Revenue (High/Middle School SROs, Lake Patrol, ETJ)  $260K Cornelius Vehicle Fee  $233K Occupancy Tax  217K U-Drive It Tax  $160K ABC Revenue Distribution  $133K Beer & Wine Tax  $72K Vehicle Rental Tax  $400K Interest Earnings (General Fund)  $200K Extra Interest Earnings that are allocated to one-time capital expenses (General Fund)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Revenue Generation – Grants $37.8M Total One-Time Grants o $14M CRTPO Discretionary Funding – 21/Catawba Roundabouts, Hickory/115 Intersection, N. Main/Potts Roundabout, Northcross Dr. Ext. o $8M – NCDOT funds for multiple greenways: Antiquity, Caldwell Station, Smithville to JV Washam/Westmoreland MUP, McDowell II, Plum Creek o North Carolina General Assembly – Annual lobbying of Town’s adopted Legislative Agenda • 2022 resulted in $500K • 2023 resulted in $3.5M o $9.6M ARPA Funds o $2M+ affordable housing CDBG/HOME funds for property acquisition, home construction/renovation, emergency repairs, sidewalk construction o $100K+ CRTPO planning grants – pedestrian/bike plans, pedestrian counts o $13K USTA grant for Bailey Road Park tennis courts reconstruction o $57K UASI grant for Fire Dept.’s underwater retrieval robot o $20K Firehouse Subs Public Safety Foundation Grant to purchase six thermal imaging cameras o $57K NC Governor’s Crime Commission Grants • Finger-printing machine, Thermal Imaging, Cellebrite, Bicycle  What has the Town done and is currently doing to generate revenue and expense efficiencies? Revenue Generation - Partnerships $1.1M/year Recurring = 0.94 cents on the tax rate; $4M One-Time Partnership Funds o Mecklenburg County • $197/year for ETJ Policing; 100% operational cost covered • $460K/year for Lake Patrol; ~80% operational costs covered o $150K/year from CMS for 100% of Hough HS and Bailey MS SROs cost during school year o Average of $137,775/year funding from NC 911 Board o $1.1M+ payment-in-lieu received from multiple developments over the past ten years, lowering the cost of Town infrastructure • For example, $250K developer payment-in-lieu for Bailey Road Park Tennis & Pickleball project o $1.6M (85%) from Charlotte Independence for three Bailey Road Park artificial turf fields (Town contributed 15%) o $115K from Bailey Middle School and LKN Giants for artificial turf at BMS o $139K Animal Shelter Donations since 2020 o Average $75K/year annual community donations to Cornelius-Lemley Fire Rescue o $160K from Carolina Thread Trail for Antiquity and McDowell II Greenways o $925K - Greenway cost share from developers for 0.8 miles (three separate greenway projects) o $60K/year dispatch fees 911 Communication Center – Davidson College, Electricities after-hours  What has the Town done and is currently doing to generate revenue and expense efficiencies? Revenue Generation – Partnership cont’d. $1.7M Asset Forfeiture Funds since 2019 Stormwater Fee increases o Upon completion, will generate ~$600K/year = 0.55 cents on the tax rate of annual revenue rather than General Fund supplementing stormwater utility costs Park Program Fee increases o $134K/year = equivalent to 0.11 cents on the tax rate - Participant fees, program fees, sponsorships, non- resident fees to cover either all or a portion of additional personnel/operating costs, such as for increasing part time pay rates, adding maintenance technicians and recreation program assistants Investments o Majority of Town’s funds currently earning 5.25% at NC Capital Management Trust o $1M principal Transportation Capital Reserve Fund invested in State’s AGPIP Equity Index Fund • As of end of 2nd Quarter FY24, $180K in interest earnings o $900K principal OPEB/LEOSSA long-term liabilities invested in State’s AGPIP Equity Index Fund • As of end of 2nd Quarter FY24, $222K in interest earnings o Investment Committee met recently to determine next steps – Interviewing potential Investment Advisors in April  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies All Departments o Operating with a Lean Staff - Estimated $4.1M/year recurring savings = 3.5 cents on the tax rate (based upon FY23 costs and 142 FTEs) - The average citizen to FTE ratio is 129:1. Cornelius ratio is 178:1. In other words, every one of our employees is performing the work of 1.38 employees in other comparable municipalities; said another way, each Cornelius employee is performing 38% more work than an employee in comparable municipalities; ~5 of our employees is equivalent to ~7 employees in other comparable municipalities. (As close to an apples-to-apples comparison: NCLM survey data of responding NC municipalities for same population range and adjusting for utilities staff and Fire Dept. staff) o Minimizing Turnover Costs - Over five fiscal years, Cornelius funded four market salary study recommendations that totaled $1.2M. In FY23, turnover costs were estimated to be $575K - $2.3M for the year; it is estimated that turnover would be at least 2 times worse if previous four market study recommendations were not implemented (based upon peak turnover in FY19 that was double FY23’s turnover), so the Town is avoiding $1.2M - $4.6M of annual turnover costs; after factoring an average of $240K/year of market study recommended increases, equivalent to a net savings of $960K – $4.4M per year turnover costs = 0.82 cents – 3.8 cents on the tax rate; average net savings = $2.68M/year avoided turnover costs = 2.3 cents on the tax rate  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Manager’s Office o $100K+ savings - Contracted legal services vs. FTE o Asst. Town Manager • Serves a dual role of Public Works Director • Serves as a Capital Project Manager for Fire Dept., Police Dept., and Electricities • Serves as Facility Manager for multiple buildings o A Project Manager is needed, but duties shared amongst staff o An additional full-time position in Communications has been needed, however, FY25 request is for a part-time position o Town Clerk also serves as Administrative Asst. for Manager’s Office and Town Board o The Town’s Grant programs administrative duties are shared by multiple employees in multiple departments o A general Grant Administrator (for grants that the Town has received) is needed, however these duties are shared by multiple employees in multiple departments  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies HR o $95K annual personnel savings - The average FTE to Human Resources staff ratio is 79:1. Cornelius is 143:1. In other words, Cornelius’ sole HR professional is working with almost double the amount of employees as other HR professionals. Many municipalities Cornelius’ size or greater have a minimum of 4 HR employees. An HR Technician or Analyst is needed. (NCLM survey data of responding NC municipalities) Planning o A Code Enforcement Officer is needed, however these duties are shared by Planners o A Transportation Planner is needed; however, these duties are shared by multiple staff in multiple department o A Permit Tech is needed, however these duties are shared by Planners o $353K/year – Contract with Meck. County for engineering and inspection services vs. in-house employees/overhead (Engineer, Project Mgr., Inspector, technology)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Public Works o $150K savings by partnering with Mecklenburg County Stormwater for managing NPDES Permit, construction administration for new developments, inspecting erosion control and water quality, investigate stormwater complaints, consultation on stream restoration projects o Admin Asst. position eliminated and duties folded into Finance’s front desk personnel Finance o Finance has the minimum number of employees to meet the separation of duties internal control standard for the Town’s annual audit o Finance front desk personnel perform multiple duties: • Financial Asst. tasks • Call-taking and walk-in assistance • Public Works customer service – solid waste service issues  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Parks o Partnerships with various athletic organizations that reduce the need for Town personnel to perform in- kind programming, field maintenance, field prep for games, tournament operations (LKN Little League, Charlotte Independence, LKN Giants, LNPA, LNWC, Outlaws Lacrosse, CLT Disc Club) Fire o $1.2M/year (FY24 hybrid personnel model of 12 Firefighters on duty) – The current hybrid model of part- time + full-time to achieve 12 FFs on-duty vs. a 100% full-time staff to achieve 12 FFs on-duty realizes cost-savings of $1.2M/year. o Transition Plan’s emphasis on retaining part-time staff significantly lowers the Town’s cost – i.e., it is less expensive to fund part-timers than full-timers o Transition Plan focuses primarily on field staff and is very conservative for administrative staff for what will be the 2nd largest department – only 4 admin. positions (Chief, Deputy Chief, Training Captain, and Admin Asst.)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Police o Since 2009, 31,776 citizen volunteer hours donated to special events, administrative tasks, vehicle maintenance, and other tasks; equivalent to at least $486K in personnel savings over 15 years (or an average of $32,400/year) o Since 2009, 27,300 citizen volunteer hours donated to the Animal Shelter; equivalent to at least $483K in personnel savings over 15 years (or an average of $32,200/year) o Since 2022, 1,560 citizen volunteer hours for School Safety Patrol at Cornelius Elementary and JV Washam Elementary; equivalent to at least $24K in personnel savings over 2 years (or an average of $12,000/year) o Hired a civilian Records Clerk to free up four Lieutenants’ time so they could focus on primary law enforcement duties IT o Consolidating cyber security services to 24/7 coverage provided by Corvid eliminates the need to hire at least 3 FTEs to provide similar security coverage ($300K+/year) o Utilizing software management tools to eliminate hiring another FTE ($60K+/year)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Partnerships - $574K/year + Public Safety Partnerships Recurring = 0.49+ cents on the tax rate; $540.3M One-Time Partnership Funds ($71.2M of non NCDOT Partnership Projects) o NCDOT • $469.1M of TIP-funded NCDOT road projects via leveraging ~$38.4M of Town funds  NCDOT TIP funds, Bonus Allocation Funds  For every $1 Town funds, Town receives $12 in return  Town’s match is 8%  1200% Rate of Return • $12K savings – NCDOT and Town partnering to improve pedestrian safety at the intersection of NC115 and Bailey Rd. Town is purchasing materials @ $8,000 and NCDOT is providing the signal timing changes and installation of the new system o NCDOT and Rhythm Engineering • $385K savings - Town partnered with NCDOT and Rhythm Engineering to bring a pilot program of adaptive signal control technology to the West Catawba corridor (Town contributed $161,000 to a $546,000 project)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Partnerships o Mecklenburg County • $94K/year for 6.5 existing greenway miles maintenance for perpetuity • $1.5M capital contribution to Cain Center capital project • $800K for 6 acres of park land acquired by Meck. County for expanding Smithville Park (Town has 20% cost share @ $200K) • $1M for developing Plum Creek Grwy. I • $2.3M for developing Caldwell Station Tributary Grwy. that goes behind the North Regional Recreation Center and Caldwell Station neighborhood • $40M North Regional Recreation Center • $20K value in four radios donated by Meck. Co. Fire Marshall’s Office to Fire Dept.’s apparatuses o $1M of Plum Creek II Grwy. Development donated by WLS o $450K of 9 acres of park land donated by Alexander Farms developers o $469K/year of in-kind programming, field maintenance, field prep for games from partner organizations, baseball tournaments operations: LKN Little League, Charlotte Independence, LKN Giants, LNPA, LNWC, Outlaws Lacrosse, CLT Disc Club o Town invested $5.5M capital into $25M Cain Center capital project (22% share)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Partnerships cont’d. o State’s $2.5M capital contribution to Cain Center capital project o Huntersville and Davidson - $75,000 savings on capital and $5,000 recurring - Davidson, Cornelius, and Huntersville jointly purchased a brine machine; Huntersville maintains this machine at their PW facility o Fire Departments’ Mutual Aid provided by neighboring towns o Police Departments’ regional partnerships, such as North Meck SWAT o $100K+ Top Deck donations for various Police-related items, such as UTV, 2 dual sport motorcycles, outer carriers, K9 ballistic vests, annual Officers’ gifts o $16K Mattress donations from Mattress Express to Fire Dept. o $5K outboard 30 hp motor donation for the Fire Dept.’s inflatable boat from Little Heating & Cooling o $6K/year – Parks STEM program in-house vs. contractor o $1.5M of savings partnering with Mills Market for Town Center public parking deck (130+ parking spaces) o $1500 (60%) savings for Mark Vitner economic condition presentation by partnering with Centralina COG  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Other Expense Efficiencies Measures – Average $520K/year + Other Measures Recurring = 0.44+ cents on the tax rate; $80K One-Time o Procurement process – regular competitive bidding across all departments that lowers costs or mitigates cost increases – e.g., Solid Waste Contract, copiers lease, construction projects, supplies, professional services (audit services, engineering) o Legal analysis and consultation – have avoided a substantial amount of unnecessary & costly lawsuits o $133K/year – Parks operational efficiencies, e.g., smart irrigation, adjusting supplies, landscape maintenance contracting, cleaning bathrooms in-house, special events in-house o Health Insurance – aggressively bid out and negotiate every year – cumulative savings over the course of 5 years is $1M from initial renewal rate o $409K savings over the past 5 years by utilizing shaving/grinding method for sidewalk trip hazard repairs vs. complete replacement of sections (Town has spent $181,000 on shaving sidewalks throughout Town) o HR performs market salary survey in-house, therefore saving approximately $26K each time o IT regularly seeks cost efficiencies for licensing, DNS, phone system, E-waste, PC replacement cycles (savings of $20K+/year)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Expense Efficiencies Other Expense Efficiencies Measures cont’d. o In-house livestreaming vs. contracting (savings of $11K/year) o Utilizing virtual servers vs. physical on-site servers that take up physical space and utilizes electricity o $80K – Land Use Plan preparation in-house vs. consultant o $19K/year – GIS duties absorbed by Planning Staff o $6K/year – Planning Staff prepare ordinances, resolutions and guide Board of Adjustment vs. Town Attorneys o $25K/installment financing - Finance does not typically require a Financial Advisor’s assistance for installment financings which saves the Town thousands each year when we issue debt o Finance replaced the procurement card paper system with an electronic system provided free of charge by BOFA o HR and Finance replacing personnel records/processing paper system to electronic HRIS (Human Resources Information System)  What has the Town done and is currently doing to generate revenue and expense efficiencies? Town Manager makes recommendations to Board that consider cost efficiencies and community need. Some examples: o Recommendation to slowly phase in two new elementary school SROs over 3 years, however Board accelerated this to one year ($200K accelerated recurring personnel and operating costs) o Recommended to focus resources on Bailey Road Park Tennis/Pickleball Project and not fund $475K Torrence Chapel Park pickleball project at that time, however Board fully funded it in FY23 o Recommended to allow NCDOT to fund and construct new crosswalks along West Catawba with the widening project, however, Board fully funded this project in FY23 ($120K) o Due to higher priority traffic concerns, did not recommend to fund a Bailey Rd. school traffic mitigation and Zion Ave. Ext. study at this time, however Board funded it in FY23 ($175K)  What is the Town currently pursuing to generate additional revenue and achieve additional expense efficiencies? • Pursuing Multiple Millions $ Recurring Revenue and Expense Efficiencies • Pursuing $51.9+M One-Time Revenue and Expense Efficiencies What is the Town currently pursuing to generate additional revenue and achieve additional expense efficiencies? Revenue Generation Grants – Total $13.1M o $10.3M Additional CRTPO Discretionary Funding – Torrence Chapel ad Bailey Rd. Ext. o $912K SAFER Grant – adding 6 full-time Firefighters o $50K CRTPO planning grant for updating Bike and Pedestrian Plan o $1.8M U.S. Dept. of Energy GRIP (Infrastructure) Grant – provides for 75% of the cost to install SMART METERS on our electric system (Reduces outage time by better identifying where outages are occurring; Improved customer service communication with customers, such as real-time estimating of when service will be restored, and communication on smart phones; Real-time usage data for customers encouraging lower energy consumption; Town’s electric system match is $450K) o Grant Writer • SAFER • other potential projects, such as, Exit 27, Sustainability, Affordable Housing Municipal Service District – that is, a Special Taxing District o Downtown Revitalization/Parking Improvements – Downtown Master Plan consultant will provide a recommendation to the Town  What is the Town currently pursuing to generate additional revenue and achieve additional expense efficiencies? Revenue Generation North Carolina General Assembly – Annual lobbying of Town’s adopted Legislative Agenda o Draft 2024 agenda requests $20.7M funding Federal Lobbying o Priority requests of $13.7M funding Off-street public parking – a Public Enterprise Fee – Town will be charging for parking in the future parking deck; revenues can only be used to manage/operate a deck, for example Capital funds from LNTA & LNPA for Bailey Road Park Tennis & Pickleball project $180K from USTA for Bailey Road Park Tennis/Pickleball Complex (Phases I and II) MEDIC - Multi-year effort to increase funds received for EMT-related responses by Fire Dept. Transit Tax - Multi-year effort to obtain transportation funding from a potential new transit tax  What is the Town currently pursuing to generate additional revenue and achieve additional expense efficiencies? Expense Efficiencies o Town Manager has recommended that $2M of the State’s $3M goes toward funding Town’s partnership share of NCDOT road projects, as this will reduce the amount of transportation bonds sold, saving the Town approx. $1.2M in interest cost o Police Dept. having discussions with Huntersville PD regarding potentially dispatching for Huntersville; if Huntersville PD agrees to certain contract terms, this may lead to cost-savings o Smithville-JV Washam-Westmoreland Rd. greenway & multi-use path – partnership with Meck. County that will cover the project’s $3.25M shortfall o Additional Linear Park land acquisition partnership with Meck. Co. ($1M+) o Fire Transition Plan call for staffing a future QRV to respond to medical-related calls; QRV staff will help the Town achieve NFPA 1710, however, must reach a minimum level of full-time firefighters and maintain a minimum level of part-timers before implementing o Sustainability Plan development – attempting to piggy-back on Centralina COG’s regional sustainability plan to mitigate the cost of developing a Town sustainability plan What are other potential revenue generators and expense efficiencies?  What are other potential revenue generators and expense efficiencies? Revenue Generation Town Staff consulted with North Carolina League of Municipalities (NCLM) o“Municipalities’ authority to raise general fund revenue is relatively limited and as a result the property tax becomes almost the only area in which N.C. cities and towns can generate meaningful revenue on their own.” o“Property tax and sales tax are the two primary general fund revenue sources for most of our municipalities.”  What are other potential revenue generators and expense efficiencies? Revenue Generation Increase Existing Vehicle Fee – Town Manager recommends o Currently $10 per vehicle fee o FY23 collections at $272,880 o Current collections utilized for a portion of Road bond (Town Roads) debt service (annual debt service is ~$1.2M for bonds sold in 2015 and 2018) and general Town roads maintenance o Statutory authority to increase fee up to $30 • Charlotte $30 • Davidson $20 • Huntersville $20 • Matthews $25 • Mint Hill $10 o Statutory authority to utilize revenues on transit and public roads’ maintenance, repair, construction, widening, and improving (Town roads and NCDOT roads – only $5 can go toward NCDOT roads) • If Town increases the fee to $30, additional revenue can be utilized for repaving Town streets  An additional $20 (generates ~$545,761/year); combined with Powell Bill funds to repave more Town streets: ~10 miles instead of ~5 miles every two years; which will reduce our entire- town paving cycle from a ~44 year cycle to ~22 year cycle  What are other potential revenue generators and expense efficiencies? Revenue Generation Approve optimal future developments that provide a high net amount of property tax revenue Lobby North Carolina State Legislature for additional revenue sources oe.g., Pennies for Progress model  What are other potential revenue generators and expense efficiencies? Revenue Generation Town Staff consulted with UNC School of Government o Per UNC School of Government, the following are revenue sources that NC municipalities: 1. have authority for 2. that Cornelius is not applying 3. are relevant to Cornelius • Municipal Service District – that is, a Special Taxing District – Highly Recommended  Downtown Revitalization Capital Projects/Parking Improvements/Festival Street – Downtown Master Plan consultant will provide a recommendation to the Town • Animal Tax – Not recommended – requires additional resources to manage a program that will be difficult to enforce, lack of significant amount of revenue, not politically palatable • Business Registration Fee – Not recommended – requires additional resources to manage a program that will be difficult to enforce, not politically palatable, revenue can ONLY be used for operating the business registration program • Regulatory Activity Fees – Not recommended, since all revenues must be spent on operating the regulatory program – an example is regulating all taxi cabs that operate in-town • Emergency Medical Services fee – a General User Fee – needs further investigation to determine if the Town has authority to assess this for the services it provides, how practical it is to assess, and if this is palatable to the community  What are other potential revenue generators and expense efficiencies? Revenue Generation Town Staff consulted with UNC School of Government cont’d. • Franchise Fees – needs further research – authority to grant privilege licenses for taxi cabs (160A- 304, 20-97) (NOT for ride-share programs, like Uber) and solid waste collection (160A-319 and 311), but municipalities may not have authority to charge a fee • Special Assessments – for capital projects that benefit a certain property(ies) – used to pay for service/capital that the Town provides BUT the primary benefit must be for the assessed property; Requires that a petition is submitted by at least 66% of property owners requesting the assessment, meaning that a developer would need to request it for their project; current method is for the developer to pay for the infrastructure; needs more research; may be applicable for right situation • Tax-Increment Financing – Town finances infrastructure utilizing the incremental increase in property tax revenue on specific property(ies) due to private development; requires property owner/developer cooperation; needs more research on process; may be applicable for right situation • Synthetic Tax-Increment Financing – Same as TIF, except private entity/developer obtains financing and Town pledges its incremental increase in property tax revenue from that development; needs more research on the process; may be applicable for right situation  What are other potential revenue generators and expense efficiencies? Revenue Generation Town Staff consulted with UNC School of Government cont’d. o Per UNC School of Government, the following are revenue sources that NC counties: 1. have authority for 2. that is currently not being applied 3. are relevant to Cornelius • Fire Protection/Rescue Services District – that is, a Special Taxing District – Needs more research - Recommend considering this AFTER Fire Transition Plan is complete so that Cornelius retains authority over plan implementation costs, timeframe, and tax rate – do not need another cook in the kitchen during Transition Plan period as Cornelius loses authority over the tax rate and service levels; if implemented, would reduce the Town tax by an equivalent amount to a new district tax; it appears the County can contract with the Town to provide the services (needs more study); potential to regionalize fire services via this revenue source if there will be one entity that manages multiple Fire Depts. as one  What are other potential revenue generators and expense efficiencies? Expense Efficiencies The following services and projects could be cut or shifted to a different provider, reducing the expense budget, but service levels will plummet and will likely be too difficult for community to lose these services or too problematic to cut – Not Recommended o $200K/year initially, but all savings are estimated to disappear after three years due to projected CMPD annual escalations – Contract with CMPD for Communication Dispatch o $5K/year – Replace Sworn Officer with a civilian Community Services Coordinator – The public desires to speak with a sworn officer (vs. a civilian), and the relaxed interaction builds upon CPD’s community policing efforts o $96K - Do not hire an experienced prime consultant to conduct the Downtown Master Plan, allowing staff to serve as lead consultant; will lead to inferior deliverables and protracted project timeline (due to lack of downtown development experience) o $5K – Bring mowing of interchange gore/ramp areas in-house; not recommended as this is a highly dangerous area and risk of workers comp and property liability claims is very high o $75K recurring operational cost + capital cost - Annual leaf-vacuuming service; cutting service may lead to additional solid waste contract fees; this service was cut several years ago, and tremendous public outcry resulted; Not Recommended  What are other potential revenue generators and expense efficiencies? Expense Efficiencies The following services and projects have been evaluated recently to determine if it can be provided at a reduced cost without impacting services: o $34K/year increase – Contract with CMPD for Animal Control Services – Not Recommended o $122K/year recurring operations increase + $146K capital cost – Hire Civilian Crash Investigator – Would need to hire at least two FTEs; would supplement, not supplant sworn officers; not enough accidents to justify; most accidents need an officer; Not Recommended Expenditures that are not core Town services – however, community impact should be considered o $531K/year annual Town grant expenditures to community organizations o $32K/year annual expenditures to sponsor local events that are managed by outside entities Other measures o Replace paper with electronic systems, such as invoice processing and accounts payable; need to evaluate costs o Improve Finance’s journal entry process by implementing new financial software; need to evaluate costs o $5K+/year - Adjust Planning-related permit fees – needs further research Merit/COLA Insert updated graph (3 years of CPI plus the COLA for three fiscal years) and FY24 actual merit/COLA spreadsheet and FY25 merit/COLA spreadsheet  Inflation (C-CPI-U) Previous Two Years: Jan. 2021 – Dec. 2022 (Avg. CPI 2021 = 4.5%) (Avg. CPI 2022 = 7.6%) 24 month % change 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 2021 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2022 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec Series1 1.5 1.8 2.6 4.0 5.0 5.3 5.0 4.8 5.0 5.9 6.4 6.6 7.0 7.4 8.0 7.8 8.0 8.4 7.8 7.8 7.8 7.5 6.9 6.4  Area Merit & COLA Actuals FY 23 Local Unit Merit COLA Total 3% + 1.5% salary Concord increase 2.0% 6.5% Cornelius 3.5% 2.5% 6.0% $2,000 all full time employees salary Davidson 3.0% adjustment 3% + $2,000 Huntersville 3.5% 5.0% 8.5% Mooresville 3.5% 2.00% 5.5% Kannapolis 3.0% 5.00% 8.00% Matthews 0.0% 7.00% 7.00% Mint Hill 2.5% 10.00% 12.50% Pineville 2.5% 3.0% 5.5% Gastonia - - 8.6% Avg. Merit = 3.3% Avg. COLA = 4.6% Avg. Total = 7.6%  Inflation (C-CPI-U) Previous Two Years: Jan. 2021 – Dec. 2022 (Avg. CPI 2021 = 4.5%) (Avg. CPI 2022 = 7.6%) 24 month % change 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 2021 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2022 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec Series1 1.5 1.8 2.6 4.0 5.0 5.3 5.0 4.8 5.0 5.9 6.4 6.6 7.0 7.4 8.0 7.8 8.0 8.4 7.8 7.8 7.8 7.5 6.9 6.4 FY 24 Proposed Local Unit Merit COLA Total Cornelius 3.5% 4.5% 8.0% Local Government A 4.0% 2.0% 6.0% Local Government B 8.0% Local Government C 1.5% 8.0% 9.5% Local Government D 3.5% 3.00% 6.5% Local Government E Local Government F 2.5% 5% + 7.5% + Local Government G 2.5% 7.5% 10.0% Local Government H 8% Local Government I 5% + 5% + Avg. Merit = 2.9% Avg. COLA = 5% Avg. Total = 7.6% Goals (Personnel and Operating) CIP 80/20 Forecast Use of Fund Balance Manager’s Summary  FY25 Draft Budget Town Manager removed approx. $500K of Dept. Head requests from draft budget (prior to Budget Workshop) Draft Budget….. oBy retaining the current 17.31 cent tax rate, there is a net use of Fund Balance of $1,692,278 oA 1.5 cent tax rate increase will generate $1,757,166/year covering the projected gap The vast majority of the requested personnel/operating/capital increases are to maintain service levels Very small amount (~$300K) of the requested personnel/operating/capital increases will increase service levels Therefore, additional revenue is needed via a property tax increase just to maintain service levels Town Manager recommends maintaining and increasing service levels in order to provide the community with high quality services by continuing our standard of the Cornelius Way and complying with our Vision Statement  Fire Dept. Transition Plan In FY25, represents almost 1 additional cent on the tax rate oNext step in standing up a new Town department oAdding 6 Fulltime Firefighters oRetention of Part-time Firefighters – essential to successful transition o$1,066,945 = 0.91 cents on the tax rate  Public Safety (Police and Fire) New Public Safety items in draft FY25 budget (operations/personnel/capital) are the equivalent of approx. 2.6 cents on the tax rate oRecruitment & Retention of full-time and part-time staff oFunding new Police and Fire positions oNew equipment & vehicles oReplacement and maintenance of equipment & vehicles oMental Health Clinician oCost savings due to reduction in funding for part-time Fire positions from bringing on full-time positions (full-time Chief, reduction of 2 part-time Firefighter shifts) o$3,053,973 = 2.6 cents on the tax rate  1.5 Pennies Allows the Town to Fund… Transportation Improvements ◦ Bailey Rd. Extension – Construction Match ◦ Resurfacing of ~4-5 miles of Town streets ◦ Restriping Catawba Corridor Crosswalks ◦ Install 3 RRFBs at Crosswalks (Torrence Chapel Park, Legion Park/North Main, Meridian St./Catawba) ◦ Update Comprehensive Bike & Pedestrian Master Plan 1.5 Pennies Allows the Town to Fund…. Police ◦ Vehicle Replacements ◦ Radios Replacement (40) ◦ 2nd half year funding for new Elementary SRO ◦ Mental Health Clinician (contractor) ◦ In-car and Body-worn camera – replacement program ◦ Radio Upgrades ◦ Training Software ◦ Facility Needs Assessment 1.5 Pennies Allows the Town to Fund…. Fire ◦ 6 Full-time Firefighters ($139K savings eliminating 2 part-time shifts) ◦ Deputy Chief ◦ Part-time Administrative Assistant ◦ 2nd half year – Fire Chief ($26K part-time cost savings) ◦ Part-time pay rate market adjustments ◦ Non-resident incentive for qualifying part-time Firefighters ◦ Replace all Firefighters’ air packs ◦ Rescue and training equipment, PPE, radio upgrades, vehicles 1.5 Pennies Allows the Town to Fund…. Parks & Rec ◦ Replace Legion Park Playground ◦ Resurface Bailey Road Park track (partner with CMS) ◦ Replace Parks truck and JV Washam scoreboard ◦ Summer Day Camp Expansion ◦ Increase Parks Maintenance 1.5 Pennies Allows the Town to Fund…. Public Works ◦ Magnolia Estates/Westmoreland Stream Restoration – Construction Year 1 of 2 ◦ Replace Leaf Vacuum Machine 1.5 Pennies Allows the Town to Fund…. IT/Cyber Security ◦Transition financial system to cloud-based platform ◦ Improving security of backup data system – ensures reliability of backup data  1.5 Pennies Allows the Town to Fund…. Salaries that are competitive with the market oMarket Salary Study that aligns salary with experience & qualifications oEmployees in all departments ◦ Career Development (Year 2 of 2) ◦ Retention via identifying & developing future leaders ◦ Merit/COLA ◦ Competitive with market  1.5 Pennies Also…… Improves the Town’s Fund Balance position (per forecast) ◦ Town must maintain a minimum of 40% of GF expenditures ◦ Available Fund Balance (AFB) amounts & % over the next 7 years ◦ If tax rate stays same: If 1.5 pennies increase: ◦ FY25 AFB = $29.2M (69%) FY25 AFB = $27.2M (85%) ◦ FY26 AFB = $23.8M (60%) FY26 AFB = $26.5M (72%) ◦ FY27 AFB = $20.5M (54%) FY27 AFB = $22.1M (60%) ◦ FY28 AFB = $17.3M (43%) FY28 AFB = $17.9M (48%) ◦ FY29 AFB = $11.8M (28%) FY29 AFB = $17.2M (45%) ◦ FY30 AFB = -$3.9M (9%) FY30 AFB = $8.1M (20%) ◦ FY31 AFB = -$-5.4M (-11%) FY31 AFB = $1.3M (3%)  A 1.5 Cent (8.7%) Increase Will Result In An Annual Property Tax Increase of……. $71.77 for a Cornelius home assessed at $478,450 (median home value in Cornelius*) $111.04 for a Cornelius home assessed at $740,259 (average home halue in Cornelius*) *Median and average assessed Cornelius home values provided by UNC Charlotte Urban Institute’s 2023 North Mecklenburg Demographic and Housing Assessment Economic Discussion with Special Guest Mark Vitner Continue Discussion and Town Board Feedback Day 2 AI Discussion Electric Utility – Infrastructure Policy Park Bonds Continuation/Follow-Up of Any Items from Day 1 Town Board Feedback & Discussion Adjourn