Board of Commissioners Special Meeting

Town of Swansboro Board of Commissioners February 20, 2025, Special Meeting Minutes In attendance: Mayor William Justice, Mayor Pro Tem Jeffrey Conaway, Commissioner Pat Turner, Commissioner Joseph Brown, and Commissioner Douglas Eckendorf. The board had one vacancy. ********************************** Call to Order/Opening Prayer/Pledge The meeting was called to order at 6:00 pm and Mayor Justice led the Pledge of Allegiance. The purpose of the meeting was for FY 24/25 Mid-year Budget review and discussion. Business Non-Consent FY 24/25 Mid-Year Budget Review Town Manager Jon Barlow provided an overview of the Town’s financial position for the first half of FY 24/25, reviewing trends in key revenue sources including property tax, sales tax, and building inspection fees. He reported that property tax collections have remained steady at approximately $2.4 to $2.5 million annually since the FY 22/23 revaluation by Onslow County, which significantly increased revenue from previous years. Barlow emphasized the value of five-year trend analysis in understanding the current outlook and explained that sales tax projections—guided by the State, played a key role in budget planning. He also noted that building inspection revenue was influenced by development activity and fee schedule updates. Despite some unpredictability in market-driven revenue streams, Barlow expressed confidence in the Town’s overall financial health. Finance Director Sonia Johnson followed with a detailed projection for the remainder of the fiscal year, estimating a potential deficit of $1,086,318. However, she noted that the use of assigned fund balance could result in a projected surplus of approximately $83,000 by year-end. Johnson cautioned that these figures relied on assumptions and were subject to change based on actual revenue collections and expenditures. She highlighted the need for departmental adjustments to certain operational costs and stressed the importance of close expenditure monitoring and strategic financial planning to maintain the Town’s fiscal stability. Department heads then presented their individual budget reviews: Police Department (Chief Dwayne Taylor): ● Reported being close to full staffing for the first time in 15 years. ● Highlighted successful equipment upgrades, including new mobile data terminals and body-worn cameras. ● Noted challenges with increasing equipment costs and the need for ongoing training. Page 1 of 2  Fire Department (Chief Jacob Randall): ● Reported on training hours logged and equipment upgrades. ● Discussed preparation for ISO inspection and challenges with equipment maintenance and repairs. Parks & Recreation Department (Director Anna Stanley): ● Presented revenue and expenditure data for various programs and events. ● Highlighted successful sponsorships and tourism fund receipts. ● Noted challenges with part-time staff pay rates and the need for equipment upgrades. Administration (Town Clerk Alissa Fender): ● Reported on budget challenges in the governing body and administrative services budgets. ● Highlighted the need for funding for UDO codifications and continuing education. Planning Department & Permitting (Planner Rebecca Brehmer & Building Inspector Paul Ingram): ● Discussed the need for funding to maintain certifications and stay updated on changing regulations. Public Works (Director Gerald “Tank” Bates): ● Presented budget information for buildings, streets, Powell Bill funds, stormwater, and solid waste. ● Highlighted successes in acquiring new vehicles and equipment. ● Discussed challenges with stormwater management, particularly in subdivisions where the town doesn't own the infrastructure. Board Comments Commissioners expressed appreciation for the staff's hard work and dedication. They discussed the need for continued education and training for staff, as well as the importance of maintaining equipment and infrastructure. Commissioner Eckendorf emphasized the need to develop strategies for equipment and dock maintenance, and that he wanted there to be future discussions centered around reducing the current tax rate. Adjournment On a motion by Commissioner Turner, seconded by Mayor Pro Tem Conaway, the meeting adjourned at 8:23 pm. Page 2 of 2  2/26/2025 Special Meeting February 20, 2025 1 NEW BUSINESS/NON-CONSENT FY 24/25 Mid-Year Budget Review Staff has compiled and will present the financial data for the first half of FY 24/25. The analysis includes revenue collections, expenditures, and variances against the adopted budget. The information highlights the current financial position and provides insights into potential adjustments needed for the remainder of the fiscal year. Recommended Action: No action needed. Presenter: Jon Barlow – Town Manager & Sonia Johnson- Finance Director 2 1  2/26/2025 Town of Swansboro FY 24/25 Mid-Year Budget Review February 20, 2025 3 A Look Back 4 2  2/26/2025 Ad Valorem Tax Revenue $2,700,000 $2,570,550 $2,502,239 $2,550,000 $2,422,751 $2,400,000 $2,250,000 $2,100,000 $1,895,353 $1,950,000 $1,830,055 $1,726,445 $1,800,000 $1,650,000 $1,500,000 $1,350,000 $1,200,000 $1,050,000 $900,000 $750,000 $600,000 $450,000 $300,000 $150,000 $0 FY19/20 (Actual) FY 20/21 (Actual) FY 21/22 (Actual) FY 22/23 (Actual) FY 23/24 (Actual) FY 24/25 (Budgeted) Property Tax 5 Sales Use Tax Revenue $2,700,000 $2,550,000 $2,400,000 $2,250,000 $2,100,000 $1,950,000 $1,800,000 $1,650,000 $1,498,693 $1,500,000 $1,404,828 $1,350,000 $1,298,345 $1,350,000 $1,147,380 $1,200,000 $1,050,000 $951,258 $900,000 $750,000 $600,000 $450,000 $300,000 $150,000 $0 FY19/20 (Actual) FY 20/21 (Actual) FY 21/22 (Actual) FY 22/23 (Actual) FY 23/24 (Actual) FY 24/25 (Budgeted) Sales Use Tax 6 3  2/26/2025 Utility Franchise Tax Revenue $300,000 $280,000 $273,858 $260,000 $244,780 $238,640 $235,150 $235,000 $240,000 $230,090 $220,000 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 FY19/20 (ACTUAL) FY 20/21 (ACTUAL) FY 21/22 (ACTUAL) FY 22/23 (ACTUAL) FY 23/24 (ACTUAL) FY 24/25 (BUDGETED) 7 Building Inspection Revenue $350,000 $291,172 $300,000 $237,358 $250,000 $200,000 $160,646 $150,000 $128,471 $112,566 $109,050 $100,000 $50,000 $0 FY19/20 (Actual) FY 20/21 (Actual) FY 21/22 (Actual) FY 22/23 (Actual) FY 23/24 (Actual) FY 24/25 (Budgeted) Building Permits 8 4  2/26/2025 Occupancy Tax Revenue $140,000 $120,925 $121,780 $120,000 $120,000 $102,690 $100,000 $78,930 $80,000 $71,088 $60,000 $40,000 $20,000 $0 FY19/20 (Actual) FY 20/21 (Actual) FY 21/22 (Actual) FY 22/23 (Actual) FY 23/24 (Actual) FY 24/25 (Budgeted) Occupancy Tax 9 NC Powell Bill Revenue $160,000 $143,997 $140,000 $126,626 $120,000 $108,171 $110,084 $100,000 $82,342 $80,205 $80,000 $60,000 $40,000 $20,000 $0 FY19/20 (Actual) FY 20/21 (Actual) FY 21/22 (Actual) FY 22/23 (Actual) FY 23/24 (Actual) FY 24/25 (Budgeted) Powell Bill 10 5  2/26/2025 Fund Balance Unrestricted $4,250,000 $3,943,215 $4,000,000 $3,852,321 $3,750,000 $3,500,000 $3,241,928 $2,976,642 $3,250,000 $3,000,000 $2,750,000 $2,432,008 $2,500,000 $2,229,423 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 FY19/20 (Actual) FY 20/21 (Actual) FY 21/22 (Actual) FY 22/23 (Actual) FY 23/24 (Actual) FY 24/25 (Budgeted) Fund Balance Unrestricted 11 Fund Balance Unrestricted Percentage of Annual Expenditures 90% 80% 76.70% 74% 69% 70% 60% 56% 52% 48% 50% 40% 30% 20% 10% 0% FY19/20 (Actual) FY 20/21 (Actual) FY 21/22 (Actual) FY 22/23 (Actual) FY 23/24 (Actual) FY 24/25 (Budgeted) 12 6  2/26/2025 TOWN OF SWANSBORO FY 2024-2025 BUDGET GENERAL FUND FUND BALANCE ANALYSIS – 5 YEAR TREND Fund Balance Analysis – 5 Year Trend15 BUDGET RESTRICTED ASSIGNED- UNASSIGNED TOTAL APPROPRIATED General Fund FOR Fund Balance Analysis – 5 Year Trend THE NEXT General Fund YEAR Fund Balance Analysis – 5 Year Trend FY 2019-2020 $358,110 $378,472 General Fund Fund Balance Analysis – 5 Year Trend $2,229,423 $2,966,005 FY 2020-2021 $551,332 $249,260 $2,432,008 $3,232,600 FY 2021-2022 $494,335 $ -0- $2,976,642 $3,470,977 FY 2022-2023 $372,002 $385,883 $3,557,332 $4,316,557 FY 2023-2024 $486,698 $723,569 $3,852,321 $5,062,588 FY 2024-2025* $400,000 $ -0- $3,261,928 $3,661,928 * Projected balance as of June 30, 2025 13 A Look at Current Year Trends and Year End Estimates 14 7  2/26/2025 Review Significant Influence on the overall budget. - 4% Merit - NC Orbit Retirement: Increase .75 basis points - NCLM Property & Casualty 17.5% increase - NCLM Workers Comp 10% increase Budget - NCLM Group Health Insurance increased 4% Highlights - Capital Outlay $570,000-Funded using Loan Proceeds FY 24/25 Assistant Fire Chief Vehicles-$120,000 Police Vehicle-$50,000 Public Works-Non CDL Vac Truck-$400,000 15 The Proposed Budget is balanced with $723,569 appropriation from fund balance for items requested by the Board of Commissioners. ➢ Sidewalks-$500,000 Budget ➢ New Workstations-$36,611 Highlights ➢ Town Hall Digital Sign-$18,000 FY 24/25 ➢ Pickleball Court-$150,000 ➢ Public Safety-FT Personnel Bonus-$15,758 Added-6/4/2024-Special Meeting ➢ Tunnel 2 Towers Contribution-$3,200 (In-kind personnel costs) 16 8  2/26/2025 General Fund FY 24/25 Original Budget-Revenues 17 General Fund FY 24/25 Original Budget-Expenditures 18 9  2/26/2025 General Fund Projected Expenditures As of June 30, 2025 Revised Budget Projected December 13, ENCUMBERED Expenditures at BUDGET 2024 YTD ACTUAL BALANCE June 30, 2025 Surplus/(Deficit) $ 45,195 $ 14,387 $ 1,287 $ 47,095 $ (1,900) $ 432,052 $ 212,377 $ 2,742 $ 432,052 $ - $ 315,178 $ 128,838 $ 725 $ 293,788 $ 21,390 $ 59,300 $ 25,091 $ - $ 59,300 $ - $ 379,723 $ 163,341 $ 3,133 $ 379,723 $ - $ 2,013,046 $ 766,506 $ 181,936 $ 1,598,759 $ 414,287 $ 288,270 $ 177,176 $ 1,252 $ 291,981 $ (3,711) $ 86,293 $ 38,937 $ 88,400 $ (2,107) $ 1,349,905 $ 494,701 $ 62,480 $ 1,178,901 $ 171,004 $ 1,498,086 $ 722,347 $ 2,799 $ 1,498,086 $ - $ 191,791 $ 78,598 $ 461 $ 155,127 $ 36,664 $ 486,086 $ 151,412 $ 13,705 $ 478,892 $ 7,194 $ 130,326 $ 41,710 $ 892 $ 105,026 $ 25,300 $ 10,850 $ 10,298 $ 69 $ 13,191 $ (2,341) $ 134,635 $ 82,357 $ 14,475 $ 127,762 $ 6,873 $ 612,764 $ 332,048 $ 1,946 $ 612,764 $ - ** $ 8,033,500 $ 3,440,122 $ 287,901 $ 7,360,847 $ 672,653 19 General Fund FY 24/25 Projected as of June 30, 2025 Revenues $6,274,529 Expenditures $7,360,847 Surplus/Deficit $1,086,318 Assigned Fund Balance/Budget Amendments through December 13, 2024 $1,169,789 20 10  2/26/2025 TAX PER CENT .01 = $72,515 (100% Collection) .01 = $71,493 (98.59% Collection) • Current Tax Rate = 35 cents/$100 NCGS 159-13(b)(6)-The estimated percentage of collection of property taxes shall not be greater than the percentage of the levy actually realized in cash as of June 30 during the preceding fiscal year. For purposes of the calculation under this subdivision only, the levy for the registered motor vehicle tax under Article 22A of Chapter 105 of the General Statutes shall be based on the nine-month period ending March 31 of the preceding fiscal year, and the collections realized in cash with respect to this levy shall be based on the 12-month period ending June 30 of the preceding fiscal year. • No change projected in proposed budget 21 • Capital Improvement set aside that were unfunded: • Equivalent to .01 Cent • Fire: $225,000 Apparatus Replacement 175,000 2.45 Equipment 50,000 .70 Budget • Police: 16,000 .22 Police Vehicles Highlights FY 24/25 • Parks & Recreation: $102,500 Property Acquisition 25,000 .35 Waterfront Implementation 10,000 .14 Tennis Court Resurfacing 10,000 .14 Municipal Park Tot Lot 50,000 .70 Rec Center-Fitness Equip 7,500 .11 Total $343,500 4.81 22 11  2/26/2025 Current Debt Summary Purpose Principal Annual Payoff Date Interest Balance Payment Rate Term Public Safety Facility $0 (Paid Off) $41,032 12/22/2024 2.58 10 Grapple Truck/Town $47,106 $47,917 6/25/2025 1.72 5 Hall Generator Fire Truck $92,139 $47,512 11/01/2026 2.08 10 Sleeping Qtrs. $50,000 $26,823 12/14/2026 2.43 10 Vehicles (Police & Fire $45,495 $23,377 7/15/2026 1.84 5 Department) & Software Town Hall/Tanker $317,275 $84,724 3/21/2028 2.69 15 Cab Tractor/Dump $254,500 $58,491 4/3/2029 4.82 5 Truck Vac Truck, Police and $570,000 $129,183 12/31/2029 4.40 5 Fire Chief Vehicles Total Debt $1,376,515 $459,059 23 Future Debt Summary Purpose Principal Annual Payoff Interest FY 24/25 FY 25/26 FY 26/27 FY 27/28 Balance Payment Date Rate Term Annual Annual Annual Annual Payment Payment Payment Payment Grapple Truck/Town Hall Generator $47,106 $47,917 6/25/2025 1.72 5 $47,917 Fire Truck $92,139 $47,512 11/01/2026 2.08 10 $47,512 $47,512 $47,512 Sleeping Qtrs. $50,000 $26,823 12/14/2026 2.43 10 $26,823 $26,823 $26,823 Vehicles (Police & Fire Department) $45,495 $23,377 7/15/2026 1.84 5 $23,377 $23,377 $23,377 & Software Town Hall/Tanker $317,275 $84,724 3/21/2028 2.69 15 $84,724 $84,724 $84,724 $84,724 Cab Tractor/Dump Truck $254,500 $58,491 4/3/2029 4.82 5 $58,491 $58,491 $58,491 $58,491 Vac Truck, Police and Fire Chief $570,000 $129,183 12/31/2029 4.40 5 $129,183 $129,183 $129,183 Vehicles Engine 17 Replacement $709,980 $87,887 3/21/2036 4.40 10 $87,887 $87,887 Tentative Projected Ladder Truck Replacement $1,794,923 $222,191 4/1/2037 4.40 10 $212,845 Tentative Projected Total $3,881,418 $288,844 $370,110 $457,997 $573,130 24 12  2/26/2025 Future Programs Approved in FY 24/25 PROGRAM AMOUNT ALS PROGRAM (PARAMEDIC) $301,200 * Personnel, equipment, annual supplies Air Packs $141,597 Total $442,797 * Tentative 25 Budget Highlights FY 24/25 Personnel budget requests that were unfunded: Equivalent to .01 Cent - Recreation Coordinator: $57,534 .81 - Recreation Assistant (2)-$10,851 .15 - Dock Attendants (2): April 1st – November 23rd $20,884 .29 - Firefighter II (3) January 2025-June 2025: $105,852 1.48 26 13  2/26/2025 Stormwater and Solid Waste Funds 27 Stormwater Enterprise Fund FY 24/25 Projected as of June 30, 2025 Revenues $132,046 Expenditures $132,046 Surplus/(Deficit) $0 28 14  2/26/2025 Solid Waste Enterprise Fund FY 24/25 Projected as of June 30, 2025 Revenues $475,593 Expenditures $475,593 Surplus/(Deficit) $0 29 Questions/comments 30 15  2/26/2025 DOCKWALK 31 32 16  2/26/2025 33 34 17  2/26/2025 35 36 18  2/26/2025 37 38 19  2/26/2025 39 40 20  2/26/2025 41 Police Department 42 21  2/26/2025 Mobile Data Terminals PD transitioned from using basic laptop computers to semi-rugged laptops. 43 Surplus ARP funds allowed for the purchase of a Body Worn Camera complete body worn camera system. System allows auto-downloading of video when docked System into the charging station. Video not required for any incident will automatically be deleted after an established period of time. 44 22  2/26/2025 Thanks to a donation from a local church, PD was able Duty Gear to purchase 15 complete sets of duty gear. To outfit an officer with a basic duty belt costs approximately $320. This cost does not include the cost of a holster. 45 Bullet Proof Vests Department completed rotating out old bullet proof vests 46 23  2/26/2025 Salary Study Adjustment 47 Budget Challenges The biggest challenge PD has to the budget is the rising cost of needed equipment and other expenses. 48 24  2/26/2025 FIRE DEPARTMENT 49 2024 – Wrap Up 1,528 Calls for Service Pre- Estimated Saved Incident Loss versus Loss 1,327 Primary Response Area Value 1,091 Swansboro Fire District {Town} Property $2,214,857 $44,600 $2,170,257 236 White Oak Fire District {County} 986 EMS/Rescue Incidents Contents $660,000 $6,900 $653,100 542 Fire/Haz-Mat/Other Incidents 3 Primary Response Area Fires 50 25  2/26/2025 14 Obtained New Certifications(Driver, Officer, Investigator, Firefighter, & EMT) 2 Graduated with Associate of Applied Science Degrees Accomplishments {2024} - Personnel 5 Obtained Privileges to Practice in the Onslow County – Camp Lejeune EMS System as EMTs 6,655 Logged Training Hours 51 Accomplishments {Mid-Year} - Agency SELECTED & COMPLETED – THE CENTER FOR PUBLIC RECEIVED PEER REVIEW COMPLETED SALE AND SAFETY EXCELLENCE COMMITTEE APPROVAL – ACQUISITION OF SELF- COMMUNITY RISK ADVANCED LIFE SUPPORT CONTAINED BREATHING ASSESSMENT/STANDARD OF PROGRAM APPARATUS COVER PROGRAM (CERTIFIED – JANUARY 14, 2025) COMPLETED PHASE I – SALARY ADJUSTMENTS COMPLETED 2 ACQUIRED HAMMOCKS BEACH TRAIL APPROVED STRUCTURE TRAINING EVENT MARKING PROGRAM 52 26  2/26/2025 Apparatus Maintenance Challenges Faced Personnel Uniforms {January to July} ISO Requirements/Equipment – Upcoming Inspection Capital Reserve – Apparatus & Equipment Replacement Program 53 ISO Inspection Prep – Anticipated Fall 2025 Inspection North Carolina Rescue Association – Projects Medium Rescue Standard {Current & Center for Public Safety Excellence Continuing} Accreditation Process Advance Life Support Program Equipment – Life Cycle Replacement Program 54 27  2/26/2025 Emergency Management 55 Tropical Storm Debby Potential Tropical System (PTS) 8 Notable Hurricane Helene Events • Task Force Deployment – Cedar Mountain • Task Force Deployment – Asheville Winter Storm Enzo 56 28  2/26/2025 Challenges Preparedness Efforts/Equipment Deployment/Disaster Ready Equipment Lack of &/or Highly Competitive Grant Funding 57 Parks and Recreation and Community Festivals Mid Year Budget Review Presented by: Anna Stanley, CPRP 58 29  2/26/2025 Parks and Recreation-Accomplishments • Hired Program and Event Manager, March 2024 • Developed new programs • New Instructors • New Partnerships-6 new partnerships • Special Events-added new event & revamped annual events • BarkFest (September) • Halloweenie Roast • SantaFest 59 Parks and Recreation Revenue Year to Date (June-January) Estimated (February-June) Instructor Fees $3,000 Instructor Fees $8,200 Rentals-Room $11,960 Rentals-Room $10,000 Recreation Programming Fees $11,771 Summer Day Camp $15,000 Recreation Memberships $2,345 Recreation Programming Fees $8,750 Park Rentals $2,560 Recreation Memberships $1,100 Total $31,636 Park Rentals $4,000 Total $47,050 60 30  2/26/2025 Parks and Recreation Expenditures Overall Expenditures Shortfall • Department overall is doing well • Part-time Salaries • 60% remaining and tracking to spend the • Programming Supplies remaining. • Special Events • Playground Equipment-repairs & maintenance 61 Challenges Staff Playground Equipment-Repairs & Maintenance • Limited staffing hours • Aging equipment, more repairs are needed to be done • Increase in demand for programming each year • Increase in workload • Tot-lot is over 20 years old and replacement parts are • Hourly rate becoming more difficult to find. Programming Supplies Non-Capital Outlay • Increase in programs-created several new programs held monthly • Fitness room equipment • Park amenities-trash cans, pet waste containers Special Events • Dog park features • All events had record attendance-will need • Game room equipment to increase supplies • Removal of Piratefest from the budget • Replace banquet chairs 62 31  2/26/2025 Swansboro Festivals Accomplishments • Continue to increase sponsorships each year, in 2024 $26,600 • Received $10,000 from Onslow County Tourism • Received $6,500 from Swansboro Tourism Development Authority • In-kind sponsorships value $29,000 • Exclusive media partners-5 radio stations, Tideland News 63 Revenue Year to Date (July –January) Estimated (February-June) Arts by the Sea $12,000.00 Mullet Festival $32,221.50 ABTS Wine Tasting $3,000.00 Flotilla $495.00 Independence Day Celebration $1,050.00 Festival Sponsorship $9,750.00 Festival Sponsorship $16,250.00 Total $42,466.50 Mullet Festival $5,500.00 Total $37,800.00 Expenditures Estimated (February –June) Total expenses to date $83,604 Staff (FT & PT) $11,000 Remaining budget $37,107 Band deposits $6,000 Arts by the Sea $7,115 Supplies $1,000 Total $25,115 64 32  2/26/2025 Challenges • Staff-limited staff to plan and organize • Staff pay • All FT employees receive time & a half • Parks and Recreation PT staff receive regular pay and they are required to work the festivals • Advertising Efforts • Increase funds to advertise more, television ads 65 Questions? 66 33  2/26/2025 BOARD COMMENTS Mayor William Justice Commissioner Jeffrey Conaway Commissioner Douglas Eckendorf Commissioner Joseph Brown Commissioner Patricia Turner 67 ADJOURN 68 34