Board of Commissioners

Town of Swansboro Board of Commissioners February 13, 2023, Regular Meeting Minutes In attendance: Mayor John Davis, Mayor Pro Tem Frank Tursi, Commissioner PJ Pugliese, Commissioner Larry Philpott, Mayor Pro Tem Tursi, Commissioner Pat Turner, and Commissioner Jeffrey Conaway. ********************************** Call to Order/Opening Prayer/Pledge The meeting was called to order at 5:30 pm. Mayor Davis led the Pledge of Allegiance. Public Comment Citizens were offered an opportunity to address the Board regarding items listed on the agenda. No comments were given. Adoption of Agenda and Consent Items On a motion by Commissioner Turner, seconded by Commissioner Philpott, the agenda and the below consent items were approved unanimously. Meeting Minutes - August 22, 2022, Regular meeting minutes - August 22, 2022, Closes Session meeting minutes - September 12, 2022, Regular meeting minutes Budget Amendment 2023-3 Walnut Street Retrofit Project Improvements Appointments/Recognitions/Presentations Employee Introduction Manager Webb introduced Rebecca Brehmer, the new Projects/Planning Coordinator. She shared that Ms. Brehmer had a bachelor’s degree in historic preservation and has some land use knowledge in zoning. FY 20-21 Audit Report Gregory Redman, CPA presented specific details from the FY 21-22 Audit. • Governmental Activities Net Position (Unrestricted) for 2022 was $1,726,460 compared to 2021 at $1,404,464. • Total Net Position - $8,378,928 and increase over 2022 of $205,728. • Unassigned General Fund Balance for 2022 - $2,976,642 or 69% of General Fund Expenditures • Unrestricted Net Position for Stormwater were $134,136 and Solid Waste were $67,680. Page 1 of 3  • Pension Liability: LEO-Police officers were $86,581 and LGERS were $365,977 • OPEB (Other Potential Employee Benefits) Liability of $520,850 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 99.42% (property taxes 99.37%, and registered motor vehicles 100.00%) Mr. Redman shared that the Town was above and ahead of other jurisdictions similar in size and there we no findings in his audit. Business Non-Consent Future Agenda Topics Future agenda items were shared for visibility and comment. In addition, an opportunity was provided for the Board to introduce items of interest and subsequent direction for placement on future agendas. The following items were introduced and or added by consensus. - Presentation by Rob Johnson with Onslow Soil & Water - Resolution Supporting Veterans Garden - Presentation by Duke Energy - Community Meetings Discussion Joint Meeting with the Planning Board The joint meeting between the Planning board and the Board of Commissioners was called to order at 5:49 pm. Planning Board members in attendance were: Scott Chadwick, Edward McHale, Laurent Meilleur, and Michael Favata. Edward Binanay and Sherrie Hancock were absent. Planner Correll reviewed that discussion was desired in conjunction with the Planning Board on revising the Unified Development Ordinance Table of Permitted uses and consideration for moving Special Use Permits from the Board of Commissioners to the Board of Adjustment or staff. Mrs. Correll shared that all Special Uses could be reviewed by the Board of Adjustment, or a type of use standard could be created for review by staff and/or the Board of Adjustment and Special Uses remain with the Board of Commissioners. There were many uses identified as Special Uses and those designations have created several instances where a business was required to obtain another special use permit to operate the same or similar business at the same property. As an example, the Mexican Restaurant at 921 W Corbett Avenue had been out of business over 1 year, and the new property owners desired to open another restaurant of the same cuisine, but the table of permitted uses requires them to get a special use permit. Page 2 of 3 Mr. Chadwick and Mr. Meilleur both agreed that special uses were a good way for the town to control development and felt the table was acceptable and that special uses could be reviewed by the Board of Adjustment instead of the Commissioners. After discussion on the history of the table, it was determined that a review of the table was needed. On a motion by Commissioner Philpott, seconded by Commissioner Turner, two members from the Planning Board and two from the Board of Commissioners along with the planning and staff would complete a review of the table of permitted uses. The members selected were Mr. McHale, Mrs. Ramsey, Commissioner Turner and Commissioner Conaway. The informal committee would meet weekly and provide recommendations for changes, edits, and additions for consideration with in 30 days. The joint special meeting ended, and the planning board adjourned at 6:49 pm. Public Comment Laurent Meilleur of 220 River Reach Drive shared that he had attended one of the mayor’s community meetings and suggested that the Board consider holding such meetings and get involved with the residents. He offered suggestions on targeting certain groups and/or neighborhoods throughout town and having refreshments. Board Comments Board members shared their appreciation to Finance Director Johnson and the staff for the positive Audit Report. Closed Session On a motion by Commissioner Conaway, seconded by Commissioner Philpott, the board enter closed session pursuant to NCGS 143-318.11 (a) (6) to consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee; or to hear or investigate a complaint, charge, or grievance by or against an individual public officer or employee. Pursuant to a motion duly made in and seconded in closed session the board returned to open session. Adjournment On a motion by Commissioner Turner, seconded by Commissioner Pugliese, the meeting adjourned at 7:48 pm. Page 3 of 3  Regular Meeting February 13, 2023 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. 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  Employee Introduction Presenter: Paula Webb – Town Manager 5 FY 21-22 Audit Report Presenter: Greg Redman – CPA 6 3  Town of Swansboro Audit Report Presentation GTR 7 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, 2022, 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” Reference Page 1 of the Annual Comprehensive Financial Report 8 4  Government-Wide Financial Analysis Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Current and other assets $ 11,531,614 $ 4,666,799 $ 293,069 $ 163,641 $ 11,824,683 $ 4,830,440 Capital and other noncurrent assets 6,733,814 7,053,832 258,974 227,836 6,992,788 7,281,668 Total assets $ 18,265,428 $11,720,631 $ 552,043 $ 391,477 $ 18,817,471 $ 12,112,108 Deferred outflows of resources $ 850,945 $ 710,088 $ 40,990 $ 24,842 $ 891,935 $ 734,930 Long-term liabilities $ 1,962,369 $ 2,898,586 $ 48,518 $ 85,184 $ 2,010,887 $ 2,983,770 Other liabilities 7,593,321 1,065,007 32,799 33,974 7,626,120 1,098,981 Total liabilities $ 9,555,690 $ 3,963,593 $ 81,317 $ 119,158 $ 9,637,007 $ 4,082,751 Deferred inflows of resources $ 1,181,755 $ 293,926 $ 50,926 $ 132 $ 1,232,681 $ 294,058 Net position: Net investment in capital assets $ 5,573,365 $ 5,599,105 $ 258,974 $ 227,836 $ 5,832,339 $ 5,826,941 Restricted 1,079,103 1,169,631 - - 1,079,103 1,169,631 Unrestricted 1,726,460 1,404,464 201,816 69,193 1,928,276 1,473,657 Total net position $ 8,378,928 $ 8,173,200 $ 460,790 $ 297,029 $ 8,839,718 $ 8,470,229 Reference Page 8 of the Annual Comprehensive Financial Report 9 Changes in Net Position Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services $ 437,882 $ 493,238 $ 605,915 $ 533,193 $ 1,043,797 $ 1,026,431 Operating grants and contributions 459,558 584,617 - - 459,558 584,617 Capital grants and contributions 147,807 9,474 - - 147,807 9,474 General revenues: Property taxes 1,893,788 1,827,866 - - 1,893,788 1,827,866 Other taxes 102,690 78,930 - - 102,690 78,930 Grants and contributions not restricted to specific programs 1,617,719 1,473,942 - - 1,617,719 1,473,942 Other 54,199 98,952 10,035 5,415 64,234 104,367 Total revenues $ 4,713,643 $ 4,567,019 $ 615,950 $ 538,608 $ 5,329,593 $ 5,105,627 Expenses: General government $ 924,517 $ 700,524 $ - $ - $ 924,517 $ 700,524 Public safety 2,031,383 2,266,322 - - 2,031,383 2,266,322 Transportation 430,280 449,106 - - 430,280 449,106 Economic development 331,837 143,597 - - 331,837 143,597 Environmental protection - - - - - - Cultural and recreation 419,503 369,351 - - 419,503 369,351 Other 297,584 221,532 - - 297,584 221,532 Interest on long-term debt 2,657 9,706 - - 2,657 9,706 Stormwater - - 122,200 117,630 122,200 117,630 Solid Waste - - 400,143 405,335 400,143 405,335 Total expenses $ 4,437,761 $ 4,160,138 $ 522,343 $ 522,965 $ 4,960,104 $ 4,683,103 Increase in net position before transfers and special items $ 275,882 $ 406,881 $ 93,607 $ 15,643 $ 369,489 $ 422,524 Transfers and special items (70,154) (27,510) 70,154 27,511 - 1 Reference Page 9 of the Annual Increase in net position Net position, July 1 $ 205,728 8,173,200 $ 379,371 7,793,829 $ 163,761 297,029 $ 43,154 253,875 $ 369,489 8,470,229 $ 422,525 8,047,704 Comprehensive Financial Report Net position-beginning, restated Net position, June 30 - $ 8,378,928 - $ 8,173,200 - $ 460,790 - $ 297,029 - $ 8,839,718 $ - 8,470,229 10 5  Balance Sheet Governmental Funds Town of Swansboro, North Carolina Balance Sheet Governmental Funds June 30, 2022 2022 2021 General General Fund Fund Assets Cash and cash equivalents $ 3,766,706 $ 3,442,222 Restricted cash 56,790 39,235 Receivables, net: Taxes 25,045 26,394 Accounts 281,974 527,007 Leases 133,450 - Grants 166,879 - Due from other funds - - Total Assets $ 4,430,844 $ 4,034,858 Liabilities Liabilities payable from restricted assets $ - $ 11,991 Accounts payable and accrued liabilities 661,396 737,366 Other liabilities 141,777 - Total Liabilities $ 803,173 $ 749,357 Deferred Inflow s of Resources Property taxes receivable $ 25,045 $ 26,394 Prepaid taxes 131,649 26,507 Total Deferred Inflow s of Resources $ 156,694 $ 52,901 Fund Balances Nonspendable: Leases $ 1,801 $ - Restricted: Stabilization by State Statute 450,654 527,007 Streets 41,880 24,325 Capital improvements - - Assigned: Subsequent year's expenditures - 249,260 Unassigned $ 2,976,642 $ 2,432,008 Reference Page 18 of the Annual Total Fund Balances Total Liabilities, Deferred Inflow s of Resources, $ 3,470,977 $ 3,232,600 And Fund Balances $ 4,430,844 $ 4,034,858 Comprehensive Financial Report 11 Unassigned Fund Balance as a Percentage of Total General Fund Expenditures 2022 2021 Unassigned fund balance $ 2,976,642 $ 2,432,008 Total General Fund expenditures 4,306,320 4,057,911 Unassigned fund balance as a Percentage of Total General Fund expenditures 69% 60% LGC recommended amount 34% 34% Average of similar-sized towns 63% 63% Reference Page 18 and 20 of the Annual Comprehensive Financial Report 12 6  Statement of Net Positions Proprietary Funds Town of Swansboro, North Carolina Statement of Net Position Proprietary Funds June 30, 2022 Major Enterprise Funds Stormwater Solid Waste Totals Assets Current assets: Cash and cash equivalents $ 87,078 $ 125,689 $ 212,767 Accounts receivable (net) 80,302 - 80,302 Due from other funds - - - Total Current Assets $ 167,380 $ 125,689 $ 293,069 Noncurrent assets: Capital assets: Land and other non-depreciable assets - - - Other capital assets, net of depreciation 102,994 155,980 258,974 Capital assets (net) $ 102,994 $ 155,980 $ 258,974 Total Assets $ 270,374 $ 281,669 $ 552,043 Deferred Outflows of Resources Pension deferrals $ 20,495 $ 20,495 $ 40,990 Liabilities Current liabilities: Accounts payable - trade $ 3,522 $ 28,285 $ 31,807 Due to other funds - - - Customer deposits - - - Compensated absences - current 496 496 992 Total Current Liabilities $ 4,018 $ 28,781 $ 32,799 Noncurrent liabilities: Compensated absences $ 921 $ 922 $ 1,843 Net pension liability 9,631 9,631 19,262 Total OPEB liability 13,706 13,707 27,413 Total non-current liabilities $ 24,258 $ 24,260 $ 48,518 Total Liabilities $ 28,276 $ 53,041 $ 81,317 Deferred Inflows of Resources Pension deferrals $ 25,463 $ 25,463 $ 50,926 Reference Page 23 of the Annual Net Position Net investment in capital assets $ 102,994 $ 155,980 $ 258,974 Comprehensive Financial Report Restricted net position Unrestricted net position Total Net Position $ - 134,136 237,130 $ - 67,680 223,660 $ - 201,816 460,790 13 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, 2022 Major Enterprise Funds Stormwater Solid Waste Totals Operating Revenues Charges for services $ 150,813 $ 455,102 $ 605,915 Other operating revenues - - Total Operating Revenues $ 150,813 $ 455,102 $ 605,915 Operating Expenses Administration $ - $ - $ - Stormwater operations - - - Solid waste operations 120,062 392,527 512,589 Depreciation 2,138 7,616 9,754 Total Operating Expenses $ 122,200 $ 400,143 $ 522,343 Operating income (loss) $ 28,613 $ 54,959 $ 83,572 Non-operating Revenues (Expenses) Investment earnings $ - $ - $ - Grants 10,035 - 10,035 Total Non-operating Revenues (expenses) $ 10,035 $ - $ 10,035 Income (loss) before contributions and transfers $ 38,648 $ 54,959 $ 93,607 Capital contributions - - - Transfers from other funds 68,708 1,446 70,154 Transfers to other funds - - - Reference Page 24 of the Annual Change in net position $ 107,356 $ 56,405 $ 163,761 Net position, beginning 129,774 167,255 297,029 Comprehensive Financial Report Net position, ending $ 237,130 $ 223,660 $ 460,790 14 7  Changes in Long-term Liabilities Current Beginning Ending Portion of Governmental Activities: Balance Increases Decreases Balance Balance Notes from direct placements $ 1,454,727 $ - $ 294,278 $ 1,160,449 $ 247,374 Total pension liability (LEO) 108,015 - 21,434 86,581 - Net pension liability (LGERS) 812,365 - 446,388 365,977 - Total OPEB liability 703,090 - 182,240 520,850 - Compensated absences 134,902 89,022 107,176 116,748 40,862 Total $ 3,213,099 $ 89,022 $ 1,051,516 $ 2,250,605 $ 288,236 Current Beginning Ending Portion of Business-type Activities: Balance Increases Decreases Balance Balance Net pension liability (LGERS) $ 42,756 $ - $ 23,494 $ 19,262 $ - Total OPEB liability 37,004 - 9,591 27,413 - Compensated absences 6,026 2,486 5,677 2,835 992 Total $ 85,786 $ 2,486 $ 38,762 $ 49,510 $ 992 Reference Page 56-57 of the Annual Comprehensive Financial Report 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, 2022 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 $ 497,092,571 0.35 $ 1,739,824 $ 1,739,824 $ - Registered motor vehicles taxed at current rate 48,355,714 0.35 169,245 - 169,245 Total property valuation $ 545,448,286 Net levy $ 1,909,069 $ 1,739,824 $ 169,245 Unpaid (by taxpayer) at June 30, 2022 (11,028) (11,028) - Current year's taxes collected $ 1,898,041 $ 1,728,796 $ 169,245 Reference Page 86 of the Annual Comprehensive Financial Report Current levy collection percentage 99.42% 99.37% 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. Reference Page 106 of the Annual Comprehensive Financial Report 17 NEW BUSINESS/NON-CONSENT Future Agenda Items Future agenda items are shared for visibility and comment. In addition, an opportunity is provided for the Board to introduce items of interest and subsequent direction for placement on future agendas. Action Needed: Discuss and provide any guidance. Presenter: Alissa Fender – Town Clerk 18 9  NEW BUSINESS/NON-CONSENT Joint Meeting with the Planning Board The Board of Commissioners has asked staff to provide information for discussion with the Planning Board on revising the Unified Development Ordinance moving many Special Use Permits from the Board of Commissioners to the Board of Adjustment or staff. Recommended Action: After discussion provide directions to the Planning Board and the Town Planner on desired changes to Special Use Permit standards. Presenter: Andrea Correll – Planner 19 PUBLIC COMMENT Citizen opportunity to address the Board. 20 10  MANAGER’S COMMENTS Paula Webb, Town Manager 21 BOARD COMMENTS Mayor John Davis Mayor Pro Tem Frank Tursi Commissioner Pat Turner Commissioner Harry “PJ” Pugliese Commissioner Larry Philpott Commissioner Jeffrey Conaway 22 11  CLOSED SESSION Motion to enter closed session pursuant to NCGS 143-318.11 (a) (6) to consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee; or to hear or investigate a complaint, charge, or grievance by or against an individual public officer or employee. 23 ADJOURN 24 12