Board of Commissioners

Town of Swansboro Board of Commissioners March 22, 2021 Regular Meeting In attendance: Mayor John Davis, Mayor Pro Tem Frank Tursi, Commissioner Pat Turner, Commissioner Harry PJ Pugliese, Commissioner Larry Philpott, and Commissioner Laurent Meilleur. It was noted that the Board had returned to remote meetings through the ZOOM platform as allowed by NCGS 166A-19. Governor Cooper had declared a state of emergency due to the COVID-19 Pandemic in March 2020 and it remained in effect. ********************************** Call to Order/Opening Prayer The meeting was called to order at 5:30 pm. Mayor Davis gave the invocation. Public Comment Citizens were offered an opportunity to address the Board regarding items listed on the agenda. No comments were given. Adoption of Agenda Mayor Davis asked to add discussion on: Downtown Events May – October, potential funding opportunity from the 2021 Historic Preservation Fund Pass-Through Grant for Historic Preservation Projects in Certified Local Government Jurisdictions, and future the meeting format moving forward. On a motion by Commissioner Philpott, seconded by Commissioner Turner, the amended Agenda, as noted above, and Consent Item below were unanimously approved. Meeting Minutes – 2/22/21 Regular Meeting Presentations FY 19/20 Audit – Gregory Redman, CPA presented specific details from the FY 19/20 Audit. “The financial statements … in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Swansboro, North Carolina as of June 30, 2020, and the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America – “Unmodified Opinion.” • Governmental Activities Net Position (Unrestricted) for 2020 $1,532,760 compared to 2019 at $1,231,453 Page 1 of 9 • Total Net Position - $8,047,704 and increase over 2019 of $426,083 • Unassigned General Fund Balance for 2020 - $2,229,423 or 56% of General Fund Expenditures • Stormwater had a $34,271 Unrestricted Balance and Solid Waste had a negative balance of $20,218 due to the Grapple Truck purchase. As equipment depreciated over the years, that number would move to a positive figure. On a question from Mayor Davis, Mr. Redman indicated that the Enterprise Fund should always “break even” or show a positive amount. Funds could be used to purchase equipment in lieu of financing. • Capital Projects debt was ending. The main project with remaining expenditures was Waterfront Plan Implementation. The long-term liabilities did not reflect very much debt - $1.6 million. • Pension Liability: LEO-Police officers $75,611, LGERS Pension Liability $563,498 • OPEB (Other Potential Employee Benefits) Liability of $450,151 were funds that were not necessarily set aside but rather shown as a possible future liability for the Town. • Current levy collection percentages town-wide was 99.10% (property taxes 99.02%, and registered motor vehicles 100.00%) “As part of obtaining reasonable assurance about whether the Town of Swansboro, North Carolina’s financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.” Mr. Redman announced that the Town received the GFOA Award for Reporting Excellence for another year and should be proud of its Finance Director and Department for their hard work. Commissioner Meilleur inquired further about the Pension Liability, specifically whether the Town needed to set aside funding in that area. In short, it reflected the retirement potential of the Town. Mayor Pro Tem Tursi understood that although the funds were noted, the total dollar amount was for all employees, assuming all would retire from the Town. Mr. Redman further explained that the Pension Liability was basically the retirement of the town. Each month the employees contribute 6% of their salary and the town contributes another to cover 7%. That money was then sent to the state for each employee. The number at the end of the year - $75,611 for (LEO) and $563,498 for Page 2 of 9 regular employees (LGERS), was money that the town would not have to pay, it was set aside under the Town for the employees. Once the employee retired, they would start receiving the funds from the state. The OPEB Liability ($450,151) was the health insurance policy coverage the Town had for retired employees prior to the employee being eligible to draw Medicare. (Clerk’s Note: It should be noted that the abovementioned policy was adopted in 2015 and was rescinded in 2018 with coverage remaining in place for those employees initially covered between adoption date and date rescinded. In addition, the benefit is only paid out upon satisfaction of certain criteria met). Eligibility Criteria. To be eligible for a Retiree Health Insurance Stipend, an Employee/Retiree must satisfy two lengths of service criteria as outlined blow, prior to retiring from employment with the Town of Swansboro and must be eligible for and begin receiving a retirement pension from the NCLGERS. The percentage paid as a stipend will be based on the following years of service, which may be accumulated concurrently: Percent of Local Government Premium Paid TOS Years of Service* Years of Service* as a Stipend 25% 10 25 50% 15 25 75% 20 25 On the question of whether the town should set the funds aside, Mr. Redman shared that very few municipalities did. Mayor Pro Tem Tursi understood that the actuary presumed that every current employee would work for the Town long enough to retire and accrue the benefit. Mr. Redman shared that once the funds were allocated, they were placed in a trust and could not be removed. He was aware of another municipality that had a $6 million OPEB Liability so he was not concerned with the $450,151 liability for Swansboro based on it budget and how it might have to be paid out. Commissioner Meilleur thought the actuary did not assume everyone, but rather normalized and based on projection the best they could with the assumption they had so the number was closer to what the real number would be. Mr. Redman stated that the number was an assessment of what it would cost the Town if those employees retired and used the benefit. He could not speak to the exact formulation used though. Board members thanked Finance Director Johnson for another certifiable report. The report would be uploaded to the Town website. Page 3 of 9 ADA Transition Plan Draft - In early August 2018, the Town of Swansboro, along with another 196 towns and municipalities throughout North Carolina, were notified of the requirement to do an ADA Transition Plan pursuant to the Code of Federal Regulation. After a delay due to Hurricane Florence, more direction was given in December 2018 and the Town acted in January 2019 selecting an ADA Coordinator, adopted an ADA Policy Statement and Grievance Complaint Procedures. The Town then hired Stewart to begin development of the ADA Transition Plan. Harrison Wenchell of Stewart introduced the draft plan through a power point presentation (attached herein). Mr. Wenchell stressed that the ADA Plan was meant to be a living document and to be updated every five years with progress accomplished, items still pending, and any future items that need to be corrected. An opportunity was given for public and Board input. No public comments were offered. Assistant Manager Webb indicated that she had spoken with former resident Kathy Fulcher who had indicated she would provide written comments, but none had been received to date. The comment period was scheduled to end April 5, 2021 and then the plan would be finalized for formal adoption. Mayor Pro Tem Tursi inquired what opportunities were offered to the public for comment and if there were any legal responsibilities or federal monitoring to assure that the Town made the recommended improvements within the plan. The draft was available from the Town website, at Town Hall and notice of those locations had been sent out over social media outlets. Mr. Wenchell believed it pertinent for the Town to make the improvements, an audit would be done at some point. Doug Taylor of Stewart added that any grievance procedures would require the Town to respond which could lead to potential lawsuits if the Town did not make the improvements. Any federal funding request might also reference the plan as a requirement for that funding. Mayor Pro Tem Tursi encouraged staff to assure the implementation of the plan was carried out. Staff should also update the Board annually on accomplished improvements made. The plan itself should be updated every five years. Business Non-Consent Budget Ordinance Amendment #2021-6 – Multiple departments required amending for FY 20/21. The source for amendments 1-3 below would be appropriated from Fund Balance. Item 4 would be appropriated from the Stormwater Enterprise Fund Balance. 1. 401K Adjustment - On February 22, 2021, the Board approved a 2% match for current and potential general employees for the remainder of FY 20/21. A $7,715.42 appropriation was needed. Mayor Davis hoped the employees were taking advantage Page 4 of 9 of the additional percentage contribution to the 401K. Manager Seaberg shared that 5-7 employees had taken advantage of the additional percent. 2. Admin Services - Carteret County Shore Protection Office requested funding that would enable the U.S. Army Corps of Engineers (Corps) to conduct a dredging event along the waterway from Bogue Inlet proper and the connecting channel that tied the inlet to the Atlantic Intracoastal Waterway. Other local governments were also asked to provide funding as shown below. A $2,500 appropriation was requested. Mayor Pro Tem Tursi supported the allocation, but asked Manager Seaberg to obtain a better understanding of how the percentage breakdown was obtained. 3. Non-Departmental/IT Services - With the transition to remote access for employees, the need to increase security to a more robust coverage was needed. An appropriation of $19,000 was requested to cover the additional costs. Commissioner Meilleur inquired on the details of the more robust IT security needs. By example, Manager Seaberg referenced the ransom ware hit ONWASA took a couple of years ago. An assessment by Computer Warriors indicated that the Town may be at risk for such an attack. The upgrade put a “Piece of Mind Protection” in place and better protected those town employees working remotely when needed. Commissioner Philpott asked if the $19K was reimbursable through the recent stimulus funding. Manager Seaberg believed it may be. 4. Stormwater Enterprise Fund - Additional repairs were needed to the Sterling Dump Truck. Body rust was to the extent it was unsafe to drive on roads due to debris falling out of the bed of the truck. A $7,487.28 appropriation was needed. On a motion by Mayor Pro Tem Tursi, seconded by Commissioner Turner, Budget Ordinance Amendment 2021-6 was unanimously approved as indicated. Financial Report – February 2021 – Finance Director Johnson reviewed details from the monthly financial report, attached herein. Three departments had higher expenditures but did not pose any red flags. - Public Works/Streets was a result of the NCDOT sidewalk contribution; and - Emergency Management was due to dock repairs from Hurricane Florence; and computer upgrades for telework capabilities - Non-Departmental included town wide cost for insurance premiums, workman's comp, IT services, computer leases, postage, and transfers to other funds Page 5 of 9 A brief recess was taken from 6:55pm to 7:00pm. All Board members had returned to the remote meeting on a roll call. Downtown Event Discussion (May – October) – Governor Cooper was slowly loosening COVID19 restrictions. Mayor Davis believed the Town should re-consider allowing some of the events that had been cancelled through July 4th. - Pirate Fest (May) – currently planned was a campout at Municipal Park to allow appropriate spacing - Arts By The Sea (June) – currently planned virtually with an online marketplace - July 4th Fireworks – The vendor was only available July 3rd. An alternate plan was to provide a 2-day laser show at the high school. The event could be held even if it rained, and spectators would remain in their vehicles. The Parks Board voted 4:2 for the Laser Show over Fireworks downtown. - Seaside Arts Council Concert Series (to begin in May) downtown at the Pavilion. Commissioner Turner asked if the Parks Board supported any of the alternate events. Director Stanley indicated that they supported the events as described above. Commissioner Meilleur asked if Onslow County had been contacted. Regarding the Laser Show, Director Stanley indicated that she had preliminary discussion with SHS Principal, Dr. Gross who was supportive. If the Board supported, she would have more in-depth conversation with Dr. Gross and the County. Unfortunately, Director Stanley did not feel Arts By The Sea could be held downtown – she was concerned with how a crowd of 6000 might socially distance. A lot of town’s were either moving their events to the Fall, cancelling them, and some were just simply ignoring the guidelines. Board members showed support for the events as described by Director Stanley until restrictions were further lifted to include the Laser Show in lieu of Fireworks. The idea of featuring local artists for ABTS was noted. Mayor Davis asked for details on the Fireworks. Manager Seaberg explained that the island had been secured, but a federal permit had to be obtained, the island would have to be assessed and possibly cleaned up due to storms last summer. If we contracted for fireworks and then cancelled the funds would not be refunded. The Seaside Arts Council Concert Series was already scheduled to begin on May 30, but SAC was amenable to pushing those dates that might need to be cancelled to the end of the series. Page 6 of 9 2021 Historic Preservation Fund Pass-Through Grant for Historic Preservation Projects in Certified Local Government Jurisdictions – Manager Seaberg shared an opportunity to apply for federal funding to re-catalog the historic district boundaries and its structures. The district was last cataloged in 1991 – 30 years ago. The application was due April 16, 2021 and was a 40/60 split (Town 40% = $25,000). Under the grant, the Town might potentially expand the district boundaries and add structures to the National Registry. On inquiries from the Board, Manager Seaberg indicated that it appeared the grant funds were awarded annually. The Historic Preservation Commission had recommended making application. On a motion by Mayor Pro Tem Tursi, seconded by Commissioner Turner, $25,000 was allocated if the grant was awarded to the Town. The vote was unanimous. The Board asked that written details be provided at the April 12, 2021 meeting. Meetings Moving Forward – Mayor Davis and Commissioner Pugliese favored the hybrid meeting. Mayor Pro Tem Tursi, Commissioners Turner, Philpott, and Meilleur supported the ZOOM platform until further restrictions were lifted. Perhaps considering hybrid or in-person meetings in May or June. The consensus was to keep the meetings remote and add discussion again to the April 26, 2021 meeting. Future Agenda Items – A memo detailing proposed upcoming agenda items was reviewed and an opportunity for the Board to introduce any new items was given. In lieu was scheduling a special budget workshop, staff was proposing to do the workshop at its regular meeting April 12, 2021. Public Comments Citizens were offered an opportunity to address the Board regarding items not listed on the agenda. No comments were offered. Manager’s Comments Manager Seaberg entertained questions from the Manager’s Brief provided in the agenda packet. The Town did receive notification of award of the Resiliency Grant but was partnered with Dewberry, not Carolina Wetlands Association. Mayor Pro Tem Tursi congratulated Manager Seaberg on the award noting that it was really a big deal to be chosen over all the other coastal communities. Page 7 of 9 Dockwalk Update – The contract with the Division of Coastal Management should be received soon, construction would be done in the off season. Walnut Street End Improvements should be complete by the end of the fiscal year. Ward Shore was almost complete adding eight designated parking spaces. Mayor Pro Tem Tursi inquired whether Manager Seaberg had reached out to NCDWQ on the stormwater requirements for the sidewalk project? No definitive answer still; what Manager Seaberg understood was that NCDOT still owned the right-of-way, but the Town would maintain it. Mayor Pro Tem Tursi warned if NCDWQ was left out of the project details, it might not turn out well for the Town. He feared that as the project moved further, the Town would get hit with the requirement that the stormwater would have to be mitigated in some form or fashion and could not fall under the DOT federal permit which was administered by the state. He strongly Manager Seaberg to get a definitive answer from someone at NCDWQ on whether the plan was viable and would meet their current interpretation of state stormwater requirements. Manager Seaberg would discuss with Attorney Parson to see whether he might have a better understanding. Emergency Operations Center Update – The structural engineer was reviewing to see if the foundation could be certified, and the future space/staffing needs were being finalized. Commissioner Meilleur inquired what the staffing projections were for the public safety departments and how were they determined with the current growth limitations the Town had. Manager Seaberg did not have the numbers yet. Board Comments Board members thanked Finance Director Sonia Johnson and the rest of the staff for their work on the CAFR and reporting excellence. Commissioner Pugliese had been serving as the ECC representative which had only met once during COVID restrictions. Meetings were being scheduled again and he indicated it was difficult for him to get to New Bern on a weeknight. Commissioner Philpott volunteered to serve out the remaining term. On a motion by Mayor Pro Tem Tursi, seconded by Commissioner Pugliese, Commissioner Philpott would serve the remaining term. The vote was unanimous. Regarding the Emergency Supplemental Historic Preservation Fund (ESHPF) Hurricane Disaster Relief Grant Award, Commissioner Philpott suggested that a letter of Page 8 of 9 appreciation be sent to the Swansboro Historic Association for their assistance in the Town’s receipt of the $424,000 funding for improvement at the Old Town Hall. For the record, Mayor Davis wanted it noted that he disagreed with Board to continue delaying the downtown events. He believed the Board needed to do something to open the downtown. He did not want to be irresponsible but felt some relaxation was due. Adjournment On a motion by Commissioner Turner, seconded by Commissioner Philpott, the meeting adjourned at 8:20pm. Page 9 of 9  Regular Meeting March 22, 2021 1 1. Please turn cell phones to “off” or “vibrate”. 2. The Board offers the public three opportunities to speak during the meeting: A comment period is offered at the beginning and end of the meeting. Please note that a separate opportunity is provided for those items requiring a public hearing. Public Hearing(s) – There are no public hearings scheduled for this meeting. 3. Under the ZOOM Meeting Platform, individuals wishing to make comments should “raise their hand” from their computer. At the appropriate time, Major Davis will acknowledge those with comments. 2 1  PUBLIC COMMENT Citizen opportunity to address the Board for items listed on the agenda. 3 AGENDA AND CONSENT ITEMS Action Needed: Motion to Adopt the Agenda as prepared (or amended) and approval of the Consent Items 4 2  PRESENTATION FY 19/20 Audit Presentation Presenters: Greg Redman, CPA 5 Town of Swansboro Audit Report Presentation GTR 6 3  Independent Auditor’s Report Opinion In my opinion, based on my audit, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Swansboro, North Carolina as of June 30, 2020, and the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. “Unmodified Opinion” 7 Government-Wide Financial Analysis Governmental Business-type Activities Activities Total 2020 2019 2020 2019 2020 2019 Current and other assets $ 3,891,926 $ 3,700,382 $ 104,981 $ 89,650 $ 3,996,907 $ 3,790,032 Capital and other noncurrent assets 7,182,468 7,147,972 239,822 100,147 7,422,290 7,248,119 Total assets $ 11,074,394 $10,848,354 $ 344,803 $ 189,797 $ 11,419,197 $ 11,038,151 Deferred outflows of resources $ 377,898 $ 407,606 $ 18,412 $ 20,434 $ 396,310 $ 428,040 Long-term liabilities $ 2,527,941 $ 2,688,403 $ 56,843 $ 60,636 $ 2,584,784 $ 2,749,039 Other liabilities 829,019 891,670 37,448 36,260 866,467 927,930 Total liabilities $ 3,356,960 $ 3,580,073 $ 94,291 $ 96,896 $ 3,451,251 $ 3,676,969 Deferred inflows of resources $ 301,503 $ 166,637 $ 15,049 $ 964 $ 316,552 $ 167,601 Net position: Net investment in capital assets $ 5,569,892 $ 5,542,096 $ 239,822 $ 100,147 $ 5,809,714 $ 5,642,243 Restricted 691,177 735,701 - - 691,177 735,701 Unrestricted 1,532,760 1,231,453 14,053 12,224 1,546,813 1,243,677 Total net position $ 7,793,829 $ 7,509,250 $ 253,875 $ 112,371 $ 8,047,704 $ 7,621,621 8 4  Changes in Net Position Governmental Business-type Activities Activities Total 2020 2019 2020 2019 2020 2019 Revenues: Program revenues: Charges for services $ 410,080 $ 456,595 $ 436,631 $ 431,150 $ 846,711 $ 887,745 Operating grants and contributions 417,820 942,063 - - 417,820 942,063 Capital grants and contributions 50,508 99,716 - - 50,508 99,716 General revenues: Property taxes 1,745,281 1,696,102 - - 1,745,281 1,696,102 Other taxes 71,088 98,783 - - 71,088 98,783 Grants and contributions not restricted to specific programs 1,268,190 1,212,651 - - 1,268,190 1,212,651 Other 407,162 1,160,687 - 5,874 407,162 1,166,561 Total revenues $ 4,370,129 $ 5,666,597 $ 436,631 $ 437,024 $ 4,806,760 $ 6,103,621 Expenses: General government $ 939,050 $ 2,554,830 $ - $ - $ 939,050 $ 2,554,830 Public safety 1,989,854 1,622,146 - - 1,989,854 1,622,146 Transportation 276,500 308,068 - - 276,500 308,068 Economic development 145,233 310,249 - - 145,233 310,249 Cultural and recreation 342,413 321,218 - - 342,413 321,218 Other 187,429 - - - 187,429 - Interest on long-term debt 41,269 42,939 - - 41,269 42,939 Stormwater - - 123,764 71,688 123,764 71,688 Solid Waste - - 335,165 302,905 335,165 302,905 Total expenses $ 3,921,748 $ 5,159,450 $ 458,929 $ 374,593 $ 4,380,677 $ 5,534,043 Increase in net position before transfers and special items $ 448,381 $ 507,147 $ (22,298) $ 62,431 $ 426,083 $ 569,578 Transfers and special items (163,802) 1,500 163,802 8,500 - 10,000 Increase in net position $ 284,579 $ 508,647 $ 141,504 $ 70,931 $ 426,083 $ 579,578 Net position, July 1 7,509,250 7,000,603 112,371 41,440 7,621,621 7,042,043 Net position-beginning, restated - - - - - - Net position, June 30 $ 7,793,829 $ 7,509,250 $ 253,875 $ 112,371 $ 8,047,704 $ 7,621,621 9 Balance Sheet Governmental Funds Town of Swansboro, North Carolina Balance She e t Gove rnme ntal Funds June 30, 2020 2020 2019 Ge ne ral Ge ne ral Assets Cash and cash equivalents $ 3,135,321 $ 2,879,912 Restricted cash 39,384 43,724 Receivables, net: Taxes 35,653 27,683 Accounts 333,636 384,702 Grants - - Due from other funds - - Total Assets $ 3,543,994 $ 3,336,021 Liabilities Due to other funds $ - $ - Accounts payable and accrued liabilities 542,336 612,063 Other liabilities - - Total Liabilities $ 542,336 $ 612,063 Deferred Inflows of Resources Property taxes receivable $ 35,653 $ 27,683 Prepaid taxes - - Total Deferred Inflows of Resources $ 35,653 $ 27,683 Fund Balances Restricted: Stabilization by State Statute $ 333,636 $ 384,702 Streets 24,474 31,901 Capital improvements - - Festivals and events - 11,274 Assigned: Subsequent year's expenditures 378,472 123,471 Unassigned 2,229,423 2,144,927 Total Fund Balances $ 2,966,005 $ 2,696,275 Total Liabilities, Deferred Inflows of Resources, And Fund Balances $ 3,543,994 $ 3,336,021 10 5  Unassigned Fund Balance as a Percentage of Total General Fund Expenditures 2020 2019 Unassigned fund balance $ 2,229,423 $ 2,144,927 Total General Fund expenditures 4,003,323 5,050,881 Unassigned fund balance as a Percentage of Total General Fund expenditures 56% 42% GFOA recommended minimum 16.67% 16.67% LGC recommended amount 32% 32% 11 Statement of Net Positions Proprietary Funds Town of Swansboro, North Carolina Statement of Net Position Proprietary Funds June 30, 2020 Major Enterprise Funds Stormwater Solid Waste Totals Assets Current assets: Cash and cash equivalents $ 44,630 $ 34,861 $ 79,491 Accounts receivable (net) 25,490 - 25,490 Due from other funds - - - Total Current Assets $ 70,120 $ 34,861 $ 104,981 Noncurrent assets: Capital assets: Land and other non-depreciable assets - - - Other capital assets, net of depreciation 59,983 179,839 239,822 Capital assets (net) $ 59,983 $ 179,839 $ 239,822 Total Assets $ 130,103 $ 214,700 $ 344,803 Deferred Outflows of Resources Pension deferrals $ 9,206 $ 9,206 $ 18,412 Liabilities Current liabilities: Accounts payable - trade $ 8,800 $ 28,032 $ 36,832 Due to other funds - - - Customer deposits - - - Compensated absences - current 308 308 616 Total Current Liabilities $ 9,108 $ 28,340 $ 37,448 Noncurrent liabilities: Compensated absences $ 1,747 $ 1,746 $ 3,493 Net pension liability 14,829 14,829 29,658 Total OPEB liability 11,846 11,846 23,692 Total non-current liabilities $ 28,422 $ 28,421 $ 56,843 Total Liabilities $ 37,530 $ 56,761 $ 94,291 Deferred Inflows of Resources Pension deferrals $ 7,525 $ 7,524 $ 15,049 Net Position Net investment in capital assets $ 59,983 $ 179,839 $ 239,822 Restricted net position - - - Unrestricted net position 34,271 (20,218) 14,053 Total Net Position $ 94,254 $ 159,621 $ 253,875 12 6  Statement of Revenues, Expenses, And Changes in Fund Net Position Proprietary Funds Town of Swansboro, North Carolina Statement of Revenues, Expenses, And Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2020 Major Enterprise Funds Stormwater Solid Waste Totals Operating Revenues Charges for services $ 102,549 $ 328,044 $ 430,593 Other operating revenues 6,038 - 6,038 Total Operating Revenues $ 108,587 $ 328,044 $ 436,631 Operating Expenses Administration $ - $ - $ - Stormwater operations 112,747 - 112,747 Solid waste operations - 331,132 331,132 Depreciation 11,017 4,033 15,050 Total Operating Expenses $ 123,764 $ 335,165 $ 458,929 Operating income (loss) $ (15,177) $ (7,121) $ (22,298) Non-operating Revenues (Expenses) Investment earnings $ - $ - $ - Miscellaneous revenue - - - Total Non-operating Revenues (expenses) $ - $ - $ - Income (loss) before contributions and transfers $ (15,177) $ (7,121) $ (22,298) Capital contributions - - - Transfers from other funds 9,337 154,465 163,802 Transfers to other funds - - - Change in net position $ (5,840) $ 147,344 $ 141,504 Net position, beginning 100,094 12,277 112,371 Net position, ending $ 94,254 $ 159,621 $ 253,875 13 Changes in Long-term Liabilities Current Beginning Ending Portion of Governmental Activities: Balance Increases Decreases Balance Balance Notes from direct placements $ 1,605,876 $ 227,700 $ 221,000 $ 1,612,576 $ 268,549 Total pension liability (LEO) 63,708 11,903 - 75,611 - Net pension liability (LGERS) 491,087 72,411 - 563,498 - Total OPEB liability 661,030 - 210,879 450,151 - Compensated absences 103,179 78,256 70,077 111,358 16,704 Total $ 2,924,880 $ 390,270 $ 501,956 $ 2,813,194 $ 285,253 Current Beginning Ending Portion of Business-type Activities: Balance Increases Decreases Balance Balance Net pension liability (LGERS) $ 25,846 $ 3,812 $ - $ 29,658 $ - Total OPEB liability 34,790 - 11,098 23,692 - Compensated absences - 7,627 3,518 4,109 616 Total $ 60,636 $ 11,439 $ 14,616 $ 57,459 $ 616 14 7  Combining Statement of Revenue, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds Town of Swansboro, North Carolina Nonmajor Governmental Funds Combining Statement of Revenue, Expenditures, and Charges in Fund Balances For the Year Ended June 30, 2020 Capital Projects Park & Waterfront Municipal Capital Recreation Plan Park Information Total Reserve Reserve Implementation Improvements Technology Combining Revenues Total Revenues $ - $ 28,233 $ 22,275 $ - $ - $ 50,508 Expenditures Total Expenditures $ - $ - $ 104,509 $ 23,224 $ - $ 127,733 Revenues Over Expenditures $ - $ 28,233 $ (82,234) $ (23,224) $ - $ (77,225) Other Financing Sources (Uses) Transfers in: General Fund $ 52,468 $ - $ - $ - $ - $ 52,468 Capital Reserve Fund - - - 50,000 - 50,000 Transfers out: General Fund - - - - - - Other funds - - - - - - Total Other Financing Sources (Uses) $ 52,468 $ - $ - $ 50,000 $ - $ 102,468 Net Change in Fund Balance $ 52,468 $ 28,233 $ (82,234) $ 26,776 $ - $ 25,243 Fund Balance, beginning 173,898 16,161 87,601 24,686 5,478 307,824 Fund Balance, ending $ 226,366 $ 44,394 $ 5,367 $ 51,462 $ 5,478 $ 333,067 15 Analysis of Current Tax Levy Town of Swansboro, North Carolina Analysis of Current Tax Levy Town-wide Levy For the Fiscal Year Ended June 30, 2020 Total Levy Property excluding Town-wide Registered Registered Property Amount Motor Motor Valuation Rate of Levy Vehicles Vehicles Original levy: Property taxed at current year's rate $ 464,352,000 0.35 $ 1,625,232 $ 1,625,232 $ - Registered motor vehicles taxed at current rate 38,065,714 0.35 133,230 - 133,230 Total property valuation $ 502,417,714 Net levy $ 1,758,462 $ 1,625,232 $ 133,230 Unpaid (by taxpayer) at June 30, 2020 (15,905) (15,905) - Current year's taxes collected $ 1,742,557 $ 1,609,327 $ 133,230 Current levy collection percentage 99.10% 99.02% 100.00% 16 8  Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with “Government Auditing Standards” Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of Swansboro, North Carolina’s financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 17 ADA Transition Plan Draft PRESENTATION Overview: In early August 2018, the Town of Swansboro, along with another 196 towns and municipalities throughout North Carolina, were notified of the requirement to do an ADA Transition Plan pursuant to the Code of Federal Regulation. In lieu of Hurricane Florence, the State of North Carolina delayed communication with communities over implementation status. Hearing concerns from communities' abilities to quickly develop said plan and subsequent compliance, a workshop was held in Kinston on December 12, 2018. Based on direction from the workshop, Swansboro acted, adopting the following three items on January 8, 2019. 1) Select and name an ADA Coordinator; 2) ADA Policy Statement; and 3) Grievance Complaint Information. Stewart, Harrison Wenchell will introduce the draft plan and take questions and comments from the public and Board. Action Needed: Following introduction, allow for public and board comment. Presenters: Harrison Wenchell – Stewart/Chris Seaberg – Town Manager 18 9  Swansboro ADA Transition Plan Public Meeting - Project Overview / Findings MARCH 22, 2021 19 Project • Historical context of ADA Background • Roles and responsibilities 20 10  Data Collection Summarized • Evaluation of programs, policies, and procedures pertaining to: • Administrative requirements • Effective communication • General nondiscrimination • Website accessibility • Program accessibility • Public right-of-way data collection: • 214 curb ramps • 190 hazards (trip hazards, maintenance, debris, driveways, erosion) • 6 traffic control signals (push buttons, pedestrian signal heads) • 7.5 miles of sidewalk • 6 survey responses as of March 22, 2021 • Public Meeting Presentation held March 22, 2021 21 Parks and Recreation Facilities Evaluated • Old Town Hall • Public Safety Building • Recreation Center • Town Hall • Visitors Center • Bicentennial Park • Church St. Dock & Gazebo • Main St. Dock • Moore St. Dock • Pineland Park • Pirates Den Park • Pug Pavilion • Riverview Park • Ward Shore Park 22 11  ADA Planning Stages 23 Public Participation • Concerted outreach to disability groups and citizens • Public survey • Public meeting 24 12  The Americans with Disabilities Act (ADA) • Per Title II of the act, • FHWA requirements apply to municipalities must have a areas in the public right-of- plan in place to way accommodate those who • Compliant pedestrian ramps may use public facilities. • Sidewalks with truncated domes for those visually impaired • Federal transportation • Traffic signals with an audio component funding may be withheld unless there is an ADA Transition plan in place or in the works for the municipality. 25 Implementation Priorities • Short-Term Priorities: • Project completion less than 1 year • Soft costs, typically general maintenance • Examples: striping accessible parking spaces, replacing door hardware, tree trimming encroaching into pedestrian access routes. • Mid-Term Priorities: • Project completion 1-3 years • Costs allocated/reallocated within annual budgeting • Examples: replacement / adjustment of water fountains, grab bars within bathrooms, handrails within ramps. • Long-Term Priorities: • Project completion 3-5+ years • Costs funded through Capital Improvement Program (CIP) or other sources • Examples: structural changes to buildings, redesigning bathrooms to accommodate adequate movement, creating accessible routes to facilities. 26 13  Monitoring Progress • ADA Transition Plan is a living document to be consistently updated • Transition Plan adopted; then updated / presented to Town Council every 5 years • Town reviews document at least once per year to identify need for updates or additional information • Substantial updates to the main body of the document will require a public comment period to satisfy Town public outreach efforts • Annual reviews of on-going monitoring / inspection of public facilities will correlate with development of Capital Improvement Plan 27 • April 2021: • Compile all public comments • Revise and finalize ADA Transition Next Steps Plan • Spring - Summer 2021: • Approval and adoption of ADA Transition Plan by Town Council 28 14  ADA Transition Plan Draft Public Comment Period 29 NEW BUSINESS/NON-CONSENT Budget Amendment 2021-6 Amendments are needed in multiple departments. Action Needed: Motion to approve Budget Amendment 2021-6 Presenter: Sonia Johnson – Finance Director 30 15  NEW BUSINESS/NON-CONSENT Financial Report Presenter: Sonia Johnson – Finance Director 31 TOWN OF SWANSBORO FINANCIAL REPORT (AS OF FEBRUARY 28, 2021) REVENUES EXPENDITURES LOAN PAYMENTS INVESTMENTS 32 16  TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF FEBRUARY 28, 2021) GENERAL FUND ENCUMBRANCES INCLUDED Total Excess of Revenues Over Expenditures $551,574 33 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF FEBRUARY 28, 2021) (ACTUAL) GENERAL FUND (ENCUMBRANCES NOT INCLUDED) Total Excess of Revenues Over Expenditures $640,399 34 17  (PURCHASE ORDERS) (PAID YEAR TO DATE) ENCUMBERED SPENT % DEPT. BUDGET ACTUAL BALANCE FEBRUARY 28, 2021 GOVERNING BODY 14,098 8,471 419 63.1% ADMIN SERVICES 424,705 263,038 10,879 64.5% FINANCE 299,761 166,565 - 55.6% LEGAL 42,000 20,333 - 48.4% PUBLIC BUILDINGS 353,752 177,410 8,629 52.6% FIRE 908,243 494,904 45,778 59.5% PERMITTING 222,887 135,102 - 60.6% POLICE 1,050,587 614,181 6,515 59.1% PUBLIC WORKS-STREETS 296,493 223,300 3,766 76.6% POWELL BILL-STREETS 90,318 13,539 5,657 21.3% PARKS & RECREATION 290,318 142,077 6,568 51.2% CHURCH STREET DOCK 8,230 3,515 - 42.7% EMERGENCY MANAGEMENT 169,212 140,595 (173) 83.0% FESTIVALS & EVENTS 95,451 2,204 769 3.1% NON DEPARTMENTAL 490,517 466,831 17 95.2% TOTAL 4,756,572 2,872,064 88,825 62.2% ** 35 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF FEBRUARY 28, 2021) STORMWATER ENTERPRISE FUND ENCUMBRANCES INCLUDED Total Excess of Revenues Over Expenditures $18,007 36 18  TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF FEBRUARY 28, 2021) SOLID WASTE ENTERPRISE FUND ENCUMBRANCES INCLUDED Total Excess of Revenues Over Expenditures $30,884 37 TOWN OF SWANSBORO LOAN REPORT (AS OF FEBRUARY 28, 2021) Principal Interest Annual Debt Item End Date DEBT Balance Rate Service Town Hall/Tanker $602,591 2.69 03/21/2028 $84,724 SERVICE Public Safety Facility Fire Truck $160,000 $265,418 2.58 2.08 12/22/2024 11/01/2026 $45,160 $47,512 Equipment/Vehicles $50,832 1.87 11/01/2021 $51,783 Sleeping Quarters $150,000 2.43 12/14/2026 $29,253 Grapple Truck/Town $227,700 1.72 6/25/2025 $47,917 Hall Generator Total Debt $1,456,541 $306,349 38 19  TOWN OF SWANSBORO CASH & INVESTMENTS REPORT (AS OF FEBRUARY 28, 2021) CASH & INVESTMENTS BANK BALANCE INTEREST RATE First Citizens Bank $948,434 .03% NC CMT-General $3,413,185 .01% 39 Any Questions ? 40 20  NEW BUSINESS/NON-CONSENT Future Agenda Items The purpose of this memo is to provide the Board with matters that staff anticipates/proposes for upcoming meetings. It should be noted that these items are tentatively scheduled for the specified monthly agenda but are subject to change due to preparation of materials, public notice requirements, etc. In providing this memo each month, we hope it will also provide opportunity for the Board to introduce items of interest and subsequent direction for placement on future agendas, which will allow staff the opportunity to plan accordingly. Action Needed: Discussion and guidance to staff on future agenda items. Presenter: Paula Webb – Assistant Manager/Clerk 41 PUBLIC COMMENT Citizen opportunity to address the Board. 42 21  MANAGER’S COMMENTS Chris Seaberg, Town Manager 43 BOARD COMMENTS Mayor John Davis Mayor Pro Tem Frank Tursi Commissioner Pat Turner Commissioner Harry “PJ” Pugliese Commissioner Larry Philpott Commissioner Laurent Meilleur 44 22  ADJOURN 45 23