Board of Commissioners

Town of Swansboro Board of Commissioners May 13, 2021 Special 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 (logged in at . 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 special meeting was called to order at 5:30 pm. The purpose was further to discuss the proposed Budget for FY 21/22. Mayor Davis gave the invocation. Manager Seaberg shared FY 20/21 accomplishments and briefed the Board on potential American Rescue Plan funding. He then reviewed the details of the revised budget (power point slides to be attached to these minutes) and gave explanation on revenue increases, expenditures increases/decreases. FY 20/21 Accomplishments • COVID-19 Responses • Multi-Year Debris Collection and Removal Contract • Multi-Year Debris Monitoring Contract • Wayfinding Sign Installation • Ward Shore Repairs and Improvements • Sidewalk Project • Emmerton School Recovery Grant • Additional Parking Lot Construction at Municipal Park • Moore Street Dock Replacement (Hurricane Florence) • Swansboro ADA Transition Plan • Hurricane/Tropical Storm Isaias • NC DCM Public Access Grant – Bicentennial Park Boardwalk Extension Project • Section 319 NPS Pollution Control Grant Project – Walnut St. Outfall Retrofit Project (NC Coastal Federation) • Southeastern NC Regional Hazard Mitigation Plan • NC DCM Resilient Coastal Communities Program Grant • Adoption of new 160D Regulations • Adoption of Flood Maps and Regulations American Rescue Plan Act of 2021(H.R. 1319) - Funding • Cities/Town to receive more than $1.3 billion in two separate distributions Page 1 of 5  • Two Groups • Group 1 – entitled cities under the CDBG program • Group 2 – all other non-entitled cities (Swansboro) • First payment estimate - $490,000 June 15, 2021 • Second payment estimate – 12 months later $490,000 • Respond to the COVID-19 emergency and address its economic effects • Provide premium pay to essential employees or grants to their employers • Provide governmental services affected by revenue reduction resulting from COVID-19 • Make investments in water, sewer and broadband infrastructure • Further, and more detailed, funding guidance is expected from the US Treasury Department FY 21/22 Revised Budget Proposal The proposed budget was further reduced by $39, 173. Any further reduction would include: Funded Personnel (new) Admin Services - Planning Technician $59,803 Streets/Public Works - Maintenance Tech $51,799 Fire Department – Driver/Operator $51,236 Unfunded Requests included: Church Street Dock - Dock Master $55,545 Police Vehicles $72,000 Fire Set Aside $130,500 Other increases/decreases: • We received an updated Tax Base estimate from the Onslow County Tax Department increasing our anticipated revenues from Ad Valorem Taxes by $19,404 • Administrative Services expenses increased $12,775 for the web site update • Governing Body expenses decreased $16,182 per Board instructions keeping elected official compensation at the same rate as FY 2019-2020 • Administrative Services expenses decreased $33,239 due to adjusting how the Planner and Proposed Planner Tech position is to be funded (paying 25% of the anticipated cost with permit fees revenues) • Permitting expenses increased $36,520 due to adjusting how the Planner and Proposed Planner Tech position is to be funded (paying 25% of the anticipated cost with permit fees revenues) • Salaries and Benefits adjustments decreasing expenses $2,496 • Park and Recreation Salaries and Benefits increased $5,972 • Reduced Salary for Planning Tech (shifted to a Grade 15) $3,761 • Adjustments to both Public Works – Streets and Powell Bill – Streets with a total reduction of $591 • Fire Department expenses reduction (Department Head suggested) $11,800 • Finance Department expenses reduction (Department Head suggested) $5,400 • Governing Body expenses reduction (Department Head suggested) $2,500 • Parks and Recreation expenses reduction (Department Head suggested) $16,087 • Festivals and Events expenses increased (for Ads and Notices) $3,000 • Festivals and Events expenses decreased (correcting retirement contribution error) $3,423 • Festivals and Events expenses increased (Dues and Subscriptions) $2,140 • Administrative Services expenses increased (PEV Electric Charge Station) $1,500 • Debt Service Payment expenses increased $47,000 • Public Buildings expenses decreased (Town Manager suggested) $8,600 • Rec Program/Contract Fees Revenues increased $10,000 (Town Manager Suggested) based on estimated received from Department Head • Police Department expenses decreased (Town Manager Suggested) $8,200 • Public Works – Streets expenses decreased (Town Manager Suggested) $8,200 • Park and Recreation expenses decreased (Town Manager Suggested) $5,000 • Adjusted expense (increased) for Salary Study Plan implementation $6,803 The following information was a breakdown of the cost to implement the proposed pay plan. • The proposal increases the total expense for full time staff in the amount of $46,956.84 • Added expenses as a result of that proposed increase (i.e. FICA and retirement contributions including 401K) $10,597.05 • Total expense $57,553.89 • Please note that part-time expenses are not included in that equation listed above due to the fact that the Town budgets a set amount for the departments that use part-time labor. Once that limit is set by the budget, the Department Head manages that expense as part of that department’s operating budget. The proposed limits are listed below for consideration: o Fire Department $135,000 o Parks and Recreation Department $46,160 Manager Seaberg offered further reductions that would reduce the reliance on Fund Balance to $227,967: · Eliminating all new personnel $162,531 · Eliminate updating the Town website $12,595 · Eliminate the additional percent to the 401K contribution match (total proposed was 3% - staff participating currently were offered up to 2% match) $12,140 The Enterprise Fund was increased to reflect a proposed rate increase of: Current Proposed New Rate Residential $20.24 Residential $21.29 Commercial $33.79 Commercial $35.54 Mayor Davis indicated support to take care of current employees by funding the 401K additional percent but inquired whether the proposed fulltime positions could be part- time. Manager Seaberg noted that the Planner Tech was discussed and deferred last year. The need was even more apparent now with Planner Ansell going out on maternity leave in July. He did not feel hiring a consultant who would not be knowledgeable of the Town Ordinances would be beneficial, nor would the Town be successful in hiring this type of position as part-time. Manager Seaberg did believe the firefighter position could be part-time initially. However, the Town was trying to move the department to fulltime status. Volunteers were almost non-existent and not reliable. The Maintenance Tech position also needed to be fulltime. Mayor Pro Tem Tursi asked, if approved as revised, how much would be left in the undesignated fund balance. Finance Director Johnson indicated that the last budget meeting provided $1.7 Million. Projections would be done again in May, and she believed only $260,000 of the $370,000 reliance for FY 20/21 would be used, leaving $2.1 million. The proposed reliance of $415,000 (as proposed) for FY 21/22 would then be taken from that total. The eight percent state requirement balance totaled $1.3 million currently. As a comparison, Hurricane Florence cost the Town $1 million up front. Mayor Pro Tem Tursi could not support a budget that equaled to a 5-cent tax increase. While he understood the personnel needs, he would find it hard to support them at a $162,531 transfer from Fund Balance. Commissioner Turner agreed noting that the Pay Plan funding should be re-considered. Commissioner Pugliese was concerned with the reliance on Fund Balance each year. Commissioner Philpott agreed, but noted that not funding the Firefighter could have a negative impact on the Town’s ISO rating. Public Works needed additional staff to continue providing the same service and maintain the current facilities. The Planning Department Program of Work certainly indicated the need for an additional person. Mayor Davis offered that the staff should shoot for a zero reliance on Fund Balance; consider making a part-time position fulltime in Fire, eliminate the other new positions and the Pay Plan, which would bring the reliance down further. Mayor Pro Tem Tursi supported the fulltime Firefighter at $54,690 and still believed the planning could be contracted out while the Planner was on maternity leave. Commissioner Philpott concurred sharing that the Board had to look at sustainability and re-occurring costs long term. Mayor Pro Tem Tursi offered that the Town contributions might also need to be cut in half if possible. Adjournment On a motion by Mayor Pro Tem Tursi, seconded by Commissioner Philpott, the meeting adjourned at 6:19pm.  5/25/2021 Workbook BUDGET FY 21/22 TOWN OF SWANSBORO MAY 13, 2021 BUDGET WORKSHOP 1 FY 20/21 ACCOMPLISHMENTS • COVID-19 Responses • Multi-Year Debris Collection and Removal Contract • Multi-Year Debris Monitoring Contract • Wayfinding Sign Installation • Ward Shore Repairs and Improvements • Sidewalk Project • Emmerton School Recovery Grant 2 1  5/25/2021 FY 20/21 ACCOMPLISHMENTS • Additional Parking Lot Construction at Municipal Park • Moore Street Dock Replacement (Hurricane Florence) • Swansboro ADA Transition Plan • Hurricane/Tropical Storm Isaias • NC DCM Public Access Grant – Bicentennial Park Boardwalk Extension Project • Section 319 NPS Pollution Control Grant Project – Walnut St. Outfall Retrofit Project (NC Coastal Federation) 3 FY 20/21 ACCOMPLISHMENTS • Southeastern NC Regional Hazard Mitigation Plan • NC DCM Resilient Coastal Communities Program Grant • Adoption of new 160D Regulations • Adoption of Flood Maps and Regulations 4 2  5/25/2021 AMERICAN RESCUE PLAN ACT OF 2021(H.R. 1319) - FUNDING • Cities/Town to receive more than $1.3 billion in two separate distributions • Two Groups • Group 1 – entitled cities under the CDBG program • Group 2 – all other non-entitled cities (Swansboro) • First payment estimate - $490,000 June 15, 2021 • Second payment estimate – 12 months later $490,000 5 AMERICAN RESCUE PLAN ACT OF 2021(H.R. 1319) – FUNDING GUIDANCE • Respond to the COVID-19 emergency and address its economic effects • Provide premium pay to essential employees or grants to their employers • Provide governmental services affected by revenue reduction resulting from COVID-19 • Make investments in water, sewer and broadband infrastructure • Further, and more detailed, funding guidance is expected from the US Treasury Department 6 3  5/25/2021 FY 21/22 DEPARTMENTAL REQUESTS/MANAGER RECOMMENDATIONS 7 FY 21/22 NEW PERSONNEL FUNDED/UNFUNDED • Funded Admin Services - Planning Technician $59,803 Streets-Public Works - Maintenance Tech $51,799 Fire Department – Driver/Operator $51,236 • Unfunded Church Street Dock - Dock Master $55,545 8 4  5/25/2021 ENTERPRISE FUND SOLID WASTE INCREASE 5.17% • Current • Residential $20.24 • Commercial $33.79 • Proposed New Rate • Residential $21.29 • Commercial $35.54 9 FY 21/22 UNFUNDED REQUESTS/ OPTIONS FOR FUNDING DEPARTMENT ITEM AMOUNT .01- $52,421 POLICE PARTOL $72,000 .0137 VEHICLES FIRE SET ASIDE $130,500 .0249 CHURCH STREET DOCK MASTER $55,545 .0105 DOCK 10 5  5/25/2021 ADJUSTMENTS FROM APRIL 12, 2021 WORKSHOP • We received an updated Tax Base estimate from the Onslow County Tax Department increasing our anticipated revenues from Ad Valorem Taxes by $19,404 • Administrative Services expenses increased $12,775 for the web site update • Governing Body expenses decreased $16,182 per Board instructions keeping elected official compensation at the same rate as FY 2019-2020 • Administrative Services expenses decreased $33,239 due to adjusting how the Planner and Proposed Planner Tech position is to be funded (paying 25% of the anticipated cost with permit fees revenues) • Permitting expenses increased $36,520 due to adjusting how the Planner and Proposed Planner Tech position is to be funded (paying 25% of the anticipated cost with permit fees revenues) • Salaries and Benefits adjustments decreasing expenses $2,496 • Park and Recreation Salaries and Benefits increased $5,972 11 ADJUSTMENTS FROM APRIL 12, 2021 WORKSHOP • Reduced Salary for Planning Tech (shifted to a Grade 15) $3,761 • Adjustments to both Public Works – Streets and Powell Bill – Streets with a total reduction of $591 • Fire Department expenses reduction (Department Head suggested) $11,800 • Finance Department expenses reduction (Department Head suggested) $5,400 • Governing Body expenses reduction (Department Head suggested) $2,500 • Parks and Recreation expenses reduction (Department Head suggested) $16,087 • Festivals and Events expenses increased (for Ads and Notices) $3,000 • Festivals and Events expenses decreased (correcting retirement contribution error) $3,423 • Festivals and Events expenses increased (Dues and Subscriptions) $2,140 12 6  5/25/2021 ADJUSTMENTS FROM APRIL 12, 2021 WORKSHOP • Administrative Services expenses increased (PEV Electric Charge Station) $1,500 • Debt Service Payment expenses increased $47,000 • Public Buildings expenses decreased (Town Manager suggested) $8,600 • Rec Program/Contract Fees Revenues increased $10,000 (Town Manager Suggested) based on estimated received from Department Head • Police Department expenses decreased (Town Manager Suggested) $8,200 • Public Works – Streets expenses decreased (Town Manager Suggested) $8,200 • Park and Recreation expenses decreased (Town Manager Suggested) $5,000 • Adjusted expense (increased) for Salary Study Plan implementation $6,803 13 TOTAL COST OF PAY PLAN IMPLEMENTATION At the April 12, 2021 FY 2021-2022 Draft Budget Work Session, a request was made on the cost to implement the proposed pay plan. The following is intended to break down the proposal and answer that question: • The proposal increases the total expense for full time staff in the amount of $46,956.84 • Added expenses as a result of that proposed increase (i.e. FICA and retirement contributions including 401K) is $10,597.05 • Total expense is $57,553.89 • Please note that part-time expenses are not included in that equation listed above due to the fact that the Town budgets a set amount for the departments that use part-time labor. Once that limit is set by the budget, the Department Head manages that expense as part of that department’s operating budget. The proposed limits are listed below for consideration: o Fire Department $135,000 o Parks and Recreation Department $46,160 14 7  5/25/2021 QUESTIONS/COMMENTS 15 8