City Council

City of Murfreesboro City Council - Retreat Session October 24, 2024-October 25, 2024 T E N N E S S E E Manchester Coffee County Convention Center 147 Hospitality Boulevard Manchester, Tennessee MINUTES The City Council of the City of Murf reesboro, Rutherford County, Ten nessee, met for a retreat session at the Manchester Coffee County Convention Center on Thursday, October 24, 2024 and Friday, October 25, 2024. Council Members Present Mayor Shane McFarland - Presiding Jami Averwater - Present October 24, 2024, Absent and Excused part of October 25, 2024 Madelyn Scales Harris Austin Maxwell Bi ll Shacklett Kirt Wade- Present October 24, 2024, Absent and Excused October 25, 2024 Shawn Wright City Representatives Present Darren Gore, City Manager Adam Tucker, City Attorney Craig Tindall, Special Council ·Erin Tucker, City Recorder/ Chief Financial Officer Sam Huddleston, Assistant City Manager Dr. Trey Duke, Director of Murfreesboro City Schools Don Bartch, Assistant Director of Murf reesboro City Schools Lauren Bush, Assistant City Attorney for Murfreesboro City Schools Executive Director Staff Present by Zoom (Electronic Participants) Angela Jackson, Executive Director of Strategic Services Jim Kerr, Transportation Director Mark McCluskey, Chief of Fire Rescue Va lerie Smith, Water Resources Director Randolph Wilkerson, Human Resources Director Prayer and Pledge of Allegiance Mayor McFarland called the meeting to order at 8:30 a.m. on Thursday, October 24, 2024. Mr. Maxwell commenced the meeting with a prayer followed by the Pledge of Allegiance. Retreat Items 1. Capital Improvement Projects (CIP) Debt Service. Erin Tucker, City Recorder/Chief Financial Officer, presented a Power Point regarding FY25 CIP Debt Service. The Solid Waste Transfer Station will be moved from Debt Fund to General Fund. The new CIP Plan for FY25 is listed at $70 million, which is a $15 million add. Ms. Tucker reviewed allocation of funds fo r Fire Rescue, Murfreesboro City Schools, Road Projects, Parks and Recreation, Murfreesboro City Schools, Public City Council Retreat Meeting Minutes October 24-25, 2024 Page 1 of 7  Safety, Facilities, Miscellaneous Items, Water Resources, and FY26 CIP Funds. Discussion followed regarding priority and cost estimates for Fire Rescue requests, includingthe training facility and cost estimates for a new school facility vs. leasing land for a charter school. Discussion regarding incremental property tax increases followed. Darren Gore, City Manager, reviewed future projects and deferment of funds for FY26, FY27, FY28, and FY29. The impact of deferring projects on the long-term property tax projections and possible increases was shown and discussed as well. 2. Annual Pay Plan Raises and New Employee Costs. Darren Gore, City Manager, presented a PowerPoint regarding projections for new plan raises and new employee costs through 2033. Mr. Gore discussed General Fund pay plan adjustments for COLA between 6% and 6.5% with a 5% pay grade adjustment for exempt positions between 119-126. Mr. Gore and Erin Tucker, City Recorder/ Chief Financial Officer, discussed with Council when pay plan adjustments would take effect. 3. Revenue Requirements & 2033 Pro Forma. a. Pro Forma Trends (Operational Expenses, New Employees, Debt Service, and Property and Sales Tax Revenues) and b. Property Tax Implications for Revenue Deficits. Darren Gore, City Manager, presented a PowerPoint reviewing Revenue and Expense Assumptions for FY26 - FY33, including property tax, solid waste, community investment trust distributions and operational budget savings, payroll related costs, debt service and other operational budget assumptions. The model is intended to be updated and reviewed annually based on actual experiences. Council and staff discussed getting creative to look for efficiencies; such as for savings in gas on City vehicles. Erin Tucker, City Recorder/ Chief Financial Officer, discussed sales tax revenue projections and savings throughout FY26 - FY33. Ms. Tucker stated projections will be reviewed yearly. Mayor McFarland requested to move to Agenda Item 5 prior to breaking for lunch and then go back to Agenda Item 4. 5. Rutherford County Library System Discussion. Darren Gore, City Manager, discussed the possibility of a seven-member Library Board instead of an eleven-member Library Board due to the difficulty of creating a quorum. The seven-member Library Board would include one member from Murfreesboro, one member from Rutherford County, one member from Smyrna, one member from Eagleville and three members at-large. City Council Retreat Meeting Minutes October 24-25, 2024 Page 2 of 7  Adam Tucker, City Attorney, discussed work on an lnterlocal Agreement being discussed with mayors of local governments. Mayor McFarland discussed Library Board appointments and suggested removing elected officials as Board members and transitioning Board members to administrative roles. Sam Huddleston, Assistant City Manager, provided attendance statistics for the Linebaugh Public Library Branch. There are approximately 43,000 visitors per year, including repeat visits. Discussion ensued regarding decentralizing the library. 4. Economic Development. Darren Gore, City Manager, presented a PowerPoint regarding Murfreesboro's 2035 Economic Development Update. He discussed strategic plans with MTSU and Main Street, Destination Rutherford 2.0, and how to align the City's objectives, goals and strategies with these organizations. He provided updates to the Murfreesboro Comprehensive Plan and requested Council feedback. Discussion ensued regarding hiring an advisor or consultant to help steer the City and a balanced approach to utilizing existing staff, the Chamber of Commerce, and a contracted consultant to prioritize economic development in the areas identified for project opportunities. a. Project Opportunities. i. Civic/Coliseum/Conference Center/Ice Rink. Mr. Maxwell suggested the City-owned property house an ice ~ink. Sam Huddleston, Assistant City Manager, stated this was the original plan for the land on Medical Center Parkway near Murfreesboro Medical Center. ii. Cherry Lane Corridor. Mr. Gore discussed whether the Enterprise Fund should be made whole and if the City should buy back the land since the City is marketing it. The right-of-way has been dedicated, and we are in the final stage. iii. Medical Center Parkway City - Owned Properties. Mr. Gore has received feedback on what people would like to see on the property and whether there is interest in the property. The Council suggested to keep it as one tract and not divide the property. iv. Veterans at 1-840. Mr. Gore stated this is Middle Tennessee Electric (MTE) property and Mayor McFarland stated it is governmental property that was originally a dairy farm. MTSU owns it but appears to be excess land for them. b. Strategic Plan, Incorporating. i. Chamber of Commerce Destination Rutherford 5.0, ii. MTSU Emerging Trends SWOT Analysis, iii. Main Street Strategic Plan, and iv. Rutherford County Comprehensive Plan. The Council expressed interest in partnering with Destination Rutherford, City Council Retreat Meeting Minutes October 24-25, 2024 Page 3 of 7  MTSU, Main Street, and Rutherford County. Mr. Wade suggested the City work with the Chamber of Commerce to develop a better relationship and understanding of their performance for the City. Mr. Gore shared his conversations with Paul Latture, President of the Chamber of Commerce, to provide a performance metric on the City's return of investment. Mr. Gore suggested having a workshop meeting with the Chamber of Commerce to address ideas and communication. Council discussed challenges surrounding MTSU's ownership of multiple residences in Murfreesboro. The university is leasing properties as non-student housing but paying no taxes or contributing to City services. Discussion ensued regarding changing state law to prohibit universities from buying "growth" property and then using it for rental property, property maintenance, calls for police service, and crime. Mr. Gore shared that communication efforts between the City and MTSU are improving, and that staff will continue working to improve those efforts. c. Infrastructure Support. i. Transportation {Roads) and ii. Sewer and WRRF Expansion {NPOES permitting). Mr. Gore discussed needing infrastructure in place to incentivize economic development. If we do not get the WRRF upgrade, the economic strategy will look different. Mr. Gore confirmed it looks like we will receive the WRRF permit, which could be functional around 2029 or 2030. 6. Homelessness Discussion. Darren Gore, City Manager, presented discussion regarding the United Way Continuum of Care and Coordinated Entry, Murfreesboro Police Department Homeless Outreach Support Team (H.O.S.T.) program, and the City's level of leadership involving homelessness solutions. The Council discussed a matrix to review funds allocated to these types of programs. Discussion ensued regarding Key Performance Indicators and the fine line between incentivizing and deterring chronic homelessness. One opinion was brought forward a City representative should coordinate and ensure there is no duplication of effort. Discussion migrated to that being the goal of RutherfordThrives.org (Continuum of Care and Coordinated Entry 211). Council stated that the City shol!ld be taking a background role in homelessness and allowing Community Investment Trust grants and Community Development grants to provide direct funding mechanisms by the City to organizations. Recess Meeting- End of Day 1 Mayor McFarland recessed the meeting at 3:30 p.m. on Thursday, October 24, 2024. Re~Convene Meeting- Beginning of Day 2 City Council Retreat Meeting Minutes October 24-25, 2024 Page 4of 7  Mayor McFarland re-convened the meeting at 8:30 a.m. on Friday, October 25, 2024. He stated Council members Kirt Wade and Jami Averwater were absent and excused from the meeting. Darren Gore, City Manager, and Erin Tucker, City Recorder/Chief Financial Officer, revisited the Capital Improvement Projects Debt Service discussion for FY25 and FY26 by providing Council with more information on debt service projections. 7. Murfreesboro City Schools. a. Charter Verses City Funded, b. Resolution against County's Reappropriation to Capital Projects Versus Providing Annual Operations Funding to City, and c. Permit Fees. Dr. Trey Duke, Director of City Schools, and Don Bartch, Assistant Director of City Schools, reviewed Murfreesboro City Schools' current capacity analysis to provide needs and priorities. Main concerns are Black Fox Elementary School and Salem Elementary School due to developments in the area and the lack of impact from the new county school. Dr. Duke mentioned that the new County school (Poplar Hill Elementary) will affect Overall Creek Elementary by lowering stud-ant count; however, the full impact won't be known until it is built. A new large development next to Salem Elementary (approximately 300 homes) will increase student count; as will ongoing development around Black Fox Elementary. These schools are at capacity, so there is a concern regarding the ability to take in significant number of new students. Dual zoning is an ongoing discussion with Rutherford County Schools but has recently stalled. Having a dual zoning agreement in place will benefit both systems as it will allow for better projections and capital planning. The City receives mixed drink tax but has not distributed funds to Rutherford County Schools this year due to lack of data and information. Scales Elementary and Black Fox Elementary have been most impacted by English as a Second Language (ESL) student increase. Dr. Duke stated that Murfreesboro City Schools has to pay around $12,000 per student to charter schools fortheirfirstyearofoperation, so a 500-student charter school would be paid around $6.0 million. It was mentioned that even if City Schools deny a charter school and the state approves it, City Schools has 30-days after state approval to reconsider and enter into an authorization agreement with the charter school. City Schools has had a decrease of $0.19from education general funds since 2019 (an estimated loss of approximately $8.0M when accounting for 3% growth). City Schools hope to not ask for an increase of operating expense participation from the City unless tied to a new building opening. Dr. Duke expects requesting funds for a new school would be City Council Retreat Meeting Minutes October 24-25, 2024 Page 5 of7  in 2027-2028. By August of 2025, Dr. Duke will have a much better understanding of the impact of the new County School (Poplar Hill) and charter school (Rutherford Collegiate Prep) and will notify the City of the need for an additional school. Council Member Jami Averwater arrived at the meeting as Council and Staff were discussing Agenda Item 7 on Friday, October 25, 2024 and was present for the remainder of the meeting. Mayor McFarland requested to speak about Agenda Item 9 prior to Agenda Item 8. 9. Solid Waste. Darren Gore, City Manager, discussed and reviewed Solid Waste fee increases, WastAway structure options involving revenue bonds, Solid Waste Authority formation and pros and cons of a Franchise Collection Agreement, and an attorney-client privileged Executive Session to discuss Middle Point Landfill and Republic Services. Discussion ensued regarding the options affecting the City's monthly residential solid waste fee depending on the expected life of Middle Point Landfill and the success or failure of a WastAway/RNG operation. Council agreed to allow WastAway to present a final funding scenario to them at the November 14, 2024 workshop. Council requested the presentation be succinct and to the point; providing facts and data only. 8. Potential Charter Changes Affecting Council Elections. a. Term Limits and b. Representative Districts. Darren Gore, City Manager, discussed the pros, cons, and key differences between at-large elections and district elections. Adam Tucker, City Attorney, discussed legal aspects of at-large elections and district elections and the possible timeline if the City decided to move elections to a different month to better engage public participation in local elections in the future. Council expressed no strong opinion about changing the charter to enact district representation or term limits. Discussion ensued regarding moving City elections back to an April date to avoid making budget decisions prior to an August election. Other Business Personal Day Proposal. Staff reviewed a proposal with Council that would afford every full- time City employee five additional personal days per year and an additional holiday (Juneteenth). The five personal days would be front-loaded for new employees and granted to each current full-time City employee on their anniversary hire date. Personal days would not accrue. If personal days were not used in the twelve-month period between when issued and the employee's next anniversary hire date, they would be forfeited. City Council Retreat Meeting Minutes October 24-25, 2024 Page6of7  City Manager Evaluation Calendar. A proposed City Manager quarterly meeting schedule was provided to Council. Staff requested Council members provide feedback on performance or other necessary changes they see essential to the organization. Citizen Academy. Efforts will be undertaken to develop a Citizen's Academy fo r next year. Council Eligibility for Healthcare {Other Post-employment Benefits). Discussion ensued regarding qualifying Council members to use for Healthcare OPEB after ten years of service. Staff discussed clarifying by ordinance or the Employee Handbook when Council members are considered employees versus elected officials. Calendar Of Events. Council requested a centralized City calendar of events regarding grand openings, showcase events, interlocal meetings and exchanges, state or federal delegation visits, etc. In conjunction with this master schedule, the Council requested one point of contact to coordinate schedules with other interested parties or stakeholders, manage media coverage, prepare "run of show" and aid in pr-eparing statements or welcome addresses. Contractfor Part-Time City Judge . Adam Tucker, City Attorney, and Jami Averwater, Council member, are anticipated to meet and finalize the draft employment contract for the City Judge prior to advertising the position. Suggestions were made regarding allowing the submittal of RFP's for the job application; however, submittal of CV and a proposed hourly rate were also discussed as part of applying for the job without the formality of an RFP process. Adjourn There being no further business, Mayor McFarland adjourned this meeting at 11 :30 a.m. on Friday, October 25, 2024. SHANE MCFARLAND MAYOR ATTEST: CITY RECORDER/ CHIEF FINANCIAL OFFICER City Council Retreat Meeting Minutes October 24-25, 2024 Page 7 of 7