Town Council - Regular Meeting

Good evening. We will move right into tonight's workshop item, the fiscal year 2027 proposed budget for general funds. And we will start with town administrator Rachel Glaton.

Thank you, mayor. Um, our finance director was unable to be here tonight. So on our on behalf of our finance department, we have both Chad and Lorraine and I'd like to invite Lorraine up to provide to you all a presentation of our general fund and I believe it refers to a few special funds and we will follow up with that with discussion regarding the proposed FY27 general fund budget. So Lorraine Weider, assistant finance director.

Thank you. Good evening. Yes, I'm trying to see the charts.

Aha, there we go. Okay, the the charts here are going to show the actual numbers up through fiscal year 25. Then the budgeted numbers for 26 and 27 where 20 26 actuals are estimated in the budget document. Revenues are projected based on nine months of current year's collection and 10 years of historical data and trying to adjust for known fluctuations. Fiscal year 27 expenditures are projected based on department managers estimates to maintain existing service levels. The first chart shows revenue growth in the general fund. We've increased budgeted general fund revenue by 277,827 which is a 1.5% increase from last year. This change is due to anticipated growth in property taxes and business license. We have estimated each of these categories to increase 300,000 for property taxes and 451,460 for business license. Recent annexations play into this as well as expected growth in local business revenue and utility revenue. The next chart shows the various components of revenue for fiscal year 27 as a pie chart of the franchise licenses and permits. 73.3% is business license, 20.5% is franchise fees, and 6.2% 2% as permits. The next pair of charts shows general fund expenditures. As the town has grown, expenditures have also grown. This chart shows the growth of general

fund expenditures over time. The red line shows the growth of total general fund expenditures. The navy line is police. The green line is parks and sanitation and the medium blue line is general government which includes council, administration, finance and information technology. Transportation is the light blue line. We have broken out court and planning into their own categories. The next chart shows how we divided the money. 46% goes to public safety. Of this 8.9 million, approximately 7.5 million or 84% of public safety budget is for salaries and benefits. The remaining general fund expenditures is split between parks and community services, transportation, municipal court, planning, and general government. Of the 5.1 million budgeted for parks, 35% of that or 1.8 million is for sanitation services. Our next chart shows the legal debt margin for the general fund. As assessed values of property in the town grows, the amount of funds we may borrow also grows. The Gibson and Pond Geo BAM was paid off in August of 2025, leaving us with no geo debt outstanding for fiscal year 27. The next chart, you're

shows position changes since 2012 in the general fund. The police department has the largest number of employees with 72. This chart does include the new positions proposed in the budget. Our next chart shows hospitality growth since 2016. And the final chart shows impact fees revenue since 2019. Thank you. All right. Thank you, Lorraine. Like I mentioned, uh Mr. Chad Melvin is also here in case there are any questions um that council has. The proposed budget that's in front of you does not include um a millage increase. Uh it we do have a 2% increase for the various fees that are already established uh within our budget, permit fees, etc. Those sorts of things. Um I'm happy to answer any questions that council may have. Our directors are here as well should anyone have a specific question for um a director related to a department.

Mayor, sorry. I'm going to start out. Um

first of all, Rachel, I want to thank you and the staff and all the department heads are working so hard to bring us this budget. Um we appreciate that very much and keeping no millage increase for us. Um, I am happy to see that we were able to do a few of the the positions that we were not able to do last year in here. Um, and supporting some of our departments that need some extra staff. Um, and I think it's very important that we do what we can to maintain our staff and to keep them. Um, and this is a balanced budget.

Yes, mayor. This is a balanced budget. Okay. Okay, Jenny. Oh, yeah. Um, one thing we it looked like we were increasing um from 2026 our operating expenses by like 8%. But our revenue only at about a one and a half percent. Is there a reason for that difference?

Sure. So, our operating expenses incorporate um more than just general fund revenue. It can include special fund revenue. So, that's going to be um impact fees. That's going to be um hospitality tax, local and state accommodations tax, our alcohol funds, that sort of thing. Okay. You finished, Jenny? Yeah. Okay. So Rachel, a lot of our hospitality tax is still able to be used towards traffic projects also, right? That is correct. And so we're still doing that right now because that's where um we committed to put that money as long as we could legally do that. Correct. That is correct.

Okay. And the projects that are included are projects that um have been planned and envisioned by council. We are still working on all of those projects. Okay. And then the impact fees, the dec decrease in that is because our growth has slowed down some, I would say. So, and and of course, these are projections. Um, just because, let's use single family housing, just because we have single family um units approved in the pipeline, we don't charge those impact fees until um the building permit is pulled. So, a lot of that revenue um is a delayed revenue, if you will. Okay. Madame Mayor. Yes, sir.

Um, I have a number of questions. Um, but I guess one of the first things that jumped out to me is, and I'm not going to go through every department, but parks has seen a 25.3% increase in their overtime. Uh, building maintenance specifically saw a 638% uh, increase in overtime. It is seeing a 200% increase in overtime. transportation, a 62% increase in overtime. So that is a troubling sign to me. It signals, at least from my perspective, is our staff being overworked. Now, I want to say I understand some people just want the overtime hours,

but my question would be, are we adequately staffed? Um, have we uh evaluated that to ensure that we are not overworking people? Are we requiring them to work too many overtime hours? Do our do we have the resources that we need by department to alleviate some of that need for overtime?

So I think the answer to that question is going to be different based on each department and I'm happy to invite the directors up if they'd like to provide specific examples. Um let's pick on transportation just for example. We do have um two requested new positions in the um budget for transportation. While one is an admin, another is a road tech position. Um, it also includes an upgrade of an engineer position that's already budgeted and unfilled. I'd be happy to invite Jeff to come speak to the parks because if I had to guess, what you're seeing is an increase related to what is previously different areas not providing backup services and providing overtime. Um, what you're seeing maybe that spread across multiple individuals, but I I'd have to um request Jeff for that. Um, if you'd like some additional information,

would you like Jeff to come up? I I guess in general if you'd like to to bring Jeff up. I just would like to and if and if staff would like to to dig into this and maybe bring it back to the next uh session, that's fine, but I'm just concerned. I see a growing trend for overtime. Okay.

And it just makes me wonder, are we requiring too much of our staff? Do we need to allocate more resources for additional hires? are our directors, are they in need of that? Um, you know, what is causing this surge of overtime? And again, I understand that some of it may be categorization or um performing backup services, etc. I understand that that can drive a percentage up to a significantly high percentage like 600%. But I just that that that was a red flag for me to make sure that we are providing the staffing resources that each department needs.

Okay. Um, my first response to that is every position that was requested is currently included in the budget. So, I I'd like to invite Jeff up if he has that information available. He can address those.

Sorry to put you on the spot, Jeff.

That's all right. Um, the variance I'm seeing there was $150 allocated toward building maintenance and and now you're seeing an $1,100. So, it was $1,000 increase is what we're talking about. And I realize it equates to a high variance percentage, but um this is just uh folks responding if there's a rental in this building and there's issues that occur and they have to report. We've had clogged toilets, uh broken water lines, anything such as that that they'll report to and finance keeps those numbers for us. Um I don't request those numbers at the start of the year. Um the parks budget uh is pretty similar but we are being asked to do more at the amphitheater and a lot of those uh hours are accumulated there. And those staff also respond to any uh inclement weather issues as well. So we are bound to whatever storms come about for those guys to respond. Those are your guys that are clearing streets and whatnot for storm debris.

I can say the $1,000 sounds better than 110%. Yeah. Yeah. And I and I recognize you can't always look at the percentage. Um, you know, I I saw the the dollar amounts. So, I guess what I would ask you, I'm going to put you on the spot and I do this to to Randy sometimes or chiefs especially in this budget request. Do you have what you need staffing-wise? Can you confidently say that? Is there anything that you need that's not included in this budget? I feel pretty confident and they supported us through our request. So, I feel pretty confident that we can do our job with what's here. All right. That's good to hear. Good.

I'll yield for other questions. I have other questions, but I don't have to hog the time. Anybody else have any questions? Mayor, yes. I have a question for Randy. Um Randy, what you get up there? Looks like we have I mean there's a lot of um increase it seems to you like an you know an 18% almost increase in transportation obligations. Is that part of what our LTIP and or what is that what are those obligations in that increase this year? in there. Uh,

are you referring to the total operating expenditures increase of 18.3% page 42? Yeah.

So, that's the page. Okay. talk about being on the spot. Yeah, it's like at 261,000 something like that. Uh so our for example our signal supply budget uh tripled um that is where we are now obligated to pay our insync rhythm. Believe that that's what's baked into that number.

Um we have to pay a per signal maintenance fee for each of our signals that we maintain that have the insync uh rhythm adaptive on it. Um it's a change of we used to be a pay as you go and they've eliminated that option and so now it's if if we want to maintain our insync system as it functions we have to pay um that additional per so that's $50,000. Oh wow. Okay. By itself. So we we now maintaining right at 48 uh intersections um

signalized intersections. So, um that just kind of is one of the large increases. Um Randy, I'm concerned about y'all's fuel increase with the way gas prices are right now. Are y'all going to have have enough money for it for the next few months? We're counting on that stabilization. Yeah, we all are. And uh so yeah. So that's I mean I see you've got an increase but we all count it to come back down. Madam Mayor, we're

so we have other increases related to um repairs and equipment. For example, um repairs of our street sweeper. It's a year 2021 um addition. Um so we have an increase there. We have budgeted again for third-party um professional services for traffic impact analysis similar to how we used a third party when we had the bar road development come on board. Um so we've gone ahead and budgeted for that. When it comes to supplies, you'll see an increase there. Um we were overbudget on that this year. So, we're simply right sizing that particular category. Um, but really the camera network maintenance is going to be by far the the greatest increase and as long as we have um those cameras, there will be those costs associated,

right? And that's the question of maintaining that business model with me as far as we're concerned, maintaining that level of service for the public um to maintain that throughput. Um that's that's un unfortunately it does come at a cost this year. The other thing that's a big driver right here on your 18% is your total operating. I mean well there's two essentially two new positions or 2 point something with the upgrade. I mean that's a pretty significant change in the budgeted um salaries and fringes

um with a two $1502,000 increase there. So um that would then when you sum all that down to your total operating I mean it's those are those are your big big items if you will your big ticket items. So people maintaining in sync um giving us the flexibility on the uh traffic studies as well as our contract services you know I mean when we have to have some type of emergency work taken care of on the streets. Okay cool madam mayor. Yes sir.

I have a couple questions for Randy. Um, Randy, um, you may not have the exact answers to this, so if you need to get back, I that's okay. How much will the town receive from the federal government to complete road work in the town limits? Do we estimate this upcoming year? I believe, if I'm not mistaken, the answer is zero. Zero dollars. Okay. How much will the town receive? Do we expect from the state that we know of right now? Um we've got the old Cherokee project right at half a million dollars and um any reimburse

Oh, and our signal reimburseables we do get back right around $100,000 from our local DOT district. So around $600,000 from the state. It's a reasonable assumption without I mean just off the top of my head.

What about from the county? Uh, I don't know exactly the amount, but I mean hundred to $250,000 kind of depend upon the like we were just awarded $60,000 for additional concrete work on our pavement program that we're working on. So like that those types of funds just kind of I hate to say trickle in, but as we request they consider our request and um generally we make a compelling argument. So, but to to guess I mean we're 100 to $250,000. So, and those come in primarily through C funds. Correct. That's C fund obligations. So,

and and just for those watching and correct me if I get this wrong, but SE funds are essentially the monies paid in to the state that then come back to the county that are your gas tax essentially. Correct. Fuel. It's the the portion of gas tax that we get here in the town. That is correct. Do we have any idea of how much money is collected in town limits for gas tax? I mean, we could find out, but I don't I don't I imagine it's a substantial difference between what is collected versus what we actually receive back. Probably. It's a a fair evaluation.

Okay. Um, and I just want to ask this one last question on this series of questions. So, is it fair to say that primarily the road work that's being done in the town of Lexington is being done through other sources? Not the county, not the state, not the federal government. It is primarily hospitality tax dollars being used, revenue sources that the town has put in place to help alleviate the traffic congestion issues, many of which are on roads that the town doesn't even own. Generally speaking, yes, the projects we're doing, hospitality tax funded. There are a few other fund sources. Um, however, the lion share of the big work is certainly um hospitality tax based.

Okay, great. And then I just had one other question for you on a line item that I noticed. There's an uh on page 49, there's a contingent capital purchase for the rebuild of I26 intersection for $150,000. What is that? Uh so so we are carrying that simply so that we would manage it but it's to essentially rebuild the signalized intersection at I26 and 378 um down by Lexon Hospital.

Correct. Now the way that would work is ultimately we are the we fund and then we get reimbursed through the SC DOT for the but we're responsible for it through our SMA. We have to basically manage it, put put the bid out, do the design, all that kind of kind of thing. We we are essentially the FC DOT signal shop for that signal. So the monies would be spent out, but then we would expect to receive those monies reimbursed to us in return for managing the intersection.

Correct. So again, large scale projects whether some intersection is uh you know just in disrepair or is damaged by something that's not insurance related the SC DOT because they own the signal they will reimburse us but we have to be the lead. Got it. Okay. Thanks. That's good context. I had no clue what that was. Andy, before you leave, um, and I think we're looking at some of possibly doing that with with the county, too, that they're working on some red lights in their area that would be synchronized with ours. Um, yes, I think that

we have spoken with some of them and they're working on that, too. So, and I'd like to ask you this. I know you work closely with our grants writer. We're always looking for grants that we can do sidewalks and bike paths and stuff like that. Correct. That is correct. We are always I got a call before I came tonight from a lady that's fixing to deploy that would like to make sure that we are working on that regular. So yes, and I know that Marty Hartley wants sidewalks in that area. We need to get Paula to give us some money. We're trying we're trying to find some money. So,

well, and I think that once we have our sidewalk and trails and plan completed, that will go a long way to supporting applications for additional funding as they become available. Okay. Mayor. Yes, sir. Randy, I know we service 48 intersections. How much money does the state give us to maintain those intersections that were so taken care of?

Again, our typically Lorraine may know better than myself, but typically we invoice the DOT for around $100 to $110,000 annually. Um, so quick numbers, that's $2,000 in intersection. And then we're putting now moving forward 1,000 of that back into the actual rhythm software. So, so we're certainly out of pocket a significant portion to maintain them.

Okay. Um, under equipment rental, you went from 115 to 21350. This is page 42 about halfway down.

So um so that has to do with just being in a position to rent additional equipment, heavy equipment depending upon which size projects are planned to be done. Some of the stuff for example um some of the work that we did just right out here at Virginia Hilton Park, we had to rent a large scale um compactor. I mean that's just not something that we would own. And so you you rent that. Um so this is just positioning us to be able to be more responsive um to the work that is already programmed, whether it be uh you know wanting to pave uh um Gibson Park area or to maintain the South Lake until we um you know move in that direction. It's it requires that equipment rental um to come in and do that. And I'm assuming that you've looked into maybe purchasing some of that equipment, but due to the fact that we don't use it as often, it's not you don't want to buy it and let it sit.

Correct. And so, and when you're talking about earth equipment, I mean, you're talking a grand to two grand a week. Mhm. But if we only needed that three to four times a year, I mean, it's the cost of just maintenance alone on a say an excavator or a large roller would be um I don't think we'd ever get our return in our current mode of operation. Okay. And I see you increased your uh automotive repair up $6,000 um about 60%. So is your fleet aging out and we're trying to hold on some older vehicles or we having some regular repair issues. Are we looking at the

it's this page? It's actually repairs equipment. equipment repairs automotive 42. We have um so the sweeper that we that we bought in 2020 uh requires all the brushes, brooms, vacuum hoses to all be replaced. Uh put that in there to replace all of that. Okay. And then shop trailer rental $8,400. Yes, sir.

Did they fix the roof? Uh, yes. They they came and fixed the the seals around the windows, etc. Um, but obviously that's a temporary condition. And then Barnhill pump rental is something new. Uh, what's monthly pump rental? Is that for the trailer? It's for the trailer. It must be for the trailer. Item 58 on page 43. Yeah. Yeah. Any anything Barnhill is is the number of times we have to uh pump the the temporary septic tank that's associated with the trailer.

So that's where that cost is. Okay. So we don't have permanent access to sewage over there. No. Okay. And it was never planned, I mean, to be this. And and and I'm, if I remember correctly, you're asking for another position in the budget, correct? Oh, that is correct. I don't see the vehicle for that person. Do you have an extra vehicle that you're This would the position would be the road tech, which they would work with the crew trucks that we already have. Okay. So, so there's not a specific vehicle to that that staff. Okay. All right, that's all I've got. Thank you. Okay, Madam Mayor,

can I ask another question of Brandy? Sorry to keep you on the spot. So, I think we can all agree the number one thing that we hear from our citizens is fixed traffic in the town. And I will be happy to say I think you're doing an excellent job, Randy. Um, so thank you to your staff and you, but I just wanted to make sure I heard you correctly. Um, the number one concern of our citizens, transportation, and you're working out of a temporary trailer, which I knew that, but you don't even have permanent sewer. We have to pump your sewer out.

I mean, correct. It's a It's a temporary mobile trailer, and that's that's how we All right. Well, that bothers me. Um, I will personally say I see in the capital improvement plan that we're looking at um, a new signal shop and facility investment for you. I believe it's around $2.5 million. Is that what I understand was allocated? Yes.

Um, I will be happy on the record that I would like to see us make that happen. It's the number one concern for our citizens. If we're going to prioritize traffic, we need to make sure you have somewhere to work out of. U, that is giving you the space. Um that said, um being that we are making that allocation in the capital improvement plan, um what would you suspect a timeline would be for us being able to do something like that? Get you a permanent facility? Maybe that's not a you question. Maybe that's a Rachel question. And I'd be happy to attempt to answer it. Go for it.

It just really depends upon what opportunities are presented. And so that like we're a you know government um if you will um I don't want to say public works but essentially that's how we operate. So we don't have to have brand new. So if something was available on the commercial market that made sense and fit the dollars I think that would be potentially a wise direction to go. However, if uh something like that isn't available in the location that we really need in order to respond effectively, I think that you know obviously a new build um would have to be considered. And so those two paths would certainly take completely different timelines. Um so but anywhere from a year to two years probably even because we don't currently have not identified a specific location as of today. who is responsible for doing that for you because you're busy.

So, I don't know that you have time to be doing real estate, too. Who who's taking the lead on that? So, it's really a joint effort and we've spoken with council before by um identifying and working with a realtor to assist with that. Okay. Um I don't have any more for you, Randy. Well, thank you. Thank you. Madame Mayor. Yes, sir. Um, first of all, thank you Rachel and staff for all your hard work putting this together. I had a um quick question. I just want to get a thumbs up. Uh, Chief, are you happy? Are you copathetic with this budget? Oh, yes.

Okay. Because if chief ain't happy, ain't nobody happy. I want to make sure that we're taking care. Chief, um, I'm happy that we're getting the renovations that we talked about and I can't remember how long ago that was that that was presented to us. Um, so I'm certainly happy we're getting that done. That's gone up. Yes. Substantially since that. So it makes sense for us to go ahead and get it knocked out because it's never going to go back down. Correct. Quick question for it. Did we bid that out? We did not. So we have a engineers estimate. Okay.

Which was developed in I believe August of 2024. So, it's coming up on being two years old. Um, but no, we have not bid that out. We also have not um further looked at it to refine, to value engineer, to reconsider anything. That was the initial um cost estimate that we presented to you all. Okay. I just want to make sure that we were being wise with that. Obviously, getting that in the budget is essential so that it's going to get done. Do we have an ETA on when that project will start and how long it will take?

Uh, we don't at this time. So, it's represented um as a placeholder in the budget to bond the funds. Okay. So, we would need to sharpen our pencil, put it together, and we would come back to council uh when we would need to purchase whether it's a bond or a shorter term financing through a bank. Okay, perfect. Awesome. Thank you. You're welcome. So Rachel, will we bid that? Um, especially the evidence room and everything with it being a specialized, is there people that do just police department stuff like that that make it out? Okay.

There may be certain So, not only will we do the renovation of the facility, but there is certain equipment that we need to purchase. Um, evidence rooms a prime example. there um is a particular style of I can't think of the name for it, but it's the rolling storage um that there's at least one vendor that would separately be done and so we would procure that through them separate from the building renovation. So once it's bid out, it could actually come in higher or lower. Yes, that's correct. And thing something that size we have to bid out. Absolutely. Yes.

And we could even um phase implementation of it. Uh we probably would have to you you'd see some shifting of of folks for temporary work uh locations while we are doing the renovations. Okay. Anything else? Will anybody else? I'm not going to let you hold this state. Hold on a minute. Let's see if anybody else has anything else. One thing. Um Rachel, I did notice that there were there was a big jump in um legal fees. Is that what was just for the record? What was up?

Sure. So I can answer that. You're referring to administration department. Okay. So what you'll notice is the administration department has one less FTE this year and we had an increase in legal fees. We previously in prior years had a full-time employee who was our town attorney on staff. We have not had that for over a year now. So, we've removed that position, the salary and benefits from the budget and we are representing um the contract for legal services in the budget through the contract section. So, we've essentially shifted funds that were previously in salary and benefits to now being in contractual. Okay. Gotcha. Madam Mayor, yes.

Um couple of other questions in the administration budget. Um, and I believe actually this uh bridges between administration and finance. Um, I pulled that we pay capital consultants $39,000 and Adam and Ree uh 23750 that totals uh 62750 for lobbying activities essentially. Um I guess in the private sector world I think of it as return on investment. What has been our return? What what are we getting from 62,000 that would fund another employee here at the town? It potentially could

I don't know of any um funds that they have necessarily brought back to the town in years. Um so and I know personally like I've been up at the state house doing my own advocacy. So could those dollars be better spent elsewhere?

So that's a question that I would have for council. These are two long-term contracts. uh they predate my being here and a couple years ago we did discuss this. Um Capital Consultants, for example, they do lobby and educate on our behalf. I don't know if they've ever actually brought dollars to us, but they provide education. They provide resources. And I let me let me pause. I do believe did they not help with the funding that we're now using for our Sunset Split, the 16 million? So I I misspoke there. Um so Annie who was our facilitator last year um she provides other type of support services to staff um as well as the education and advocacy. Um Adams and Ree does something I should mention capital consultants is uh solely at the state level. Um whereas Adams and Ree assists us at the federal level primarily. So, and I will say that I'm aware that Adams and Ree did help us with the um I believe proviso to reappropriate the funding from u the fisc year 23 budget to the fiscal year 24 budget for the sunset split.

Yes, I'm aware of that. So certainly to their credit, but would you do you feel as though we're getting $62,750 of benefit out of these two lobbying organizations or advisory? I I'm unaware of any education really that they have provided us for that type of value. Could we not pay them on an hourly basis or something? Um, I'd have to go back and evaluate that and if council is so interested, if we need to look at renegotiating the contract to a different type, I can certainly look into that.

It is fair to say that there are uh staff positions that are unable to be funded until the January 1 start date because not sufficient funding was there when we were trying to balance the budget essentially. So freeing up some of these dollars would potentially allow one of those positions to be staffed. You're correct. And if that's the will of council, we can do that. So Rachel, haven't they helped bring some funds for chief and stuff before though? I mean, don't they bring some law enforcement type funds? Some of them do. Adams and Reese does at the federal level. That's correct. On a yearly basis. I mean, yes, I think they

Adams and Reese, I would just note, is the the cheaper one. And I and I have I will say I've had good interaction with them and they have provided some value in uh assisting us with road dollars, but capital consultants, I mean, we pay them $39,000 and I'm unaware of what value we're getting out of $39,000 each year. Okay. Okay. Why don't you evaluate that and see if we can I mean if there's something lower, you know, some way to look at that contract because they did they were they played a big role too in the sunset split money. Madame Mayor, may I ask one more follow-up question? Yes. On page eight, there's a line item. It doesn't look like any funds are allocated to it.

Um, and we have not done this since I've been here. I've heard about it and I know that it's important to some of the members. At some point, I believe some of uh my fellow council members participated, we used to do a board appreciation dinner. And I know that sounds like a small detail, but we ask a lot of these individuals that serve on our planning commission and our BZA and our, you know, all the other division plan advisory, I guess, small business, and we used to get together and just do a thank you dinner where they could interact with town staff and council. And it's a in the tune of a large budget. I understand it's a small allocation, but I just wanted to bring that up during the budget process is, you know, would there be appetite from this council of reinstituting that? I know that we've had discussions off cycle of uh budget time of could we start doing that dinner again? And I've always been told, well, let's talk about that during budget time. So, we're in budget time and I'd like to see us do some sort of appreciative dinner for these people that spend a decent amount of time serving the town. Maybe it's not a dinner. Maybe it's something else, but that's my proposal is that we uh find some funds to to to try to do that again.

So, all of that predates me. So, I would need guidance from council on what amount that would be, what that would look like. Can you go back and do some history research on it and also maybe talk to your some of your boards and stuff because the last few we didn't have great attendance at and just see if they're interested in that type of stuff. When was the last time it was held just for Probably before CO or before me? Probably before CO maybe I remember we used to do it every year but yeah probably I think it shut down during CO so it's been a while.

Okay. Thank you. And what it normally was, Rachel, was at Gibson Vine and it was a oyster roast/barbcue. Okay. Thank you. You're welcome. I'd just like to know if we could do something like that. Seems like a nice thing to say thank you to people. Anybody else have anything? Uh, I mean if no one else has anything I certainly have other question, do you have anything?

Go ahead.

Uh, okay then this can be my last question. I may have I will say for the record I have a few questions about I guess I would call them nuances in the budget more for my understanding why we do things a certain way. I can just go ask Kathy those questions. Um but uh I guess the big uh elephant in the room that we haven't discussed is based on this budget here. Um I had written down a better question to word this but uh we're increasing total salaries and fringes by about 5 and a half%. Right. Um now I understand some of that is uh because of new positions being added etc. But can you walk us through how much these increases are cost of living versus merit? What what all that includes? So total compensation package includes annual salary, 2% cost of living, fully funded merit increase, all salary and benefits um to include um healthcare. Is that what you're referring to, Councilman?

Yeah, I mean, you know, there's just been a lot of discussion about taking care of our employees, and I think all of us up here care about taking care of our employees. Um and that's certainly a priority for all of us. Um, so I hear you say a 2% cost of living adjustment is included in this budget. Yes, that's correct. So I would point out that that matches what the state is proposing in this year's budget. So we are on par with them. Um, and I believe several other municipalities are around are also proposing a 2% budget um or cost of living adjustment. Um, and then we've also had the conversation around merit raises and merit bonuses. Um so that would be fully funded in this budget proposal as well. Yes.

Fully funded at the level of last year. So we have fully funded the merit uh pay increase for our pay and compensation policy. And would you like to know how much we've budgeted for for bonuses? Is that what you're referring to? We don't have to go into dollar values. I think that would be up to our department heads um of how those are allocated. Um but more I just wanted you know on the record it to be stated that we are fully funding uh cost of living adjustments uh merit raises and merit bonuses. Yes. Okay. That's what's included in the proposed budget.

All right. Thank you. Yes, sir. Anybody have anything else?

Mayor, yes.

I'd like to point out one more thing. Um you'll notice if you turn to the capital pages um there are certain items that were requested for the FY27 budget that we are actually able to um cover in the current FY26 budget. So uh they're labeled individually and we're able to achieve this through a variety of things such as salary savings, cost underruns, etc. So, I bring this up to you because we will bring to you all at the next council meeting uh budget adjustment which will allow for us to purchase these items in the FY26 budget as opposed to the FY27. So, I'm just giving you the heads up now. Um it does take two readings to do a budget amendment because it is an ordinance. So, you'll have that in both May and June. Okay. Any questions on any of that? So,

Rachel, we don't need to make a motion to put this on the agenda. No, mayor. No. Okay. But we do need to go back and um make a motion about our for some reason I'm missing my first page. Um our executive session ratify the Yes. Oh yeah.

And I'm missing my first page on it. So no vote was taken in executive session tonight. Um here it is. We met in executive session to discussion of personnel matters compensation plan and department departmental reorganization. No vote was taken. Do I hear a motion to ratify this report? So moved. Councilman Smith makes the motion. Do I hear a second? Second.

Councilman Allen second. Is there any discussion? Hearing none. All those in favor raise your right hand. And it is unanimous. So we don't need to make a discussion for that. I mean a motion for the budget because it will automatically go on there and we will have no um millage increase, no tax increase. And are there any comments from the public or news media regarding specific items on tonight's workshop? And you will have three minutes to speak if you would like to come forward and speak. Can you give us your name and your address?

Good evening. Greg Brewer, 349 South Church Street. In the interest of saving valuable time, I've summarized uh six areas with some drill down that I would like a response. Uh I'm good with the transparency center to have it published there as well. The areas uh include the typical ones for organizational effectiveness, people, core process functions, and use of technology. I remember Rachel when she first came on, she talked about some of the way she was looking at re-engineering the town. if you will. What I'd like to understand, especially with some of the personnel losses, is how is that being uh a translator into the budget year-over-year? And so, I've got some drill down here. I made copies and uh I'd appreciate a response.

Thank you. Is that a foyer request or you have to look at it and tell him? Okay. She will respond to you, Greg. Okay. Anyone else? Any additional comments from council or staff? Madame Mayor. Yes.

I just want to take a moment. Uh I think all of you hear us asking questions of staff. Um and I just want to say to Rachel and to Kevin and Randy and to Chief and to Jessica and Jeff and I don't know who's missing. David's not here. All of our department directors. uh we might ask questions, but I just want to emphasize that my questions are uh in good spirit and I really appreciate the work that goes into this budget. I know it is a big lift for you and Kevin particularly, but also all of the department directors. So, thank you for the time that you put into this. Um and I left out you Lorraine and finance department, you know, very important. Um, but uh to Kathy and her team as well, just thank you to staff for all that you do uh for the budget process in addition to doing your day-to-day jobs. Um, so I just wanted to take a minute to say thank you.

Thank you, Gavin. Anybody else? So, a reminder to citizens and anyone watching, the budget will proceed through the town's standard formal adoption process, which includes two readings and a public hearing. Residents can stay up to date by visiting the town's website and following our social media channels. That concludes our business for tonight's budget work session. We are adjourned.