Town Council Special Meeting and Public Hearing Summary - June 28, 2023 at 5:00 p.m.
Thank you to all who joined us for the Town Council Special Meeting on Wednesday, June 28, 2023 at 5:00 PM in Municipal Hall. The following is a summary of the meeting for those who could not attend. You may download the meeting packet for further details. Please note that this is a summary and not formal minutes. Minutes from this meeting will be included in the following month's meeting packet for the Regular Town Council Meeting.
I. Call to Order: Mayor Pritchett called the meeting to order.
II. Agenda Adoption: The Agenda was approved as written.
III. Public Hearing for Ordinance No. 23-06-28 Adopting the Fiscal Year 2023-2024 Budget: A public hearing was advertised in accordance with North Carolina General Statutes to receive comments in regard to the proposed Fiscal Year 2023-2024 budget.
In accordance with G.S. 159-13 (a), the Town Council of the Town of Lake Lure adopts this ordinance entitled Town of Lake Lure 2023-2024 Budget.
SECTION 2. This ordinance includes revenues and expenditures in the General Fund, Water/Sewer Fund and Electric Fund.
Revenues and expenditures in those funds are as follows:
REVENUES
I. GENERAL FUND
Ad Valorem and Vehicle Taxes $4,666,604
State Shared Revenues & Grants $2,860,050
Land Use Fees $67,255
Cultural and Recreation $1,252,800
Miscellaneous Revenues $60,742
Transfer from Capital Reserve $219,014
Installment Agreement Proceeds $385,000
TOTAL GENERAL $9,511,465
II. WATER/SEWER FUND TOTAL WATER/SEWER $1,650,360
III. ELECTRIC FUND TOTAL ELECTRIC 300,150
GRAND TOTAL - ALL FUNDS $11,461,975
EXPENDITURES
I. GENERAL FUND
Governing Board $43,800
Administration $1,198,000
IT/Telecommunications $118,200
Police $1,040,735
Fire $1,046,405
Sanitation $235,000
Public Works $697,200
Economic Development $118,800
Community Development $513,300
Parks, Recreation & Lake $721,900
Beach & Marina $17,500
Dam/Watershed Protection $25,000
Non-Governmental $188,000
Capital Outlay & Projects $1,566,000
Debt Service $381,625
Transfer to Dam Capital Reserve Fund $1,600,000
TOTAL GENERAL $9,511,465
II. WATER/SEWER FUND
Water Operations $371,200
Sewer Operations $598,800
Capital Outlay and Bonus $335,000
Debt Service $119,945
Transfer to Fund Balance (Equity) $225,415
TOTAL WATER/SEWER $1,650,360
III. ELECTRIC FUND
Operations $300,150
Capital Outlay -
TOTAL HYDRO-ELECTRIC FUND $300,150
GRAND TOTAL – ALL FUNDS $11,461,975
SECTION 3. To achieve this budget program, the Town Council of the Town of Lake Lure, in accordance with G.S. 159-13 (c), the tax rate shall be 0.357 per $100.00 of property valuation (municipal services at 0.157 per $100.00, Dam capital .127 per $100.00 and fire district tax at 0.073 per $100.00 of property valuation).
SECTION 4. Pursuant to the authority set forth in Article 20, Chapter 160A of the North Carolina General Statutes, the Town of Lake Lure and Rutherford County have entered into a contractual agreement to provide for centralized and systemized billing and collection of property taxes in Rutherford County. Under this agreement the County will perform for itself and the Town all of the tax collection functions prescribed in Subchapter 50 of Chapter 105 of the North Carolina General Statutes (often referred to as the Machinery Act). This joint tax collection system shall commence with the tax levy for the fiscal year beginning July 1, 2023.
In accordance with section V. of this agreement, the Town of Lake Lure hereby adopts the same tax discount schedule as the County for the Town's tax levy for the fiscal year commencing July 1, 2023.
i. Staff Report: Town Manager Hank Perkins shared the following Budget message:
"It is my pleasure to submit for your consideration the proposed balanced Town of Lake Lure Budget for Fiscal Year 2023-2024 commencing July 1st, 2023, and ending June 30th, 2024. This budget is based on careful analysis of departmental operating budgets, Capital requests, and prioritized needs identified by department heads through one-on-one meetings and with consideration of discussions and outcomes that resulted from our Council Planning Meeting on January 11th, 2023.
General Budget: The general fund budget is balanced at $9,511,465. This includes $219,014 in appropriated fund balance for non-recurring capital costs and projects.
County Re-evaluations: Rutherford County conducted a re-valuation of all properties in 2022.
- Lake Lure property values are estimated to have increased by 56.3 % over previous valuations.
- The North Carolina General Statute requires that a “revenue neutral” tax rate be stated as a part of the budget.
- This revenue-neutral rate for the Town of Lake Lure is calculated at $0.357 per $100 of property value.
- Lake Lure's budget is balanced at the recommended tax rate of $0.357 per $100 of property value.
The following tax rate factors have been applied:
- 15.7 cent rate for municipal services
- 7.3 cent rate for fire protection services
- 12.7 cent rate for the dam capital reserve fund.
The total net taxable revenue is $1,327,199,558. This should generate $4,666,604 in tax revenue on real, personal, and utility property, assuming the current collection rate by Rutherford County of 98%.
The Town’s Water and Sewer Fund is $1,650,360.
- The Town has a Hydro Fund that is balanced at $300,150 with revenue derived from a power purchase agreement with Duke Energy.
- The hydropower generation equipment is used as a method to regulate lake levels while generating income through hydropower production.
Provision of Services
The budget anticipates the service levels of Fire, Police, Public Services, Administration, Communications, Community Development, Parks/Recreation & Lake, and Utilities to continue at current service levels.
The budget does provide for new initiatives such as planning the development of a new Fire Department facility, the continued implementation of the Morse Park Master Plan, the planning process for the redevelopment of the Green Space, and a transportation initiative that will hopefully lead to establishing crucial pedestrian connectivity with the Chimney Rock Village.
Capital Infrastructure Projects and Lake Dredging
Outside of our regular operations, this budget also provides support to crucial major infrastructure projects such as the Replacement Dam project, the replacement of our subaqueous sewer system, and our wastewater treatment plant. All of which are major multiyear projects.
It is anticipated that the Town will be engaged in a project to install drain valves in our dam to provide the ability to drain the lake if necessary to as low as 20’. The valves themselves were purchased in fiscal year 2022-2023. The cost of the project is expected to be approximately $8 million and is expected to be completed in the spring of 2024. The cost of this project will come from capital reserves that are dedicated to the replacement of the Dam. The first reserve has a balance of approximately $3.2 million and is funded by an annual contribution from the general fund of $1.6 million. The second capital reserve is approximately $16 million dollars which was established by an appropriation by the North Carolina General Assembly.
Lake Lure’s infrastructure projects for the replacement sewer system, as well as the replacement wastewater sewer plant, are both supported by funds from the American Rescue Plan (ARPA) for $8 million and a State Revolving Loan from the State of North Carolina for $12.5 million.
Both projects are contained or will be contained in the Capital Projects ordinance.
The budget provides funds of $1 million annually for lake dredging activities. We have support from the State of North Carolina for a grant reimbursement of up to $750,000 in support of these activities.
Personnel
The budget as proposed supports 41 full-time equivalent (FTE) positions. Of these full-time positions, 38 are in the General Fund, 2 full-time positions are in the Utility Fund and 1 full-time position is in the Hydro Fund. This includes one additional position that is recommended for inclusion in the Fire Department starting for Fiscal Year 2023-2024.
The Town provides a full benefits package including medical, dental, vision, retirement, and 401(k) match of up to 5%. In addition, Lake Lure provides a post-retirement benefit to provide health insurance after retirement with at least 5 years of service to the Town of Lake Lure.
We have included a market adjustment of 6.25% to adjust the Town’s annual compensation for both existing and new employees. A 10% increase is provided for health insurance with no expected increases for either dental or vision plans.
Conclusion
While this budget does not address every need, want, preference, desire, project, program, or requested capital item, it will provide for the continuation of the municipal services currently provided and at the level expected by our residents while ensuring that we are maintaining the assets we have and setting the stage to make significant strategic investments in infrastructure.
In the months of May and June, the Town Council will meet as necessary to conduct reviews of this budget as proposed for Fiscal Year 2023-2024. Once finalized, staff will convert the budget message to an ordinance to prepare for adoption. I am also recommending that the public hearing for the Budget for Fiscal Year 2023-2024 be scheduled for June 28th, 2023, at 5:00 pm. The budget will then be adopted thereafter at the Town Council’s pleasure.
I wish to recognize the monumental efforts of staff in the formulation of this budget, specifically Mr. Stephen Ford, Finance Director, and our professional department heads and their staff. Without their tireless efforts, it would not have been possible for this budget to be prepared and presented to you.
Lastly, I wish to acknowledge the support of the Town Council. On behalf of the staff, thank you for the efforts that you put forth every day for the Town of Lake Lure. Your guidance has been essential in our ability to develop and put forth this proposed budget for your consideration."
ii. Public Hearing: Mayor Pritchett asked if anyone had any comments and there were none.
iii. Council Deliberation:
IV. Consideration of Adoption of Ordinance No. 23-06-28 Adopting the Fiscal Year 2023-2024 Budget: There was a discussion and the budget was approved.
V. Consideration of Adoption of Fiscal Year 2023-2024 Fee Schedule: The proposed fee schedule includes general fees, utility billing fees, and land use fees. There are no proposed changes to the Fee Schedule for 2023-2024, aside from the addition of a note in regard to double permit fees on the land use fee schedule. The lake use fee schedule is adopted by Marine Commission on a calendar year schedule. The Fiscal Year 2023-2024 Fee Schedule was approved.
VI. Budget Amendment #348 – Prior Year Capital Rollover Funding/Expenditures for Public Works Vehicle (FY 22-23). The purpose of Budget Amendment #348 is to follow budgetary procedure related to funding prior year expenditures that were a carryover from previous fiscal year. Specifically regarding the payment of invoices for two Public Works vehicles that were approved in prior year and procured in this current fiscal year. The amount associated with Budget Amendment #348 is $52,000. This budget amendment was approved.
VII. Budget Amendment #349 – Insurance Proceeds Recognition (FY 22-23). The purpose of Budget Amendment #349 is to fund expenditures for vehicle repairs related to vehicle accidents and losses. Expenditures and requested increases offset by insurance received and expected as increased revenues. The total amount associated with Budget Amendment #349 is $50,000. This budget amendment was approved.
VIII. Budget Amendment #350 – Prior Year Capital Expenditures Rollover Funding for General (FY 22-23). The purpose of Budget Amendment #350 is to ensure approved funding of all sewer related project expenditures from initial phase and prior design/planning. The total amount associated with Budget Amendment #350 is $850,000. This budget amendment was approved.
IX. Adjournment: The meeting was adjourned.
