Town Council Budget Retreat

Page 1 of 6 TOWN OF ST. JAMES BUDGET RETREAT MINUTES February 22, 2024 The St. James Town Council held a Budget Workshop at 10:00 a.m. on Thursday, February 22, 2024 in the Earl Dye Council Chamber. Council Members Present: Mayor Jean Toner, Mayor Pro Tem David DeLong, Councilors David Morgan, Jim Board, and Lynn Dutney Staff Present: Town Manager Jeff Repp, Finance Director Pauline Haran, Community Center Manager Steve Brennan, and Town Clerk Laura Williams Others: Jim Crum (SJFD Board President), Rich Agar (SJFD Treasurer), Scott Boyer (SJFD Chief), Steve Alteri (Firewise Committee Member), Brunswick County Commissioner Pat Sykes, State Port Pilot reporter Eliot Duke, and 4 residents. CALL TO ORDER Mayor Toner opened the meeting at 10:00am. Town of St. James Firewise Committee - Mr. Steve Alteri, Firewise Committee Member Mr. Steve Alteri presented the St. James Firewise Committee 2024 Site Action Plan. He discussed the 2024 goals for the committee are: improving the infrastructure to assist with fast/efficient wildfire response within the community, continue to provide communications/educational materials regarding wildfire risk, and generate prioritized action items aimed at minimizing the risks of wildfires. He then discussed the action plan timetable, which consist of immediate projects to begin in spring 2024, then focus on short-term projects and lastly long-term. The short-term projects consist of clearing vegetation in common areas, and the Town continuing to provide vegetative debris pick-up. A long-term project discussed was the POA to retrofit better reflectorized lettering of street signs. Mr. Alteri discussed that Firewise would like to do the following: create a Town ordinance to ban wood burning firepits, talk to the ACC about guidelines of numbering mailboxes (house numbers being more prominent), create a defensible zone around homes, work with the Fire Department to complete fire assessments for new residents to analyze fire hazards around the home, create a new resident packet to discuss fire safety, post articles in St. James Living and CatTales about Firewise, and be a guest for the Town Speaker Series. Mr. Alteri stated that Firewise is asking for $8,000 to pursue short-term goals. The estimated cost to reach the long-term goals is $52,700, which would include retrofitting the street signs. He also stated the importance to improve infrastructure for fire protection and aid the St. James Fire Department to advise residents what measures they can take to protect their homes. Council thanked Mr. Alteri for his presentation. St. James Fire Department Update – Jim Crum, Board President, Rich Agar, Treasurer, Scott Boyer, Fire Chief Mr. Jim Crum began the Fire Department’s presentation. He stated that with a portion of the funds they received during this current year’s budget, they were able to replace the Fire Police radio system, purchase new antennas, and new radios. The results have been remarkable.  Page 2 of 6 TOWN OF ST. JAMES BUDGET RETREAT MINUTES February 22, 2024 Mr. Crum stated there is much development in the fire district area and multiple proposed buildings are going to be 4 stories high. This is an issue since the current ladder truck is only able to service a 3-story high building. One important budget request is the additional ladder truck to service the 4- story buildings. Mr. Rich Agar stated the transport billings have increased over 100% since last fiscal year and continues to trend upward. There is an anticipated slight increase in fire fee revenue compared to last year. The Fire Department is experiencing a 100% increase in transports with the amount in fire fees remaining the same. Brunswick County notifies the St. James Fire Department what the fire fees should be, but the Department will know the final number for fire fees in May. Mr. Agar discussed the equipment the Fire Department needs: SCBA (oxygen tank for fire fighters) and AEDs. To outfit one firefighter costs about $4,200, which is a 30% increase from the previous year. Much of the requested equipment has a 6-months lead time due to supply chain issues. The current scheduled delivery for the pumper truck is late 2025 and it was ordered a year ago. For the new $850,000 3771 pumper truck, outfitting it costs an additional $100,000. Mr. Agar stated the Fire Department is concerned about inflation and the estimated cost of equipment and vehicles is guaranteed to increase over time. Mr. Crum stated the Fire Department has laid out the expenditures, but they don’t know precisely when they will need to write a check. They’re not asking for the funding up front. Town Manager Repp then discussed fire fees. Mr. Crum stated that about three years ago, fire fees were increased for the surrounding unincorporated areas of Brunswick County and Arbor Creek, and it was not received well. Brunswick County Tax Department can give the exact number of homes included in the fire fees. Mr. Repp made the point that the current fire fees currently in effect for the fire district are about half of what can be requested from the fire department to the county commissioners for approval. Further, that the growth requiring the new equipment for the fire department is occurring in the fire district, not within the town limits, where fire fees are not charged. Mr. Crum discussed that St. James Fire Department is always actively looking for grants. They applied for a $100,000 grant but did not receive it. Mr. Agar then discussed the disbursements in their budget financial plan. Chief Boyer discussed that they have a current rating of 3 and in order to keep that rating, the Fire Department needs to continue to train the fire and EMS personnel. They want to obtain seven more certified EMTs and have budgeted for the planned increase in recruitment. Mayor Toner then read a statement regarding the development in Brunswick County, specifically in this area. She is concerned about the health and safety of the surrounding population. The St. James Fire Department does have concerns about responding to the new developments in the area, which are within the Town’s fire district. Mr. Crum stated the Fire Department will begin researching the exact costs and deliveries for the requested items, and the Fire Department will present at the next Work Session. Mayor Toner and Council thanked Mr. Crum, Mr. Agar, and Chief Boyer for being thorough with their budget presentation.  Page 3 of 6 TOWN OF ST. JAMES BUDGET RETREAT MINUTES February 22, 2024 Mr. Crum, Mr. Agar, and Chief Boyer left the meeting at 11:35am. Council took a break for lunch at 11:40am. Council resumed the Budget Retreat at 12:15pm. Committee Updates NC 211 Widening Project - Mayor Pro Tem DeLong Mayor Pro Tem DeLong discussed the NC 211 widening project. The project is about 40% complete and the completion date is still scheduled for fall of 2027. The project is progressing, but the struggle is getting the public utilities installed. Since the contract was originally negotiated, Brunswick County has added a separate contract for water. This project will cost approximately $30-40 million. The RTAC meeting was delayed this month, but the Town will get update from Chad Kimes at the January 26th meeting at the St. James Community Center. Policy Update – Mrs. Pauline Haran Mrs. Haran briefly discussed each Town policy and when they were last updated. Council discussed that the Town has GETS cards. In situations where cell phone networks are overburdened or in a state of emergency, the cards allows the user to have priority to utilize the next available telephone line. Regarding the Financial Policy, Mrs. Haran discussed that the policy states it is required for an auditor RFP to be completed every 4 years, which will be completed next year. The Organization and Operating Procedures of the Town Council policy includes a section on committees and may need to be edited since there is a separate committee’s policy. The two policies Council agreed to abolish last year were the Emergency Telephone System policy and the Investment policy. Unfortunately, that action had not taken place and would be done this year. Mrs. Haran stated she will also update the Purchasing policy. Status of Projects Cell Tower Road Paving – Town Manager Jeff Repp Several months ago, this project was awarded to McGill to provide the initial construction estimate. The results are a project that will create 24 additional parking spaces and widen the road to 18’. The total cost of this project is approximately $803,000. It is broken down into two phases, the front portion, spanning from NC211 to the end of the Community Center parking lot is $530,239, and from the end of the current parking lot back to storage shed, is about $300k. Mayor Toner stated there is a need for better emergency access into and out of the Town Hall complex, especially if there is an accident at the main entrance. It is the Town’s responsibility to provide access for emergency vehicles. One concern that was discussed is Council does not want to provide the access road for developments going behind the Town Hall area. After discussion, Council stated they would like to widen the road and add the additional parking spaces, and just upfit the remainder of the road going back to the storage building with more gravel. Mr. Repp stated that in the current budget that ends June 30, 2024, there is about $380,000 in funds that were set aside for the shoreline protection/conservation but have not been spent. That money could be used towards improving the access road. Mr. Repp stated he will get in touch with McGill to get the proposal ready by the April meeting. They will need to provide an analysis, stormwater management plan, and construction plans. Emergency Plan Update  Page 4 of 6 TOWN OF ST. JAMES BUDGET RETREAT MINUTES February 22, 2024 St. James Emergency Management Work Group is working on the plan that will be presented to Council in the very near future. Community Center Streaming Capabilities – Mr. Steve Brennan Mr. Brennan discussed that users of the Community Center are aware the Town can record and stream meetings and presentations. He did state that streaming does not work great for the Community Center because there’s a 45-second delay, which is an issue for conferencing back and forth. The Community Center has been recording presentations which include the voice of the speaker and a view of the presentation, presented side by side. Resident Recognition Program Mr. Repp stated that the Resident Recognition Program will be on the March Work Session agenda for review. The Town would recognize a resident on an annual basis and honor them as citizen of the year. This would also allow a resident to request a proclamation for a family member who has done something recognizable. Carbon Reduction Plan Grant Mr. Repp discussed this is the plan for replacing the streetlights inside of St. James to LED bulbs. Based on a recent conversation Mr. Repp had with Cape Fear Council of Governments, the Town has neither been awarded nor denied. Cape Fear COG is administering the program in conjunction with NCDOT (the funding source of the grant). Conversion of Town Hall Complex Lighting Mr. Repp stated that he has reached out to BEMC on a recurring basis, and it is a slow process. He discussed that the lights that have burned out in the Town Hall complex were so old that BEMC did not have the light bulbs in stock. Mrs. Haran stated that one item that goes along with adopting the budget is the fee schedule for zoning, the Community Center rental, and the digital sign. Mr. Repp discussed adding an additional category to the zoning fee schedule, which is the flood zone variance review fee. The proposed fee is $100, and Mr. Repp stated it would be a fair price. The 25th Anniversary Celebration was discussed and the planning for the celebration is coming along well. A Year in Review Haran reviewed what was completed as a result of last year’s retreat. $500,000 was transferred to the St. James Fire Department reserve. Public meetings are now being recorded and posted to the Town’s website. The parking lot area along the ponds is currently being worked on and should be complete in the coming weeks. Holiday lights were installed over the winter season. The Community Center has been repainted and new carpet has been installed in the ballroom. Councilor Board inquired about the status of the Community Center carpet moisture issue. Mr. Brennan stated that once the old carpet was ripped up, it was discovered that there was not a moisture issue. When the new carpet was installed, they sealed the concrete slab, and the moisture should not be a problem in the future. The fuel tank for the generator was purchased last year and is now scheduled to arrive in April. The UNCW Endowment was completed with a total of $50,000 being funded  Page 5 of 6 TOWN OF ST. JAMES BUDGET RETREAT MINUTES February 22, 2024 since Fiscal Year 2022. Mrs. Haran then discussed some of the Fiscal Year items that were not in the budget, such as new AEDs, the additional shredding site, the Council Chambers microphone, the mini-split replacement in the IT closet, and replacing the signs and posts in the parking lot. Town Clerk Laura Williams showed Council some of the features of the new website platform, EvoGov. Past Directives – Mrs. Pauline Haran Mrs. Haran discussed the UNCW oyster project which consists of planting 3 layers of oysters. The traditional contribution Council has given in the past is $20,000. Council stated they wanted to finish the top layer and then end the funding. Council is not interested in extending the project beyond what is in front of Waterway Park. Council would like to continue to support Southport, NC 4th of July Festival parade, which is a $2,500 commitment. Council also wants to continue the annual drone flights for emergency management purposes. Staff Requests – Mr. Steve Brennan discussed the needs of the Community Center for this coming Fiscal Year. The Center is continuing to trend upward in business. Just a few items Mr. Brennan discussed were: 30 new tables for the Community Center (about $10,000), a part-time staff member, portable projectors, and improved sound capability. Mr. Brennan shared a needs, hopes, and wants lists. Council discussed retaining an engineering company to plan out a feasibility study of expanding the Community Center. With expanding the Community Center, Council wants to distribute a comprehensive survey to all residents to gauge their interest and desire of what they would like to see at the Center. Mayor Toner stated that new chairs are needed at the dais in the Council Chambers. Council discussed the Town’s debt service $362,000, which is what is remaining on the loan for the Town Hall and Community Center buildings. It will be paid off by July 2026, Fiscal Year 2027. Council discussed occupancy tax on short-term rentals and how a Tourism Advisory Committee (TAC) could be formed. Mr. Repp stated the maximum percentage of tax that could be levied is 5% of the total rental fees that are charged. Mr. Repp discussed that almost all of the beach communities in the area utilize this tax and they charge 5%. The County put together an analysis and stated that St. James had 507 rental properties, which was based on 2020 census data. Council is interested in pursuing the occupancy tax on short-term rentals. Mayor Toner stated the steps to enact the tax are to create an Ordinance, create policies and procedures, and lastly form a committee. Town Manager Repp stated he would contact the Town Attorney to begin developing the ordinance. Council then discussed the Disaster Recovery Fund and the expected balance on June 30, 2024 will be $1,139,533, before additional transfers and if there are no disasters. On the one cent disaster recovery fund tax for this Fiscal Year, the Town has collected $323,000. In the general unassigned fund, there will be $2.2 million at the end of the Fiscal Year, June 2024. Council discussed discontinuing the $0.01 disaster recovery tax. Council stated that if needed, they do not want to have to go back and reinstate the tax, so Council decided to continue to collect the $0.01 tax for FY 2025 and if there was not a need to use the funds then look at eliminating the tax in FY 2026 when the $1.5 million limit is met.  Page 6 of 6 TOWN OF ST. JAMES BUDGET RETREAT MINUTES February 22, 2024 Council gave direction to Mrs. Haran to assume an allocation of $600,000 to the SJFD, if the Town has it at end of this Fiscal Year. Councilor Board inquired about the limited cell tower coverage in some areas of the community such as Woodlands and southwest portions of the Plantation. Mayor Toner stated there are state statutes regarding cell tower funds and it would be the carrier who is responsible to provide coverage. Mr. Repp stated that the Town does not have any authority over coverage regarding cell towers. Mrs. Haran stated that she will put together a budget and Councilmembers will have the chance to meet with her to review the proposed budget in the coming months. ADJOURNMENT Mayor Toner adjourned the Budget Workshop at 3:00pm. Respectfully Submitted, Approved, _________________________ ___________________ Laura Williams, Town Clerk Jean R. Toner, Mayor