Board of Commissioners

Fuquay-Varina Town Board Retreat Meeting Minutes Book - Page Fuquay-Varina Town Board Retreat Meeting January 30-31, 2025 J. Blake Massengill, Mayor Marilyn B. Gardner, Mayor Pro-Tem The Town Board Retreat Meeting of the William H. Harris, Commissioner Charlie Adcock, Commissioner Fuquay-Varina Town Board scheduled for Bryan Haynes, Commissioner Jason Wunsch - Commissioner Thursday, January 30 and Friday, January 31, Adam G. Mitchell, Town Manager Mark D. Matthews, Assistant Town Manager 2025, was held at The Holly Inn, 155 James (Jim) E. Seymour, Assistant Town Manager Teresa Wilder, Town Clerk Cherokee Road, Pinehurst, NC. James S. Adcock, III, Town Attorney Mayor Blake Massengill, Mayor Pro-Tem Marilyn Gardner, and Commissioners William Harris, Charlie Adcock, Bryan Haynes, and Jason Wunsch were in attendance. Also present were Town Manager Adam Mitchell, Assistant Town Managers Mark Matthews and Jim Seymour, and Town Attorney James Adcock. CALL TO ORDER Mayor Massengill called the meeting to order at 10:00 am on Thursday, January 30. REVIEW AND APPROVAL OF AGENDA TM1 Town Manager Adam Mitchell reviewed the agenda and logistics for the Town Board Retreat. THURSDAY MORNING WORK SESSION TM2 Review of Financial Status, Forecast, and Adopted FY 25-29 Five-Year Plan (General Fund) – Town Manager Mitchell led a discussion and review of the Town’s financial status, forecast, and five-year plan for the General Fund. He presented a look back at five-year trends in revenues and expenses for the General Fund operating accounts. Town Manager Mitchell then presented a forecast for the 2025 fiscal year. Overall, the forecast reflects continued growth in ad valorem tax revenue, sales tax revenue, investment earnings, and sales and service revenue, with a projected increase in the fund balance of approximately $3.56 million. Town Manager Mitchell then discussed forecasted General Fund revenues and expenses for FY 26 through FY 30. He described revenue assumptions, including ad valorem taxes factoring in the 2025 tax base post-2024 revaluation, sales tax, permits and fees, sales and service, and borrowing. He further described expense assumptions, including departmental operations, existing debt, new debt, capital projects, and implementation of pay study recommendations. In total, Town Manager Mitchell presented a five-year outlook with surpluses each year; however, he noted that the forecast did not include updated department requests or economic impacts, which he believes may alter the surpluses shown at this time. Town Manager Mitchell emphasized that adding initiatives over the next five years will require either reprioritizing and cutting from the current expenditure plan or generating additional revenue. Town Manager Mitchell emphasized that permits, fees, and growth projections must be closely monitored when developing plans for FY 26 and the next iteration of the Five-Year Plan. Town Manager Mitchell also presented the Town Board with a reminder of the Town’s debt policy to assist with understanding the capacity for future borrowing and spending. Overall, the presentation focused on strong fiscal health, emphasizing that there is limited space to plug in new initiatives without other considerations. TM3 Review of Financial Status and Forecast (Utility Enterprise Fund) – Town Manager Mitchell led the discussion and review of the Utility Fund’s financial status and  forecast. He presented the five-year historical trend in revenues and expenses, including permits and fees, sales and service, and other financing sources. He provided information demonstrating that the utility fund has benefited from operating surpluses over the last five fiscal years and noted that FY 23 and FY 24 were primarily the result of implementing phased rate increases to anticipate significant debt related to major capital investments in the utility system and long-term capacity. Town Manager Mitchell then presented information on the 2025 fiscal year forecast, explaining that water sales, sewer treatment, and other revenues are trending at or above budget, while expenses are trending below budget, resulting in a forecasted surplus of $8.9 million at the end of the fiscal year, much of which will be used to service debt in the coming 1 to 3 years. He then provided information on the operating fund balance, stating that if the 2025 fiscal year ends at or near the current forecast, the fund balance on June 30 will be approximately $28.0 million. Town Manager Mitchell then provided an overview of the Utility Capital Reserves Fund forecast, explaining that growth projections are not trending as expected, similar to trends experienced with building permits and fees in the General Fund. However, revenues and expenses are expected to offset each other. He then reported that the capital reserve fund balance would be used to fund several capital projects planned for future construction, and that the Town will be reimbursed for the upfront cash outlay when bonds are sold. Town Manager Mitchell also presented the Town Board with a reminder of the Town’s utility debt policy to assist with understanding the capacity for future borrowing and spending. TM4 Overview of Available Fund Balance and Review of FY 25 Budget Engagement Input – Town Manager Mitchell also reported growth in the General Fund unassigned fund balance as of June 30, 2024, resulting in a balance of $34.3 million. Town Manager Mitchell compared unassigned fund balances among several neighboring Wake County communities, noting that Fuquay-Varina is in a strong financial position. Town Manager Mitchell presented information to the Town Board on public input received  since mid-January via Let’s Talk FV to support decisions for the development of the FY 26 budget and Five-Year Plan. He reported that the main themes and wishes extrapolated from the public input include investments in road and traffic improvements, sidewalks, trails and greenways, and downtown, as well as maintaining rates and fees. The Town Board recessed at 12:00 pm for lunch and reconvened at 2:00 pm for the afternoon work session. THURSDAY AFTERNOON WORK SESSION TA1 Community Survey Report – Town Manager Mitchell reported the results of the Community Survey conducted between September and October, 2024. He advised that the survey was completed by 421 respondents and that measures were put in place to ensure residency for those who responded. Town Manager Mitchell stated that residents have a positive perception of the Town, noting that overall quality of life, place to live, place to raise children, welcoming, and place for seniors all ranked very highly. He shared that residents feel safe and report high levels of satisfaction with police and fire services. Additionally, he stated that public works services and park maintenance were ranked highly among respondents. Town Manager Mitchell then reported that town special events, arts center information availability, and parks and recreation senior programs all made gains in satisfaction ratings. Additionally, he reported that the town’s staff is highly ranked and well-regarded for customer service. Town Manager Mitchell explained that the customer satisfaction survey compares the Town's results with the National and Atlantic Region averages. He reported that Fuquay-Varina rates above the U.S. average in 47 of 51 categories and above the Atlantic Regional average in 44 of 51 categories.  Town Manager Mitchell then explained how respondents rank the importance of the Town's strategic goals, noting that preserving character and identity, economic vitality, and quality of life are the three most important. Town Manager Mitchell concluded his presentation by reporting the areas of focus for the next two years, as identified by survey respondents, including 1) traffic management, 2) growth management, 3) maintenance of town streets and sidewalks, 4) police visibility in neighborhoods, 5) the town’s efforts to prevent crime, 6) police visibility in retail areas, 7) adequacy of street lighting, 8) the number of walking, biking, and greenway trails, 9) maintenance of town parks and athletic fields, and 10) the town’s senior programs. TA2 Strategic Plan Report – Assistant Town Manager Matthews next provided an update on the status of the Town’s Strategic Plan. He gave the Town Board a report card on strategic plan objectives and initiatives that have either been completed or are ongoing. Assistant Town Manager Matthews specifically took time to review the completed initiatives as follows: 1. Develop a town-wide customer service training program tailored to employees. 2. Develop a community engagement solution. 3. Implement a GIS-integrated work order management system. 4. Implement a project management system for development review and town projects. 5. Construct and open Fire Station No. 4, while also planning for future public safety facility needs to align with town growth. 6. Ensure development ordinances adequately address non-residential land uses. 7. Preserve industrial and employment center land identified in the adopted land use plan for non-residential development. 8. Recruit a manufacturing user (or users) to the Fuquay-Varina Business Park. 9. Continually update land use development policies to reflect community needs and aspirations. 10. Build on the success of the FM2FV concert series by developing additional elements to existing and new events. Assistant Town Manager Matthews advised that the next phase of the strategic plan is to backfill completed initiatives with new ones. He also advised that management will be making recommendations, including a recommended FY26 budget and Five-Year Plan. Town Manager Mitchell requested that if the Town Board had suggestions or strong feelings about initiatives to backfill the void created by completed initiatives, to please let management know. Commissioner Adcock remarked that he likes seeing town police cars visible in the community and in town neighborhoods, especially during evening hours. Commissioner Harris stated that he wanted to see continued sharing of information on the town’s website, especially regarding the town’s emergency management response plan. Mayor Massengill stated that the town could possibly implement automated communication to explain the process, especially related to public works services. Commissioner Harris asked how the board and the public are informed when initiatives from the strategic plan are complete and when they are still ongoing. Asst. Town Manager Matthews explained that this information is reported in a strategic plan progress report available on the town’s website. Mayor Pro-Tem Gardner suggested that the strategic plan be more robust in maintaining community character, especially regarding requirements for downtown  and residential areas. Commissioner Adcock and Wunsch agreed and suggested that the Town possibly consider incentives for character development standards and voluntary conditions. Assistant Town Manager Matthews reported that management would develop recommendations for backfilling completed initiatives in the strategic plan and provide them along with the annual recommended budget and the five-year plan. TA3 Employee Classification/Compensation Report – Town Manager Mitchell presented the progress report for the ongoing classification and pay study, highlighting that the initial market review of external benchmark classes is complete. The findings reveal a robust market standing, with the Town currently positioned at 107% for entry-level positions and 105% for the actual market across both general and banded pay plans. Because of these strong results, the report recommends utilizing alternative implementation methods rather than past approaches. While employee interviews are fully completed, job analysis and market alignment efforts continue, particularly within the Utilities department. Based on initial interview feedback, Town Manager Mitchell also noted a review of the career ladder implementation and its associated communication is underway, with the broader department staffing count analysis scheduled to proceed once all core classification tasks are finalized. To address pay system maintenance, Town Manager Mitchell outlined potential market adjustment options to adjust the minimum, midpoint, and maximum values of the salary schedules. A 5% adjustment would require an implementation cost of $961,210 to establish a market-leading position, whereas a 3% adjustment would cost $576,726 and position the town above the market average. In both scenarios, the respective incumbent salary increases would be capped so as not to exceed 105% of the proposed midpoint. Town Manager Mitchell noted that the 3% option stands as a  strong recommendation because it scores exceptionally well when compared against the previous year's baseline metrics. TA4 Transportation Recap and Look Forward - Assistant Town Manager Seymour reported a comprehensive update on the Town of Fuquay-Varina’s multi-tiered transportation infrastructure strategy, detailing current, mid-term, and long-range initiatives designed to support the growing community. Assistant Town Manager Seymour first presented the active Locally Administered Projects Program (LAPP) and Town-funded category, which comprises eight pedestrian and roadway projects totaling $20,501,080 with construction windows spanning 2024 through 2025. Notable milestones include the US 401 at Mill Creek intersection improvements, which are under construction with punchlist work and NCDOT acceptance underway, alongside the upcoming Jones Street sidewalk, SE Judd Parkway sidewalk, and Sunset Lake Road Phase II widening projects. Assistant Town Manager Seymour also updated the Town Board on state and locally bond-funded transportation projects already in progress or slated through 2026, totaling $33,834,691 across nine critical initiatives. This includes major active projects such as the $12 million Wallace Adcock Boulevard connecting Highway 401 to Highway 42, the Whitted Road Roundabout, and immediate intersection operational improvements at Highway 55/James Slaughter Road and SE Judd Parkway/Angier Road. Additionally, Assistant Town Manager Seymour highlighted progress on pedestrian safety enhancements, specifically the $500,000 High Priority Crosswalk Visibility Project that will introduce Rectangular Rapid-Flashing Beacons (RRFBs) at key locations downtown, near Town Hall, and near Fuquay-Varina High School. Looking ahead at near-term deficiencies, Assistant Town Manager Seymour identified seven recommended projects within the 0-5 year horizon that remain unfunded, carrying an estimated total cost of $13,818,617. To address these infrastructural gaps systematically, Assistant Town Manager Seymour advised the Board on leveraging outside funding sources via upcoming FY26 LAPP submittals. Specifically, he recommended seeking cost-sharing approvals for the Lincoln Heights Pedestrian Improvements construction phase and the design and right-of-way acquisition phase for the Bowling Road/S. Main Street Phase 1 project, the latter of which is targeted to mitigate traffic congestion near the new middle and elementary schools. The Town Board concurred with the recommendation. For long-term capital improvement planning, Assistant Town Manager Seymour mapped out future tiers spanning the next 6 to 20+ years to guarantee that the Town maintains a sustainable project pipeline. This includes $32.7 million in mid-term projects (6-10 years) such as the $8.2 million Holland Road Realignment to remedy high crash rates at its intersection with NC-55, and the $8 million Bowling Road/S. Main Street Phase 2 improvements. Furthermore, he noted that the long-range horizons include $50 million in estimated needs for the 11-15 year tier—anchored by the $20 million Old Honeycutt Road ultimate build-out—and $84 million for the 16-20+ year tier, which features the widening of Highway 42 from NC-55 to the county line at an estimated cost of $55 million. Assistant Town Manager Seymour advised the Town Board to remain vigilant regarding project timelines affected by utility conflicts and NCDOT reviews, citing current design delays on the Hilltop Needmore Johnson Pond Road project as an example where value engineering is actively being utilized. He emphasized that aggressively pursuing federal and state grants while synchronizing local bond allocations will allow the Town to successfully deliver these complex multimodal improvements, address structural gaps, and manage rapid commercial development without placing an undue financial burden entirely on residents.  Following considerable discussion about these projects and their estimated costs, the Town Board agreed with management’s recommendations and concurred that some of the larger, more costly transportation projects, citing the Old Honeycutt Road ultimate buildout and the widening of Hwy 42 as examples, would likely have to be completed by NCDOT because the cost would be too prohibitive for the Town. TA5 Utilities Recap and Look Forward - The Town Board was informed that Fuquay-Varina is embarking on a substantial water and sewer Capital Improvement Program (CIP) for fiscal years 2025 through 2030, totaling $399 million. This initiative allocates $259 million to water infrastructure and $140 million to wastewater system investments. To finance these comprehensive upgrades, the funding strategy relies heavily on $325 million in revenue bonds—of which $138 million was issued in 2024—alongside $54 million in secured State Revolving Fund loans and $20 million in cash from the operating and capital fund. Assistant Town Manager Seymour outlined that utility program costs have escalated relative to prior planning estimates due to several key factors. Operating and maintenance expenditures are rising from ongoing cost increases in purchased resources, electricity, supplies, and equipment. Furthermore, personnel costs are driving revenue requirements higher due to anticipated labor and benefit increases, as well as the need for additional staff to manage the newly expanded utility facilities. To address these financial demands, three multi-year rate planning scenarios were evaluated against a baseline assumption of 1,000 equivalent residential units (ERUs) in fiscal year 2025 and 1,100 ERUs annually thereafter. Scenario 1 modeled the prior five-year plan featuring a 15% annual rate increase from fiscal years 2025 to 2028 and a 5% increase in fiscal year 2029. Scenarios 2 and 3 explored lowering the rate increases to 13% in fiscal years 2027 and 2028, with Scenario 3 integrating a simultaneous increase in sewer System Development Fees (SDF) to successfully maintain the targeted 1.50 minimum debt coverage ratio. Assistant Town Manager Seymour advised that prior rate adjustments remain appropriate and necessary to successfully secure project financing, maintain mandatory operating fund balances, and ensure sustainable operations. A specific rate adjustment of 15% was recommended for fiscal year 2026, with an opening to evaluate potentially lower adjustments for fiscal years 2027 and 2028. Additionally, because the current capital expenditures support a higher fee structure, adjustments to the sewer system development fees were deemed warranted, including a projected $500 increase for standard 3/4-inch meters. The Town Board concurred with the recommended plan, citing an understanding that servicing debt and maintaining financial strength and solvency are vital to implementing the utility capital plan. Assistant Town Manager Seymour reported a benchmark comparison of Fuquay- Varina’s utility rates with those of neighboring municipalities for a standard single- family monthly consumption of 5,000 gallons. Under the proposed fiscal year 2026 adjustment, a typical resident's combined water and sewer bill is projected to increase by 15%, shifting from $122.35 to $140.71 per month. This comprehensive comparison was presented to give the Town Board clear regional context regarding how the town's necessary infrastructure investments and adjusted rate structures align with the utility costs of surrounding communities. Several new public utility projects were reported to support future town development. This infrastructure expansion includes a new 1.5-million-gallon water tank, planned for fiscal year 2028 at the intersection of Sunset Lake Road and Highway 401, estimated at $8.5 million. New sewer CIP lines were also presented, highlighting capacity upgrades for the Parker Station and aged infrastructure systems—upsizing existing  lines to 24 inches—as well as the construction of a new 24-inch gravity line for the Angier Road Interceptor. RECESS The Town Board recessed at 6:00pm, which included a group dinner at 7:00 pm. RECONVENE The Town Board reconvened at 8:30 am. FRIDAY MORNING WORK SESSION FM1 Parks and Greenways Recap and Look Forward - Assistant Town Manager Matthews delivered three comprehensive presentations detailing future growth strategies, project reprioritization, and programmatic adjustments for the Parks, Recreation, and Cultural Resources Department (PRCRD). In his report on future park property land acquisition, Assistant Town Manager Matthews noted that the town's 2024 Comprehensive Systemwide Master Plan identified a critical deficit of parkland needed to meet standard levels of service. To resolve this gap and accommodate future population growth, he outlined six potential land assemblages evaluated by town staff based on location, topography, size, and utility access. Option 1, located east of Highway 401, offers a large site split that features proximity to sewer and water but faces the potential constraint of a future 401 bypass bisecting the land. Option 2, situated in the southeast corner of the planning area, provides an expansive opportunity for future land banking across multiple parcels, though it currently lacks municipal water and sewer connections. Option 3 along Panther Lake Road consists of flat, undeveloped land that requires a half-mile extension to reach a water connection. Option 4 on Bud Lipscomb Road offers a large section of land for multi-use development adjacent to Fire Station 3, but it remains distant from the town center and lacks utility connections. Option 5 on Dwight Rowland Road covers a substantial property that provides easy access to utilities but is heavily restricted by onsite streams and by future road construction that would bisect the property. Option 6 along Lake Wheeler Road spans a significant area with strong utility access, but it is similarly impacted by prominent water features and future road bisections. Tracking a projected timetable toward a May 2029 park opening, Assistant Town Manager Matthews concluded by recommending that staff engage priority property owners and negotiate an acceptable purchase price. After discussion, the Town Board concurred that engaging property owners was the next logical step; however, many of the Commissioners noted they were not sold on a 3-cent or higher property tax rate increase. Turning to the master plan update and project prioritization, Assistant Town Manager Matthews explained that the failure of a $60 million bond referendum in November 2023 required the department to reevaluate and reprioritize major park infrastructure projects. While several smaller projects were successfully completed and funded through Recreation Fee in Lieu revenues, larger capital projects required an amended funding strategy. To address this, Assistant Town Manager Matthews introduced a newly recommended $38.7 million Five-Year Prioritization Plan. This plan sets aside $200,000 in FY26 for the South Park Community Center Renovation Design. In FY27, funding shifts to the master plan and design of a future 100+ acre park for $2,000,000, the Council Gym Renovation Design for $200,000, and the South Park Community Center Renovation construction for $2,000,000. The plan then allocates $2,000,000 for Council Gym Renovation Construction and $300,000 for Greenway Design in FY28, followed by $30,000,000 for the construction of the 100+ acre park in FY29, and closes with $2,000,000 for Greenway Construction in FY30. To fund these initiatives, Assistant Town Manager Matthews highlighted a staff recommendation to utilize a  Limited Obligation Bond over a General Obligation Bond. He noted that a Limited Obligation Bond does not require a public election, allows for flexible project delivery schedules, and prevents capital improvement delays. The estimated financial impact for either debt mechanism is an adjustment of approximately 3.52 cents per $100 of property valuation. Assistant Town Manager Matthews presented the athletic department’s data from 2024, noting a total of 9,979 youth registrations consisting of 64.56% residents and 35.44% non-residents. He emphasized that non-resident participation adds significant value by creating more competitive leagues, enabling brackets that would otherwise lack the required numbers to run, and introducing external families to the town for potential relocation. To offset part-time staff expenses and optimize cost recovery, Assistant Town Manager Matthews presented the recommended FY26 youth sport fee adjustments. Registration fees for baseball, softball, and basketball are recommended to increase by $5, bringing them to $75 for residents and $105 for non-residents. Flag football fees will also increase by $5 to a rate of $65 for residents and $95 for non- residents. Meanwhile, fees for T-Ball, Soccer, Volleyball, Lacrosse, Cross Country, Skills and Drills, Tiny Tots, Tackle Football, Cheer, and Dance will remain flat at their current 2024 rates. Regarding broader general recreation programming, Assistant Town Manager Matthews recommended maintaining the existing 60/40 revenue split with independent instructors. Under this framework, the town continues to retain 40% of registration revenues to cover administrative overhead, while allowing flat-fee exceptions to subsidize specialized programs for underserved, senior, or special needs populations. The Town Board concurred with management’s recommendations for fee changes. FM2 Economic Development / Downtown Recap and Look Forward – Assistant Town Manager Seymour presented a comprehensive report detailing several Economic Development and Downtown Development project ideas. The extensive presentation outlined strategic opportunities to revitalize the municipal core, increase foot traffic, and expand recreational offerings for residents and visitors alike. By prioritizing pedestrian-centric design, the proposed initiatives aim to foster a stronger sense of community pride and identity while driving local commercial growth. The presentation outlined immediate plans for improving downtown navigation and visual aesthetics. Assistant Town Manager Seymour shared a proposal for Downtown Gateway Signage consisting of well-designed monument signs featuring brick, lights, and landscaping to reinforce the town's identity at a cost of $30,000 per sign, totaling $60,000 for two signs. Additionally, a pedestrian downtown wayfinding study costing $75,000 was proposed to unify the city's brand and promote local businesses, alongside a comprehensive $150,000 Streetscape Improvement Plan designed to stimulate retail activity by encouraging pedestrian traffic through wider sidewalks and improved crosswalks. To enhance pedestrian connectivity and safety, Assistant Town Manager Seymour detailed two major mobility infrastructure proposals. A Rail Trail Feasibility Study budgeted at $100,000 for fiscal year 2025 will explore adding an outdoor trail system to reduce reliance on cars and attract tourists. Furthermore, a major Downtown Tunnel Connection project, estimated to cost between $6.5 million and $7.5 million, was introduced to connect downtown districts and improve pedestrian safety by keeping foot traffic completely free from vehicular interaction. Assistant Town Manager Seymour also highlighted seasonal and entertainment attractions designed to draw residents and visitors downtown. A seasonal Downtown Skating Rink measuring 40 feet by 100 feet was proposed, with a turnkey purchase option priced at $400,000 (inclusive of a trailer and management equipment) or a two-month rental option costing $175,000. This amenity is envisioned as a major seasonal anchor capable of injecting vibrancy into the district during colder months. The final set of capital improvements focused on civic gathering spaces and block revitalization. This includes the Depot Streetscape Improvements, an estimated 12- month project costing $1,250,000 to upgrade a current one-way street into an active public space for seasonal concerts, festivals, and outdoor dining. Seymour also proposed a new Downtown Concert/Park Venue with a total project cost of $1,750,000, and a $1,400,000 Alleyway Project to clean up a downtown block and provide greater connectivity. Beyond purely recreational value, Assistant Town Manager Seymour emphasized that these gathering spaces are critical engines for economic sustainability. A dedicated downtown park and a transformed Depot Streetscape act as central hubs where community members connect, directly generating spin-off traffic for neighboring shops and restaurants. By transforming underutilized spaces like alleyways and one- way roads, the town can create a unified, high-quality visual environment that encourages long-term private property investment. Assistant Town Manager Seymour reported that the total collective cost for all nine proposed initiatives amounts to $12,685,000. This comprehensive figure represents a structured overview of the capital investments required to fully execute the generational vision for the downtown district. The presentation concluded by outlining these distinct project allocations, establishing a clear financial roadmap for subsequent council review and prioritization. The presentation sparked energetic discussion among Town Board members, with excitement over many of the recommendations. The Board directed management to  evaluate which recommendations can be incorporated into the budget and Five-Year Plan without increasing the property tax rate. FM3 Land Planning Recap and Look Forward – Assistant Town Manager Seymour delivered a comprehensive presentation detailing the frameworks of the Town Center Residential (TCR) Zoning District. Seymour explained that the primary intent of the TCR zoning designation is to comfortably accommodate residents within a quarter- to half-mile radius of downtown. The district is designed to foster a vibrant community by offering opportunities for a diverse mix of residential types that actively support housing, retail, and office uses. Assistant Town Manager Seymour further reported on the inherent flexibility introduced by the TCR zoning district into the town's urban planning. By permitting a diverse array of housing styles, the zone establishes a smooth structural transition to the downtown core while simultaneously creating the density required for successful infill development. He emphasized that future infrastructure investments in these TCR neighborhoods must be designed to encourage active living and to place strong emphasis on public spaces. To clarify the district's structural expectations, Assistant Town Manager Seymour outlined the specific dimensions and standards required for various residential use types. For standard single-family dwellings, the minimum lot size is established at 8,000 square feet with a minimum lot width of 60 feet and a maximum height of 40 feet. Row houses configured as single-family dwellings require a reduced minimum lot size of 4,000 square feet and a 30-foot width, while single-family cottage home developments are permitted on minimum lot sizes of 2,000 square feet with a 50-foot width. Assistant Town Manager Seymour continued the breakdown of residential specifications by highlighting more intensive density options within the TCR framework. Multi-family cottage home developments require an 8,000 square foot minimum lot size, whereas duplex and triplex dwellings mandate a 12,000 square foot minimum lot size with a 60-foot width. Quadplex dwellings require a 15,000 square foot minimum lot size and a 70-foot width, townhouses must maintain a minimum width of 18 feet, and nonresidential uses within the zone are permitted up to a maximum height of 50 feet. Connecting these zoning parameters to broader long-term strategies, Town Manager Mitchell discussed the role of the TCR within the 2040 Community Vision Land Use Plan Classifications. He noted that under this plan, existing lots may be subdivided or redeveloped to introduce a broader spectrum of home choices, including single- family homes, townhouses, duplexes, triplexes, quadplexes, cottage dwellings, or accessory dwelling units. To illustrate these concepts in practice, Town Manager Mitchell referenced local development examples, including an approved project at 498 Longfellow and a 15-foot row house project located at 406 Cherry Street. Following the presentation, the Town Board held a significant discussion. Ultimately, the Board decided that it made sense to continue allowing TCR zoning as an option in the Town’s development code. The second major focus of Assistant Town Manager Seymour’s report shifted to the town's Traffic Calming Draft Policy, which may serve as a component of the 2040 Comprehensive Transportation Plan. He explicitly clarified that this draft policy is intended solely for residential areas. For a roadway to qualify for traffic calming improvements under the draft policy, Assistant Town Manager Seymour noted it must be a town-maintained road consisting of no more than two lanes, experience routine speeding documented at more than 9 MPH over the limit and maintain a daily traffic volume of fewer than 4,000 vehicles. Assistant Town Manager Seymour detailed the final criteria necessary for a street to secure traffic calming interventions, noting that neighborhoods must execute two Neighborhood Awareness Campaigns that achieve a 75% agreement threshold. Furthermore, he noted that the targeted street cannot serve as a primary route for emergency services. Once these baseline thresholds are met, the Town Engineering Department conducts a formal Traffic Engineering Study to analyze existing roadways and evaluate potential low-impact, low-cost solutions, such as signage and police radar, or high-impact, high-cost measures, such as roundabouts and median installations. Assistant Town Manager Seymour delivered the official management recommendations regarding the funding and execution of these traffic safety projects. He stated that town staff will assess individual project needs on a case-by-case basis to determine whether they are necessary. For established subdivisions, Assistant Town Manager Seymour recommended that the local Homeowners Association or the neighborhood itself assume the financial responsibility for the improvements, whereas for new developments, any warranted traffic-calming measures should be fully paid for by the developer as an explicit condition of project approval. The Town Board discussed traffic calming and acknowledged the challenges. The Town Board concurred that staff should continue evaluating options for traffic calming and requested additional information on how neighboring communities handle the matter. The Town Board recessed at 12:15 pm for a lunch break and returned at 2:00 pm for the afternoon work session. FRIDAY AFTERNOON WORK SESSION FA1 Public Safety Look Forward – Assistant Town Manager Matthews presented a regional fire service area analysis evaluating response coverage and optimal station positioning for Fuquay-Varina. He highlighted current service gaps, noting properties located five or more miles from a fire station that fall entirely within a fire district. To address these vulnerabilities, Assistant Town Manager Matthews outlined two potential restructuring options based on the common assumptions of closing station FV #3 and establishing a new Fuquay station on NC 55 near Hidden Valley. Assistant Town Manager Matthews noted that Option #1, which places a new county station at the NC 42/Rock Service Station location, resolves the original coverage gaps but inadvertently creates new problem areas off Old Stage Road near the county line. Conversely, he reported that Option #2 relocates the county station to NC 42 at Barber Bridge Road, successfully eliminating the new problem areas introduced by Option #1 while reducing the overall impact on the original coverage gaps. The Town Board concurred that it did not want response coverage to fall short of an industry standard, was eager to receive an ISO 1 Rating, and recognized that response time and station location are major components of the rating model. The Board directed management to begin planning, in coordination with Wake County, for the relocation of station #3 and the construction of a fifth station within the next five years. Turning to municipal public safety, Assistant Town Manager Matthews detailed a comprehensive five-year plan for the Fuquay-Varina Police Department to address rapid community growth and mounting operational demands. Matthews noted that the town’s population surged to 46,907 in 2024—marking a 35.78% increase since 2020—and is projected to continue growing at an annual rate of 7.05%. This expansion has brought higher commuter traffic volumes on major routes like US 401 and NC 55, alongside rising annual calls for service and traffic accidents. Assistant Town Manager Matthews demonstrated that the department's existing five-year plan would cause the  officer-to-resident ratio to steadily decline from 1.66 to 1.47 per 1,000 residents by FY 29-30, falling below the national standard of 1.6 to 2.2 officers per 1,000 residents. To maintain a stable 1.6 ratio, Assistant Town Manager Matthews presented an adjusted staffing model showing the need to increase sworn personnel from 78 to 107 over the next five years, allocating future additions to support field operations, traffic enforcement, and criminal investigations. The Town Board concurred that maintaining industry-standard staffing in the police and fire departments will be important as the town continues to grow, and directed management to plan accordingly within operating budgets and long-range plans. To immediately balance workloads and streamline core operations, Assistant Town Manager Matthews proposed a restructured organizational chart for FY 25-26. This tactical adjustment involves converting a sworn officer position into a civilian Telecommunications Supervisor to oversee the communications center, adding a Criminal Investigations Division Supervisor, and introducing a new Field Operations Lieutenant to manage the Traffic and K-9 Units. Assistant Town Manager Matthews addressed severe facility constraints, reporting that the current police department building is operating at or near maximum capacity. Matthews concluded the presentation by stating that a feasibility study is currently underway to evaluate spatial solutions for incoming personnel, including expanding existing buildings on the site at North Judd Parkway and Old Honeycutt Road, or building and leasing alternative town-owned properties. FA2 Goal Setting and Vision Work – Town Manager Mitchell led the Town Board through a comprehensive vision and idea generation exercise designed to shape the community's future landscape and prioritize upcoming projects. This strategic session served as a collaborative framework for leadership to pitch, evaluate, and rank innovative concepts aimed at long-range development. Town Manager Mitchell encouraged the Board to think creatively and “outside the box”, advising that no idea was too crazy. He stated that he wanted to the Board to think about unique and innovative ways to set Fuquay-Varina apart in the future from other nearby communities. By engaging in this exercise, the Board was able to weigh various proposals against the municipality's collective goals. The scoring system used during the session assigned values to each concept based on board member feedback, with higher numbers indicating greater support. Through this collaborative process, a downtown boutique hotel emerged as the clear top priority, securing the highest level of support with a score of 6. Several other concepts showed strong alignment among the leadership, with a children's museum, an event/conference center, and a themed putt-putt course each receiving a score of 3. An ice Skating rink, a Town Commons signature park, and a Downtown trolley garnered moderate backing with scores of 2 each. Rounding out the list, several initiatives received a baseline score of 1, including an amphitheater, an aquatics facility, a small airport, a driving range, an expanded Arts District, a food hall, making downtown more bike and scooter friendly, a themed museum, a stocked fishing pond, and a drive-in theater. Town Manager Mitchell explained that the intrinsic value of creating a unified vision and cultivating a list of long-range ideas is that it provides a clear, strategic roadmap for making the town a better community. By proactively mapping out these initiatives, the Board ensures that future growth is intentional, sustainable, and reflective of community needs rather than reactionary. Furthermore, this forward-thinking approach has a proven track record of success for the municipality. The Town Board went through a similar exercise ten years earlier, which directly led to many of the foundational successes and amenities the Town benefits from today. Continuing this tradition of structured visioning allows current leadership to build upon past  achievements and lay the groundwork for the next generation of community milestones. FA3 Wrap-Up – Strategic Plan Goal and Initiative Setting – Town Manager Mitchell advised that an updated Strategic Plan would be presented for Town Board consideration and adoption along with the proposed FY 25 budget and Five-Year Plan. BOARD MEMBER COMMENTS Mayor Massengill extended his appreciation to the Town Board members for their active engagement and valuable input throughout the recent Board retreat. He highlighted the collaborative efforts that foster a productive environment for discussion and decision-making. Additionally, he recognized the management team for their dedication and thorough preparation of the subject matter, which played a crucial role in facilitating the retreat's objectives and ensuring a comprehensive understanding of the topics addressed. All Town Board members strongly agreed with the mayor's remarks on the management team’s dedication. They specifically appreciated the extensive effort that went into preparing and delivering a substantial volume of information within a challenging timeframe. The Town Board members unanimously recognized that the strategic planning retreat was not only highly productive but also carefully organized, allowing for meaningful discussions and the development of clear strategic objectives for the community’s future.