1. Board of Commissioners (BOC)

MINUTES TOWN OF PITTSBORO BOARD OF COMMISSIONERS ANNUAL BUDGET RETREAT SATURDAY, APRIL 17, 2021 9:00AM Members Present: Mayor James Nass, Mayor Pro Tern Pamela Baldwin, Commissioner John Bonitz, Commissioner Jay Farrell, Commissioner Kyle Shipp, and Commissioner Michael Fiocco. Staff Present: Town Manager Chris Kennedy, Town Clerk Cassandra Bullock, and Finance Director Heather Meacham. 1. Call to Order Mayor Nass called the meeting to order at 9:00am at the Chatham County Agriculture & Conference Center. There was brief delay after the call to order due to technical difficulties. 2. Introduction & General Overview of Agenda Town Manager Chris Kennedy provided an introduction, a general overview of the agenda and the purpose of the Budget Retreat special meeting. 3. Manager's Presentation of the Proposed Budget for Fiscal Year 2021-22 Town Manager Chris Kennedy presented the proposed budget for Fiscal Year 2021-22 developed as of April 17, 2021. The presentation began with an overview of the budget calendar that included a review of the meetings held to date and those to come, to include two (2) public hearings on the proposed budget to be held on May 10, 2021 and May 24, 2021 , respectively, at the Regular Meetings of the Board of Commissioners on those dates. Town Manager Kennedy reviewed the assumptions of the budget and how the budget may evolve between the Budget Retreat and the final adopted version. Town Manager Kennedy explained that a major factor-irrthe development of the proposed budget was this year's Chatham County property reappraisal. Town Manager Kennedy stated that the value of one (1) penny of ad valorem was increasing from $60,432 to $76,372 with the reappraisal, and that the revenue neutral rate is 0.3419 per $100 of valuation, compared to our current tax rate of 0.4333 per $100 of valuation. Town Manager Kennedy provided an overview of the new requests and the other notable changes being proposed in this proposed budget, and then stated that the budget as proposed was not currently in balance, an intentional step so that he could better learn the Board' s wishes in his first I year in Pittsboro, but offered that the proposed budget would be balanced prior to the budget hearings. Town Manager Kennedy stated that the proposed budget for Fiscal Year 2021-22 included several new projects on the general fund side to include: two (2) pennies worth of dollars to be dedicated to Affordable Housing, $152,744, matching funds for NCDOT TAP funding, $20,000, funds for a NCDOT sidewalk project along Chatham Business Park Drive, $200,000, a Strategic Framework to guide future Town policy, $14,000, a Future Land Use Plan Update, $100,000 and contracted code enforcement, $50,000, one (1) new police car, $70,000, funding for the first phase of Lewis Freeman Park, $100,000, a comfort station (restrooms) at Kiwanis Park, $75 ,000, paving of the Robeson Creek greenway, $75 ,000, and a repair to the Oakwood Drive culvert, $230,000. On the enterprise fund side of the budget, Town Manager Kennedy listed new projects as: fifteen (15) fire hydrant replacements, $67,500, AMR (Automatic Meter Reading) equipment on the Chatham Park water tank, $25,000, a new water & sewer CIP (Capital Improvements Plan) study, $150,000, a revised SDF (System Development Fee) study, $25,000, a water & sewer rate study and financial model, $45,000, inflow and infiltration (l&I) reduction projects, $200,000, Robeson Creek sewer rehabilitation, $250,000, miscellaneous pipe size betterments, $150,000, and a PER (Preliminary Engineering Report) and EA (Environmental Assessment) for a Pittsboro/Sanford/Chatham Water Line, $150,000. Town Manager Kennedy offered that before performing the necessary cuts to bring the budget into balance, he first wished to discuss those potential cuts with the Board at this Budget Retreat. As presented, the proposed Fiscal Year 2021-22 budget included a 21.1 % increase in general fund operating expense, a 220.7% increase in general fund capital expense, a 4.9% increase in enterprise fund operating expense, a 264.8% increase in enterprise fund capital expense when compared to the adopted Fiscal Year 2020-21 budget. Town Manager Kennedy explained that the growth provided by Chatham County property reappraisal, if the Town held its current tax rate, would cover the increased expense on the general fund side of the budget but that cuts would need to be made to overcome the currently proposed $551 ,574 deficit. Town Manager Kennedy stated that in order to balance the enterprise fund side of the budget, the Town would need to approve a 53% increase to the water rates and a 68% to the sewer rates, inclusive of both the availability and consumption rates. Cuts to the enterprise fund are also needed to overcome the currently proposed $3 , IO I,764 deficit. Town Manager Kennedy advised that he and finance staff would be refining the budget requests to lower those percentage increases, but that the Town would not likely avoid a substantial increase to the utility rates to pay for projects to improve water quality and to fund inflow and infiltration (I&I) reduction efforts. Town Manager Kennedy discussed new employee positions requested in the proposed budget for Fiscal Year 2021-22, those included a Human Resources Director / Risk Manager, a Grants Administrator, a Public Information Officer, a Purchasing and Procurement Officer, a Deputy Chief of Police, a Planner II, a Planning Department Project Manager, a Public Works Director, and a Maintenance Technician for Public Works. Town Manager Kennedy stated that the current budget proposal funds each of these positions for the full fiscal year and described how each position is funded or split funded between the general fund and enterprise fund sides of the budget. Town Manager Kennedy also provided an overview of the increases to development fees to offset the increased expenses in these departmental budgets. 4. External Presentations a. Pittsboro Fire Department Fire Chief Daryl Griffin presented to the Board and provided an overview of his budget request. The requests included debt service on a new ladder truck and the addition of four (4) new employees, three (3) fire fighters and one (1) administrative professional to assist the department. 2  Fire Chief Griffin provided a breakdown of the costs shared by the Town and Chatham County for the Circle City Fire District. The Board discussed the request from Pittsboro Fire and thanked Fire Chief Daryl Griffin for his proposal and attendance at the Budget Retreat. b. Main Street Pittsboro On behalf of the Main Street Pittsboro board, President Maria Parker-Lewis and Treasurer Doug Emmons began their presentation with the Main Street Pittsboro quarterly update to the Board of Commissioners. The Main Street Pittsboro representatives discussed recent projects and efforts, the struggles associated with COVID-19 in planning and implementing Main Street Pittsboro events and initiatives, and their overall financial positions. Treasurer Doug Emmons discussed the budget amount requested from the Town of Pittsboro to Main Street Pittsboro. Mr. Emmons stated that the current fiscal year, Fiscal Year 2020-21, included $96,000 in funding from the Town to Main Street Pittsboro. Mr. Emmons stated that Main Street Pittsboro was seeking revenue from six (6) funding sources: the Town, Chatham County, the Main Street Pittsboro Board members, local businesses, individual donors, and grants. Mr. Emmons discussed carryover balances and stated that Main Street Pittsboro intended to carryover just over $67,000, of which approximately $37,000 was Town contribution. Mr. Emmons walked the Board through the budget request of Main Street Pittsboro and discussed how Main Street Pittsboro had trimmed its request from the Town from $115,000 to the current request for $95,000 for Fiscal Year 2021-22. Town Manager Chris Kennedy noted to the Board that the current budget proposal does not include any funding to Main Street Pittsboro in Fiscal Year 2021-22, but that an appropriation can be added in advance of the budget hearings and budget adoption if the Board desires . Discussion ensued amongst the Board and representatives of Main Street Pittsboro about the Fiscal Year 2021-22 budget request and carryover amounts. Commissioner Bonitz asked about the accuracy of the map defining the Main Street district boundaries and the participation of · 1ocal businesses on the Main Street Pittsboro board. Commissioner Bonitz shared that he would like to see more downtown property owners and shopkeepers on the Main Street Pittsboro board. President Maria Parker-Lewis responded to Commissioner Bonitz' s concerns and stated that the Main Street Pittsboro board has sought more downtown· board members to little success. Discussion continued amongst the Board and representatives of Main Street Pittsboro about the makeup of the Main Street Pittsboro board and the Town's expectations of Main Street Pittsboro. The Board discussed the budget request from Main Street Pittsboro and thanked President Maria Parker-Lewis and Treasurer Doug Emmons for their proposal and attendance at the Budget Retreat. l 3  5. Discussion of Budget Requests for Fiscal Year 2021-22 Discussion ensued amongst the Board, the Town Manager and the Finance Director about the projects and requests proposed. The discussion was centered on the rate increases proposed and the requests of Main Street Pittsboro. The Board voiced its concern over the percentage increases being proposed, for fear of a lack of affordability and value to some in our customer base. However, the Board also acknowledged and generally agreed that the projects discussed were necessary to the Town to operate a healthy utility enterprise. Overall, the Board was encouraged by the preparation of the budget and expressed their eagerness to see the Town Manager' s recommendations for cuts in preparation for the first public hearing on the proposed Fiscal Year 2021-2022 budget. 6. Final Comments None. 7. Adjournment Commissioner Shipp made a motion to Adjourn, seconded by Commissioner Fiocco at 5:02 pm. Vote: Aye-5 Nay-0 Mayor Nass: NIA Mayor Pro Tern Baldwin: Aye Commissioner Bonitz: Aye Commissioner Farrell: Aye Commissioner Fiocco: Aye Commissioner Shipp: Aye Motion Passed. Attest: C~L~ Cassandra M. Bullock, Town~ 4