Regular Meeting
June 3, 2008
The
Staff Members Present:
2 and 3.
The Pledge of Allegiance was recited, and the meeting opened with an
invocation by Rev. Horace Ferguson, pastor of
4.
Agenda Adjustment: The
Motion
By: Sack
Second
By: DeBenedetto
Vote: Unanimous
Items
Added to the Agenda: None.
Items
Removed from the Agenda: None.
Consent
Agenda Items Moved to New Business: There
was a correction to the draft
Other
Changes: None.
5. Public Comment: At this time, an opportunity was
provided for members of the audience who had registered to speak to address the
Council on any variety of topics not listed on the night’s agenda. The following input was recorded:
Robert Padalino,
Gerald Holleman,
Carl Phelen,
6.
Public Hearing: FY 2008-09 Budget
– Mr. Dean
presented the proposed budget ordinance and a proposed ordinance setting the
water and sewer rates for FY 2008-09 for the Council’s consideration. He said the revised budget takes into account
comments received at the Council’s budget work session.
He provided highlights in the
following memo to Council members:
FY 08-09 Budget Update
Pursuant to our
discussions at the budget work sessions, the following adjustments have been
made to the proposed FY 08-09 Budget:
1.
All car allowances have been removed
from the proposed budget. We have
allocated funds in each of the respective budgets either in fuel or travel
expense to cover reimbursement for mileage.
I have placed any additional funds remaining from the car allowance into
administration contract services account due
to our inability to project how much the mileage will cost the Town during the
coming year. I will bring this to the
Council for allocation should it be needed during the year. I am also suggesting prior to my
recommendation of further action that we have a three-month review process to
determine how much mileage each of the effected department heads are utilizing
during that time on a case-by-case basis.
We will adhere to
2.
I am recommending that the Town
Clerk’s position be at a grade 86, which is the beginning grade for all
department heads. I feel Joni functions
as a department head and her grade should be adjusted to show this. Also, the Council should schedule a time in
the near future to complete evaluations on Joni and John and to receive
feedback from the Council as to job performance.
3.
Increase in the overall general fund
budget was $28,500. General fund debt
increased $35,000 due to non-bank qualified financing interest rate, which
changed from 3.79% to 4.34%. This was
approved by the Council at the budget work session as part of the
Also, Councilmember
DeBenedetto had a couple of questions I wanted to address with this memorandum.
You have three options should you
wish to eliminate fund balance appropriations.
i.
The first would be to increase the
tax rate by 0.025 cents to 0.44 per hundred to cover the proposed budget, and
eliminate the fund balance.
ii.
The second would be to eliminate
individual capital expenditures, thereby effectively eliminating fund
balance.
iii.
The third would be to project more
revenue, which increases the potential to have shortfalls in revenues and
require the use of fund balance.
I still think the method we use is
the best and most cost effective manner to provide you a conservative budget
and appropriate use of funds, which is in the best interest of our citizens.
-- End Memo text
Mr. Dean noted in his comments that car
allowances had been eliminated from the budget, but he explained that funding
is provided for mileage reimbursements.
He said he would look at vehicle usage for about three months and then
make recommendations for car allowances, depending on usage. He noted that the budget benefited from bids
that came in less than anticipated for construction of the Bass Lake Outfall
and
He said the budget was based on an
assumed 95% collection rate applied to a $2.52 billion tax base with a revenue-neutral
tax rate of .415. He noted that
He noted that there would be a reduction
in the solid waste collection rate of $1.10 per month, which includes service
with larger recycling containers. He
said the town’s garbage rates will be the second lowest rates in
Mr. Dean noted that the town’s utility
rates would increase by $1 per month for water and $1 for sewer. The rate increases, he said, are by design to
pay for infrastructure improvements.
He also noted that the budget funds 16
new positions, with an emphasis on public safety; a 4% cost of living increase
for all positions; 3% of total salaries to fund the annual performance
evaluation merit program; and a 6.5% increase in health benefits costs.
Mr. Weeks then addressed the
Council, providing highlights of budget accomplishments in FY 2007-08 and
projects slated for FY 2008-09.
That explanation completed, Mayor Sears
opened the public hearing. The following
comments were recorded:
Gerald Holleman,
Van Crandal,
There being no further comments, the public
hearing was closed.
Councilman DeBenedetto said he has an
ongoing concern about the Town’s level of debt and the fact that salary and
wages accounts for 55% of the budget. He
asked if employee resources were being managed efficiently. He said he does not feel comfortable with the
town’s taking funds from fund balance.
Councilman DeBenedetto then said he would
like to see the town add a purchasing department in next year’s budget.
Councilman Womble asked if progress could
be made on the
Mr. Dean explained that $200,000 is
included in the budget for planning, design and bid documents related to
renovation of the
The bond referendum, Mr. Dean explained,
would be for acquiring land for open space and parkland, construction of a community
center, renovation of the hunt center and transportation projects. He added that if a tax increase would be
needed to fund the bonds, this would be explained to voters before the referendum.
Councilman Womble asked that there be no
delays in getting the
Councilman DeBenedetto asked about the
Action #1: The
Council approved a motion to adopt Ordinance 08-07 enacting the FY 2008-09 operating budget,
effective
Motion: Sack
Second: Dickson
Vote:
Unanimous
A
copy of Ordinance 08-07 is incorporated
into these minutes as addendum pages.
Action #2: The
Council approved a motion to adopt Ordinance 08-08 setting the water and sewer rates for the fiscal
year beginning
Motion: Sack
Second: Womble
Vote:
Unanimous
A
copy of Ordinance 08-08 is incorporated
into these minutes as addendum pages.
7.
Consent Agenda:
The Council approved all items on the Consent Agenda following a motion
by Councilman Sack, a second by
7a.
Minutes - The Council
approved minutes (as corrected) of the
Council’s regular meeting held on
7b. Resolution 08-29 – The Council
adopted Resolution 08-29 directing
the town clerk to investigate the sufficiency of annexation petition A08-05,
7c. Budget Amendment, $18,000 – The Council adopted
an amendment to the FY 2007-08 budget in the amount of $18,000 for credit card
billing fees. A copy of the budget amendment is incorporated into these minutes as an
addendum page.
7d. Budget Amendments, $10,050
- The Council adopted amendments to the FY 2007-08 budget in the amount of $10,050
to allocate a federal grant for furniture and fixtures at the
7e.
Budget Amendment, $5,615 – The Council adopted an amendment to the
FY 2007-08 budget in the amount of $5,615 to receive insurance proceeds to
cover costs associated with the repair of police vehicles. A copy
of the budget amendment is incorporated into these minutes as an addendum page.
7f.
Budget Amendment, $58,000 – The Council adopted an amendment to the
FY 2007-08 budget in the amount of $58,000 to recover costs associated with
water tower maintenance. A copy of the budget amendment is incorporated
into these minutes as an addendum page.
7g. Budget Amendment, $5,000 – The
Council adopted an amendment to the FY 2007-08 budget in the amount of $5,000
to recover costs of materials in the wastewater treatment plant lab. A copy
of the budget amendment is incorporated into these minutes as an addendum page.
7h.
7i.
Green
7j.
8a. Harnett
1)
8
mgd capacity would be purchased for $14,000,000 (14 million dollars) plus
administrative and technical expenses totaling an additional $869,000;
2)
payments
would be provided to Harnett as payments become due to the contractor;
3)
the
Town would receive the full allocation of 8 mgd at the initial phase of the
expansion; however, additional improvements to the pumping facilities would be
needed in order for the Town to receive amounts in excess of 4.5 mgd; and
4)
the
Town would own “capacity” in the plant, meaning a right to receive the water at
the county’s bulk rate as established by its budget and sold to its customers;
however, the Town would not acquire a real property interest in the plant.
Action: The
Council approved a motion to enter a contract with
Motion
By: Sack
Second
By: Dickson
Vote:
Unanimous.
A
copy of the
8b.
Fuquay-Varina Annexation Agreement – Mr. Dean
said that progress had
been made as of last week on a modified annexation agreement between
Reports are, however, that the
Fuquay-Varina Board of Commissioners nixed the idea of an adjusted line and a
proposal for the Town of Fuquay-Varina to purchase water from
The latest position of the Town of
Fuquay-Varina, Mr. Dean reported, is that the existing line remain in place and
if the Town of
Mr. Dean said he would recommend
that the
He added that Fuquay-Varina would
likely proceed with its involuntary annexation, but all of the property
included in that annexation lies on the Fuquay-Varina side of the existing
line. He noted that Fuquay-Varina officials may very well continue to say that
they are annexing the property because
Mr. Dean said he had hoped that
Fuquay-Varina officials would have agreed to the modification he and Mr. Andy
Hedrick (Fuquay-Varina Town Manager) had devised.
In discussion, Council directed that
the town managers continue negotiations, leaving the water sales issue as a
separate issue, if necessary.
Mr. Dean said once final adjustments
are made, the proposed annexation boundary line would be presented to both Town
Councils. Following, a public hearing would
need to be held in both communities before the new agreement is executed.
He said it is anticipated that the
final version of the line would be presented on Tuesday evening, June 17. It also is anticipated that if Fuquay-Varina
and
Action: The
Motion By:
Sack
Second
By: Womble
Vote: Unanimous.
9.
Other Business: Councilman Sack reported that the
pavement on
Councilman DeBenedetto reported on a
recent Triangle J Council of Governments meeting and noted that one issue all
municipalities are facing is an aging population that is growing. Then, Councilman DeBenedetto claimed that the
town’s Web site information about the
10.
Manager’s Report: None.
11. Closed Session:
The Council approved a motion to
enter into Closed Session, pursuant to G.S. 143-318.11(a)(3)
to discuss authorizing settlement amounts for land acquisition.
Motion By: Dickson
Second
By: Womble
Vote: Unanimous
General Account of Closed Session –
In Closed Session, the Town Council
heard a report from the Town Attorney on properties that are being acquired for
infrastructure improvement easements. He
asked the Council for authorization to purchase from a property owner about
five acres that would be rendered useless to the property owner following
construction of the four-lane section of Green Oaks Parkway. The Council provided that direction.
Action: The Council approved a motion on the Town
Attorney’s advice to amend the condemnation action to authorize up to $150,000
to purchase the property – not just the right of way needed for the roadway --
from the landowner.
Motion
By: Sack
Second
By: Womble
Vote: Unanimous.
Action: The Council approved a motion to return to
Open Session.
Motion
By: Sack
Second
By: Dickson
Vote: Unanimous.
-- End General Account
12.
Adjournment: There being no further business for
the evening, the
Respectfully
Submitted on
_________________________________
Addendum pages as referenced in these
minutes follow and are a part of the official record.