BOARD OF MAYOR AND ALDERMEN WORK SESSION

KNGSPORT TEEE BOARD OF MAYOR AND ALDERMEN WORK SESSION MINUTES Friday, February 28, 2025 at 10: 00 AM City Hall, 415 Broad Street, Montgomery - Watterson Boardroom Board of Mayor and Aldermen Mayor Paul W. Montgomery, Presiding Vice Mayor Darrell Duncan Alderman Colette George Alderman Morris Baker Alderman Gary Mayes Alderman Betsy Cooper Alderman James Phillips I. CALL TO ORDER 10: 00 a. m. by Mayor Montgomery. II. ROLL CALL by City Recorder Travis Bishop. III. DISCUSSION ITEMS 1. Review of Strategic Plan City Manager McCartt gave an overview of the Strategic Plan. There was discussion on the vision statement and how it had changed from what was originally proposed in November to the current version. The board agreed to allow the consultant to wordsmith each statement in an effort to combine both ideas. Discussion then moved to the focus areas and the corresponding priorities for each one combining the board priorities with citizen priorities. The City Manager listed the next steps towards approving a final strategic plan. City Recorder Travis Bishop presented a summary of the FY25 general fund budget and the overall financial health of the city. He discussed historical trends as well as projected revenues and expenditures. He highlighted historical data and forecasted property tax as well as sales tax revenues. He explained the breakdown of where expenditures are being distributed. Mr. McCartt provided further details on FY26 budget pressures. Page 1 of 3  BOARD OF MAYOR AND ALDERMEN CALLED WORK SESSION MINUTES Tuesday, February 28, 2025, at 4: 30 PM Kingsport City Hall, 415 Broad Street, Boardroom Assistant City Manager Michael Borders provided an update regarding regional sales tax as well as the hotel motel tax. He gave details regarding operational figures for Meadowview Marriott, Cattails Golf Course and the Aquatic Center. Alderman Phillips expressed concern on the revenue/ ownership structure at Meadowview after 30 years. Mr. Borders pointed out 2024 was the best year to date for the Aquatic Center. 12: 05 Recess for lunch - 12: 30 Resume meeting Public Information and Communications Director Adrienne Batara presented a new initiative from the Marketing and Communications Department called " I Love This Place" which will put out something positive each week to highlight citizens. Human Resources Director Tyra Copas discussed the history of personnel cost and benefits. She commented on the ongoing compensation study, noting that a preliminary review of positions and market values should be presented next month. She provided statistics on current employees, vacancies and terminations and compared them with market information across the nation and region. There was a discussion regarding the benefit compensation ratio. Ten Minute Recess 1: 45- 1: 55 City Recorder Travis Bishop provided information on the general fund debt, including principal and interest payments and debt roll off, noting there is no relief until 2028 based on current revenue. He also stated the city does not have the capacity to make significant projects or improvements without increasing revenues. Fire Chief Scott Boyd provided a brief history on Fire Station 2 and the need for a renovation or to rebuild, noting it was more cost effective and beneficial to build on the adjacent property. He summarized the three phases necessary to complete this project. He confirmed the cost for the construction has doubled since this project was first explored in 2021. This project was delayed due to the DB dome renovation. The City Manager provided information on building new elementary schools, noting it is in the early stages of architectural evaluation with the hopes of having preliminary cost estimates in May. He presented four options to move forward from a more conservative four year plan to a more aggressive two year plan, noting the schools have had a negative impact on their budget which will possibly limit the path forward at this time. Discussion ensued. Page 2 of 3  BOARD OF MAYOR AND ALDERMEN CALLED WORK SESSION MINUTES Tuesday, February 28, 2025, at 4: 30 PM Kingsport City Hall, 415 Broad Street, Boardroom Michael Borders gave an overview of upcoming recreational projects as part of the capital improvement plan. He gave details on improvements to the Renaissance Center, Glen Bruce Park revitalization and the Brickyard Park Event Space. He also gave details on the Outdoor Recreation Grant which will fund improvements at Bays Mountain and Brickyard Park. Deputy City Manager Ryan McReynolds presented the Public Works Capital Improvement Plan which provides for improvements at the landfill and on Industry Drive. He also gave details on the upcoming projects that fall under Pave Kingsport. He also mentioned other projects including bridge reinvestment as well as downtown sidewalks and streetscape. Mr. McReynolds then discussed the utilities budget which includes water, sewer and stormwater, noting aging infrastructure and regulatory pressures. He discussed the financial planning aspect and the rate structure that was implemented in 2023, pointing out we are moving in the right direction. Lastly, he provided details on the CIS implementation. Mr. McCartt commented there will be more information forthcoming as the budget process moves forward. Alderman Mayes thanked staff for their hard work. All agreed. IV. ADJOURN Seeing no other business for consideration, Mayor Montgomery adjourned the meeting at 3: 40 p. m. KI1 j0 A 1, 4'7./‘!"- 1c4, 424, tT F' \ ` fi v, v 1 V) 41.1) ())(. PAUL W. MONTGOM 114 De p• 411 Mayor 33 Page 3 of 3