TOWN OF SWANSBORO BOARD OF COMMISSIONERS SPECIAL MEETING MAY 1, 2018

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1 TOWN OF SWANSBORO BOARD OF COMMISSIONERS SPECIAL MEETING MAY 1, 2018 CALL TO ORDER The special meeting was called to order at 6:00 pm. Mayor Davis gave the invocation. The purpose of the meeting was continued discussion on the preliminary FY 2018/2019 Budget. DISCUSSION OF PRELIMINARY FY 2018/2019 BUDGET Mayor Davis shared that Onslow County Chairman Jack Bright had sent a letter indicating that the County would not change the sales tax distribution this budget cycle. Budget Workshop #4 was held to further discuss a preliminary budget submitted on April 24, Based on the Board s direction from Workshop #3, staff provided 2 budgets for further consideration in development of the Manager s budget message scheduled to be disseminated for public viewing May 4. The budgets included considerations for funding capital items such as sidewalks and operating expenses with tax increase appropriations of.043 cents (2013 tax rate) and without a tax rate increase. A summary of items that may be considered under those scenarios were as follows: Finance Director Sonia Johnson reviewed the budget comparisons with and without a tax increase for Capital Outlay/Capital Reserve and Personnel Funded and the proposed funded Non-Capital Outlay department requests. Manager Chase indicated that he and the Finance Director had worked hard to provide a budget that would not increase taxes and highlighted those items funded without the tax increase. $32,000 air exhaust system at the Fire Department Page 1 of 3

2 $25,000 for sidewalks to finish Highway 24 to Hammock Beach Road and a few spots on Hammock Beach Road, Capital Set aside for Financial Software Merit/COLA pay increase for employees Legal cost decrease Part-time personnel in Finance, Fire and Parks & Recreation In considering a budget with a tax increase, concentration should be centered around Capital Improvement costs which were extraordinary expenses such as sidewalks. Commissioner Herrick shared that he felt consideration must be given to a tax increase and the sale of 106 Church Street before making final determination on the budget. Commissioner Hatlestad supported considering the sale of 106 Church Street but did not support a tax increase to retain the property. He shared that the revenue from the sale of that property could fund many items that were indicated to be of need such as sidewalks, Merit/COLA increase, healthcare cost, Finance personnel and software, Police uniforms and cruisers, Fire Department air quality exhaust system, and equipment for Public Works Commissioner Clinton shared her opinion on what she saw as the needs for the Town in the next 5-7 years - totaling $2,480,000, which could be recovered by a tax increase of 10.5 over 5 years or an increase of 7.5 over 7 years. In addition, Commissioner Clinton noted that the Town s growth between had increased by 19% while the budget increased by 48% during that timeframe. Commissioner Turner was not supportive of a tax increase and recommended looking at Fee Schedule amendments. She supported discussion on the sale of 106 Church Street. Mayor Pro Tem Tursi stated that he had supported the sale in the past but in the prior year budget process two public hearings had been held and it was clear that the residents did not want the Town to sell the 106 Church Street property. He commented that the lessee was interested in purchasing the property at market value or slightly above, but the sale of the property would only provide funds for one year. It appeared to him that a tax increase was inevitable. There had not been a tax increase in 10 years. He also noted that the Town would not be exempt from storm water regulations as it developed sidewalks and did not feel the proposed funds of $25,000 would cover it. Mayor Davis agreed that if 106 Church Street were sold it needed to be a fair deal with the lessee and believed that there were opportunities to save money in the contracts area. If we saved on contracts the savings could go to staff. Sidewalks and public safety were a priority to the residents he had spoken with and the Board had made it clear sidewalks were the priority. Travel and non-capital outlay still needed to be reviewed in his opinion. Page 2 of 3

3 Manager Chase would need to verify any timeframe requirements for notices (maybe 30 days) on the disposal of property, but did not believe there would be enough time to hold a public hearing on the sale of 106 Church Street before the final hearing on the budget. However, the Board could hold a special meeting to seek further citizen s comments/feedback. The Board agreed to hold a special meeting on May 14, 2018 for that specific purpose. If public comments favored the sale, a disposition hearing could then be scheduled for a future date. There was also a consensus to add the SAFR Grant funding back to the budget. PUBLIC COMMENTS Eileen Sawyer, a resident of Swansboro proper and an employee, urged the Board to consider a tax increase that would allow for the staff to continue to provide the same or better level of services to its residents. It was her opinion that the Town should not cut staff nor its services based on the service call volume she handled as an employee working in the front office. ADJOURN On a motion by Commissioner Herrick, seconded by Mayor Pro Tem Tursi, the meeting was adjourned at 7:13 pm. Page 3 of 3

4 Special Meeting May 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. 3. Individuals making presentations or comments are asked to adjust the microphone as necessary and to speak directly into the microphone. 1

5 Budget Workshop #4 Budget with Tax Increase and Without Tax Increase Overview: Budget Workshop #4 for the FY Budget has been scheduled for the evening of May 1, 2018 based on feedback received during Budget Workshop #3 (April 24, 2018). Based on the Board s direction from Workshop #3, the Board directed staff to provide 2 budgets for further consideration in development of the Manager s budget message scheduled for dissemination for public viewing May 4. The budgets are to include considerations for funding capital items such as sidewalks and operating expenses with tax increase appropriations of.043 cents (2013 tax rate) and without a tax rate increase. A summary of items that may be considered under those scenarios are as follows: 2

6 Item Budget Comparison Capital Outlay/Capital Reserve (Set Aside) With/Without Tax Increase Alt. Budget With Tax Increase Alt. Budget Without Tax Increase Fire-Air Quality/Exhaust System 32,000 32,000 Fire Engine Set Aside 90,000 Not Funded Turnout Gear Washer 10,000 Not funded Sidewalks 109,350 25,000 Software Set aside 30,000 30,000 Police Interceptor 36,000 36,000 COLA 26,522 26,522 Merit 22,909 22,909 Capital Reserve-Undesignated Not Funded 14,281 Appropriated Fund Balance* Not Funded 40,000 *Anticipated surplus FY to balance the budget Budget Comparison Personnel Funded With/Without Tax Increase Request Alt. Budget With Tax Increase Alt. Budget Without Tax Increase Finance-(PT) $10,000 $10,000 Fire-Increase in PT Salaries (Due to 24/7 Service) $35,000 $35,000 Parks & Recreation-PT $10,743 $10,743 3

7 NON-CAPITAL OUTLAY FY FUNDED DEPARTMENT DESCRIPTION AMOUNT Public Buildings Scaffolding Hose Reel Husqvarna PZ54 Pallet Jack Dust Collector Parts Cleaner $1, , $6,607 Fire Department Skid Unit-Brush Truck Vent Saw (1) Laptops for Engines (2) Turnout Gear Fire Hose Replacement SCBA Bottles (6) Dual Band VHF & Pagers (6) $12, ,600 6,500 2,000 2,600 3,000 $30,000 NON-CAPITAL OUTLAY FY FUNDED DEPARTMENT DESCRIPTION AMOUNT Police Bulletproof Vests, MDT s, Tablets, 800 MHz Radios Public Works-Streets Public Works-Powell Bill Parks & Recreation Husqvarna PZ54 Vibration Roller Tilt Bucket )1/3 Cost) Misc. Tools and Equipment Vibration Roller Tilt Bucket (1/3 Cost) Misc. Tools and Equipment Trash Cans-Parks Park Grills Splash Pad Wheelchair Game Room Equipment Air Hockey $6,000 $3,700 2,185 1,200 1,672 2,185 1,200 4,272 $5, ,000 $6,000 $8,757 $7,657 $7,400 4

8 NON-CAPITAL OUTLAY FY FUNDED DEPARTMENT DESCRIPTION AMOUNT Church Street Dock Regulatory Signs $300 $300 Stormwater Enterprise Fund Telescope Pruner Grapple Bucket Service Truck Torches $ $1,629 Solid Waste Enterprise Fund Portable Oil Drain Misc. Tools and Equipment $ 300 2,000 $2,300 TOTAL NON-CAPITAL OUTLAY $70,650 PUBLIC COMMENT Citizen opportunity to address the Board for items listed on the agenda. 5

9 BOARD COMMENTS Mayor John Davis Mayor Pro Tem Frank Tursi Commissioner Pat Turner Commissioner Roy Herrick Commissioner Angela Clinton Commissioner Brent Hatlestad Swansboro Budget Sustainability: The ability to continue a defined activity indefinitely. 6

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11 Swansboro needs in next 5-7 years $500,000 for sidewalks + $500,000 unfunded capital requests right now + $1.3 million for new fire engine & ladder truck + $180,000 in police vehicles = $2,480,000 $2,480,000 Over 5 years: 10.5 increase to tax rate Over 7 years: 7.5 increase to tax rate 8

12 Swansboro s Population Growth Swansboro s total population growth from : +19% Swansboro s average annual population growth from : +3% Swansboro s population growth from : +1% Source: U.S. Census Bureau, City and Town Population Totals Available at Swansboro s Population Growth vs. Budget Growth 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Growth in Swansboro from Population Budget Our budget grew by 48% during the same time period that our population grew by 19%. Sources: U.S. Census Bureau, City and Town Population Totals Available at Budget: Sonia Johnson, Finance Director, by 10/2017 9

13 ADJOURN 10