SUMMARY OF MINUTES FINANCE COMMITTEE. 4:00 p.m., Monday, June 11, 2012 COMMITTEE ROOM. Room 239, City Hall

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1 SUMMARY OF MINUTES FINANCE COMMITTEE 4:00 p.m., Monday, June 11, 2012 COMMITTEE ROOM Room 239, City Hall MEMBERS PRESENT: OTHERS PRESENT: Mayor Allen Joines Council Member Wanda Merschel, Chair Council Member Molly Leight, Vice Chair Council Member Vivian H. Burke Council Member Robert C. Clark (in at 4:01 p.m.) Council Member James Taylor, Jr. Council Member Derwin L. Montgomery Council Member Dan Besse (in at 4:01 p.m.) Council Member Denise D. Adams (in at 4:18 p.m.) Chair Merschel called the meeting to order and noted that the agenda consisted of two parts, the regular Committee Agenda and a Budget Workshop. She stated that without objection, the Committee would first consider the Consent Agenda. No items were removed for discussion. Council Members Clark and Besse in at 4:01 p.m. Council Member Clark made a motion to approve the Consent Agenda. The motion was duly seconded by Council Member Burke and carried unanimously. CONSENT AGENDA Property Matters C-1. RESOLUTION AUTHORIZING THE SALE OF CITY-OWNED PROPERTIES UNDER THE UPSET BID PROCEDURE: a. RESOLUTION AUTHORIZING THE SALE OF CERTAIN CITY-OWNED PROPERTY ON EAST THIRD STREET UNDER THE PROVISIONS OF N.C.G.S. 160A-269. [$2,000.] b. RESOLUTION AUTHORIZING THE SALE OF CERTAIN CITY-OWNED PROPERTY ON MERRIMONT DRIVE UNDER THE PROVISIONS OF N.C.G.S. 160A-269. [$2,000.] c. RESOLUTION AUTHORIZING THE SALE OF CERTAIN CITY-OWNED

2 SUMMARY OF MINUTES June 11, 2012 Page 2 PROPERTY AT 315 CREEKWAY COURT UNDER THE PROVISIONS OF N.C.G.S. 160A-269. [$53,000.] C-2. RESOLUTION AUTHORIZING TERMINATION OF THE SALES CONTRACT BETWEEN THE CITY AND PURCHASERS ELISABETH D. SAVAGE AND ROBYN A. REED FOR PROPERTY AT 4545 OAK RIDGE DRIVE AND RESPONDING TO A REQUEST BY PURCHASERS TO REFUND THE BID DEPOSIT ASSOCIATED WITH THE SALE. Community and Economic Development C-3. RESOLUTION AUTHORIZING SUBMISSION OF EMERGENCY SOLUTIONS GRANT APPLICATION, ACCEPTANCE OF GRANT FUNDS, AND EXECUTION OF SUBGRANTEE AGREEMENTS. Finance/Budget C-4. CONSIDERATION OF AMENDMENTS TO THE FISCAL YEAR BUDGET ORDINANCES: a. ORDINANCE AMENDING THE ANNUAL APPROPRIATION AND TAX LEVY ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR C-5. RESOLUTION APPROVING THE FISCAL YEAR OPERATING MEMORANDUM BETWEEN THE CITY OF WINSTON-SALEM AND THE RISK ACCEPTANCE MANAGEMENT CORPORATION. Transportation C-6. CONSIDERATION OF ITEMS RELATING TO CITY PARTICIPATION IN LOCAL IMPROVEMENTS OF PRIVATE STREETS ACCORDING TO SECTION OF THE CITY CODE: a. RESOLUTION SETTING PUBLIC HEARING ON CITY PARTICIPATION IN LOCAL IMPROVEMENTS OF PRIVATE STREETS Buckhorn Road. Public Hearing: July 16, b. ORDINANCE AMENDING THE ANNUAL APPROPRIATION AND TAX LEVY ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR c. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR

3 SUMMARY OF MINUTES June 11, 2012 Page 3 General Government THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR C-7. RESOLUTION APPROVING AN AGREEMENT WITH WINSTON- SALEM/FORSYTH COUNTY SCHOOLS TO SHARE THE CITY FIBER DATA NETWORK. C-8. APPROVAL OF FINANCE COMMITTEE SUMMARY OF MINUTES - May 14, GENERAL AGENDA G-1. RESOLUTION APPROVING FINANCIAL ASSISTANCE TO PEPSI BOTTLING VENTURES, LLC. Mr. Derwick Paige, Deputy City Manager, noted that Pepsi Bottling Ventures, LLC is requesting $1,000,000 over a ten year period to assist with the costs of relocating to and up-fitting a new facility. Over the next ten years, the company will invest $81.7 million which will generate $1.5 million in new property tax revenue. The company will receive an investment grant equal to less than 65% of the net, new City property taxes. Pepsi will retain 307 jobs and relocate 198 jobs to Winston-Salem. The company is committed to hiring local residents as new job openings become available. In response to Council Member Burke s questions, Mr. Matthew Bucherati, 5225 Dartmoor Street, Pepsi Bottling Ventures, noted that the company wants to relocate to a new facility because its current facility is landlocked. A new site must contain at least 50 acres located on flat land. He added that Pepsi s operations have been in Winston-Salem for 102 years and the company looks forward to remaining a corporate citizen of the city. Council Member Clark made a motion to approve the item. The motion was duly seconded by Council Member Leight and carried on a vote of three in favor, none opposed, and one abstaining. Those voting in favor of the motion were Chair Merschel and Council Members Clark and Leight. Council Member Burke abstained from the vote. G-2. REVIEW OF PROPOSED FISCAL YEAR BUDGET. Mrs. Ann Jones, Budget and Evaluation Director, presented a list of responses to budget-related questions posed by Council Members at previous meetings. Council Member Leight inquired about the possible consequences of taking money from other funds and dividing it between the General Fund and the Economic Development Fund. Chair Merschel inquired about the long-term impact of using a one-time source to fund a recurring expense.

4 SUMMARY OF MINUTES June 11, 2012 Page 4 Council Member Adams in at 4:18 p.m. Council Member Clark requested to know the total debt of the Parking Fund. He also requested that the budget proposal document include the total General Obligation Bond debt amount of $800 million. Mayor Joines expressed concern about not repaying the full Economic Development Fund. He noted that the proposed budget would extend the repayment period from six years to twelve years. Council Member Montgomery inquired about the reason for the increase in the Water and Sewer Fund and Stormwater Management Fund balances. He expressed concern about placing money from other funds into the General Fund. He also inquired if the City has a policy for how fund reserves are used. Council Member Besse inquired about the reduction in recycling funding from the Solid Waste Fund. He asked if the City s agreement with Forsyth County to reduce this funding is a legally binding contract. He expressed concern that the Solid Waste Fund is receiving a benefit from the savings while the General Fund is not. He asked how much money the City will save with the new Rollout Recycling program. He also expressed concern that the taxpayers are not receiving a benefit from the savings. Council Member Clark noted that the Rollout Recycling program is saving the City $1,000,000 per year. Once the rollout carts are paid for, the savings will increase to $1.5 million per year. Council Member Leight requested to know other cities policies for providing incentive payments to attract or retain businesses. She inquired about the definition of bucket and well agencies. Council Member Burke expressed concern about minority employment at nonprofit agencies. She indicated that the City should emphasize the importance of diversity in hiring practices when providing funding to these organizations. Council Member Adams requested to know how other municipalities are funding nonprofit agencies. She expressed concern about reducing funding for arts programs. Chair Merschel noted that there are community assets in which taxpayers invest, end-users invest, and nonprofit organizations benefit from without investing. She suggested the City Council look at opportunities nonprofits have to contribute money to the services they use. Council Member Leight noted that she has attempted to calculate how much money hospitals, educational institutions, and churches should pay the City for service fees. She further noted that Sanitation and Public Safety services make up three-fourths of the City s budget.

5 SUMMARY OF MINUTES June 11, 2012 Page 5 Council Member Montgomery inquired about the attendance goals at City swimming pools and asked how a pool s success is measured. He expressed concern about the high percentage of minorities who are unable to swim and asked what the City can do to decrease that number in the community. Council Member Adams noted the popularity of spray parks and requested to know what swimming pool alternatives other cities provide to their citizens. Council Member Clark expressed concern that half of the City s pools are underutilized. He suggested replacing a low-use pool with a spray park. He further suggested closing Happy Hill pool and giving the YWCA a financial incentive to allow nearby residents to use its pool. Council Member Taylor expressed concern about closing pools in the Southeast Ward. He noted that none of the City pools produce a profit. He stated he will support spray parks in addition to pools but not as an alternative. Council Member Montgomery requested that staff submit requests for proposals for managing Winston Lake Golf Course. Mayor Joines inquired about the yearly waste disposal tonnage requirement for the large volume discount rate at the City's landfills. Council Member Besse requested to know the level of landfill tipping fees that would maximize the Solid Waste Fund s lifespan and the level that would maximize the landfills lifespan. Council Member Leight expressed concern about not giving City employees a 1.5% merit pay increase. She noted that the increase will not completely offset the rise in employees healthcare costs. Council Member Adams noted that citizens have expressed concern about the merit pay increase. Council Member Montgomery suggested considering a $250 pay increase similar to the increase State employees will receive. Council Member Taylor noted that a $500 pay increase would help offset the rising cost of employee healthcare premiums and serve as a compromise between the 1.5% increase and a $250 increase. Council Member Besse noted that for the majority of City employees, a $500 pay increase would amount to more than a 1.5% increase in salary. Council Member Burke inquired about the number of City employees who reside within the City limits.

6 SUMMARY OF MINUTES June 11, 2012 Page 6 Chair Merschel expressed concern about a pay increase for Council Members. She requested staff prepare a reduced Policy Leadership Budget. She noted that the Committee will hold an additional workshop at 2 p.m. on June 12. ADJOURNMENT: 5:35 p.m.