Board of Commissioners - Regular Meeting

's work session is now called to order. I do ask that you silence your cell phones and please keep your sidebar conversations to the absolute minimum out of respect for the work of the town. I would now like to invite Pastor Baker to the podium to lead us in our invocation and pledge of allegiance. Please stand and join us if you choose to.

Please join me in prayer. Gracious and loving Lord God, let me say thank you on behalf of all who were gathered here today at the beginning of our Thanksgiving week. We thank you for your many and abundant blessings. Thank you for life itself, for the measure of health we need to fulfill our callings, for our sustenance, and for friendships that you have enabled us to enjoy. Father God, we give thanks to you for the freedom that we as citizens of this great nation enjoy. We thank you for this nation, our state, and the community you allow us to live in. Thank you for loving us from your boundless and gracious nature. Loving Lord, we come in prayer for our mayor, for the various levels of our town officials, and in particular for this assembled council. I am graciously asking that you grant them wisdom to govern amidst conflicting interest and issues of our times, a sense of welfare and true needs of our people. A keen thirst for justice and righteousness, confidence in what is good and fitting, the ability to work together in harmony even when there is honest disagreement and personal peace in their lives and joy in their task. I pray for the agenda set before them today. Please give an assurance of what would please you and what would benefit those who live and work in and around our beloved town of Spring Lake. is in your most blessed name I pray. Amen.

Please join us in pled allegiance. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible with liberty and justice for all. Pastor, will you uh tell the the audience your church please? Oh yeah, I'm I'm the pastor of First Presbyterian Church over on Spring Lake. You guys are all invited to visit us on Sunday at 11:00. Thank you so much. I will now call for any additions or deletions to the agenda. Mayor Pro Tim.

Yes, I'd like to add a presentation by Caroline. We will add that right after our code enforcement presentations will be 7. Any other additions or deletions? I now a motion to approve the agenda. Commissioner Jley, I make a motion to approve the agenda with the um added um presentation. Second.

Any discussion? All in favor? I motion carried. Um I will now entertain a motion to approve our consent items and that is the draft minutes of the November 10th uh regular meeting budget amendment BA88 for FY 2026 the amended rules of procedure uh 2025 resolution of the board of commissioners of the town of Spring Lake declaring surplus uh personnel personal property and uh military and veterans affairs advisory committee application to appoint Terry Cherilla. Um, Commissioner Chavic.

Commissioner Lman. Any discussion? Is this May discussion? Oh, no. Commissioner, I may um with Ray Duce, I'd like to tell you that Terry Trillo has joined our military veterans affairs. It has been a been a a struggle to to get people. We finally have a compliment of of members of the military veterans. So, so with this application, I am thrilled to say that we're work on this committee has has come to fruition. Thank you. All in favor?

Motion carries. We'll move on. Uh we're going to bypass public comments. We didn't have anyone sign up. And we will begin with our first presentation. And this is code enforcement. Code Enforcement Officer Sergeant Sterling Baker Town Spring Lake and he is our newest addition to the police force and we are super glad to have him here uh focusing on code enforcement. How's everyone doing tonight? Wonderful. Um if some of you I have met some of you ma'am.

Yeah. There you go. Some of you I have met, those that I have not met, it's pleasure to be meeting you. Um, got a couple things that we're going to we're going to cover tonight as far as this code enforcement program goes. Excuse me. One quick second. Okay. So, as you all may know, we begin phase one of Operation Green and Clean on November 13th. Um think think we I really think we have a really good thing going. Um going to start with number one. The green is going to be everything that was in compliance on that day. For number two, the red the red is going to be the violations of miscellaneous junk junk vehicles, vehicles parked in the rightway, junk piles, high grass. the black is going to be no viism. When when I say that when we begin on that day, I advise everybody if you if you couldn't determine if something was a violation, still put it in. I would be the final say if it was a violation or if it wasn't. Um the blue is going to be everything that was circulated within a week time span.

The total green on that day we had 318 residences that were in the green which I thought that for Deerfield that was pretty good. Let's go to your bill.

Total red, we had 120 violations. And with those 25 with those 120 violations, we had 45 junk vehicles. We had five vehicles that were parked in the rightway. We had 40 jumpouts. We had 30 high grass. After a week's after a week's time, there were once I followed up, there were about eight about eight no violations after review. There were 10 people within a week's time they actually selfabadated. But keep in mind within a week I was able to close out. But this is an everyday thing. When I tell you when I come into work, I have about five to 10 voicemails every day. People that are that I've that that are trying to fix things to like I tell tell them I will work with you in any way way I can which they have 12 days. But I'm very understanding that we have some people that they're on fixed incomes. We have some um the elderly that I do grant them more time. But but um this being phase one, I'm very pleased with how things have been going. I mean, I'm telling you, people have been blowing my phone up on a daily basis. They're I mean, they're like, "Sergeant, can you please work with me? Can we please make this right?" Which, you know, but we've been getting a lot. Um but on that day we had 32 town employees that were split into teams of four. During that day there were a total of 438 homes in the

deer vehicles that we all checked. According to my calculations 27.4% were not in compliance. To me that's that's not bad. I mean, yes. Yes. Yes. We have a lot of work. Yes, we have a lot of work to do. And um which zones one through four, it's it's one of those zones to where yes, it needs some work, but it's not as But zones two and three, those are the zones that yes, we want to focus overall, but zones two and three, those are the main zones that I tend to try to focus a little more on. But um let's see here. And the car would go a little further down here. Here you guys will see on that day. This these are some of the things that we dealt with. These are um those are some of the junk piles abandoned cars. Um but like I said, you know, yes, we have a lot of work to do. But I like where where going with that. I really do like it. Um um

that particular junk pile is gone. Yes. Yes, that particular junk pile is gone. Yes, ma'am. Um but I really think we have a good good I I really think we have a good good thing going. It's just a fact. It's it's just a matter of just us keeping our foot on that. Any does any kind of question?

Thank you, Mayor. Dr. Baker, thank you very much. This is uh your attitude seems to be very infectious and a a great start to what has been a labor of love for this town. We're trying to assist the residents in cleaning up the town and letting them know that we care. I appreciate you working with the folks and making spring a better place.

Thank you very much for doing this and all the town staff that stepped out that day to make this happen. It's a big deal for us, not only for the town staff, but it's also good for our citizens. I think that most of this was hopefully an educational piece. Uh, you know, I think as I think John says, it's education, you know, versus fines and fees. And so, uh, I think that us being held accountable is a good thing. So, thank you for doing this. Yes, sir.

Um, I also want to thank you. This was this is my focus. So, um, that means we're making progress and I look forward to seeing what the other groups look like. But my question is, how are we like the places where they're not in neighborhoods? How are we going to handle those? You're saying like any kind of property, let's say like like a um a vacant home or something like that or

No, like it's not in a neighborhood, but it's just on a street. Um you know, a couple houses on the street, it's not in the neighborhood. Will they just be done based on their zoning? they will be done more so based on who the property manager is, who the um the um owner is. Cuz me, I'm real big on having a conversation. Like um me when I'm riding around and I'm patrolling and stuff, um I'm actually knocking on doors. Like um for instance, about two weeks ago, I was out on a on street off of May. I did a little bit of re That's that area there is that's that area. Um I did a little bit of research on it. Um after a couple of phone calls I had the property manager out there. I had the land owner out there and we went from home to home and we knocked on doors say look this this is where we're at. This is what we're dealing with. Um so It's one of those things, you know, even though it's it's just me, I always go that extra mile. I'm I'm actually getting out of my car. I'm not just sending out all my letters. I'm actually having actually detailed conversations.

This is such a good thing. I couldn't be more excited. Um, and like Mr. Blossios and Mr. both said this is it's absolutely educational because often times people don't even realize that they are in violation or the consequences of what they're doing and sometimes it just needs a little gentle nudge to say hey we care about our town we want you to care about it and um you know we feel that from you and so I'm super excited to have you on board and can't wait to see what comes from these additional zones so thank you yes ma'am any any other question any other questions or comments from the board thank you sir Thank you guys and thank you guys for your time. Thank you for your hard work.

That's right. All right, we'll move on to uh 7B. Mr. Arman, do you have a small presentation?

I do. two weeks ago told me, "I want you to have this certificate that shows everybody that the town really cares about what you're doing." I'm pouring him in on rehears. He's kept us kept us straight, kept us in line, come up with good ideas. He's also helped the town with the cleanups that we volunteer for. And I also appreciate the mayor and in this town council because I've spoken to past ENVAC from years ago. They said they quit because the town wasn't supporting them. This commission is supporting and that we appreciate. But Commissioner Latton, if you come join us by the PL Let's check this out, folks.

So make sure this That's it.

There it is. I'm speechless. again. Thank you for your dedication and it it shows um not just in how much they care about you but the way the veterans not just in our county across this state has recognized what's happened right here in Spring Lake. So thank you. I will not interrupt for you. All right, we'll move on to um our new business and we'll begin with um agenda item 8A, our budget amendment. be a uh two for FY 2026. Mr. Overton,

good evening. Um this budget amendment is for our fund 99 which is Spring Lake property acquisitions. Uh that was not included in the original budget because that's a separate uh component unit of the town and at the time we didn't have a board. Um for just a little background, um Spring Lake Property Acquisitions owned 160 acres of land on Manchester Road across from Fort Bragg. Um that was purchased for economic development four years ago. Uh they borrowed $3.5 million from uh BB&T Governmental Finance, which is now True Bank, uh in order to buy that land. Of course, they defaulted on the loan and have not paid back. Uh we did a budget amendment earlier in the year uh of 500,000 to loan some money from the general fund to Spring Lake Property Acquisition to get some of this caught up. Um Spring Lake Property Acquisition had not paid their property taxes or their solid waste fees to the county for the last five years and Mr. Rory negotiated a deal with truest bank to settle that $3.5 million debt for $450,000. So we purchased that note from Truist Bank. The town of Spring Lake purchased that note for 450,000. Okay. And our lawyer is now in the process of foreclosing on all that property to get it transferred in the town's name. Once that is accomplished, which should be in the very near future, then we can put that land up for sale and reimburse the town for all of this money. This budget amendment is for the Spring Lake Property Acquisition Fund uh

to show sale of capital assets proceeds from the sale of land 500,000. Now, I don't know what those proceeds are going to be. Hopefully, they'll be more than that. We all have already sold one lot for 75,000. We used that 75,000 to pay the back taxes and the solid waste fees. So the county is now paid in full. Reason we did that is so we could have clear title to all of this land when we get ready to sell the rest of it. Okay. The other uh part of this budget amendment is the for the 450,000 that we paid in approved interest for the last four years and the remainder was applied to the principal. Um we only paid 194 on principal and 256 on interest. That left a balance on the loan of 2.9 million which was forgiven by truism. So this budget amendment is to record that transaction where we pay off the county for property taxes and solid waste fees and where we purchased uh the note and pay off the uh 450 on the U principal and acred interest.

Any questions or comments from the board? Mr. Thank you. I know this has been a a endeavor that has been painstaking, tedious, but necessary. So, I want to thank you and the staff for for the work that you've done to get to this point. So, we got this unraveled so Thank you. Well, sir, thank you for leading the uh effort to clean up this property so that we can sell it because nobody would have wanted it in its previous condition. So

Mr. order. Uh yes, would if it's um assuming y'all want to approve this, which I know you haven't really discussed yet, but this would just need to be amended to say uh be ordained by the board of commissioners of town. I'm actually looking Oh, it's in the board of directors from the Yeah, I think it's just a type. Yeah, but um yeah, I just want to make sure it doesn't get like just say approved and that's for sure. You see what I'm saying? Yep. Just technical correction.

So when we when we call for the motion, I'll make sure we indicate the change from Spring Lake Property Acquisitions Board of Directors to board commissioners. Yes. Any other questions or comments from the board? All right. I now entertain a motion to approve uh budget amendment BA2 for FY2026 with the amendment changing uh board of directors of Spring Lake property acquisitions to uh board of commissioners of the town of Spring Lake. Mr. Pacios moved.

Commissioner Blackman second. Any discussion? All in favor? That is a very unanimous motion. Motion carries. Awesome. Thank you.

This has been This is Springland Property Acquisition has been kind of looming over this board since we took taken office through the LGC. It wasn't until Mr. Overton and Mr. Rory came in and took charge of this situation that we were able to move forward um and turn this into a $3.5 million deficit to a potential asset that can serve um the town of Spring Lake in a very very good way. So I am very grateful um for diligent work that our manager and staff has put into and I want to also echo those sentiments to Commissioner Blackman. Thank you for cleaning up that area. you'll be going out to send out some special thank yous for that and I'm sure you'll discuss that later. Absolutely.

All right, we'll now move on to um agenda item 8B uh Spring Lake art survey results and use of municipal arts allocation. Commissioner Plasios.

Thank you, Mayor. So every fiscal year the town is given uh a stipen or a allocation rather from the uh arts council of Cland County Favville and we endeavor to use that money to help beautify and maintain you know the town and do whatever we can with that $4,000 and sometimes it isn't enough and sometimes it's more than enough and so I'm glad that we've been able to use it the last couple years. So the point of this survey was to engage the community to kind of get some input on what to do with this money. We had questions uh recommended by the appearance committee and approved by this board. We published that to various outlets. It was open to all who live, work, shop, and travel through Spring Lake. And uh we had a grand total of 30 surveys. So our computer's almost crashed with all those surveys. Uh so in any respect we do appreciate those who were able to complete it because even though there were few those voices mattered so here are some of the results. I didn't put all the the results. What is your connection to Spring Lake? 57% live in Spring Lake. Uh and then you go all the way down to uh committee member. I paint murals. I visit Spring Lake regularly and so on. How long have you been part of the Spring Lake community? The majority of them have been part more than 10 years. Would you prefer to see funds go towards blank and you see a a two-way split there for several smaller projects around the town and a mix of art and community engagement events? And then how would you rate the mural so

far? Uh, we had 20 give five star reviews and a couple give one and two star reviews. I'll find you later. And what type of art projects would you most like to see funded next? And so we have a wide array, but the outstanding numbers here are purple for beautifification projects, benches, plants, and so on. Uh, and then blue new murals on buildings etc. So a lot of different a lot of this look these were good ideas you know and even if we can't tackle it this time I think there's a good opportunity to address some of these things next time if we could only fund one project what would you choose we had a new mural number one answer community art event or festival you see some of these other options of public sculpture art workshops benches uh and then Someone even put that. So, that's pretty neat. Now, um the we do have a art sculpture in town for those who don't know. Uh it has not been placed because we're waiting on final approval from DOT. We have the location already and we have the art sculpture. So, that'll be going up soon. Uh and hope to get an update soon at some point when I'm no longer on this board. review. Okay, so the appearance committee met November 12th to review the results and discuss the viable options. This again was open from October 20th to November 1st. One plan was recommended to present to this board for consensus and the recommended plan includes two projects. So we're able to do two different things here. The first option was a small mural on a donated business wall. Uh the um the committee

recommended voids gives an engraving as the donated canvas. Uh and so we'll work out details later and then bring that back to you guys uh for final say. And then project two were three free library book boxes in Spring Lake locations to be determined and they're also going to be payable for the um community. So these free libraries, are you guys familiar with these? These are great. They're they're up all over the place, but we want some here in Spring Lake. And so, we were able to use these this $4,000. The plan is to use it for both of these. It's reasonable. It's doable. So, we can't wait to bring that forward. I don't know if I have anything else to Okay, so that's it for that. Um, and I want to get your guys' thoughts, your blessings, concerns, etc. Well, thanks once again. Uh you have done an outstanding job uh with the um appearance committee. Spring Lake I mean it with the um yard of the month although we can't participate it's something I strive for just so they can say well the mayor's trying we can't vote for her. Um and I know there are others up here who do the same thing. So I I am I am immensely proud of the art that's gone up. Um art builds community. It gives a focal point for us to gather around and was with with paying homage to our military uh background to the one that's got the four different murals which is probably my favorite with the someone in Spring Lake loves you. Um it's just been nothing short of phenomenal. So, thank you for the work that you have put in

with the appearance committee. Um, that committee is very, very hardworking and this just shows that um, we're on the right path and so I can't uh, express my gratitude enough for what you guys have done. Um, and I really like these ideas. It wasn't a whole lot of people um, giving their thoughts, but the ones who did made an impact. So, quality over quantity.

Quality over quantity. And this was definitely quality work. So, um I can't wait to see what comes. Um be in another mural. Um and when we see the the sculpture come and then these two projects, I'm a a add a reader and so I will personally frequent those free libraries as much as possible. Um filling up them up and taking one out. So again, thank you.

Is there any one anyone else? Yeah, while you guys are thinking, uh, we have a really good committee and they're dedicated. You know, they put in some work. And one thing I do need to mention is the town was just awarded another 7,000 for arts. Uh, so we put in a grant, specifically Cynthia Wil, the chairperson, put in a grant, and we were denied the first time earlier this year. And so, of course, we she was just like, let's just try it again. And uh I had little hope. I didn't have as much faith as she did, but so she put it in anyways at $7,000. We'll uh bring the the specific details of that project later. Now, that project though, the scope of that grant is going to be to help elevate the mural, the new mural at Endoza Park. That little stretch of concrete right in front of the It used to be um shuffle board. And so the plan there is to get three local artists. This is the bird's eye view, okay? Three local artists here in Cumberland County to have a different impact on that um that sidewalk mirror, if you will, and to go towards marketing, marketing specifically to tell the story of the Spring Lake Trail, but to also give out, you know, filling color pages to the local schools so that they can also have a connection to to the art community. So any other thoughts though on this survey?

I think it's awesome. No concerns. So blessings. Blessings. All right. It's called consensus. Thank you very much.

Okay. Um we will continue on um with agenda item 8C and this is Thank you. Discussion regarding Quay Marina's interbasin transfer uh certificate from the state of North Carolina for water from the Capefir River. So I wanted to read the summary description on this before uh Mr. Rory takes it over at the town of Pew Pike Arena is requesting an interbasin transfer certificate from the state of North Carolina to move 1.67 67 million.

That's called dyslexia. I apologize. Thank you. 6.17 million gallons per day from the Capefir River Basin to the Noose River Basin to meet its future water needs. Fedville PWC opposes this request due to the potential long-term impacts on water availability and the sustainability of the Capefir River Basin, which serves over 500,000 downstream residents. PWC is advocating that any interbasin transfer approval require the return of the water return of the water to the Cape Pure Basin and is actively coordinating with local officials to express opposition through letters resolution and testimony. A public hearing will be held on December 4th, 2025 at FTCC and community participation is encouraged. Mr. Rory,

not much left to say except for that the public hearing is scheduled for December 4th at 6 p.m. So, we left the time out here. Um, and we are seeking board's approval to speak in opposition to the intervention transfer. I will personally attend the meeting and carry a letter from the mayor if the board desires. Would you like to speak to just in plain language? Why?

Here, here's what it checks out. You're going to take water from here and put it over here. And therefore these that are gaining are losing six million gallons per day. And in the long run it'll be more gallons per day and more gallons per day. So by transferring that water from the C to be pure basin it limits growth opportunity in and around Bay Spring Lake because you're taking that water and seeing this grow. Now it starts off on a back page and I will put this town of equipment currently relies on wholesale water purchased from neighboring water systems. We are in the same boat. The only way we operate is to purchase water from PWC. So this has a direct impact on Spring Lake and that our purchasing capacity will at least be limited by 6.17 million gallons per day in the long run. We'll hear more about that later.

So, um this is for discussion, but I would like to motion to give him permission to uh go ahead and we'll draft the letter and and resolution um to be presented to PWC. Mayor Bin moved. Commissioner second. Any discussion?

Commissioner.

Thank you, Mayor. Um, folks, this has huge implications for for Spring Lake. You know, as Mr. Rory had mentioned, that's just the start. You know, Fugway, Raleigh, all those areas are are growing very fast. And so that 6.1 million will turn into 7 8 18,000 18 million 18 billion gallons of water. So if we have any hope of wanting to continue what we're doing here in Spring Lake, the growth that we've got going, the services that we're providing, we've got to be able to to do that starting with water and with waste water. So if we don't take a stand on this now, we're going to catch up. So I fully support this and thank you.

Thank you. I agree. A lot of communities depend on the water out of the Cape Deer River and this would hurt us and other municipalities a lot. Uh also we have a conflicting event that day. So it's my understanding that you'll be presenting this at that public hearing.

Yes. So thank you. Um yes, I agree that we can't let this happen because um even though it says 6.17 million, what stops them from you know taking more than that and we can't afford that? We have to look out for our own um entities for our own people. So this is a definite all in favor for the resolution.

I motion carries. We will move on to agenda item 8 D and this is staff recommendation to increase water rates to cover increased purchase costs from PWC. Mr. Rory, this conversation actually began in October of 2024. Last year around the same time frame, we started having conversations about what it means to focus on the maintenance and reliability and sustainability of our water infrastructure and the cost involved with that. Um, it's never getting cheaper. It's always getting more expensive. and it became the number one focus area for our strategic plan,

the safe, reliable, and sustainable water and sewer systems within our community. Um, that's easily said, but when you really get down to the brass tax, you start analyzing everything, the rate structures, the impact, what's happening, what's going on, um, you find that this is going to be a continuous struggle for years to come. So, the focus groups, the strategic plan focus groups, we actually looked at in the development of a couple objectives, um, a few initiatives and things that we need to focus on. So, I want to highlight those right now for focus group one. The objective number one is to provide ongoing maintenance of system infrastructure through rehabilitation and replacement of capital assets um, based on regular assessments of their conditions. highlighting number two and number three uh consider contracting with private operator to manage operations period. Okay, just keep it going from there on assessment of maintenance. And number three for water and or sewer services purchased from the others analyze loss revenues from system leakage and or excess cost incurred from inflow of storm water runoff in determining what infrastructure maintenance replacement that must be prioritized. Those are just two key initiatives, but they're are overarching. They're overreaching in terms when you really look at the system and how all of it comes together. The second objective was to ensure that the utility is economically sustainable long-term by current projected customer bases and when applicable review opportunities for partnering with other systems. You will hear me say um tonight that uh consolidation collaboration is a necessity going forward. It's not an option. It is a necessity going forward. Number one, perform a comprehensive condition assessment of utility system assets. This is where we actually began back in October. We have a grant to do what's called an asset inventory

assessment where it looks at our entire system. We've done smoke testing of our sewer pipes. We looked at water lines. But even that isn't complete and thorough enough to identify every liability that we have underground. We can talk in terms of miles and pipes and miles of sewer, but we really don't know about every valve that's not working and the things that we face. So um develop long-term financial projection for the utility considering all aspects of operation maintenance as well as expected infrastructure conditions and capital retail replacement is expected over the projection period. I'll talk a bit a little bit about those tonight using current projected customer base to develop a multi-year revenue requirement from customers as well as applicable borrowing strategies needed to fund projected system expenses. We need to have enough customer base to pay for the services and we need to use debt as a long-term tool which is something we currently cannot do. We cannot take on any debt. Um when I explain that to you extra slides here um I think it's enough to really knock your socks off. Um it does cause you to have a lot of stressful thought processes. We showed you this the asset inventory assessment. We're losing about 30% of our annual water purchases to date. Okay, this is actually the same slide that I showed back in October. Okay, and so we're still looking at where we're at, but yes, it is less now. Uh the team has made considerable strides in identifying and repairing a lot of leaks, but they're still out there. And so I'll talk a little bit more about that as well, but keep in mind that we're running out of fingers to So we got to figure out how to um address this issue whole scale across the entire town. We talking earlier about code enforcement. We've divided the town into four zones so that we can

prioritize everything from valve placements to water line replacements in each zone. Not one zone is more important than the other. All four zones are part of the entire system. So we got to think about the utility of this. Not in terms of a water and sewer utility, but utilitarian. If they're the most bang for the boat and the most for most people. And so that's why we need to focus on the main silence and things of this things of that nature. What that led us to was a proposal once it was proposed in October. It was reviewed in November. It was ultimately approved in December um and it was effective January the 1st and it was codified in our budget ordinance on July the 1st or June 30th depending on your perspective of a 17% increase. The purpose of that 17% increase was to keep the math simple. What we're trying to do is take our entire revenues, if you will, associated with the water system, and add $500,000 a year into fund balance and to add $500,000, that's objective two. Um I'm sorry, objective one for capital outlay to replace these water lines. uh all in that's a million bucks but to to do a 17% increase we only had to take and get an additional 86,000 because we had two 100,000 already in the budget that's the deal that's how you come up with this meeting response that took our water rates our current water rates today um that were adopted effective January the 1st was a flat rate of 1064 and if you look at tier one from one gallon to 3,000 gallons you pay $942 per,000 gallons. So it's not 9.42 for 3,000 gallons. It's 9.42 per,000 gallons. So basically our average customer is 3,000. We'll talk a little bit more about is 3,000 gallons per month. And so our average customer

has a bill of about $38 a month when you look at the flat rate and the usage rate associated with the pump system. So what that means is that our average customer is getting water at 1.3 cents per gallon. You just got to think about that for a second. That resonating because if you look at the bottom down there, the retail cost of 3,000 gallons of water from Walmart. I guess they get from the Colorado River or some spring somewhere. I don't know. um that maybe get a lot more happen. But uh if you look at it from that perspective, you know, at a dollar 37 a gallon um for that same 3,000 gallons without the opportunity cost, you're looking at 4,000 bucks a month and you're getting portable drinking water at your faucet. Um I would like to say 247 365, but all of us know that's not true, especially Jason and the team that are out there these water leaks, these water manes, all of us know that's not true, but you're getting it at 1.3 cent per gallon. That's a pretty big deal. Pretty big deal. Where does it go? How do you factor in those revenues to add into the budget? This is just a simple copy of your budget ordinance adopted July the 1st. Um just repeated here um for just illustration purposes. If you'll see right there, it says per uh the the revenue and collection and billing division is roughly 15% of the budget. We're paying $800,000 a year to read the meters, send out the bills, and collect the dollars. Okay, that resonate for a second. We're paying $800,000 a year to read the meters and send out the bills to collect the dollars. So the meters are the cash registers for our system. So they are

But most importantly, they fund everything that goes with it. And you look at this other breakdown, a lot of things that people just tend to overlook is that 39% of it is to purchase the water that wholesale water purchase coming from the from PWC coming out of Cape River basin that somebody wants to take 16 gallons away from a day. Okay? So you got to be thinking about how those things when that goes when the the supply goes down but the demand goes up, the cost goes up. So it's just simp dollars. Water and sewer operations is roughly 21% of the budget, which is 1.2 million. You notice I got that one highlighted in red. We'll talk about that a little bit later. Let that number sit in your head. Water and sewer operations is 1.2 million for fiscal year uh 2526. So to June 30th of 2026, um the debt service is only 5%. Only 5%. All right. Only 5%. So, we got some wiggle room there if we can get the authority to actually borrow something and use that as a tool um to to calculate fix things. But then that's the other piece down there that's missing. You notice that 331, that's roughly 6% of the budget. That's equivalent to 4.5 cents to the general fund. The water and sewer utility fund transfer on an annual basis to the general fund roughly $331,000 in the budget. The reason for that is to cover cost of overhead associated with computers, IT, electric, um, finance, HR, all positions in there. So, um, and that's actually a pretty low rate compared to lot cities.

Um, but still in the absence of that transfer, now think about that. If you're not transferring 4.5 cents over to the general fund, then you're going to have to raise your general fund tax revenue by 4.5 cents just a great deal. We just lost $1.7 million of sales tax revenue. Um, that's what you're trying to overcome. This is how you just have to look at the numbers in simple terms. We've got to live within the math. We can't just make this stuff up. We got to live within the math. But it is a balanced budget at 5,673,226. Um, so this is what we're going to recommend. I'll talk more about it and I'll say it again at the end. The fat bill public works is proposing a rate increase of 21%. It's official. It'll occur July the 1st. So what it cost us to purchase water effective July 1st is going to be 21% higher. So, in order for us to cover that cost, it's going to be, you know, just on average, it's going to cost us another $288,000 a year. In order for us to cover that cost, we need to have a rate increase of about 10.5%. Now, I know that, you know, some people go, it's 21% increase, but you're only recommending 10.5%. It's because the difference between the rate that we have and the bulk rate that we purchase it at. And so, that's the difference. Plus, the timing is important. this becomes effective July 1st, we're recommending an effective date February 1st turning before that actual rate hike takes effect. And the Haret regional stuff, we're assuming that that number is going to stay the same. Um, I have a suspicion that the water rate that we purchase from HRE is going to go up too. Um, but I just haven't had any confirmation of

that to this date. So, I'm just speculating, but I don't want to talk about that in terms of numbers, but we know that 21% is real. So, staff will be recommending um the increase of our water rate by 10.5% to just cover the 21% cost increase to purchase water. That's what all of these future slides that you're going to talk about comes down to. This is the recommendation. But when you look at this data, when these little inputs um over the course of the next 10 or 15, I don't they are now. Um, this is where you'll go, "Oh my goodness. This is this is what we live with daily, right? Daily we live with it. It's not just some emotional thing. It's data driven decision making that we're trying to do. Our cost for our water purchase. Um, you've seen this. It's been updated. Um, actually finance updated this week today. Um, you'll notice that the fed wheel, the blue line, is going up up up. Harness up and down a little bit, but it's pretty much flat. But the PWC rate is going up up up. And the total is going up up up. The reason 26 is so low is because we only have a year so far. We only do November. So, it'll be higher. So, the question becomes, why is the cost of the water purchase increasing? There's a simple math piece of this that the water that we are purchasing the volume is increasing

not only just the cost but the volume therefore it's going to drive that uh the cost for us and we purchase most of it from uh PWC and I'm going get this wrong and I don't want to get too far into the weeds on it but basically we purchase it at a rate for like 20 million gallons then anything over 20 million gallons we pay more Anything over 24 million, we pay more. And so the more volume that we purchase, the more we pay to do it. So it's in our interest to purchase as little as possible. So you go back to that very first slide where it says we're running out of fingers to stick in the holes and we're leaking out 30%. We've been addressing this the whole time trying to figure out how to stop the bleed and in this case the water leakage stop the bleed just by math numbers. Um I find this to be completely interesting for whatever reason that you could think of. I find it interesting. The fat bill PWC in 2020 you'll see was 198 million. In 2025, it's 280 million. Don't worry about AR regional, right? Um, but from 2020, PWC was 198 million. And 2025 is 280 million. So that's what 82 million delta. And so anything over 20 million, we purchase more and more. It cost us more and more and more to do it. Now look at the customer account. Same time period. Um, you know, we've had some struggles with the audits and the numbers for 21 22. So that's why you got question marks on there. But the customer count is relatively steady. So volume is up up up, but the number of customers is flat.

Why? What's going on? Why why do we analyze this data? Year to date on our app, and this doesn't include all of them, we've had 136 water leaks reported on our app. This is six months or more in the banking here. Right from January 21st or whatever that is, what 10 months almost 11 months, we had 136 actually reported through the app. But just as of last Thursday, we had a 6 in main water break. Um our estimated cost for that loss of 1.3 million gallons is 9,000 bucks. Just like that.

$9,000 for a loss. Um, we've got to continue to address these issues. Where has it went? What have we done so far in this fiscal year to address these concerns? We have outsourced um service and repair costs to the team of $515,000. Remember that first objective of $500,000?

There it is. All right. Right there. Repairs, fixing. How do we do this? And so, but that doesn't include that leak as of uh last Wednesday, 11:20, I think it was, maybe Thursday. Uh the staff internal water repair cost is about $334,000. This is when you're estimating labor, materials, you know, man, machines, materials, however. So, that's another significant cost. We also rolled out our meter replacement program. Remember I said these are our cash registers and so they have to read accurately. So if you are purchasing a million gallons but only billing for 500 there's a problem big. All right. So we got to figure out are the meters reading right? And we're finding that they aren't. There's a lot of old meters. So our first effort for this meter replacement program is to replace 731 meters. This is uh route 23 and 24 respectively. They're also the highest number of meters. This is that utilitarian approach for most people. Um so we're trying to replace all those meters. Um ultimately the idea is to drive by and do meter readings instead of having to get out and physically touch the meter. Um and so that can reduce our labor cost no longer about $300,000 annually. Um because we're paying $800,000 to read the leaders and collect the money. And so the technology is there. We can We read the meter and never read this building. That's what called automatic meter AMI. And so our goal is to move towards AMI, but it cost money. And so then year over year, you have to look at the labor cost associated with that. Outsource engineers. Um we do not have a public works director per se. Jason is filling those shoes right now

in a separate capacity because the the cost of the the high the high water mark if you will for the public service director salaries and benefits about $120,000. So we're using outsource contractors in this case Myers Engineering cost about $90,000. So the net there is whatever you got about $30,000 savings on an annual basis instead of hiring someone. Um and it's working and are also doing the engineering component for us. Pretty big pretty big deal. You'll see some of the grant costs that they're absorbing also about 284,000 that is actually with Gillan Associates. They're the consulting engineers for our AIA and our MRF and also some of our grant based projects from ARPA and um the EQ funds. Um, I just got right past it. You'll notice the little chart there at the bottom. We usually look at that. You'll see the waters purchased versus the gallons build.

The blue is the waters purchased and the orange is the gallons build. We're still at about roughly half of what we purchased half what we're purchasing. Uh, wastewater plant repairs. You'll notice this is from a storm from 2018. We're still making those repairs. I don't know why. still making those repairs for 2018, but we are. And so this year, um, the total outsource repair cost for the sewer plant was 1.1 million. All of those are FEMA reimbursements due to the storm Hurricane Florence that we've been working on. Here's the good news. Um, if you look at the daily average of water usage in April, 946,487. Look at the average daily usage uh now in November is about 623. That's a reduction of about 322,000 a day or about $40,000 in purchase water cost. That is the result of staff chasing these leads, putting their fingers in it, replacing the meters. Uh this is an ROI on all those expenses that you're trying to get a return on. Um, instead of just wandering around daily or doing whatever you got to do, we got to focus on fixing these leaks and put all hands on deck. I can tell you there's firefighters involved. There's public works guys involved. Um, their meteor readers are involved. The street guys are involved. So, all of our team is working on replacing fixing these repairs. It's not just one division or one department. There is no shot. Uh, the summary of that um the only really important here is if you look at the total cost of the utility fund uh right now is is is cooking in at about 1.159 1,59 remember that red line number I told you one two that means after five months um

you got about $40,000 we have to take each year that's why objective number one or two whatever it was was so important to make sure you put $500,000 in fund amounts it is critical that you maintain fund balance at an adequate level or you will not be able to fund the repairs. You're going to pay one way or the other.

So that's why the fund balances is so important. You will be drawing drawing down some of the fund balancing repair these leaks or you just going to continue to pay the PWC. The choice is clear. Uh the capital component uh this one I have asked for uh opinion from our attorney today. We'll talk about that a little bit later, but this was an original $500,000 ARPA grant um from the state to fix. And what you what it shows is Max Street and Regina Drive. We had to narrow that focus down to where it really just became one street. And the first bid that we got back was $76,000 or roughly $200,000 over the 500k rate. the math don't work. Okay. Now, you notice up there it says that half mile of pipe replacement, 8 in PVC sewer line replacement three times different linear feet are roughly about a half a mile of pipe replacement. So, we went this and we we started negotiating with biders to try to figure out a price deal that would allow us to get this project in. And this is where we ended up. We cut out replacing the sewer line in three different lengths, right? So, we saved about $130,000 by doing nothing. That's not safe. All right? It's a long-term cost. It's going to be a liability that hangs around our neighbors like a brick trying to tread water. And so, but we did get the price down to 573,000. So, we quickly recognized that this isn't going to work. So we had another grant of 300,000. So you take the 500,000 part of the 300,000 DEQ. We got approval to combine those to come up with 800,000.

So now we got something we can work with to do these replacements. Um, and this is what we got. Mr. Rice, it's okay. Carly thinks that's funny. I don't really care. I think it's okay, too. As long as they show me the money. It's all right. You can call me whatever. in the money this way. You'll notice that the total cost of $659,000, but note that little the notes combined ARPA and 20234 award is limited to 7955. Remember the 800,000 now it's limited to 79 uh 55 500 which means we got 135 left over. Did you know what we don't even know if we can add those sewer lines back to it now? So we're having to work with the state. It's the high probability it will be. Okay. just one of those pieces that you just have to kind of work and navigate with. So, uh we'll we'll get an attorney's opinion on it in terms of bidding process, everything that goes with it, but that's just another part of your office. So, you just have to be asset inventory assessment. Um so, that was one capital project, just one capital project. All right. The AIA suggests that we have about $40 million worth of repairs, upgrades, and maintenance on the water system alone. Another 40 million U dollars on the sewer system, maintenance, repairs, and upgrades alone. We just did $1 million of FEMA repairs. That FEMA money is going to go away. So, you got to continue to fund those operational repairs and replacements over time or you're going to end up with another nightmare. But this is the one that uh I've bounced around a little bit. I'm going to show you two thought processes. This is where you get really really concerned. Um let me say it again. This is where you get really really

concerned. If you have an identified $40 million need in water and $40 million need in sewer, um, but you only try to fund it $1 million a year. 500 in capital, 500 in fund balance, right? You do it 1 million a year, your your your break even point is going to be 40 years. In 40 years, those underground liabilities become more than underground liabilities. Um there are cities who have sewer lines that are nothing but dirt coverage. Okay? And so you got to be concerned about it. So we suggested the possibility of doing a $10 million loan uh 10 years. We just keep it simple, right? And so the annual debt service for a $10 million loan is a million bucks. Now, keep in mind we did the 17% rate increase to put 500,000 in fund balance, 500,000 in capital improvements. That's a million dollars built into it. Now, so if you go now and take a $10 million loan for a 10-year term, you've already got that in the budget. Now, instead of spending in cash on hand, you're doing it in a debt and you're moving that same million dollars. So, you're there for that one. But the demand is anywhere from 70 to $80 million. So the $10 million drop in the budget, what do you do? How do you move? Um or don't. This is our nightmare. If we do just a simple 40 million on a 20-year term. Yes, I know you can do 30 years and 40 years and all that, but people understand 20 year term for a 30-year term based on the home. So, if you do a 40 million term um at 5% USDA,

uh your PNI over the 20 years is going to be $61 million. Your annual debt payment will be $3,50,000 a year. you will have to double your rates or increase your water rates by 103% just the day of death. That's why I put that line down there. The need to consolidate is real. It's not an option. You got to figure out how how does how do you have a sustainable water and sewer system with 4,000 customers? You can't do it by charging them twice as much for raising their rates. You can't do it. Um you've got to growth in the customer base to spread the cost over more customers. Um or you got to have, you know, 80,000 customers that you're a part of. That's the end. Okay? Not just trying to go home and 4,000. Repeat it here just for a little bit clarity. Um because it gets you to thinking again. Um all of you will recall I sent this out to you. What does it say? 11:19 last week. So, you know, this all started October 2024. It hasn't let up. It's been a continuous process, continuous conversation about what we're doing. So, I know it's hard to see. Let me read it to you. I'm sorry. I know that the audience probably can't see it because it's small. I basically took a little excerpt out of our rate study um that says that the rate should be this should be this and it said you needed to take and calculate um economic development in the town of Spring Lake is expected to attract a large number of industries in the future. Potential industries and their water and sewer requirements were analyzed to determine the impact to the town. uh out of the industries currently in discussion with the town currently in discussion with the town seven industries with an expected flow around 560,000 GPD were determined to be more than likely to

locate themselves in Spring Lake by the town's economic developer. Um three of these industries are expected to be heavy water users with demand expected to be 100,000 GPD or greater. Three of the remaining four industries will also be classified as heavy industrial fusers with demands of approximately 50,000. Above the line, I simply suggested that we need to reserve 350,000 gallons per day of sewer capacity and of water capacity. So, I met with um PWC on November the 12th and the topic of that conversation is what is going to be the long-term demand for water from Spring Lake? What's the ask for BWC? Our current agreement is for 13 million gallons a month and we're exceeding that by about 24 million on average a month. So, we've got to change that agreement. We got to change that math and figure out what that looks like. Because if we don't have water, you don't have growth. Period. That's the innovation transport conversation. Um, if you you cannot have more water, then you have sewer capacity. So, you have to think about this in terms of how both of those assets work together to create an economic uh future for the town of Spring Lake. Let me say that again. How both of those assets work together to create an economic future for the town of Spring Lake. All right. How do you create an economic future? 350 capacity. More data. Our current sewer capacity. We are rated at 1.5 million gallons per day. We're using

752,000 as the average flow. You just simply say 800,000. Whatever math works for you. And if you follow the 80 90 80% 90% rule as recommended by everybody in terms of development and permitting the sewer plants, it says that when you reach 80% capacity, you need to start planning for an expansion. When you're at 90% capacity, you need to be digging the dirt.

All right? Just keep it that simple, right? Um, digging in the dirt. The bottom math, there's the 1.5 million capacity. At 80% capacity, that's 1.2 million. All right. We're currently operating at about 800,000 capacity. So, that means we got an available capacity, what's left in our sewer system, not being used, of 448,000 gallons per day. So of that 448,000 I just suggested we need to reserve 350,000 for heavy industrial users for economic development jobs. All right, I don't have an interest and I'm not suggesting that you maintain 350,000 gallons per day so that you can create jobs in retail. Okay, that's that doesn't pay,

right? You need something that's going to have, you know, industrial base, something that's going to actually generate some of those uh some of that income so people can live, work, and play in Spring Lake. You got to have housing for them. You got to have all kinds of different things. So, there's that commercial reserve for the new growth 350. This is where it really gets fascinating when you actually do the math. So, we have 84 vacant commercial properties according to our records. 84 vacant commercial properties. Um, I forget the number for vacant residential, but I got it here a little bit later to kind of speak to you. But you'll see those numbers for vacant reserve a thousand just a,000 gallons per day, right? means that I need to reserve 84,000 for that vacant that's already here. They going to want water, right? Um and then if we have any vacant residential uh we got to do that. They're they're all over the place. Y'all know that we've got over 100 properties listed properties and so we've been going around uh to avoid the depth of water and leakage of water. We removing meters and captain pipes. Okay, do it. Um what that suggests is that right now you just trying to reserve some commercial growth 350,000 gallons per day and the vacant reserve capacity. We are 98,000 gallons per day in the hole. Okay. Now, that's not technically correct and I'll be the first one to say that, right? It depends on how you look at how you roll it out. For example, instead of that 350,000 for commercial, if you said, "Okay, we're going to allocate that 200 gallons per day for residential. Now, we can 1,750 more residential units in the town of Spring Lane at the cost of commercial development or at the cost of the vacant. You know, how do you how do you do that? You got to think of all of

those things when you're thinking about that rate structure and what you're trying to do top users report uh revenue. And I I broke them down not that it matters. You can break them down any 10 different ways you want to. But I did the first one up there. where if you look at the top it says bulk rate verse capacity we are um in this particular case that date range is October so if you look at this over hills well over hills out there Manchester road um the usage for the month of October was 1,193,000 gallons and they paid a bulk rate for that not a rate that our residents pay if they have full rate a much cheaper rate. Now, if you're tracking that and you look at it from this perspective, what you're doing is taking water out of Spring Lake and sending it outside the town limits at a reduced cost.

Yeah, that just that have to work. Okay. So then you start looking at this other piece and you start looking at apartments GBD. Now um these are just a way of me trying to talk about a little bit normal distribution. You look at all these numbers you know you're going to have a low low end outlier have a high outlier then everybody else going to fall somewhere in the middle the average or the mean. And so when you look at our apartments just in this top 25 list of users, right, the high outlier was 50,000 gallons per day. The load is 4,830 and the mean or the average is 29,000. So if someone says, I want to do an apartment complex of 250 units, 260 units, to me, you need to be thinking about an allocation of sewer capacity of at least 30,000 gallons per day. Multiply that by 30 days and you'll figure out what your sewer capacity is. But that that 30,000 allocation is coming right off the top of your 1.2 million, okay? Per day. You got to be thinking in those terms that you every time you do something, right? impact on school motel comfort in 121,21,000 all right for that month of October sleep in 426 uh Trinity Development that's the uh forgive me I can't remember the name of that one now but

courtyard

courtyard Courtyard. Okay. Is the courtyard is down there at the bottom. Uh but for the motel, the mean is 16,000. All right. The average gallons per day. For the apartments, it's 29,000 gallons per day. Okay. These are the economic decisions that you are based. They are ultimately economic decisions. Okay. What pays the taxes? What pays the water use? How do you how do you fund these the system? And finally, restaurants um in a retail. Notice that cookout is a high outlier at 13,000 gallons per day. And then you look at the bottom down there and you got McDonald's at about four 4,000 gallons per day. U when people say we need better restaurants, I don't think not in a bad way that that's what they have in mind.

Okay. But you can see where the franchise whether it's uh McDonald's or whoever it may be are users of this volume of of sewer and you got to be thinking about that in terms of uh this is what will be longterm mayor with the group on economic development. When you start talking about economic development incentives, you know, what are you really giving away? What are you getting in return? You got to about this for capacity um and even the water allocation as well. The retail down there at Walmart 5,000 gallons per day. Um now, and you'll see other ones in there too as you go forward, but you know, when we look at this, I got a top 100 list. So, basically, there's a lot more residential when you get closer to the 100 and a lot more commercial properties when you get in that top 25 to include apartments. Now, I want you to keep in mind and think something. A lot of states um do not treat apartments as residential. They treat them as commercial enterprise. Okay? The businesses and so they're taxed a little bit differently as well. Just keeping in mind there's the vacant accounts. 564 residential vacant accounts across Spring Lake. 564 vacant. 84 commercial accounts. That's where that number comes from. You'll see a th00and GPD iss allocation for commercial, but if you go back and you look at those, you can see a thousand is probably woefully low. Okay. So, um what happens if everybody opens up the new the old vacant 564 residential, it starts taking 112,000 capacity. Once again, these numbers are not absolute. They're not accurate. They're just simple. Keep it simple so you have some way of evaluating, reviewing what your capacities are and what your limitations are.

So, the proposed water rates going forward for the 3000 um the average customer is changing the flat rate minimum to 1176 and the per,000galon rate to 1041. Start 71 1302 1432. Basically, the average customer with a 10.5% increase using 3,000 gallons of water would realize a $49 increase in their water bill. Water bill only. There is no recommendation at this time to adjust the sewer. That may come, but not at this time. It's water bill only because all we're adjusting to at this point is the increase from PWC. So there's no reason for us today and start thinking about sewer side of it as well or having an equal increase on the sewer side. So that is our recommendation um for all the reasons associated with capacity maintaining fixing repair sustainability of our system. Um I can tell you that when the water man breaks on Odell Road and people aren't getting water, they're getting the app, they're getting the social media, what's going on, what's happening. Everybody wants their water to work when they cut it on. And when it don't, it's problem. It's a problem for me. I'm sure it's a problem for you, problem for everybody. Um, but when they cut it on and it works, they also want to make sure it's clean. Make sure it's treated. Make sure all of those things come into play. Um and so to do that we have to address head on um not only the treatment capacity of it, return it back to the cape here so we can draw it back out of the cape here uh treat it, clean it um make it drinkable um and at the same by the same token make sure that when it's it's reliable

and sustainable into the future because water is in it of itself with the sewer capacity the economic future for the town of Spring Lake and we have got to to address these issues. Um, failure cannot be an option. So, we got to move forward. That is staff's recommendation. Specifically, I will say my recommendation and I don't want to hang around staff is that knowing recognizing that there is a 21% cost increase and we're still trying to fix, repair, and fill all these holes. I think it would be fiscally irresponsible for me as manager not to recommend a rate increase to adjust that. And that's what I Okay. Um, well, I do have one question about the uh vacant properties. If you could let us know if there are plan

Yes. for those vacant properties.

We're working um this is a little bit separate issue, but it's al also the same. Um I've had discussions with Cumberland County Planning um in regards to trying to develop what's called a uniform development you go. The idea behind that is you also begin to address these vacant pro properties and what do you do with them over time. So if you have a vacant property um buildings in here and as well you have a vacant property that exists for 90 days 180 days that that could become known as an abandoned property. So when you remove that meter, right, and then it exists as a vacant property for up to 180 days, now it's an abandoned property. In order for to get the water back, they got to bring it up to code. Um, and they have to pay what's part of our system development fees. So our consulting engineers are hoping to have our system development fees in place um by December. You probably won't hear until January at this point. There's no doubt about it. But what that does is that new growth has to pay for upgrades. And in some cases, it can be as high as $6,000 per unit. I've seen $6,000 per unit, $4,000. But a simple $2,000 per unit. If you multiply that by, somebody help me do the math. You do the math for 200 apartments at $2,000 a piece. Um, whatever that works out to be, that's a lot of money that goes back into the system to upgrade. So, um, if I had to expand our sewer plant by 1 million gallons per day, 1 million gallons per day, I'm looking at 20 to $30 million. We have to control and hold on to that sewer capacity. Um, so we need to have these maintenance structures identified, pull the meters.

Um, and another represents part of the plan is discontin carrying water or sewer outside the town spring leg city limits period. Um I know you might have reasons that you want to but the capacity of our sewer has been fought and paid for by our residents in Spring Lake over and over and over again. Those people who live outside the city limits and are getting that sewer or that water are only paying rent and they're getting it very very cheap. How do you take it outside?

Thank you. Um you mentioned um as um we have completed the house. So we're right there at the development fees. Uh did we talk about bringing that first of the year? Yeah, we're trying to get them completed. Actually, when we met with our consultant in the years, they get it to you the first year. Actually, we wanted it before December. Now, it's complicated. You mentioned 2000. I'm going a number. That's all I It needs to be higher than 2,000.

Yeah, it's basically it has to be set based on the demand. It's not just something you can say, oh, I wanted to do this, I wanted to do that. There's there's actually a mathematical formula they have to use to come up with that. It has to be justified. It has to be. So, I mean, what I'm hearing a lot of is we we really need to be wise about what we approve here. You know, not I'm not talking about the water rate. I'm talking about future development in the town. You know, we have to be picky about what apartment complexes or commercial properties we approve. Not everything's in our in our at our discretion, but that's eaten away at that. I believe that's you said we're trying to save 350 gallons for capacity.

Yes. 350,000 gallons of capacity. New apartments get away with that. You know, every development we do gets away with that. So, we have to be very wise about what we do approve. Uh do we have any idea how much we have in our water fund this fiscal year so far? It's only a couple months about 5 million. We're at 100%. Yeah, we we actually have met that target hands down. We've done very well with that, but it's getting ready to get dropped down a little bit.

Yeah. Okay. Uh just to be clear, anything, you know, you threw up an example $4 million for the uh things you got to take care of. Um as a loan, LGC would have to approve that as LGC commission. We would went and asked for 700,000 police car or something of that nature this year and this budget year they declined that right I know we didn't give the reason why

yes but we were not up to date with our audits and we had just released control got control back from the LGC so uh it'll be some time before I think we'll be approved for another loan anyways that's my commentary on that uh see and Didn't we already approve higher rates for customers outside of town limits? Yes, they're double the water rates and sewer rates. That's the standard practice um across the state. And so when you hear me talk about 38.90 for a water customer inside Spring Lake, double that. That's what a water customer should be paying outside of Spring Lake. And we do have some of those that pay double water rates and double rates. Why is Wells over not part of that?

Because they were part of an agreement many many years ago when they did a full water rate. Um, I would not suggest that we move toward a bulk sewer lake. I do I think that would be definitely through our system.

Is that agreement amendable? Uh, we just amended it uh to change it to $5 and something per um let me just be clear about this. Right now, Cumberland County is in negotiation to purchase the Wellland water system. Cumberland County is in agreement with us and they're giving our sewer the sewer from Bo Hills. So the water wellness is for Over Hills. The sewer coming from Over Hills is coming into our sewer point. Both of them I think were bad.

My last question, the obvious one. We're looking at a rate increase effective July one. And so why are you talking about doing this for February one? It just helps us absorb the cost associated with that 21% and we get it up and running a little bit. So it allows us to not do, forgive me for not knowing the rate off the top of my head, but there's another rate higher rate if we wait till July. We don't get to recover some of that cost in advance. Yeah, I just think it's too early. Thank you.

I did want to just make some a fair statement with the capacity. um the apartments wouldn't eat the reserve capacity that um Mr. Roy was suggesting we reserve that was reserved for industrial development. So to get to where are we currently in reference to the 80% we need to be we got 488,000 capacity available or take a few and so anything that you approve if you take 200 apartments and they consume 200 gallons per day that's 40,000 gallons per day and so that's how you start talking about that 488,000 eat away at that. Yes. Thank you.

Um I mean, excuse me. It's in the green.

Thank you, Mayor. Um, to our residents out there, going at it alone has not worked for us. We're working, we're trying to work smarter, and there's a lot of moving pieces to that. and I have to be on that that committee that that's doing this. So, uh Janine can attest that I've had some sleepless nights as we're trying to figure this out, struggling with with raising rates. Uh you all hear us say that when we do this, we raise our own rates. And so that's one of the things that we struggle with. But if we don't fix these leaks, we're just leing that water way out into the ground. We're still paying for that. April, we had a high of of 946,000 gallons. November, Chief Williams and the crew, thank you all very much. You all got that down to 623,000 gallons. Mr. Roy, correct me if I'm wrong, but I think that was a $40,000 savings.

Yes. Not really a savings, but it's it's money that

we're not taking it out of one pocket or the other. So, as we look at that, folks, I'm struggling on this as well. I I hate to to look at that with the increase. I agree with Commissioner as we look at this at this rate increase, but if we don't do something, we won't be a town that will be able to thrive or survive. So, we've got to fix these. We've got to get this done. We got to replace these meters. um over the years of not doing anything has put us into the place where we're at today. So, it's a hard hard decision to make. That's all. All right. We're in the business of tough decisions, but we have to make the decisions that are best for the long-term existence and growth of Spring Lake. So,

yes. Um, you mentioned that we you were considering not providing that water to Over Hill at a certain point. Is that correct? That would be a board's policy decision. You would have to enter into decline or move out of the agreement. The Cumberland County is considering purchasing that. Okay. So, um, I think that these agreements have been around since 2014. Um, it's way past time for us to analyze and assess whether or not we should cancel those. I made a specific recommendation when it came to sewer that we should cancel the sewer agreement and give them two years notice that we're no longer going to be providing sewer services to over hills effective 2027.

Okay. And um how much of our work what percentage of our water capacity are we giving them? Well, uh that's another problem with the agreement right now. Now, this is from the the head over too. So, it's hard to keep all that stuff going in there. But there that sewer agreement is for 314 hookups.

Okay. So, I think 314 tabs. Currently, only 80 have tapped into it, which means they have an agreement that allows for another whatever that map is, 220ish, 230ish to tap into it. So, they haven't even tapped into the whole reserve yet. um what that number is mathematically I can't remember now on a monthly basis what it is but it's uh it's enough so you think of it as 80 and 200 gallons at least per day that's what it's going to be on a monthly basis 200 by 80 whatever

okay so again these are this is reserved capacity that's not use and it's reserved for non-t taxpayer residents. It hurts our heart to not, you know, be able to take care of people, but we won't take care of other people at our expense. So, it again, it's a very tough decision because we're talking about um changing the way overs is receiving service from the town totally. But again, we have been put in charge of our tax dollars and we have to make sure that we are doing right by us. So again, I said it and Commissioner Lman said it again. I said it all the time, we pay the same rates you guys are paying and the same way I don't want to subsidize our my money to pay for other people. I don't want you to do the same thing. And that's what we've been doing. and we have to do something or spring lake does not grow and that's just the bottom line. Um so I would if there's any further discussion from the board commission

want to make sure I have my numbers right. The 50 you said it was 50% that we were not feeling for last year. I remember that. Did you on one of the slides say 30%. Now that was the uh when we started 30% and we're we're still not billing for around 50% of what we actually purchased. Okay. because of all the replacements and the repairs and fixes. And I don't I don't think it's a leak problem. I think it's a meter problem. At the end of the day, you got 4,000 customers, you read meters, they never read as accurate as the day that you put them in there. And we got to stop quite a few though from weeks. Oh yes.

Okay. And then last year we approved a 17% rate and this is a 10% 27% in one year.

Higher rates. Thank you. And again, this this rate increase is coming from PWC. It's not Spring Lake just hiking our rates up. That 21% is coming from the water we purchased, and we're only increasing 10.5%. So, it's not again, we have to make sure that the utility operates as a business. It needs to be a self-funding utility. And that's why we have to raise rates because we're paying more. We have increase our rates. And again, on average, a water customer will realize water customer, not sewer. Water will realize about a four dollar 9 increase per month on the water wheel, not sewer, just water. Um, so again, that's PWC increase rate. We have to do the same. Is there any further discussion? I'll now entertain a motion to approve or deny the increase of the water rates to cover the increased cost from PWC effective February 1, 2026. Is there a motion?

Motion to deny the water rate increase. Is there a second? I second to deny. To deny. Any discussion again? we deny this increase. How are we supposed to maintain?

Uh so the increase isn't until July. That's number one. So we save uh town citizens a couple dollars every month until then. Uh we've also added a capital project fund for $500,000 that we approved last year when we decided to increase by 17% also on the heels of another PWC increase. So it it isn't about really limiting growth for Spring Lake. It's a issue that has to be resolved, but this isn't the time. How do we resolve it if we don't increase rates to match the increase that's coming to us?

Because this money isn't going towards the main issue I think that Mr. Rory is saying citing is the capacity for the sewer for the that seems to be the argument that he's making for road. If we limit the the development of future projects because we have a capacity issue with the sewer in the water treatment plant, then that's where our issue is. Raising the water rates doesn't help our sewer needs, but we're paying for water. the cost to us is increasing to the town and the utility fund has to operate as a business. If we don't increase our rates that we're charging our customers, then we take on that expense and we end up back in the situation that we were in. That $500,000 that came with the original uh increase Mr. Rory showed you how that money is already spent.

Yeah. And if we raised it $100, it soon would be enough to cover all the expenses that come with repairing the sewer system. Is there any further discussion? All in favor? Any opposed? I've only got three votes. I'm going to have to vote.

Just clarification. Are you voting nay for the motion to deny or just so we're clear or nay? The motion was to deny the water increase. So I was that name vote goes to stop the denial. I stand corrected. I go along with with commission. Can we review this vote, please? I will now entertain a motion to approve or deny the increase of the water rate to cover the increased cost for PWC effective February 1, 2026. All in favor of the denial that Commissioner Plazios I I

I Any opposed? The motion carries to deny the increase of the water rates to cover the increase cost from PWC. All right, we will now move on to agenda item 8E which is the certificate of sufficiency from any property Mr. or excuse me, I'm sorry, madame clerk.

Thank you, mayor. So, the last board meeting, the board adopted a resolution directing me to investigate the efficiency um and for staff to conduct a feasibility study of the request made by James and Pipa at 1523 North Boulevard. I did find the petition request uh to be sufficient. I also conducted the feasibility uh study and everything is in place where it should be. Even though we don't currently protect or provide fire, police or sanitation services, that would be no problem since it is in the middle of the town limits right there between Manchester and guns. Any discussion from the board, questions, comments? All right, we'll now move on to agenda item 8F, resolution 202519, a resolution fixing date of public hearing on questions of annexation pursuant to GS uh 16831 and reszoning from R10 residential to CP plans commercial. Madam Alry,

thank you mayor. So on the screen here, this is the the the map of the annexation that is wanting to be done. Right here in the blue is 1523 North Bragg Boulevard. To the left or excuse me, to the right and white that is currently all town property. So and right here is Guns Plus. Excuse me. So that's Guns Plus. This property right here between Guns Plus and the one to be annex is still currently county property. So like I said, the the the one shaded in blue will want is requesting annexation and reszoning from R10 residential to commercial planning. This is a layout that Miss Hickin received from the engineers. Here's of course on the right is East Manchester where the old uh I guess tobacco shop on the corner East Manchester and 87 North W Boulevard. They want to turn that into a convenience retail with gas service. The other properties to the left of it, he stated it'll be, you know, the ones closer to the county will be a uh will be multiple tenants, uh probably retail or quick service restaurants. So, uh the next slide, as you can see where the property on the corner Manchester and 87 and towards the blue is already zoned for CP commercial property. So the one in blue like I said earlier is R10. They want to convert it to CP. Um I already have the public hearing set for January 12th. The new uh the first meeting in January. Uh you know by general statute I have to do a 10day um No, no, or no less than 10 days public

notice hearing in the newspaper. I already have it submitted to Bay Observer to go out December 31st. Also, I have been doing a lot of research um regarding doing the resoning because normally we go through Cumberland County. However, we have our you know our police policies that the board can do is do a resoning and annexation at one public hearing. So, I do not have any public hearing notice signs because you have to uh put one in the property that wants to be reszoned. So, uh I got with Miss Pickman about that. She stated we do not have any since we you know normally use Carl County. So, that is my next step is to uh get a sign made and have it put out there. No, says no more than 25 days. So, what I'll do is I'll keep it kind of aligned with my public hearing notice. And I also have all the addresses for uh the budding properties to send them the public hearing notice. So I requesting today uh for you to give me approval to go ahead and um set the public hearing notice for January 12th, 2026 uh for the new for the current board members and the new board members here today. All right. So, I'll entertain a motion to and thank you for all of that your work because I know it's been a lot and you've been working on this one. Um,

thank you, mayor. Actually, this is my very first annexation. Thank you to Miss Hickman because she has helped me a little bit. Thank you to Sean. I rely on him heavily on this. I'm a little nervous, but I'm super excited that um I'm actually finally getting my first one because, you know, we've denied one already. I want you to think of a couple things. Couple things. Did you? Yeah. Oh, go for it. Mr. Back back up. Back up. Sorry. It speaks to this issue. Show me the development proposal. That's at the corner of what? East Manchester 87. And it's for what?

Uh commercial. This of the land right here. Uh let me put the mouse right in here. is going to be convenience retail with gas service. Okay. And what to the left? He said these will be multiple tenants. That would probably be retail or quick service restaurants. Okay. And so is the gas on the corner of Bragg and

yes across by right in the CP that means is it allowed that right? So now if you edit something and change the zoning from R to CP what's going to be permitted by right in there some type of conditions associated with it. So those are the thinking you need to have as part of this. I just want to stress that right now. It's going to be this. It's going to be whatever right based on that CP. I just want that in the back of your head because back to capacity. This is a gas station retail, right? It doesn't consume some of that capacity, right? And so then we've already the uh I just wanted you to think about that in terms of the zone.

Absolutely. All right. I'll now entertain a motion to approve resolution 20259.

Is there a second? Commission. Any discussion? All in favor?

Motion carries. All right, we are now on to our um reports. So, I will begin by saying happy early Thanksgiving. Uh please note that town hall will be closed on both Thursday and Friday um in honor of this um holiday. Uh so please keep that in mind. So, um, it's been a a really busy week, past week for me. I was invited to, um, the United States Global Leadership Conference or excuse me, by the US Global Leadership Coalition and the Council on Foreign Relations, uh, invited me out to DC where we were invited to Capitol Hill. Uh, and we were asked also, um, our brains were picked. They wanted to make sure that mayors understood that the decisions that are made globally all land right here in our laps. And our voice is often overlooked when these decisions are being made regarding tariffs, regarding um our military associations. Uh and so they wanted to bring mayors from across the country. Um they range in capacity from um the mayor of excuse me, deputy mayor of Los Angeles down to a very very small town in Connecticut. Um and they they allowed us to see the value in what we do here and how it plays a part on a global scale. Um I was also invited to join the uh US global leadership coalition and bias regime. So that uh also senior advisory board um that also puts Spring Lake on a national platform, a global platform to where we can bring back more resources, more information and connections to our town. So that's

something I'm super proud of. Um and I can't wait to see how we can continue to forge these relationships uh both within our state uh in our country and across the world because it all benefits us right back here in Spring Lake. Uh we were also able to host our black um membership meeting here this past week, which is always a pleasure. And they wanted to make sure they highlighted how beautiful our boardroom is. Um which is a big deal because this was a labor of love by our staff, our managers, police, fire. Um all of them put their blood, sweat, and tears into this boardroom. Uh, I also got a chance to hear back about Lilian Black and the feasibility study uh that our UNCC Chapel Hill grad students have put forward. Now, we will um get a formalized fingers crossed because they're they're literally going to work over Christmas break to bring us back the actual information what we did. We got myself, Mayor Bertin, and Mr. Lori were able to sit in on their their class presentation where they showed us how Lilian Black could be used um and the potential that that building has and not just the building but all of the land surrounding it. Uh and it it's very beneficial for the town should we be able to work with the county um to get this thing revitalized and potentially sold to a private developer uh some public private partnership. But Lilian Black is an extreme asset and I cannot wait to present the actual findings um to the town because what they showed us was nothing short of spectacular and it actually falls within the wheelhouse of working with a community champion, a community partner to develop that area, maintaining its historical um beauty um but making sure that it's repurposed and revitalized and becomes a working asset for the town. Um we have our focus group

meetings coming up. Um and this is the economic development task force focus group 4. Um it this meeting will be in conjunction with focus group three and this is happening tomorrow right here at 5:30. This meeting is open to the public. So for those who want to have a part in what's happening in the town of Spring Lake, you're concerned about Main Street revitalization. you want to know about these businesses and industries and have a say in what's going to come to our town. These are the places that you need to be at. Come and provide your input. We need you to to be a part of these. Um we also have our Christmas tree lighting coming up on the 5th of December from 6:00 to 8:00 p.m. It'll be right out here, right outside of town hall. You guys know this is always a really, really, really good time. Um, and I hope that you all come out and sing some carols with us. Maybe we'll get our um our resident celebrity uh vocalist that's right here on our board to sing us a couple of carols. We just found out today that he's one of Commissioner Lackman's top five sing male vocalists of all time. And I second that. He's number one. He's my top two. That's my number one vocalist right there. So, we appreciate you and we plan on putting you on the spot again on December 5th. Um, and finally, our inauguration, uh, is happening on the 8th of December, and it will not be here. So, our board meeting will be held across the street at the rec center. Um, same time, but it'll be across the street. So, uh, make sure if you're coming to the board meeting to the to the inauguration, it will be across the street um on the 8th of December, regular board meeting time. And that is all I have. Mayor Proin,

uh, yes, as the mayor mentioned, uh, group three health community will be meeting in conjunction with uh focus group 4 that's tomorrow at 5:30 and we do need um we would love more input from the community um because this affects every one of us and um that's all

um I had a chance to um attend the spring lake ministry alliance um annual Thanksgiving dinner last week um the head of college service at Beth Church and it was a nice service and also I'd like to say um thank you for the flowers that I received from the passing of my father that's okay mayor you know I couldn't be over too so I've got a few things to say operation turkey Thanksgiving day here at town hall

town hall will be closed but for operation turkey we will be having meals here that will be provided to our our people. Please come in. If you know anybody that's in need or would like a Thanksgiving dinner, you should have have nothing on Thanksgiving. So, Operation Turkey out of Fville has has done Isaac who was here earlier. He is the one that spearheaded it last year. He's also been the one that's been working at it this year. So, we will have meals. Uh we do have some drinks that if people would like to donate some some beverages, non-alcoholic beverages and some some desserts to go along with the meals. Uh we will be passing those out here. So that will be done here at town hall.

What time? What time?

10:00 a.m. to 100 p.m. or until the meals run out. So at 10:00 a.m. we do have some volunteers that will be coming in and assisting us with that. So, I want to tell them thank you in advance for for doing this. Uh, police, fire, our members that are working on duty. Please come over and get a meal. Thank you. Um, mayor talked about clean up. Mr. Robertson talked about the the work that people have done. It was town staff. It was also we had an army unit. We had the the Delta Company second of 82nd that had come in and helped. So December 5th, I'm going to go over there and present with some some service certificates. 27 people helped clean up 99,000 pounds of debris off of that property. So kudos to them. Arman, tomorrow we've got our invac meeting here with our full compliment. We've got a competing uh time slot. is at 6:00. So, they may be meeting back in the mayor's office or somewhere back there

6:30, right? But Thursday's 5:30 over here and focus group one, we're meeting Wednesday going over the the sewer and the water and we will be here. Yes, sir. Wednesday. 5:30.

I believe it is 5:30. I would have to check the calendar. And lastly, um the seeds that we've been planting over the last four years is going to provide some shade for the incoming board members, to our residents, the hard work that has been done uh over these four years. Hopefully, you all will will that fruit from the labor of love from our town staff, our employees, this board. So, that's all. Thank you. I have nothing. Thank you. What? I will charge you for singing though.

Okay. On November 13th, I attended Manchester's literacy night and the students um they showcased their literary skills by reading their favorite books and also by playing games. They were very engaged and I enjoy reading with the students. And then on November 19th, Adrian and I, we had an opportunity to go to see round and judge the disguise the turkey contest. And when I tell you they were very creative and innovative um we had minions and uh oh my goodness, Santa Claus and but they were very very creative and I was very proud of the students. And then lastly, you still have an opportunity to help Spring Middle um as you know we have a PTA now and we need your help. So if you are interested becoming a member of the PTA, please um let myself know or you can go to your school and sign up because it supports the school, the students, the teachers and it brings community engagement. So if you're interested in joining at Spring Middle, please by all means. Thank you.

Okay, just want one caveat. The focus group one meeting is next Thursday at 4 p.m. Correct. Next Thursday the 4th at 6:30. That's why she knows what's happen. Thank you, Madam Clerk. Awesome, Mr. Wor.

Uh, just briefly because I'll be uh traveling outside of the country when y'all have the inauguration. Yeah, fun stuff. Um, but just for a few days. It just happens to go outside at that time. But uh This will probably be my last chance at least while you're officially still board members. Uh so

that's okay. Uh we just want to say uh commissioners Chadwick Blackio has been an honor. Uh it's hard to believe it's been a little over three years. Uh y'all seen me bigger, skinnier, and bigger again. Lot lot more gray hair. But in all seriousness, it has been a pleasure. I look forward to welcoming you. to board members. If there is nothing further, Miss I just wanted to uh say because I was thinking I was like why would at 6:30 we have our special meeting the 4th and then this will follow after. Got it.

That's why I was think you want to put those dates out for clarity. Yeah. So this which I haven't posted the public notice yet regarding the special meeting because I uh don't have to do that more within 48 hours of the meeting but I will have it out before that. But at 6:00 December 4th we will be having a special meeting uh for two items. One a um site plan review and second the focus group one meeting which will and which also we will have a representative from PWC here. Well, apparently I will get to y'all one more time. God works a mysterious.

Well, now without further ado, this meeting is now adjourned. Have a great evening. Give home safe for each other.