City Council Special Call Meeting- Budget Adoption

SPECIAL MEETING JUNE 24, 2020 PAGE 473 MINUTES June 24, 2020 [ELECTRONIC] SPECIAL MEETING OF THE CITY COUNCIL ASSEMBLY ROOM – OPERATIONS CENTER | 305 WILLIAMS ST. 4:00 p.m. Present: Mayor Barbara G. Volk and Council Members: Jeff Miller, Jennifer Hensley Participating Electronically: Mayor Pro Tem Jerry Smith, Council Member Lyndsey Simpson Staff Present: City Manager John F. Connet, City Attorney Sam Fritschner, Assistant City Manager Brian Pahle, Communications Manager Allison Nock, Human Resources Director Jennifer Harrell 1. Call to Order Mayor Volk called the meeting to order at 4:00 p.m. and welcomed those in attendance. A quorum was established with three members in attendance physically and two participating electronically. 2. Adoption of the Budget Ordinance Making Appropriations for Certain Expenses, Capital Improvements and Indebtedness of the City of Hendersonville, North Carolina, for the Fiscal Year Beginning July 1, 2020 and Ending June 30, 2021 for Fiscal Year 2020-21 City Manager John F. Connet presented the Fiscal Year 2020-2021 manager recommended budget to City Council for consideration and public hearing at their June 4, 2020 regular meeting. No additional public comments were received. City Council Member Jeff Miller moved that City Council resolve to adopt the fiscal year 2020 - 2021 Budget Ordinance, Capital Reserve Fund Ordinance, Resolution of Intent, Reimbursement Resolution, and Capital Project Ordinances as presented. City Council Member Jerry Smith moved that City Council to resolve to amend the fiscal year 2020-2021 tax rate from $0.49 to $0.48 per $100 of value. Council Member Lyndsey Simpson inquired of the difference between the two tax rates and Council Member Jerry Smith replied $0.01 is worth $200,000 to $210,000 of property tax revenue. Councilman Smith stated sales tax revenues would be impacted in FY22 by an approximate $60,000 to $80,000 and said the financial impacts of COVID-19 are still unknown. Council Member Jeff Miller added that the average home savings would be $2.50 per month and stated the City is facing a $0.06 tax increase to cover SAFER grant costs and debt costs in FY22. Councilman Miller reminded everyone staff pay and hiring increases are still frozen and recommended holding the line to make it through this year of unknown outcomes. Councilman Smith responded that he thinks the City can afford this reduction and stated he wants to say that we are able to cut taxes in the midst of a recession. Mayor Barbara Volk stated she was not in favor of the amendment and stated she supports a stronger financial footing going into next fiscal year. City Council Member Jerry Smith moved that City Council resolve to amend the fiscal year 2020-2021 tax rate from $0.49 to $0.48 per $100 of value. The motion failed with four opposed (Simpson, Miller, Hensley, Volk) and one in favor (Smith). City Council Member Jeff Miller moved that City Council resolve adopt the fiscal year 2020 - 2021 Budget Ordinance, Capital Reserve Fund Ordinance, Resolution of Intent, Reimbursement Resolution, and Capital Project Ordinances as presented. A unanimous vote of the Council followed. Motion carried. 3. Closed Session as Provided under NCGS §143‐318.11(a)(6). SPECIAL MEETING JUNE 24, 2020 PAGE 474 Assistant City Manager Brian Pahle announced staff had ended the Zoom meeting feed. At 4:11 p.m. City Council entered into Closed Session. as provided under NCGS §143‐ 318.11(a)(6). At 7:47 p.m. City Council returned to Open Session. There was no further business. 4. Adjourn The meeting adjourned at 7:47 p.m. upon unanimous assent of the Council. _______________________ Barbara G. Volk, Mayor ATTEST: _______________________ Angela L. Reece, City Clerk