Town Council Meeting - Budget Workshop

TYRONE TOWN COUNCIL MEETING - BUDGET WORKSHOP MINUTES May 17, 2022 at 9:00 AM Eric Dial, Mayor Gloria Furr, Mayor Pro Tem, Post 4 Linda Howard, Post 1 Brandon Perkins, Town Manager Melissa Hill, Post 2 Dee Baker, Town Clerk Billy Campbell, Post 3 Dennis Davenport, Town Attorney Council Member Hill was absent Also present were: Sandy Beach, Finance Manager Bridget Smith, Accounting Specialist April Spradlin, Court Clerk Rebecca Brock, Recreation Manager Phillip Trocquet, Town Planner Patty Newland, Library Supervisor Scott Langford, Town Engineer / Public Works Supervisor Devon Boullion, Environmental Specialist Katherine Crouch, Permit & Compliance Specialist I. CALL TO ORDER II. INVOCATION III. PLEDGE OF ALLEGIANCE IV. PUBLIC COMMENTS: The first public comment period is reserved for non-agenda items. Comments are limited to three (3) minutes. Please state your name & address. Comments that require a response may not be answered during this time. The Council or staff may respond at a later date. V. APPROVAL OF AGENDA A motion was made to approve the agenda. Motion made by Council Member Howard, Seconded by Council Member Furr. Voting Yea: Council Member Campbell. VI. NEW BUSINESS 1. FY 2022/23 Budget Workshop Mr. Perkins gave a brief overview. He shared that the budget before Council through the General Fund totaled, $11,446,684.77 against anticipated revenues of $10,361,673, which represented a deficit of $1,085,011.77. Town Council Meeting - Budget Workshop Page 1 of 10 May 17, 2022 The deficit figure would be carried over from reserves to balance the budget. As of the last audit, the Town held $8,283,898 (15.5 months) in reserves, which was extremely healthy. He added that given Council’s stated policy to maintain a minimum of 6 months in reserves, it was prudent to utilize those additional available funds to accomplish project and maintenance goals. The General Fund proposal also included a 4% COLA increase for the Town’s employees. He added that the total proposed budget for the Town’s other funds (Sewer, ARPA, Confiscated Assets, SPLOST, etc.) totaled $8,297,436.62 against anticipated revenues of $7,484,879.51, which represented a deficit of $812,557.11. That deficit would also be carried over from reserves to balance the budget. Most of the deficit ($784,891.13) was contained within the Sewer Enterprise Fund and included necessary manhole and pipe repairs amounting to $430,650 and requests for pipe cameras and other maintenance equipment amounting to $178,200. Some of the costs may be partially covered by ARPA funding in a mid- year budget amendment. Mr. Perkins shared that was the budget was adopted, staff would meet in June to create an ARPA budget. That funding had to be committed by 2024 and expended by 2026. Mr. Perkins addressed the aforementioned deficits by reminding Council that many of the projects listed such as the Pendleton dam project, maybe started in the next fiscal year but not completed. As a result, it was likely that the Town would realize a much lower deficit than anticipated or no deficit at all. It was rare for us to go over budget in any given fiscal year. He added that it was important to note that some of the FY2023 budget requests included carry-over amounts from the current budget due to projects that staff was not able to see completed during the current fiscal year. For example, we were approved for $150,000 in the current budget from CARES Act funding to complete the Shamrock Park playground renovation. The project was put out for bid and a vendor was approved in the current fiscal year, but the project would not be completed until FY2023 due to supply chain issues. Since we cannot pay for the project until it was completed, the funds must be carried over. We also have ongoing public works items such as road projects and the chipper that had not been completed or delivered and would have to be carried over. Again, much of the issues could be attributed to the global supply chain and workforce issues. Mr. Perkins noted other items such as $2 million for the Pendleton dam project. Staff was still awaiting word from GEMA on our grant application. If awarded, the grant would cover 75% of the cost, however, the budget still had to reflect the full amount. He added that $465,500 had to be reflected in the budget for the cost of the Castlewood dam project. The Town was acting as the grant application pass-through. This project would not cost the taxpayers anything. He added that $4,203,741.36 also needed to be reflected in the budget as SPLOST-funded projects. They included LMIG supplements, the Spencer Lane to Winfield cart path extension, the Palmetto/Arrowood roundabout, the Handley Park restrooms, the renovations at Redwine Park (pickleball courts are included), a culver replacement on Pendleton Trail, facility improvements at 881 Senoia Road, GTIB debt service, patrol vehicles, and streetscape improvements were included with that budget. He added that Fayette County anticipated a 16.25% increase in property tax revenues for FY2023, which would result in an additional $237,238.45 from that source of revenue for Tyrone. Page 2 of 10 He shared that Ms. Beach used a more conservative 15% increase due to the anticipated property owner appeals. He ended by stating that Mr. Bowman had requested approximately $10,000 for a much-needed raise for the two newest members of public works. He would like to promote them from Maintenance Worker I to Maintenance Worker II. Mr. Perkins agreed with the promotion and added that their first anniversary was approaching. 9:12 am - Council Member Furr arrived, and the official meeting began with a quorum. Administration Mr. Perkins stated that a few items had increased such as technical services and training. There were no other major changes to the administrative budget. Finance Ms. Beach shared the highlights of the finance budget. She stated that the auditing services line had increased due to the requirement of an additional audit for the use of ARPA funds. Council Member Campbell asked if the ARPA audit cost could be taken from ARPA funds? Ms. Beach stated that it could. She increased the technical services line for the need of a printer and perhaps a new computer. The capital outlay line had increased due to the need for budget software that could assist all departments. Municipal Court Ms. Spradlin shared that a 5% raise was requested for the Judge and Solicitor as they both do a great job. The prosecuting services line increased slightly because cases were beginning to increase over the past two years. She increased a few lines slightly due to inflation such as travel and printing. Everything else remained standard. Museum Ms. Beach shared that their budget was basic operations/utilities. Mr. Perkins stated that building maintenance had increased due to much-needed cosmetic work in preparation for recreation staff moving in. Parks and Recreation Ms. Brock shared that there was an increase in the travel, education, and technical services lines for inflation. The technical services line increased due to the DJ’s travel costs for events. Mr. Perkins explained that the new playground equipment was carried over due to postponed delivery date for the following fiscal year. Mayor Dial inquired about the request to extend the Edison lights along Shamrock Park and Senoia Road. Mr. Perkins stated that it was on pause due to the need to cross Senoia Road at the former police station. Mr. Perkins shared that staff was still exploring options. Council Member Furr began a discussion regarding holiday decorations. It was suggested to raise the funds from $6,000 to $12,000 and to reach out to staff for décor ideas. Council Member Howard asked how many businesses signed up for the Christmas Tree project at Shamrock Park. Page 3 of 10 Ms. Brock stated that there were currently 20 businesses signed up, but they would send another email in June in hopes to increase the numbers. Mr. Perkins shared that LED battery packs for lighting should last throughout the Christmas season. His Coweta Fayette EMC contact shared that the black light poles made it difficult to add outlets. All agreed that more lighting was needed for the downtown area. A timed LED battery pack appeared to be the best direction, that way public works staff would not need to maintain the lighting as often. $12,000 for holiday decorations was agreed on at this time, with the flexibility to increase after meeting and planning. Council Member Campbell inquired if $200 was sufficient for the veteran crosses. Ms. Brock stated it was and reminded Council that individuals pay for their requested cross, same as the veteran bricks. Planning/Zoning Mr. Trocquet thanked Council for the approval of a Planning Commission salary increase from $75 a month to $150. They have not had an increase in pay for twenty-five years. He moved to contracted services and shared that technical services last year reflected $125,000, due to the LCI study which was an 80% -20% split. The following fiscal year would only reflect $65,000. The LCI was now moving from the planning phase to the execution phase. The $65,000 would be for matching grant funds for Town signage and streetscaping. He shared that the travel and education lines had increased due to Ms. Crouch’s position and her need for training. The postage line had increased due to the possible need for additional information mailers to citizens and the increased number of courtesy letters being sent from Ms. Crouch. He added that the other supplies line was increased due to the possible need for new computers. He shared that $45,000 was placed within the capital outlay for a shared SUV with Mr. Langford. A larger vehicle was needed to house more individuals for training and equipment. Mr. Trocquet added that the state contract would be with Ford, however, obtaining Explorers at this time would be difficult with supply and a recall issue. Mayor Dial questioned why the vehicle would not be split between departments within the budget, Mr. Trocquet stated that it would primarily be a Community Development vehicle. Council Member Howard shared that the amount seemed high for an Explorer. Mr. Perkins shared, that was now the cost for a no-frills vehicle. Ms. Beach added that along with the SUV, police vehicles could also take up to six months to become available. Public Library Ms. Newland shared that she increased the equipment repair & maintenance line due to the anticipated repairs of a now 14-year-old building. She increased the rental of equipment & vehicles line due to toner and an aging public copier. The printing and binding line increased slightly, due to the need for new business cards. She increased the special program supplies line to be able to offer more programming for high schoolers and adults. Although the staff was short by two, they still wanted to expand their programming. This would also benefit the middle school and the senior community. Council Member Campbell asked that when Ms. Ferrill’s part-time position was filled, would it be changed to a full-time position? Ms. Newland shared that she would lobby for a full-time position. Ms. Beach stated that the position was in the budget as a full-time position. Page 4 of 10 Council Member Campbell asked what the dues and fees line encompassed. Ms. Newland explained that the fees covered the Town’s membership in the Flint River and Pines organization based on population. It had remained the same since 2006. Ms. Newland then invited everyone to come to the library to get a photo taken reading a book to advertise their Summer Reading Program theme, An Ocean of Possibilities. The pictures would be placed in a video that would play throughout the library highlighting staff’s love for reading. Public Safety Mr. Perkins stated that he would fill in for Chief Mundy as he was not feeling well. He shared that his biggest requests were two vehicles and a portable FLOCK (license plate reader) camera. Council Member Furr asked why the other benefits line increased so much. Ms. Beach explained that the amount required splitting. It was gym memberships, uniforms, and holiday pay. She added that she would ensure that it would be split to the correct accounts. Mr. Perkins added that the fuel amount also increased. Ms. Beach explained that the public safety admin. budget included Chief Mundy and Major Brock. It was separate to allow for a more fluid reporting process at year-end. Public Works Mr. Langford shared that the public works budget was the largest portion of the budget. He stated that the Pendleton and Castle Lake dam projects were listed at $2,456,500. The $717,500 total carryover to the next fiscal year included 2022 paving projects, the chipper, the pole barn relocation, and streetscaping. The relocation of the pole barn and the streetscapes were for downtown improvements. He shared his approval for the battery- operated LED lighting for downtown, it would not hinder streetscape progress by boring into roads that had been repaired. Also included in the streetscaping was the addition of electrical for the Hwy 74 Tyrone entrance signs. Council Member Furr inquired about the cost of the Castle Lake dam project. Mr. Perkins clarified that the funding in the budget was only for passthrough, and citizens were not responsible for the funding. Mr. Langford also clarified that the Pendleton dam project was similar and funding was contingent on grant approval. At this time, Mr. Perkins informed Council Member Furr regarding the two promotions within public works. He added that they did great work and deserved the promotion. Mr. Langford shared that there was an increase in technical services. $20,000 was for culvert inspections to comply with state regulations. He then began a conversation informing Council about paving roads according to the pavement condition index (PCI) and paving by PCI location. He shared that combining three years of projects into a particular area, would save on the mobilization of equipment which could be costly. The next paving phase would include the Tyrone Acres subdivision, Howell Road, and Lloyd Avenue. It also included a Rockwood Road Railroad Spur, once it was confirmed as inoperable. He announced that Tyrone had 67 miles of unpaved roads, 3 miles of unpaved. Once we removed 10 roads that were eligible for the TIP grant, that would leave 57 miles. He shared that it cost $300,000 per mile to mill, pave, and patch. It costs approximately $1 million per year to maintain our roads. His maintenance formula along with the PCI would make maintaining the Page 5 of 10 roads more palatable, and the cost would level out. He added that there was an increase due to a $325,000 carry-over. Mayor Dial inquired, how long had it been since Tyrone Acres had been paved? Mr. Langford shared that his method was to research historical images from Google Earth. He indicated that it may have been 15-20 years. He added that the PCI ratings were complicated, one reason why a third party was involved. It is subjective, they take the emotion out of the grading system. All PCIs should be taken at the same time by the same company for consistent rankings. He added that he was tracking data regarding the age of our roads. The larger subdivisions have more roads and were paved at different times. Mayor Dial clarified that according to the PCI index, the largest subdivision in town (Southampton), three streets were scheduled to be paved in FY-25/26. Mr. Langford agreed and shared that he would be happy to meet with citizens during the Citizens Academy in the fall, to explain the PCI ratings further. Mr. Langford shared that sidewalk repairs were on a similar schedule. Mr. Langford stated that the stormwater maintenance line had increased due to the anticipation of the increase of the cost in doing business for flushing pipes. Public Works also planned on doing more moving forward and would describe later in the presentation a piece of equipment that could make that possible and perhaps offset some cost. He added that in the past, the stormwater budget was $100,000 which needed to be increased for a more aggressive approach, 30 pipes needed maintenance at $10,000 apiece. He shared that the uniform line increased due to two new employees. The signage line increased due to sign improvements within the Southampton subdivision. The Town provides the regulation signage and the HOA provides the posts and installation. The gateway signage & streetscape line was for the electrical work on the Hwy 74 Tyrone entrance signs and the scheduled streetscape near the Gunnin shopping center on Senoia Road. Mr. Langford mentioned the chipper, and skid steer within the equipment line. He added that the skid steer would include a mulcher head and safety glass. Mayor Dial explained that after having lunch with the public works guys, that was the one piece of equipment that was requested. This was a much-needed piece. Mr. Langford shared that his department was also requesting to replace the stolen golf cart. This was a valuable piece of equipment for events, garbage collection, and collection of signage. Council Member Campbell inquired about the lighting of the underpass on Senoia Road. Mr. Langford shared that staff was still working on that, and he was waiting to hear back from EMC. Mr. Perkins recognized that it was Public Works Week and to thank your public works guys. Sewer Mr. Langford shared that there was an increase to the technical services line to include jetting and camera services to ascertain what sewer lines were blocked. He added that the big item was maintenance and repair, and funds were put aside for improving the quality of the system. Every 6 months, staff provides Fulton County with an infiltration and inflow report (I&I). He explained the infiltration mechanics to everyone. He shared that line 2212, for $430,000 was for sewer line repair and manhole covers in Southampton. He explained the process it took to line the sewer lines. No digging and land acquisition was required; however, it may cause some road closures. He explained the importance of proper land acquisition. Page 6 of 10 Council Member Campbell asked if the pump stations would be relined? Mr. Langford stated that the pump station liners would not be tackled this next fiscal year. There were measures in place to ensure they were being properly maintained, including aerators and the Evoqua corrosion control treatment. If those methods did not work, pump stations 1 and 5 would be serviced next. He explained that Fayette County had great success using the Evoqua product. SPLOST Mr. Perkins shared that a lot of the Capital Improvement Projects (CIP) were tied to the SPLOST budget. He added that the anticipated revenues for SPLOST would be $1.7 million. Currently, the Town was a few hundred thousand below what was anticipated what the total SPLOST would be, which was $9 million. Most would be collected by the end of the fiscal year, which would also be the end of the SPLOST timetable. We are on track to have higher revenues that could be placed back into projects. Mayor Dial shared his concern with SPLOST either having a term or cap. Ms. Beach stated that she spoke with Attorney, Dennis Davenport, who wrote the County IGA. He clarified that it was voted to end SPLOST by the 6th year, which would be the end of the following fiscal year. Sandy reminded everyone that SPLOST funds could only be used for projects that the citizens voted on. She gave the example of the mini- roundabout need, which was a regular roundabout and staff felt there was not going to be enough funding. Now that additional funding would be coming through, the project could be completed, LMIG projects were also within the SPLOST budget for paving roads. Mr. Perkins shared that $1.7 million was anticipated revenue. $2.5 million carried forward and $3 million in interest revenues leaving a total of $4.2 million revenue in SPLOST funds for projects. Mr. Perkins stated that the legal services line increased by $2,000, and $138,402 was budgeted for road repairs which was a part of the Transportation Improvement Program (TIP) funding. He stated that $84,458 was in that budget for gateway signage and streetscapes. He added that all downtown signs would be upgraded to reflect the new logo and be uniform. This would include the library, parks, and museum signs. Mr. Trocquet shared that the Town had applied for an AARP grant of $40,000 to assist with those two projects. Mr. Perkins stated that funds were placed in the facility renovations line for 881 Senoia Road before the Recreation staff moving in. Mr. Perkins described the new restroom configuration that would serve the museum and recreation, staff, and attendees. The funding would also include cosmetic needs such as paint and flooring. Council Member Howard requested that someone research the front foyer of the museum, water may be within the walls because the pictures on the walls were gathering mold. Mr. Perkins shared that also within the budget was funding to equip the new police vehicles. The total for that was initially $150,000, which was an ongoing fund. He stated that also within the SPLOST CIP fund, was funding for cart paths, culvert improvements, the roundabout on Arrowood, Palmetto, and Spencer roads, and Handley Park and Redwine Park improvements. Mayor Dial asked if the $500,000 for cart paths had to last the entire year. Mr. Perkins clarified that funding was also within the general fund for cart paths. Mayor Dial asked how much funding was remaining after the construction of the Tyrone Road cart path? Ms. Beach directed everyone to the CIP budget. Mr. Perkins shared that for the Senoia, Spencer, and Swanson cart path system, there was $500,000. However, staff was backing off the Spencer Road path due to the possibility of it being a “share the road” area. There was also a plan to make road improvements and to add a cart path along Swanson Road which led into Handley Park and then onto Handley Road. This Page 7 of 10 would assist three subdivisions. Mayor Dial stated that the total was approximately $750,000. Mr. Trocquet also added that within the roundabout project was funding to tie in a cart path from Wynfield Drive (Southampton) to Arrowood Road. Mr. Perkins stated that also within the SPLOST CIP budget were debit services from the GTIB loans for road improvements. CIP Mr. Perkins stated that along with cart paths and the roundabout, there was also a traffic study for the Senoia and Crabapple Road intersection. Funding was available for the chipper, a skid steer, and a culver replacement on Pendleton Trail. Funding was also available for the Pendleton dam, 75% to be paid by a grant. Mr. Perkins stated that of the nearly $3 million in ARPA funding, $1 million would go toward sewer capacity. An additional $1 million could come from the sewer enterprise fund. Conversations were needed with Fairburn and Fulton County to see where we stood. $1 million could get us 100,000 gallons. His goal was 1 million gallons which could prepare the Town for growth within 15-20 years. Developers need more capacity; this would be a great opportunity. Currently, the Town held 650,000 gallons. Council Member Campbell agreed and added that we needed to bring in new business along the Hwy 74 corridor. Mr. Langford clarified that under the sewer line, $67,100 was for the replacement of pump station #2’s generator. Mr. Perkins stated that items that Mr. Langford mentioned earlier were in the CIP budget, also were park improvements and patrol cars including their equipment. He named several more items such as replacement of broken equipment, 881 Senoia Road building improvements, the Planning & Zoning and Public Works shared vehicle, finance software, and community development items such as signage and streetscape. Mr. Langford added that the tree budget was also part of the CIP relating to the streetscape. Federal Confiscated Assets Mr. Perkins announced that there was $9,500 in revenue and $8,000 was budgeted for uniforms (protective vests). State Confiscated Assets Mr. Perkins stated that $8,836 was the total revenue and $65,000 for small equipment replacement. Founders Day Ms. Brock explained that they created, special program services to cover inflation as it pertained to bands, the zip line, and rides. She added to the legal line for contracts that needed legal approval. She clarified that there was a special program supplies line and a special program services line. These were separate to fund what was not covered by sponsorships. She stated that the overtime line was increased as there was more need for assistance from public works and police for traffic control. Ms. Beach inquired if there would be a fireworks show this year. Ms. Brock stated that a sponsor would fund the show. Mayor Dial inquired about the technical services line. Ms. Brock stated that there were costs to run the rides and Page 8 of 10 the escape room. Council Member Furr inquired about lighting. Mr. Perkins explained that trailers would be $15,000 apiece. However, EMC could add three light poles on both sides of the field that housed six lights which would be easily controlled by a switch, for a small monthly fee. This would be a more permanent solution. Ms. Brock stated that lighting would be helpful for evening events. Hotel/Motel Tax Mr. Perkins explained that along with the newly approved ordinance, staff was still working out the details for the process to collect taxes. The Town did not have hotels or motels but we did have short-term rentals. Georgia passed a law in 2021 allowing market-place vendors such as Airbnb to collect an excise tax on behalf of the owner/host which would be remitted to the local governing authority. The rub was, that none of the companies had administrative contact information on their websites. The Town had registered our ordinance with the Georgia Department of Community Affairs (DCA) and they have a database with all municipalities that would collect the taxes. The companies in turn would visit that website to remit payments. Our ordinance requires that all hosts register with the Town and meet all requirements. Next, we would need to pass the short-term rental ordinance which added another layer. He stated that staff was anticipating a small amount of revenue, but we’re laying the groundwork to collect the taxes. According to his calculations, the Town would only collect $5,000 and would spend that on technical services. Council Member Furr asked if the process included film production companies. Mr. Perkins explained that when filming occurred on town-owned property, the Town charged a fee, not when the company filmed on private property. The film industry was not included in the hotel/motel collection. Tree Fund Ms. Boullion explained that when a developer could not meet the landscape requirements, they could compensate to an extent, through our tree ordinance by donating to the town’s tree fund. Donations had already been made and another was anticipated. Mr. Perkins stated that there was a total of $35,194 estimated revenue and that would be spent on-site improvements and streetscape. Fire Impact Mr. Perkins stated that there was $20,000 anticipated revenue, with $19,418 in expenses which would be returned to the County. Mr. Trocquet clarified that the funding was from new commercial construction. ARPA Mr. Perkins stated that currently there was only revenue listed, for $2.8 million. Staff would create the budget for Council at a later date according to the ARPA timeline. At this time, Mr. Perkins thanked staff, including Ms. Beach and Ms. Smith. He added that they worked hard and communicated well with department heads. He shared that once the budget began, the previous budget needed to be closed, then finance had to work on the audit and reports for the state. It was very time-consuming and very draining; he appreciated their hard work. Page 9 of 10 VII. PUBLIC COMMENTS: The second public comment period is for any issue. Comments are limited to three (3) minutes. Please state your name & address. Comments that require a response may not be answered during this time. The Council or staff may respond at a later date. VIII. COUNCIL COMMENTS Mayor Dial echoed Mr. Perkins and stated that he was reminded during the meeting how good staff was. Everyone had a good grasp of the subject matter for their department. They were prepared and not stumped by any questions. He thanked Ms. Beach and Ms. Smith for their hard work in preparing the budget. Mayor Dial shared an update on the Crabapple Lane closure. He received an email from another neighborhood asking for the Town’s plan and update. He shared that he would attend and speak at the Peachtree City Council meeting that evening. He believed the complete closure would be delayed and invited any two of Council to join him at the meeting. Council Member Campbell echoed Mayor Dial and thanked staff for a job well done and for their efficiency and great attitude. IX. ADJOURNMENT A motion was made to adjourn. Motion made by Council Member Campbell. Motion made by Council Member Campbell. Voting Yea: Council Member Howard, Council Member Furr. The meeting adjourned at 11:19 am. By: Attest: Eric Dial, Mayor Dee Baker, Town Clerk Page 10 of 10