Town Council - Regular Meeting

So, we're gonna move right along. I would like to welcome everyone to the Town of Lexon Council work session this evening, February the 17th, 2026. You going to have a lot of minutes, Laura, for this night. Work sessions are less formal business meetings that enable the council to obtain and discuss information regarding town issues from staff members and/or consultants. Citizens are encouraged to attend and observe work sessions. However, they do not include public hearings. Council does not take an action vote on items during a work session other than a vote to place them on a council meeting for future consideration. This work session is now called to order. Are there any deletions from tonight's agenda hearing? None. We are going to go into our first presentation and I'm going to ask Mr. Eli to come forward. And I know his parents are going to want to come with him, too, cuz we have a special guest with us tonight, guys. You come stand right there for me. And I'm gonna come down to you in a minute. Come so I can see you. Come around here. He told me that I couldn't beat him in wrestling. So, if you guys want to channel and see him up here, y'all go ahead with it because he told me I couldn't. So, our first presentation tonight is recognizing Eli Franklin. And some of y'all may recognize his daddy cuz he is the favorite UPS man on Main Street. The girls and the guys there love him. So he's famous on Main Street. Everybody was so excited Eli was coming tonight to be recognized cuz Eli, they know all about you on Main Street. So tell Daddy to take you down there. His outstanding achievement in wrestling at just 6 years old. Eli is 6U 49 pound Tulsa national champion and was named the 6U most outstanding wrestler alongside his teammate Prince. He was he also helped Mighty Warriors Wrestling Academy win the 6U team championship.

Eli has been training since age three and is also the 2025 South Carolina State Champion preparing to defend his title next month. So Eli, we expect to hear more from you. Okay, Eli, your hard work and dedication and ma it makes our community very proud. Congratulations on these incredible accomplishments. We have a certificate and a small token of our appreciation from the town of Lexon to present to you. So I'm going to come down and give you a couple of things. Okay? And you want to tell these guys that you don't think they could beat you either. Can y'all see that trophy this boy won at six years old?

I know. One, two, three. I know you want to teach it. Look up one more time, please.

Congratulations. Do you want to say anything? You want to say anything? Yeah, that's Kevin. Emily, Kevin's a good dude.

Pretty cool. Our next item did I lose it? Is a Did I lose? I've lost myself. Hold on a minute. Mhm. Take my time. What did I do with page nine? You can take your time, too. I lost page nine, Laura.

No, I found it. Okay. Sorry. Our next presentation is 2025 audit and statements report. Kendra Vandruff, CPA partner from the Britingham Group. Down just a little. Good evening everyone. Um I will be presenting the June 30, 2025 audit results for the town. I will go through an act for overview overview of financial section other reports of I'm not good at multitasking. Am I hitting the right button?

The reports of independent auditors and a brief summary and any questions you may have at the end.

Prior ACTERS have received the GFOA certificate of excellence in financial reporting award. The town has received this award for 27 consecutive years. The acter is presented in three sections. introductory, financial and statistical. Distress APER will also be applying for the award and a lot of work goes into getting that award. The financial section of the ACTER is comprised of the report of independent auditors, management's discussion and analysis, the basic financial statements, and the notes to the financial statements. The town received an unmodified or clean opinion, which is the highest level of reporting assurance an organization can receive from its independent auditors. It is also an unlimited scope opinion which means we had full and complete access to the books and records of the town. The town ended with total net position of 226 million as referenced on page 34 of the aer. The 2024 net position was 198 million. The net position is composed of three different categories. The first being net investments in capital assets which is your value of your assets net any um associated debt and that was roughly 174 million at the end of the year. The next category is restricted and this is funds restricted for any debt that you owe capital projects um and a host of various other things. The third category is unrestricted and this was roughly 36 million at the end of the year and this is for anything that the town wishes to use it on. The town's net position increased by roughly 28 million over June 30, 2024 as referenced on page 35 of the Afford. This increase was mainly due to an increase in water and sewer revenue, property taxes, business licenses, and capital grants and contributions. These increases in revenue were offset by an increase in expenses as compared to the

prior year. General revenues totaled roughly 23 million which include property taxes, business license taxes, hospitality taxes, unrestricted state aid, and investment earnings. Also, as referenced on page 35 of the ACER, the town's capital assets were increased approximately by 16 million over the prior year. Um and the the detail of this in increase is referenced on page 62 and 63 of the aer. These were mainly due to improvements in the combined waterworks and sewer system, street improvements and park improvements. The town received an unmodified opinion on the independent auditor's report on internal control over financial reporting and on compliance and other matters. The town also received an unmodified opinion on the independent auditor's report on compliance for each major program and on internal control over compliance required by the uniform guidance. As stated, the town received unmodified audit opinions in all areas. The financial position of the town is strong with a net position of 226 million at June 30, 2025. The town had an increase in net position of roughly 28.1 million. No internal control findings were noted during our audit. Our sincere thanks goes out to the entire staff of the town. Any questions?

Does anyone have any questions?

I guess they do not. So, I guess you get off easy. They'll be calling Kathy tomorrow. Thank you. Thank you. And our next presentation is from Vanessa and this is on our um development impact fee report. Correct. Yes, mayor. Yes, ma'am.

If I may just interject. So, um, Vanessa is doing this tonight and has handouts for you. Um, this time last year when we, um, did our impact fee update, you all had expressed an interest in hearing a presentation like this upon the anniversary date of, uh, the annual anniversary date when we pass the um, business license ordinance. So, that's what you've got tonight.

Thank you. Um so now that we're about six years into impact fees, everyone is un understanding um that these fees help build and maintain our infrastructure as we grow. Uh just two highlights from the ordinance are the projects on the next few slides come from the capital improvements plan which planning commission may review as often as necessary but not less than every five years. And as per South Carolina Code of Law, impact fees must be expended within 3 years of the date they were scheduled to be expended. Um, starting with transportation, we received $148,825.91. We earned $97.71 in interest. We had an ending balance of1,80,56642 for fiscal year 25. We have an estimated we estimated a total of $800,000 in impact fee revenue for fiscal years 26 through 29. And currently listed on our capital improvements plan is the Gibson and West Main intersection which is estimated to cost 1.8 million. On to parks and recreation revenue brought in was 51464 and we earned interest at $15.56. um just shy of $45,000 was transferred into uh VHP renovations, leaving $6,534

at the end of fiscal year 25. 400,000 is projected for impact fee revenue through fiscal year 29. And as you can see, the project lists that are on the capital improvements plan totals over $2 million. And finally, MU Municipal Facilities and Equipment received $19,733.15 in revenue. They earned $12954 and 54 cents in interest. Ending balance of fiscal year 25 was $153,24 and with an additional 400,000 expected to be earned um through fiscal year 29 which is when this ordinance goes through for our impact fees. And as you can see, that's our biggest um list of projects there. And that is nine just over $9 million. Any questions? Does anyone have any questions for

No, I think all of us are looking at it and studying it. So we may have questions for you eventually, but do you have anybody have any? Hearing none. Thank you. Now we'll move into our new business items. Our first one is an application for accommodations tax advisory committee. Laura Hansen.

Good evening, mayor and council. Um this is the consideration of an application for the accommodations tax advisory committee. Um, there was one current vacancy and the town received this application. Um, he does meet all eligibility requirements. I know Vanessa's taking a look at it as well. So, the application was attached to your packet and we're looking to place the approval for this gentleman on the March 2nd, 2026 meeting. Do I hear a motion to place this on the agenda? So moved. Councilman Williams makes the motion. Do I hear a second? Second. Councilman Michaels second it. Is there any discussion?

I'm understanding that he's the general manager for the Hilton. Yes. Okay. And that falls in Yes. Um that those are usually regulated. That committee um has a lot of state regulations and so that is some of the members have to be um you know in lodging or hospitality. So he would meet that. Okay. Anybody else have any questions? Not not about the applicant, but who is our staff liaison for that uh committee now? Vanessa Stoker. Okay. Yeah, she's our special funds manager. Okay. She's been handling that. Any other questions?

Hearing none. All those in favor of putting this on the agenda, raise your right hand. And it is unanimous. Our next item of agenda on the agenda is from transportation director Randy Edwards BPS Holdings LLC temporary parking.

Good evening, Mayor Council. Um, as we move closer and closer to the North Church Street parking, um, the town of Lexon is planning this 100 space parking lot, um, up here off of North Church Street on tax map number 004320004 containing approximately 1.12 acres. Um, and the next tax map number containing 0.29 acres. construction process will displace employee parking that's currently used by Wild Smiles part of the previous agreement that was approved. We've entered into an easement agreement to build the parking lot on there and this park this temporary their current parking will be displaced while we construct the new parking lot. Um, so this we've reached out to uh BPS Holdings, um, which is I think it's the former Luric property there where all the parking is at the old BBT bank area. Um, and we negotiated a temporary parking agreement um for a total of 20 spaces. Uh, this agreement is before you. Um, and uh, we would seek your authorization to enter into this agreement. Uh the terms of the agreement are expected to begin August 1st uh with a monthly rent of $45 per space and uh with a to hold the reservation fee of $2,700 to be paid upon um signature. So we would ask that you'd allow us to enter into this agreement so that we can move forward with all the other items that are contingent upon this agreement. Do I hear a motion to put this on the agenda?

So moved. Councilman Smith makes the motion. Do I hear a second? Second. Councilman Michael second. Is there any discussion on this? This is pretty standard numbers. Correct. That's the market rate that that's what I was asking. I guess is market rate for I mean for the we're we're technically getting a slight discount simply because we're renting 20 spaces but upon the the details of the agreement do say that upon the 9month we it will actually go up to um 60 $65 which is the current rate you'll be on time just like we were with the other parking lot correct I have faith

yes ma'am I have faith in you any other discussion hearing. None. All those in favor raise your right hand to put it on the agenda and it's unanimous to put it on the agenda. Thank you. And our last one is from the chief approver of memorandum of agreement with the South Carolina Department of Juvenile Justice.

Good afternoon, Mayor Council and the great citizens of town Lexon. Four, you have a consideration of approval on memorandum of agreement between the town election and South Carolina Department of Justice for the position of securing detention service for fiscal year 2025 2026. Agreement is typically updated on an annual basis. Action request is placed on the March 2nd agenda item. Council I mean chief asked for us to place this on the agenda. Does anybody want to make a motion?

So moved. Yeah, too quick. Councilman Smith makes it. Councilman Williams second it. Is there any discussion? Hearing none. All those in favor raise your right hand. And it is unanimous. I'm moving to comments. Any questions from the news media? I don't think we have any. Any comments from the public regarding a specific item on the agenda tonight for the count work session? Any additional comments from staff or from council? Kevin, we would personally like to welcome you on board as the new assistant administrator. We're happy to have you. Would you like to say anything?

Uh, just thank you for having me, mayor and council. I appreciate the opportunity to be here. Thank you for being here and we look forward to working with you and some great ideas. That concludes our business for tonight's work session. Thank you for watching and without objection we are adjourned.