Board of Commissioners

Town of Swansboro Board of Commissioners February 27, 2023, Regular Meeting Minutes In attendance: Mayor John Davis, Mayor Pro Tem Frank Tursi, Commissioner PJ Pugliese, Commissioner Larry Philpott, 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 Mayor Pro Tem Tursi, the agenda and the below consent items were approved unanimously. Meeting Minutes - September 26, 2022, Regular Meeting - October 24, 2022, Regular Meeting - October 24, 2022, Closed Session Appointments/Recognitions/Presentations First Citizens Bank – Laddered Bond Strategy Sherwood Blackwood of First Citizens Bank reviewed investment opportunities for consideration which are attached herein with the PowerPoint presentation of the meeting. In response to inquiries from the board, Mrs. Johnson clarified the following: - It was a good idea to invest some, not all of the Town funds. - A list of other municipalities that have utilized this type of strategy would be provided. - The 6 million (SCIF) funds were identified as only able to go into a money market account. Board Appointments Town Clerk Fender shared that due to relocations of board members, two in-town seats were vacant on the Board of Adjustment. Page 1 of 3 On a motion by Commissioner Conaway, seconded by Commissioner Turner, Wayne Mixon was appointed to the Board of Adjustment. On a motion by Commissioner Philpott, seconded by Commissioner Conaway, Elaine Justice was appointment to the Board of Adjustment. Business Non-Consent Financial Report as of January 31, 2023 Finance Director Johnson reviewed details from the monthly financial report, attached herein with the PowerPoint presentation of the meeting. With regard to unpurchased capital items, Mrs. Johnson shared that the paving machine in Public Works was determined as no longer be necessary. 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. No other items were introduced. The following items were addressed: - Community Meetings Discussion was to be scheduled for either the March 27th or April 10th meeting. - Truist Presentation (Investment option) could possibly be on April 10th. - Church Street Dock safety policy should be put on the agenda soon. Public Comment Kathy Morrell of 118 Ryan Glenn shared details on an unfortunate event related to her parent and having to call 911. After calling more than once she was finally forced to cancel her 911 call and take her mother to get medical care herself. She stated that schools are full, and traffic was already heavy and tourist season hadn’t even started. She urged the board to consider a moratorium and requested a speed trap on Main Street Extension. Ed McHale of 221 Marsh Hen Court shared that he was thankful for all the town staff for what they do daily. He feels safe here and the town is clean and well maintained. With regard to the public comment offer by Mrs Morrell, Manger Webb was requested to reach out to the county to find out why Swansboro’s fire department was not called. Page 2 of 3 Manager's Comments Manager Webb shared that an upcoming closure of Hammocks Beach Road would occur from March 6th through the 10th. She shared her concern that there was not any intended detour signage and will be contacting them for further clarification. In response to an inquiry from the board, the Living Shoreline project on Highway 24 was estimated to be completed between May and June. Board Comments Commissioner Philpott shared that Main Street Extension intersection has been brought up with county official through the JUMPO committee. He also shared that the EOC/PSB consultant has been speaking with staff and things are still progressing along. Mayor Davis shared that the lack of response by the ambulance for Mrs. Morrell was concerning and a way to work with the county to help our residents needed to be explored. Adjournment On a motion by Commissioner Conaway, seconded by Commissioner Philpott, the meeting adjourned at 619pm. Page 3 of 3  Regular Meeting February 27, 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 ___ 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  First Citizens Bank- Laddered Bond Strategy Presenter: Sherwood Blackwood – First Citizen 5 Town of Swansboro January 20 , 2023 6 3  Presented By: Sherwood Blackwood Director of Institutional Sales (910)603-2005 Sherwood.blackwoodiii@firstcitizens.com 2 7 First Citizens Institutional Trust $14.1B >770 Assets under Administration Clients Utilizing our Services 99% Clients are “Very $5B >40 Satisfied” or “Satisfied” with their service experience* Assets under Dedicated Management Professionals First Citizens Institutional Trust: July 2021 *Results based on 2021 independent, third-party survey conducted with First Citizens Institutional Trust clients 8 8 4  Fixed Income Benefits ✓ Prudent Investment Philosophy Built Upon a Rigorous Framework ✓ Institutional Pricing • Direct trading with broker dealers • No intermediary (middleman) • Price Transparency • No additional fees or markups • Block Trading • Grouping activity adds liquidity ✓ Market Leading Execution Platforms • Bloomberg AIM OMS • MarketAxess 9 9 PORTFOLIO DISCUSSION 10 10 5  ® Mock Portfolio 0-1yr. Portfolio Characteristics Market Value $3,000,000 Modified Duration (yrs) 0.54 Yield To Maturity 4.92% Bloomberg Composite AAA $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Series1 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 11 Data as of February 21 2023. Maturity schedule illustrates bond par value maturing each month. firstcitizens.com 11 ® Mock Portfolio 0-3yr. Portfolio Characteristics Par Value $4,000,000 Modified Duration (yrs) 1.50 Yield To Maturity 4.79% Bloomberg Composite AAA $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 Market Value $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 12 Data as of February 21, 2023. Maturity schedule illustrates bond par value maturing each quarter. firstcitizens.com 12 6  Fed Funds Impact on Rates • Fed Funds movement drives front end yields • Shorter maturity investments adjust as Fed Funds moves • Longer maturity investments adjust in advance of Fed Funds based on expectations • Investors are typically compensated for duration over the long term 13 13 FEES 14 14 7  Institutional Trust – Account Subject to Statutory Investment Restrictions Account Value Annualized Fee $0 to $5,000,000 0.45% $5,000,001 to $15,000,000 0.35% $15,000,001 to $50,000,000 0.25% Over $50,000,000 0.15% • All fees represented are annual, subject to the minimum asset fee of $625/month. 15 15 First Citizens Wealth Management is a joint marketing mark of First-Citizens Bank & Trust Company (“First Citizens Bank”), Member FDIC; First Citizens Investor Services, Inc., Member FINRA/SIPC, an SEC-registered broker-dealer and investment advisor; and First Citizens Asset Management, Inc., an SEC-registered investment advisor. Bank deposit products are offered by First Citizens Bank, Member FDIC. Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services may be offered through First Citizens Investor Services, Inc. Member FINRA/SIPC. First Citizens Asset Management, Inc. provides investment advisory services. 16 16 8  Board Appointment Presenter: Alissa Fender – Town Clerk 17 NEW BUSINESS/NON-CONSENT Financial Report Presenter: Sonia Johnson – Finance Director 18 9  TOWN OF SWANSBORO FINANCIAL REPORT (AS OF JANUARY 31, 2023) REVENUES EXPENDITURES LOAN PAYMENTS INVESTMENTS 19 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2023) GENERAL FUND 4,000,000 3,500,000 $3,264,276 $3,335,679 3,000,000 $2,667,522 $2,557,274 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Revenues Expenditures FY 21/22 FY 22/23 ENCUMBRANCES INCLUDED Total Excess of Revenues Over Expenditures $778,405 20 10  TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2023) (ACTUAL) GENERAL FUND 4,000,000 3,500,000 $3,335,679 $3,264,276 3,000,000 $2,562,995 $2,484,598 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Revenues Expenditures FY 21/22 FY 22/23 (ENCUMBRANCES NOT INCLUDED) Total Excess of Revenues Over Expenditures $851,081 21 (PURCHASE ORDERS) SPENT % DEPT. BUDGET YTD ACTUAL ENCUMBERED BALANCE January 31, 2023 GOVERNING BODY 29,902 14,963 - 50.0% ADMIN SERVICES 374,944 219,446 - 58.5% FINANCE 265,670 159,186 - 59.9% LEGAL 43,000 21,417 - 49.8% PUBLIC BUILDINGS 389,207 147,438 18,839 42.7% FIRE 1,061,129 570,698 11,838 54.9% PERMITTING 360,338 152,624 - 42.4% POLICE 1,059,894 481,742 13,959 46.8% PUBLIC WORKS-STREETS 375,286 164,019 1,826 44.2% POWELL BILL-STREETS 111,526 4,742 2,008 6.1% PARKS & RECREATION 361,247 177,415 18,268 54.2% CHURCH STREET DOCK 9,454 3,276 1,202 47.4% EMERGENCY MANAGEMENT 2,700 2,044 - 75.7% FESTIVALS & EVENTS 124,449 54,060 4,574 47.1% NON DEPARTMENTAL 483,302 311,527 162 64.5% TOTAL 5,052,048 2,484,598 72,676 50.62% ** 22 11  TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2023) STORMWATER ENTERPRISE FUND 160,000 $146,171 $141,332 140,000 $114,305 $111,352 120,000 100,000 80,000 60,000 40,000 20,000 0 Revenues Expenditures FY 21/22 FY 22/23 ENCUMBRANCES INCLUDED Total Excess of Revenues Over Expenditures $34,819 23 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2023) SOLID WASTE ENTERPRISE FUND 300,000 $260,858 250,000 $233,817 $218,780 $206,274 200,000 150,000 100,000 50,000 0 Revenues Expenditures FY 21/22 FY 22/23 ENCUMBRANCES INCLUDED Total Excess of Revenues Over Expenditures $27,543 24 12  TOWN OF SWANSBORO LOAN REPORT (AS OF JANUARY 31, 2023) Item Principal Interest End Date Annual Debt Balance Rate Service DEBT Town Hall/Tanker $463,719 2.69 03/21/2028 $84,724 Public Safety Facility $80,000 2.58 12/22/2024 $42,064 Fire Truck SERVICE Sleeping Quarters $179,671 $100,000 2.08 2.43 11/01/2026 12/14/2026 $47,512 $28,038 Grapple Truck/Town $138,943 1.72 6/25/2025 $47,917 Hall Generator Vehicles(Police & Fire $89,360 1.84 7/15/2026 $23,377 Department) & Software Total Debt $1,051,693 $273,632 25 TOWN OF SWANSBORO CASH & INVESTMENTS REPORT (AS OF JANIARY 31, 2023) CASH & INVESTMENTS BANK BALANCE INTEREST RATE First Citizens Bank 10,949,669 .10% NC CMT-General $1,395,589 4.22% OSBM Funds included in First Citizens Bank balance- $6,100,000 ➢ Emergency Operations Center-$6,000,000 ➢ Sidewalks-$100,000 26 13  GRANT UPDATE YTD Budget Expenditures Encumbrances Unencumbered American Rescue Plan Act Fund $1,065,725 $610,048 $132,867 $322,810 Swansboro Bicentennial Park Boardwalk Extension $163,350 $15,397 $0 $147,953 Emergency Operation Center $6,003,975 $78 $0 $6,003,897 Emmerton School Repairs $424,000 $0 $0 $424,000 Total Outstanding Grants $7,657,050 $625,523 $132,867 $6,898,660 27 Any Questions ? 28 14  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 29 PUBLIC COMMENT Citizen opportunity to address the Board. 30 15  MANAGER’S COMMENTS Paula Webb, Town Manager 31 BOARD COMMENTS Mayor John Davis Mayor Pro Tem Frank Tursi Commissioner Pat Turner Commissioner Harry “PJ” Pugliese Commissioner Larry Philpott Commissioner Jeffrey Conaway 32 16  ADJOURN 33 17