Council - Regular Meeting

with liberty and justice for all. Let us pray. Heavenly Father, we come to you always inviting you to to make the right decisions for each citizen of Nashville. Amen. Amen. Uh the first item on our agenda is a moving of some minutes and the first minutes were the million uh March 18th regular meeting. Did you find any corrections to those? Mayor, yes. Could we postpone the approval of these men since we have two council members that are missing that may have some input uh to approve or disapprove for each? I think we need all three of those until we get some more. Do I hear a second?

Second. All in favor? Let it be known by saying I um are there any public comments today? Sorry, I didn't. Okay. Go ahead. Okay. Thank you. Um the next item on our agenda is um the u FY25 financial audit. Did you want Mayor Mayor and council? Our our auditor um forgot about us. So, well, that's nice. So, I guess we need to table it till the May 5th meeting and then we'll get the audit report then. Do I hear a motion? I make a motion we table it till May 5th meeting.

Do I hear a second? Second. All in favor? This means going quick. Um The next item on our agenda is the Stony Creek Environmental Park Master Plan.

Good morning, Mayor and Council. So, as you know, we've been working since October on a master plan for Stone Creek Environmental Park. And what we have here today is a draft agreement that we are a draft plan uh that we are asking for approval on. So we contracted with Griffin Grant Work for that project and David Griffin is here and we have a a presentation that goes through the highlights of that plan. So I'm going to turn it over to that. Okay. Thank you and welcome David.

Thank you. Good morning. Morning center of my life. Make sure I'm going to go through the presentation. It is tied to the park. If at any moment you have uh questions and you need to pull up the park plan itself, will be able to do that and we can drill down 140ome pages. So we're not I'm not going to try and go through every page because we are going to keep quickly as you mentioned. I'm nearsighted so I can see my phone better than I can see that. So if you see me keep looking just following along to start off the just give a little bit of background on the second slide. Um Stone Creek Environmental Park uh was originally in 1979 it received money from the Land Water Conservation Fund and they developed JW Glo. So it was originally a by another another name in 1994. It received more funding from land water conservation fund. It was converted in 1999 and then converted back to a park and received additional funding in 2011 from the parks and recreation trust fund. So this will be the fifth touch that the state department of natural culture resources and their previous departments will have had on this site. So uh it's really interesting uh history from that standpoint. We started the process this overall process actually in December. Uh the first first process is something I like to call alignment. Uh but there there's a step before the first step and the first step was uh reaching out to the community. We reached out to the elected officials, stakeholders. Uh in all there was 194 different people that received an email. We went over what proposed process was. What do you think about the process? how

we're going to do the outreach, who do we need to invite? So, we we received all that information. We also asked what previous planning documents should we refer back to and then we you'll see those in just a moment that are in the plan. Uh I I can tell you this is a plan that I the entire time I felt like I was just putting together the parks that were already there. Um the the community has been asking for the what you will see in this plan for many years and in many different previous planning documents. Um you've done extraordinarily well and and I will take a moment to brag on Nashville. The participation that we receive is amazing and that is a direct reflection on the council, the mayor, the manager and Croy and his team. The level of trust you have with your citizens. citizens participate when they feel like they're going to be heard and then that's going to get put in action. So, you really should be congratulated. And with that, let's let's jump into the plan. Section one, and I'm going to go fairly quickly from here. Whenever you're going to do a park, you want to consider your past and current recreation needs. And then also just have some design considerations. What What can we do in the park and not do in the park? You're going to find all of that discussed in section one. Um you're not going to want to put a swimming pool there. You don't want a swimming pool in an area that's been flood. So you don't want to do that. You've got an area that's beautiful and it's natural. We don't want to clear trees and put in a swimming pool. So there are kind of things when I say design considerations you have to keep in mind. Section two jumps into the existing studies. Uh when we asked the stakeholders, there were actually 26 existing studies that really had that spoke on behalf of either the park itself, the park's position in downtown and how

it anchors downtown or in trails. And there are 26 different documents that point towards the need of what is going to go there. So this isn't something that's just going to float. All 26 of those are included in the plan and a brief summary of how that plan points to the Stony Creek plan that we we are completing today. Three of those plans are your comprehensive recreation master plan, your statistically valid survey, and the North Carolina statewide comprehensive outdoor recreation plan. They are the three that really and truly gave the most emphasis in the plan and kind of made sure that we were staying within previous ideas and concepts that we just want floating things brand new out and I'm going talk about score again in just a moment statewide comprehensive section three moving along quickly uh section three and four that that is kind of inside baseball that's going to speak to the reviewers of your grants to people like Ky and his team to really understand that we've got good recreation theory going on and that we are considering other regional trails in the system. So Nashville's not thinking about connecting 10 miles to the south of where the state would want to connect. So we're all we're doing everything in a nice sustained manner that is going to communicate well to everyone. So we've done that. Section five, recreational needs and CIP. Again, that's your survey. CIP that is actually going to be uh the next item on the agenda and I'm going to dive into that with a little more detail and tell you why we're doing that and it comes down to grant money. I'll just be direct with that. U moving along section six is the statewide comprehensive outdoor recreation plan. What happened with that plan is they had a draft in December, January, February.

They approved the draft in late February and March. So in that what we have discussed is both the 2020 plan and the 2025 plan. So you kind of got two for the price of one and it does the Stony Creek Environmental Park plan does align very well with the 2025 plan and that would directly affect your the grant that's going to open in May and close in November. That is tied directly to your score score uh section seven access for everyone. Uh, a lot of times we like to just throw around the term ADA. There's actually four different standards that we looked at. Uh, one is universal design principles. It says that a recreation amenity should be able to be used by as many people as possible with as much different needs as possible in the actual state that it is without having to change it and also in as many ways as possible. So that's developed NC State. Then we get into ADA and you get the US access board for outdoor developed areas which is basically natural use parks, trails, things like that. We also are going to consider the US forest service guidelines because the forest service actually they are the largest land owner public recreation land owner in the country and they developed their the national forest for us to hike in. So when they say, "Hey, let's design a picnic table." Theirs is their requirements are a little more stringent because they they do it more than anyone else. So we always are going to want to make to not just to meet the law and and to be legal. That's kind of the low standard, but the high standard is, hey, we have a chance now from a design standpoint that we can serve as many people as possible. That's just a good right thing. We should do it. So we're going to consider that as well. Um, section 8 is the project area assessment. Uh, that's a lot of fun. That's 29 different ways to assess the park. Flood planes, wetlands, the whole

nine yards. Um, what recreation amenities we're proposing to put in, how were they developed? All of that is developed in section 9. Uh, section 8. Section 9 is your public input. I'm going to slow down just a little bit. All of you came to our public input meetings. Again, thank you. Uh, we had 95 people attend. We have these three boards. If you came earlier in the week, the boards were a little cleaner. As you can tell, that is that's difficult to tell what's behind those pictures. Uh there's just a lot of going on. And if we can move to the slide that shows the actual results and I don't know if you can see that, but uh what the weighted score. So your butterfly counted as two points. Your duck, you got four ducks counted as one point. So the weighted score, everything on the left in order in order prioritized by your citizens made it to the plan. So if the citizens said this is a priority to us, Koi listened, I listened, the recreation advisory committee listened, it made it into the plan. So this isn't just where we went through a process and then Coy said, "Hey, Dave, stick this in there." That that's not what happened. uh what what you see in the plan is what your citizens prior traffic. Once we had all of that together, we actually went out. We kind of went on a little on a little tour. Poy and I did. Uh we went to your advisory committee on March 2nd and then from March 5th to March 19th. We presented it to Nashville Elementary School PTO, the Elks Lodge, and the National Chamber of Commerce. So, we presented the plan to them and worked with them. They have all provided letters of support. So what is this plan I'm speaking of?

This is the plan if if you can if you have it in front of you uh it may be a little easier to see it but in in simple terms just kind of make it as simple as possible. The project has been split into three phases. The first phase is the EEG grant that you've already received where they're going to go in and take the invasive species out, new flow flow control methods. That will start in early 2027. That's phase one. Phase two is what the grants that we're going to apply for this coming year. First grant is due on May 1st and that is the third item we'll discuss tonight this morning. Everything north of the creek in green is phase two. Everything south of the creek in orange is phase three. That will start in 3 to four years.

But you you're going to receive uh standard hiking trails. And a hiking trail is like when you go through the mountains and the trails only about 3 or 4 feet wide max. That's your hiking trail. That's your dotted line. Your solid line is a and it gets a little confusing because I'm going to use different terms with different grants, but it's pretty much the the greenway that's already existing at the park north of the park that comes up behind the courthouse, the natural surface trail. We can call it a natural surface trail. We can call it a multi-use trail. We can shared use trail or greenway. And if you It depends on which grant because each grant has its own set of definitions. But just understand that's that 10 12 foot wide that is actually going to go through an area of pines that are in the creek in the park north of the creek and then again on the southern side it'll be able to go and move towards where bridge is on US 64 and hopefully by that time we'll have some good planning uh to be able to start talking about where it connect going west and east coming out of Nashville. So that that's the ultimate plans for that. Uh the next slide has the budget. Oh, and there's a restroom facility. That That was the neat thing. A restroom facility scored very few, maybe three number one votes, but I think everybody said, "I want a restroom facility." You know, I really want this trail, but we better have a restroom facility. So, we have that on the site. A very nice restroom facility. The budget for uh phase two is on the left. Phase three is on the right. Again, phase two is what we're going to discuss in just a few moments. Phase three will be in another 3 to five years. Uh section 11 is anticipated per meetings. Permitting for these pro this type of uh project is extensive. Uh if you go back and look at the budget, there's $200,000 for design, engineering, and permitting.

And it primarily has to do with the amount of wetlands, the amount of flood plane of the site. And it's not that it can't be done. It just has to be properly designed and properly permit and uh it's just part of the process. So we we made sure that we put the the funding in that's working with the different groups. I'm I'm not concerned about being able to get the permits but there is a process and let you know we have gone ahead and talked with your technical review committee and shown and uh we we're already talking about what we can do in the flood plane, what we can't do in the flood plane. Uh very mindful of that. So, that is a quick run through of the master plan. That's item 7A on your agenda. Um, are there any questions?

I've got two I got two questions for you. Uh, number one, the presentation that you you've just gone through with us. Do you have this a hard copy for us to follow through and look at again? I can send it out to you. Yes, sir. I don't I don't have it. Um, you don't have Would you would you print out a hard copy for us? Uh, for myself at least. I'd like one, too. So, we can follow through what what we just went through here. Yes, sir.

And and number two, the rays that the uh the citizens put out pointwise, and you mentioned that there had to be had to be a uh had to be rest rooms on these on these trails. What kind of rest rooms are we talking about constructing for 500 for for $325,000. What kind of restrooms you got? What we planning on doing? That also includes the connecting to the utilities, which is going to that that's a considerable price and parking. So, it's all Oh, and parking. And parking. Yes, sir.

Okay. So, it's not just it's not just restrooms. It's it's parking lot. But I was wondering for $325,000 I got I don't know what kind of restaurant you talking about buildings. Yeah. And and you're you're correct. And It's still a fairly expensive restroom because it's three individual restrooms, single, you know, single stall restrooms. Has its own plumber's chase. Uh doors that will lock it when you go in. You can lock the door, but then also the door will lock itself at 7:00, 8:00, 9:00 at night, unlock itself in the morning.

Um drains on the floor to where if someone goes in, because we know, you know, restrooms can get messed up. Drains in the floor can RFP board that goes up to 8 foot high. So, it's not just a restroom. It's a restroom that's made to keep the maintenance cost down, the daily maintenance. So, we're going to spend some extra money there trying to keep operational cost. But yes, sir, it's I understand the cost now because I I wasn't visualizing a restroom

like you just right. You can go a whole house, but uh I you clarified it now. Okay. Thank you. And also, I did want to let you know the reason I do that is when it comes time to bid the project out and then get the invoices and then get your money back. If you if you start with a line item that says restroom, you're going to end with a line item that says restroom. And that just makes the grant close out. I think how talked about the close out he's going through with JW. He's going to do great. It's going to work out. It's going to be wonderful. But when you can set up this way, just makes it a little more transparent on that side. Everybody wants to get the grand award, get the check.

Okay. Any other question? Mayor, so the restroom, is it going to be potentially showers or future showers? Because this is a um bigger, you know, endeavor and and maybe even possibly going east and west, there may be a need for showers in the future. Is there showers included in this or is it?

It is not, but that does not mean that it cannot. That that would be something that would you expand at least one of the rooms a bit have a shower st behind it. That could happen because it's already draining the floor. Uh the restroom that it's based on is old. If you go old tree road, it's behind Bassro Shops in Car. Uh it's the the trail head facility the town of Kerry is put in between uh Homestead State Park and Lake Crerure. So it's actually you can actually see the existing footprint of that restroom and it's just a and what it is is half restroom half. It's a nice facility. It really is.

Cor could you provide us with an address for that location? Yes, sir. Thank you. Any other questions? Thank you so much. Yes, sir. Yes, ma'am. It's exciting to look at this. Thank you. It is exciting. Um, mayor, so what we have, and I believe uh Woo had sent this out yesterday, is a I'm sorry, I didn't get it out. Okay. Um, we have a resolution adopting the Center Creek Environmental Park Master Plan. Um, and we are asking the council to adopt that plan officially today. Can we see the plan?

Yes, sir. Just the one just the one that G's just talked about. Yes, ma'am. So, I uh emailed that out um two or three weeks ago and then we had a link to it in your packet, but it is this 140 page document. And if anybody else is interested in reviewing it, I apologize it went off the screen. Um we have it to where it lives on our website as well. We have a page that is planning and development, parks and recreation planning and development. We have it up there in draft form now and once adopted we can we'll upload it again in its final form.

Great. Um after uh listening and hearing about the Stony Creek uh environmental master plan. Do I hear a motion to approve this master plan? Hey you two guys. May Could I ask a question? No. Do I have to point? What is your question? Make it quick, please. Um, it was about the if you put it the screen back to show the points, you know, the um, we're having technical difficulties.

Oh, it's about how how can they do the kayak thing? Do you have to scoop out the creek for that or what? Yeah. Um the creek was when was the last track completed? Uh in so uh the state completed a stream what was it? Stream rehabilitation assistant program assistant program to clean it out. And yes any paddle trail you have is there would have to be seasonal maintenance of the paddle trail. But also, when you're paddling on a creek, do you understand there's going to be portages that you're going to have to get around some of the trees? You got a lot of rocks in there.

It's It's You can paddle. You can paddle. Okay. Thank you. So, do I hear a move to approve the master plan for St Environmental Park? So moved. Is there a second? Second. All those in favor? by saying I. The next item on our agenda is a capital improvement plan review. Um, so Choy,

Mr. Mayor. So, um, as part of that master plan, the next thing we have is capital improvement plan of how we're going to fund that the this project. Um, and and this is in your agenda packet on page 161 that shows that capital improvement plan. And David, is there anything you would like to add on that?

U, one of the main reasons you want to do this is it's an additional three points in grant funding. And um this is the only item those three points are the only three items that in my opinion based from 20 years of experience that without this they're the only three points that you're that's going to keep you from a perfect score. So if we approve this I'm not positive that they're going to take it as as your citywide CIP, but this is an attempt to put us in the best position possible uh to receive permits. So, we have nothing to lose by approving it.

And if you'll notice, mayor, there are two forms on there. The first one is showing your overall cost, uh, the the proposed cost, and then that's in green on page 161, and what I have on the screen here. And then your second one has it broken down into phase one, two, or three and where those funding sources are going to come from for each phase. And wait, I'm sorry. I'm confused. So, cuz my my green looks different than your green. That's your green.

Okay, that's the green. Okay. The other one look okay. So, one says revenue. The blue one says revenue.

Correct. So, um the revenue one is where we are uh getting the money to fund the project and we can go through those if you want. Um the phase one, the number at the top that says NCDQ, that is the water resources development grant that we were awarded uh earlier this year and what we're considering phase one. Um for phase two, which is um what we're proposing to for this project to start now is a parks and recreation trust fund grant. That is the next item on the agenda today for 500,000. a recreation trails program or RTP uh which is due September 4th for 100,000 and then a land and water conservation fund grant for 600,000 uh which is due November 1st of this year. Um, so those would be the three funding sources for phase two. And then phase three, and as David mentioned, that's three to four years down the road. Uh, we plan to go back and apply for another parks and recreation trust fund, gear, RTP, and an additional LWCF. Okay.

Any questions? So, we're asking for a vote on all of this to help with the grant writing score. Is that what Okay. And he says there's nothing to lose. So, what we have, mayor, is uh resolution 2026-18 that is approving and adopting this 5-year Stony Creek capital improvement plan as it's presented. So, do I hear a motion to approve? Motion to approve. Is there a second? Thank you. All in favor, let it be known by saying I. I.

Uh the next item on our agenda is the the uh parks and recreation trust fund grant application. So, as you know, mayor, we uh recently um contracted with Griffin Grant Works to assist us with a parks and recreation trust fund application. Uh this probably looks very similar to what you saw in our park plan. Um what we this is for phase two of the Sony Creek project and um has everything that we had listed on the north side of the creek in green uh is what we're asking for funding for uh which included uh woodland management, a fishing area, the restrooms, lighting security, educational exhibits, uh picnic and ADA parking area, uh, ped paddle trail access, the greenway on the north side of the creek, and the hiking trail on the north side of the creek. And that grant is for $500,000. The deadline to submit is May 1st, which after today, uh, we will be ready to submit that grant. Um, and what we have and what we are requesting is for the council to authorize staff to submit the application for the parks and recreation trust fund phase 2 renovation and authorize um, pending council's approval, authorize the mayor, uh, town clerk, town attorney, and the parks and recreation director to execute required documentation and certifications for the grant. final application and as I

mentioned that application is due on May 1st and you have it ready to go. Yes, ma'am. Good, good, good. Do any questions?

My my only concern is the paragraph that outlines uh discussion. We are required to do a 5050 match uh to this grant. And then I also read that that that we were requesting to do above and beyond the 50/50 grant in the amount of $700,000. Uh this 700,000 will be on the town on the town's checkbook out of whose uh this will come out of your part direct budget court or what are we asking for an additional line item to cover the $7,000?

Yes. Yes, sir. So, the the beauty of this grant and the way we've laid this out, um, and if you look back on the revenues for that capital improvement plan, we're applying for part F first. And the the matching funds that we're proposing would come from those other two grant applications, which would be the recreation trails program and the land and water conservation fund uh project. So, this is the first one that is due. uh we would find out in August if we are awarded. Um and there's a there's a public meeting in Raleigh where they go through all the grant applications they receive across the state and give approximately what $17 million away in a couple hours. Um again, it's a public meeting if anybody's interested in attending. Um if funded, we will move forward with the applications for the land and water conservation fund and the RTP uh recreation trails program and um will not start the project until all funds are secured.

Any other questions? So I will actually come out of that. Yes, sir. All right. Basically, we can't go to C until we do A. Right. That's right. If it looks like I'm being real cautious about these numbers and everybody and the public should know why why I'm being real cautious about this. We don't want to go down the road and we can't back out of it. Okay. Do I Well, if we get the grant and we don't get the second grant, we can we can not take the first grant. Correct. If we don't have we can't find funding, right? That's allowed, right? Yeah. Yeah. If that happens, that would be a conversation we bring back to the correct what you would like to do. Based on that, I move to approve.

Do I hear a second? Second. All those in favor, let it be known by saying.

The next item on our agenda is special event permits. Okay. Um, mayor, the section 3477 of the Nashville code ordinance requires a special event permit and public hearing for festivals, carnivals, parades, marches, rallies, demonstrations, and other activities that temporarily close a course of any street or are held on town property, which is what this is coming under. Um, the following street and special event applications have been received. the town of Nashville PCRC department's application for nothing but the Nash farmtotable event at the Nashville Farmers Market on June 20th. the Nash County Sheriff's Office application for a per permit for a law enforcement memorial ceremony on May 15th in front of the old courthouse which will close part of Drake Street and the town of Nashville TCRC department's application for a permit for Nashville Elementary School's PTA Colar run at Glover Park. The technical review committee received the application, reviewed the applications at its March 23rd meeting and is recommending um the permits be approved for the event permits with no conditions or comments. Public hearing notice for these special event applications were published on the April 2nd, 2026 edition of the Nashville graphic. So we'll need to go into a public hearing in case anybody's here. Do I hear a motion for us to go into the public hearing concerning the special event permits?

So move second. U carries. Is there anyone here that would like to speak to any of these u special event permits? If not, do I hear a motion? Would you say do I hear a motion that we come out of the public hearing? Second. Yes,

mayor. Going going through this yesterday and I I had a brief conversation with our town manager Randy yesterday about the uh the event that the sheriff's office wants to put out wants to put on on May 15th, but uh looking at their diagram uh I was made aware about time management that they wanted to uh block off part of Main Street. I had a conversation yesterday about 5 minutes to 5 with Major Mo and He has changed it. So, we're not going to block off any part of Main Street. Just Drake Street is all we need to do. So, I make everybody aware that uh I had talked with Major and I understand he had conversation with our police chief that was here a few minutes ago.

Behind the purple behind the here also made a call. That's why I put the big X on the map. Oh, the X. Okay. But there's two of them. one X, right? Well, because Drake Street, they want to have us in orange and the big X was marking off business. They changed their mind after they applied. Okay, so the X you put up there to cancel that out. Yes. Sorry. I guess I should have made What about Barnes and Washington? That that block that block off. Is that going to be X2? That's X2. X2. Honestly, I didn't.

Based on that, I have no problem with any of it. So, do I hear um a motion to approve these um special events? Move to approve. Is there a second with with that change of the blocking of the road? I'll second it. And that has already taken place. Thank you. All those in favor, let me know by saying I

Okay, motion carries. Uh the next item on our agenda is the UNC health annexation. the review and approval resolution 2026-12 which directs the town council to investigate the sufficiency of the UNCC hospitals INC satellite annexation petition for 540 Red Oak Road and resolution 2026-13 setting a public hearing on this annexation for May 5th at 700 p.m. any other input to the for this?

Um, it's pretty self-explanatory. UNCC has applied to be annexed into the town so they can get town water. Um, I anticipated that you would want them to be annexed. So, we um I have certified that the application is correct and that they are Mr. Eley is the one that signed this application. Um, we just need to schedule a public hearing at May 5th. um for any public input on this. So, do I hear a motion to schedule that um public meeting concerning You have to do the first one first. Resolution 2026-12. That's directing me, which Okay. I've already done

on May 5th. So, we need to direct you first. We need to direct your right. You direct me first to to find sufficiency. But you've already done. It's one of these things that you we can technically do all in one this two part in one meeting to move it along a little bit. Move to direct town to proceed. Thank you. Is there a second? Second. All those in favor? I. Uh the next one is to set the public hearing for 2026-13 on May 5th. Do I hear a motion? Move to set the public hearing on May 1st. May 5th. Sorry. Second. All those in favor by saying I.

I. Thank you. The next item on our agenda is uh 1501 Red Oak Road annexation.

Mayor is um Philip Heavner um has completed and submitted a voluntary satellite annexation petition for 1501 Red Oak Road. Um I have certified that it is um him. I called him and talked to him about it. It is a rental property in front of his house. So it faces right on Red Oak Road. Um so I anticipated that you would want to annex this property because they want to hook up to town water. Um and so I it is sufficient and so then we need to do kind of the same thing you tell me to do it. I've done it.

Okay. So, I hear a motion um to approve resolution uh 2026-15 directing the town park to investigate the sufficiency of the UNC hospital satellite annexation. No, this is Philadelphia. This is 1501. 1501. Yeah, this is on page 185. That's why I Okay. Oh, it's you copied the same words. Yeah. Oh, I'm sorry. Yeah. Oh, wow. I didn't notice till the I just noticed it then. Yeah. So for the 1501 Red Oak Road to investigate that moved to authorize to investigate. Is there a second? Second.

And um motion carries. Is there a resolution uh to approve 2026-16 a public hearing on May 5th, 2026 at 7 p.m.? So moved. Second. All those in favor by saying I. Uh uh may I have a question? Question. How many how many residents along that stretch? Yeah, that was a question I had. Okay. How many residents along that stretch of have uh inquired or applied to be connected to that water line sewer line? Inquired three applied two. Is this one of them? This is one of the two. Yeah, it's not right. Okay.

But this is this is in reference to the letter we sent. Well, this this particular property, no, but we we've had uh three inquiries and he's one of them. The other two are pull them up here quick. Res residential, not not the hospital,

right? There's Vicky Sutton uh right here. She was one of them. And then another property here, which is uh Doris Ricks. So, those two um Chad has been out and met with Doris Riggs uh wanted to know where the water line would come in and uh he's going to go out and meet with Vicky Sutton um this week. Both of them want the water line coming in near their well. So, the line that goes from their well to their house, they can just reconnect to the water line from the street. Just tie into it. Yeah.

Any other questions? The next item on our agenda is the CDBG- NR grant administrative contract and that's Sean.

Hey, good morning and council. As you all know, we were awarded $950,000 from the state for the CDBG grant revitalization project. We did send out the RFPs to 10 firms that requested to have those submit put into review to submit a proposed to be our administrator and our manager. The cut off time for the proposed to be submitted was yesterday afternoon at noon. We received two out of the 10 that may be cut off. We reviewed them and scored them as is required by the North Carolina Department of Commerce CDG grant department. And today council, we feel strongly encouraged for council to vote to adopt resolution 201614 awarding administration management to Mr. Ben Jones out of Fortuner Consulting out of Go, North Carolina.

Any questions for Sean? Mayor, I have a question. So, there's 10, but you said two. So, I'm confused on that. What happened?

Yes, sir. We found out at the CDBG class we were at last Wednesday at the Nash Community College that the funding this year, a lot of these people applied for funding for different towns and cities, they were not awarded. So a lot of these companies went back on the state's website to see which town got awarded and sent in contract or send in requests to apply but never submitted. And we were told by the the head of it, Mr. Renzo Corzark, that a lot of these companies would apply but probably would not even submit. They would ask for proposals but not submit. It's kind of weird because you thought 10 people you would have 10 proposals sent back but we only received two.

So which two came back? Ben and who else? Ben Jones and Haley Godman Windburn out of Whit O'Brien out of Houston, Texas. And Ben's the gentleman who brought it to us. Right. Yes.

But when we score both of them, both of them were very good, very repres. But being that he had close proximity, that's one thing you can score on. He scored a little higher in that bracket versus the people out of Houston, Texas. Wait and Brian, they're they're the uh grant writing consultant that the league put us in touch with and helped us with our hazard mitigation grant application. That that's why she was aware that we were looking for grant administration because we had been working with her uh prior

and five out of eight. I got those off of the car. I just saw them on the call as people they had on their own call planning services that due and went straight CDBG grant. So, I thought being they were on the COB's website, it would only be fitting just to send them a proposal to see if they would want to request it. And and just for clarification, up until now, Mr. Jones has not been paid anything. Is that correct?

No, sir. Not at all. Mr. Jones has done all work pretty much to see if he can get us set up and established to be awarded the grant. But once again, scoring wise, he scored higher than Whit O'Brien due to close proximity. Both of them had similar experiences, but that's the kind of bracket he led in. Any other questions? If not, do I hear um a motion to approve the resolution 2026-14 awarding the grant management and administration contract to Ben Jones for the Nashville Community Development Lot Grant neighborhood revitalization CDGB- NR grant which will replace five to seven houses of low to moderate income homeowners in Nashville.

So move. Is there a second? I have a second. All in favor of that none by saying I and that really will help our tanks. That's awesome. It will. So I'm excited about that. Next item is the nuisome nuisance abadement. Sean mayor and council once again we will be adopting orders 2026 levy date. But I am proud to say that after working with the property owner Mr. Donnie he went out this Saturday and cleaned the entire property up to standards. He did install a fence. He's working on now submitting a fence permit. He was unaware that had to be done, but this property no longer needs to be reviewed by council for adoption. And which one is that, Sean?

1941 South First Street. That is the one right across the street behind the apartment complex. Oh, yeah. I know exactly. That has been getting a lot of comments from citizens about the conditions of it. So, we are pleased and thankful. We told Mr. Donnie, thank you for stepping up and getting that property clean. And he'll be submitting a pitch permit within by the end of this week. You see, I told you I told you the other day that I wrote by it looked like they had been some work done out there. Yes, sir. Yeah, it look pretty good. He said Saturday he worked all day. Just don't look behind the fence.

Okay. The next one is the um use of another new abatement um for um Park Avenue. Mayor Council once again 43 Park Avenue code of course officer talk city Jones has went out and did an inspection of this property after getting a complaint by the neighbor. The property is a vacant property where the owner does live out of town in Maryland. She did send letters out on February 23rd informing them that this property need to be cleaned by March the 9th with all the items that remain from the clean out when I guess either they inherit the rental property or take taken over it. She's done phone calls. She's did follow-up inspections on March 10th, 31st. She's not been able to get anybody on the phone. I went by there myself and took a look at and also sent our vendor out, Horns Landscaping, to conduct an inspection of what he would go out to clean that property up. Horn Landscaping did submit a bid stating that he can clean this property up for $350. We also sent out a letter on page 210 in your packet to Miss Diane Key informing her that she is more than welcome to come to today's meeting to be able to talk to the council, let them know why this has not been done and argue her case to the council. If Miss Key or any Representative P is not here from her party, we can proceed on the orders. And I don't know if anybody's here. Is anybody here to represent the property 403 Park Avenue in Nashville, North Carolina? Have you already cleaned that up?

We have not. Today we approved to Dr. Orders Horn Landscaper will be out by Friday to clean this one up and she's aware of that. She is in the letter we send her. We informed her that if a decision is made, you will have to pretty much be sent a bill in the mail. If the bill is not paid, you will get a lean on the property. Okay. Um, do I hear a motion to approve ordinance 2026-12 ordering the abdomen of the sighted uses at 40 Free Park Avenue? Move to approve. Is there a second? Second. All those in favor? Let it be none by saying I. I. Thank you, M.

The next item on our agenda is our budget amendment number 16. Please present budget number 16 and 17. Budget number 16 recap 115,000 from the search charge expendure account to the list station maintenance expenditure account to provide funding for the required maintenance and operating associated with the sewage system. This budget amendment does not increase the overall budget. However, reallocates the existing sewer related funds to better align with the current Any questions?

Mayor, council, if you'd like. We have Jason here if you want a further explanation on what he's going to do uh with moving that money. Um been fortunate we haven't incurred as much sir charge as we thought. Jason, would you mind? Doesn't sound like it. Is the top of it,

ma'am. Um, so what we're proposing is to re reappropriate these funds. This was the search charges associated with Atlanta Natural Foods. They've since gone out of business. Um, we we identified the funds. We're not going to spend them for those search charges from Rocky Mountain like we were used to. However, we have incurred a lot of lift station maintenance this year uh with Regency having a double pump failure and a bypass um as as well as Cardinal Woods having to have a bypass out there. So, what we're doing is asking to reallocate these funds from sewer searchcharge to sewer list station maintenance staying in the same fun.

Okay, that's great. Any questions for either the two? If not, do I hear a motion to approve budget amendment number 16, reapproving $115,000 in the sewer surplus expenditure line item to the lift station maintenance expenditure line item? Move to approve. Is there a second? Second. All those in favor? Motion carries. Budget amendment number 17.

Okay. Budget a limit number 17 recognizes new revenue in the amount of $10,687 received from Nash Arts through the grassroots sub program. Also, an additional $500 sponsorship from Brassville for the East event to support the upcoming parks and rec events. Budget amendment number 17 increases both revenues and expenditures by $11,187 for F26. Any questions? This sounds like money coming in. And I move to approve.

So all those in favor to approve budget amendment number 17 increasing general fund revenues and expenses for FY26 by $11,187. Do I hear a motion? Second. All in favor?

It carries. The next item on our agenda is um police investigation office studies. Uh mayor and council, you may be aware that uh we haven't had enough space in our police department to house our investigators for a number of years now. They were at the Elks Lodge in the lower level for several years and uh from there u Nash County was grateful enough to offer us some free office space in a building they own uh near the administrative building. So they've been there for and they're there presently. Um, we have been notified by uh Jonathan Boom with Nash County that uh that office space they're going to want and need for themselves by the end of the year. So, Chief Shley has been looking for additional office space around town. Um, one place that came up that seems to be reasonably affordable compared to several of the others that he did find that are available that are much more expensive is a is the uh newly renovated house at 608 Western Avenue. And that property is owned by Hurt LLC. And we can rent that for $1,500 a month. Uh, we'd have to cover the utilities. It's got water and electricity. It's got a septic system, so there's no sewer charged to that. And our our investigators uh are pretty pretty good at using their cell phones as hotspots for internet service, and that works fairly well pretty well for them. So, they're not proposing to have internet there. Um, the terms of that lease agreement would be $1,500 for the first year, per month for the first year with a 3% increase

each year for five years. And it will be really nice to get our investigators somewhere where the roof isn't leaking on them or they have to move out shortly after they get there. And we do have Chief Shley here uh this morning if you care to hear from him regarding this matter. Can you tell us about it? Uh Chief, please

Randy, the agreement that that the uh that we're looking at now, you said is for a fiveyear term. Now, is are we able to if anything would change, are we able to back out prior to the 5year term? Are we locked in at least 5 years?

So, uh, regarding the quotes, we had moved out a property on Eastern Avenue, it was roughly $3,000 a month. Uh, two on Nashville Common Drive, one at 2.5,000, another one at 2,000, and then a Barn Street property around 2,000. This one came on early on as the most inexpensive one around town. I know some of you had inquired. We were intentionally not alluding to it so that no bias vote would be made on the reasoning. Um so that the town would think that you felt pressured to make a decision to aid the police department in any way, shape, or form. Would that be y'all kept y'all kept it a secret? Pretty good.

We tried our best. Um I know there was a question about do we plan on putting a new PD there? No, we never did. U in regards to the 5year lease agreement. So we've asked for the 5-year lease agreement one because it moved consistently but the caveat was put in there of a buyout if the new police department earlier and there would be an option. Mr. is not that whatsoever. This gives us stable housing until that police department is constructed. So that's the plan and adequate room is there. everybody enough room is in that residence that's been resoneed for all of our investigation.

Uh outfitting it with with with office furniture and stuff. So we got about three or four years ago I went down to Charlotte with some trailers and brought back about $70,000 of furniture donated to us and we've been moving in trailers ever since. So you already got it already. That's great. and this buyout. So we we have to pay for the rest of the lease.

So we haven't gone over the specifics. We just put in the option that Mr. Herb is in agreeance that we can get out of the lease early. And whether it's prorated or not, I don't know that the attorney and Mr. Lance and I, Mr. Herb had that conversation yet. This is just a lock in that we are going to be able to have consistent housing at what has been the most inexpensive in town to locate this. The the actual terms is working with us to draft those up and we can bring that back to the council so you guys can lay eyes on it before we execute it. How early will you be able to occupy?

So right now uh Mr. Herk has to go in and do I think two more things to get ADA compliant but right now we're under no binding contract with him whatsoever like a contingency. He's making even more of an investment to the structure so we can move in and this is more of a piece of mind both for the town police department and Mr. that we're all on the same page should use it that we're intending on moving in there and that it's not a waste of investment because the way he's resed it if we were to back out he would have to come back to reszone it so he could give it to a tenant for residential he's kind of locked himself in a corner to assist us and this is kind of an unwritten contingency that we're staying ahead on this is the cheapest option we want to go with

the anticipated move in date is like July 1 or I'm sorry June 1st That gives us uh you know the rest of this month of May to work out the details on the lease agreement. Like like Chief Shockley said both both sides wanted to know we had somewhere to go and Her wanted to know he had a had a tenant that would accommodate the conditional resoning that he was recently approved for. Well, I'd want the buyout to be not the buyout and be a different figure. I mean, if if we're there three years and he wants two years of a buyout, that's not really a deal. No. So, but they're knowledgeable enough. I trust you to take care of that when you you make write the agreement. I trust you. And there's no upf cost.

No. I mean, it's free. It's hard. It's our lab. So, you're paying us to be moving our stuff in there. I mean, it's ready to go CO and there's no We're not going to put any We're not going to put any law enforcement signage out there. It's going to be just our investigator's house. I think we've had some conversations with neighbors kind of saying that this is the intention. I know Mr. Fly this was the intention. This is why we were not making it public and we don't really intend on making it public that our investigation will be

well I'm glad they've given a place where they can say take that out of the graphic please. Oh, there it is. We're not advertising that. Thank you so much. Do I hear a motion to approve the lease at 608 Western Avenue for office space for police department investigators? Move to approve. Second. Second. Second. Mayor, we have good fortune of uh Mr. Hunter is here now to present the audit to us. Without further ado. Yes, sir. Thank you. Thank you.

Thank you all. I apologize for my late Um, I gotten a mix up all the time and I thought this was the nighttime meeting, not the day meeting in front of you. And where did you come from? Carrie, where you make good time? Good time. Fortunately, didn't hit any of that traffic that seems to back up all around Windell. I was like, if that's a nightmare, I don't know. But someone was looking out for me. So, yeah.

In front of you, you have a copy of your full audit and financial report as well as the fresh presentation summary packet. That's this black packet and we're going to be following out of that today. If you will please open with me to the agenda page. We're going to start by covering our AUC260 letter to governance. Then we're going to go over the audit results and any required communications and then an opportunity for any questions and comments before the close. Please now flip to page one. This is our AUC260 letter. Begins by noting that we have completed our audit for the financial year of June 30th, 2025 for the town of Nashville. I do want to draw your attention under the responsibilities in relation to financial statement audit section which notes that we are only responsible for designing procedures intended to identify material misstatements. But we make no assurances that all material misstatements would have been caught during the audit or that the statements are entirely free of material misstatement. But we are giving an opinion that to our opinion the statements are free of material misstatement. There are two items that are new to our letter this year. Significant risks identified. And I like to call attention to these because they are not specific to the town of Nashville. They are specific risks that are identified for every audit client. And that includes the potential of management override of controls and the potential for improper revenue recognition. I just like to call attention to that because sometimes people get alarmed if they see that and think that we're saying that we've identified that. We're simply saying the possibility exists in any entity for that to occur. Going now to page two, there are two new significant accounting policies that were adopted during the

year. The first Gazsby statement number 101, which is for compensated absences, and Gatsby statement number 102 for certain risk disclosures. And we noted no transactions entered into by the town of Nashville during the year for which there was a lack of authoritative guidance or consensus for the significant accounting estimates. Significant estimates for the town are allowance for doubtful accounts, compensated absences, and depreciation expense. As for financial statement disclosures, again, I do draw your attention to the implementation of Gatsby 101, we have a note that discloses that in the financial statements. As for significant difficulties encountered in performing the audit, we encountered no significant difficulties when dealing with management in the performance and completion of our audit. And as I mentioned earlier, we are not aware of any uncorrected material misstatements in the financial statements. We are also pleased to report that there were no disagreements with management during the course of our audit and that the management representation letter was received dated March 10th, 2026. As for the last paragraph here, we are not aware of any consultation with other independent accountants seeking a second opinion. Going now to page three, we do have a few significant matters, findings, or issues that we need to discuss. Starting with the second paragraph, we do feel management would benefit from strengthening internal controls over credit or procurement cards to ensure that transactions are properly authorized, supported, and consistent with the town's policies. and that in particular the finance department should implement a formal process for the timely review of credit card activity and supporting documentation to include reconciliations and supervisory oversight and help ensure that

expenditures are appropriate and accurately reported in the town's financial records. We would also we would also like to note that the town should maintain strong internal controls over the preparation and posting of journal entries to ensure the accuracy and integrity of financial records and that journal entries should be supported by appropriate documentation and reviewed by a knowledgeable individual individual independent of the prep preparer prior to posting in the financial system. Implementing a consistent review and approval process will help to reduce the risk of errors and any inappropriate entries and promote a reliable financial reporting system. Also, the local government commission or LGC will no longer initiate communications to the unit which were formerly considered unit letters. Instead, they consider the notification that we are giving during this presentation to be making the board aware of a duty to respond and that you will have 60 days after this council meeting to respond to these items. The first of which relates to various prior period restatements which were made to restate the beginning that position to better reflect financial position as of June 30th, 2024 which is discussed in finding 2025001. The second is for management to have a system in place to reduce the likelihood of errors in financial reporting and ensure the timeliness of financial reporting finding 2025002. The third, the submission of the audit to the state treasurer's office was one month past the modified due date of February 12th, 2026, which is finding 2025003. And lastly, for the fiscal year ended June 30th, 2025, expenditures were made in the town's general fund, which exceeded the authorized appropriations made by the governing board for the public safety department of 125,665. For the public safety department, we identified that this was due to vehicle

leases, which had not been budgeted for. Now, I do want to note here that this dates back to the implementation of Gazsby 87, which is now from fiscal year 2022. And then there was also Gazby 96 in fiscal year 2023. It requires that when you enter into a lease, you recognize what they consider to be a right to use asset as well as a liability at the implementation of the lease. So that is something also to keep in mind. I heard the earlier discussion to consider to evaluate that agreement for a gas 87 agreement. Lastly, as a financial performance indicator of concern, they do note that the capital asset condition ratio for the water and sewer fund is 46. The target condition ratio for the LGC would be 0.5 or greater. This may indicate that you will need to replace these assets in the near future. Going now to other matters, I do want to draw your attention to the implementation of Gaji standard number 103, financial reporting model improvements. It's going to be be implemented for fiscal year 2026 and we do believe that it's going to take a diffic a significant amount of time for implementation of the in this year. on page four for restrictions on use. This information is intended solely for the use of the mayor, the council members, and management of the town of Nashville and is not intended to be and should not be used by anyone other than the specified parties. Going now to page five, you can see that we have a breakdown of financial information for five years. I'm going to specifically focus on fiscal year 2025. After this breakdown, there's also charts which we have which are easier to compare yeartoear.

Total fund balance for the general fund was $5.5 million. Unavailable fund balance which we consider to be reserved for state statute inventories and prepaids was 1,ion46,000. Restricted and assigned fund balance was 1.28 28 million and general fund expenditures when including any transfers out and excluding leases and installment purchases was 9,ion3,000. Fund balance available as a percentage of those general fund expenditures was 49.75%. And unassigned fund balance was 4.2 million. Unassigned fund balance as a percentage of general fund expenditures was 47.08%. revenues over and under expenditures before contributions and transfers are considered. For the general fund, a loss of 226,000. For the water and sewer fund, revenues of 478,000. For the storm water fund, 82,000. And for all other governmental funds, an loss of 959,000. For cash versus accumulated depreciation in the water and sewer fund, total fixed assets were 15.1 million. Accumulated depreciation was 8 million and cash as of June 30th was 3.4 million. Cash and investments versus fund balance

3,400,000

was in the general fund 4.8 million in the capital reserve fund 306,000 in the water and sewer fund 3.4 million in the storm water fund, 1443 and in all other governmental funds 1.2 2 million. As we noted earlier, fund balance in the general fund was 5.5 million. In the capital reserve fund, 311,000 net position in the water and sewer fund was 10.5 million. In the storm water fund, 187,000 and in the fund balances for all other governmental funds, it was 1.2 million. Property tax rate was 0.59 with a collection percentage of 97.35% and when excluding motor vehicle 97.02%. Total property valuation was 711 million and the total net levy amount was 3.6 million. Going now to page six. debt when excluding OPED compensated absences and the local government employees retirement system for governmental activities was 3.2 million and for the business type activities there was no long-term debt on hand at June 30th 2025 breakdown of general fund revenues there were total revenues of 9 million the largest sources of revenue come from advalorum taxes at 3.5 million and governmental revenues at 3.6 6 million. As for a breakdown of general fund expenditures, total expenditures were 9.1 million, the largest of which being public safety at 5.1 million, followed by general government at 1.3 million. Going now to page seven, you can see that there was an increase in the total fund balance and the

restricted and assigned fund balance in fiscal year 2025 from fiscal year 2024. It's also slightly above the levels that it was at in 2023. For the bottom chart, we note that the percentage for general fund expenditures was 49.75%. This is a slight increase from 45.85% in the previous year. It does trail the group weighted average of 101.42%. And I do also want to note here that the 2025 group weighted average is not going to be available at the time of presentation. That's always going to be a year trailing. The state compiles the information from audit reports for various auditors across the state and then provides those numbers to us. Going now to page eight. An analysis of unassigned fund balance as a percentage of general fund expenditures shows that the percentage was 47.08%. This is up from 45.06% 6% in the previous year and is in line with 2023 at 47.5%. And it's been relatively consistent over the previous four fiscal years. As an analysis of revenues over and under expenditures before considering transfers and contributions, we can see the general fund had a loss. The water and storm water funds both had revenues and other governmental funds had a loss. Though I would like to note with the other governmental funds, keep in mind that many of those are project funds and they will not generate revenues in and of themselves. Most of their funding comes from either the general fund or another parent fund or from funding that they get from an outside entity such as a contribution or grant and that is not considered in this chart. So I say that to basically say don't be alarmed by the fact that there's a loss in the other governmental funds that's to be expected.

Going now to page nine, you can see that total fixed assets grew slightly from 2024 as well as accumulated depreciation. And cash is pretty consistent with fiscal year 2024. And then at the bottom, the largest portion of cash belonged to the general fund, followed by the water and sewer fund, and then the storm water fund. And then last, the capital project fund. And then for fund balances, the largest portion belonging to the water and sewer fund, followed by the storm water fund, excuse me, followed by the general fund, and then the storm water fund. And then last, the capital project funds and other governmental funds. On page 10, you can see that the property tax rate was 0.59, a slight drop from the previous year at 61. And on the chart on the bottom, you see that Nashville's collection percentage of 97.35% was down slightly from 97.47% in the previous year. And it does trail the group weighted average of 98.6% and the statewide average of 99.34%. On page 11, as we covered earlier, the breakdown of general fund revenues and general fund expenditures. Advalorum taxes is the largest s is the second largest source of revenue actually at 39.36%. The largest source is intergovernmental revenues at 40.02%. As for general fund expenditures, the largest source of expenditures is public safety at 56.33% followed by general government at 14.76%. On page 12, this covers our additional

required communications which we did touch on earlier with our AUC260 letter. But I do want to note again that the LGC will be expecting a response from the board within 60 days of this presentation to the following items. The first item is finding 2025001, a correction of errors in previously issued financial statements. We identified that prior period restatements were necessary to restate the governmental net position by 253,000 and business type activities by 325,000. Finding 2025002 for reconciliation of records. We note that in reviewing records and testing certain account balances, there were several accounts which had not been reconciled or adjusted timely to include reconciling for subsidiary ledgers of accounts receivable, cash and unbuild receivables and acred salaries for finding 2025003 late submission. The report was not finalized until 1 month after the extended due date, which was February 12th, 2026. finding 2025004 noted the budget violation that we covered earlier in the public safety department of 125,000 primarily relating to leases and the Gazsby 87 implementation of those leases. And then the last item is an FPIC for the capital asset condition ratio of the water and sewer fund capital assets. It's 46 and as I mentioned the LGC would like to see that be.5 or greater. That concludes the presentation. Are there any questions? There I have one. Let me find it. There was a graph that we were way off on and I didn't understand. Page seven.

Page seven.

The weighted was way way up and we were way down. What? Just tell me what that what all that means. So the group weighted average, what you're being compared to is other units that would be in your budget size. Now when I say in your budget size, the state changed how they used to do the report. So I believe 2021 is still reflecting the old standard which was actually from population size. You were being compared against towns of a similar population. Now the state breaks it down by budget and it's a hard line of lower than 100 million or higher than 100 million which obviously reduces the comparability of these percentages quite strongly. What you're looking at here though is essentially saying how much fund balance available that you have that is not restricted or assigned or committed for other purposes that you would have basically as free fund balance to take on new projects or things that you want to do in the town. um 49.75% while it trails the group weighted average is not a weak percentage. It's not an alarming percentage. But I think what's really throwing this chart off here is when the state changes reporting standards, it kind of messed with the comparability year-over-year to what the town would have typically seen in the past if it was still population mix. I think kind of expanding upon that as well in that same line of thinking where it's now being compared against units of a higher or lower than $100 million budget. If you look at the chart that's on page 10, both of the charts that are on page 10 where it mentions a group weighted average, those are also coming from the same report that comes from the state. So again, they're being compared against units that have a similar like similar in the eyes of the state budget size, but in actuality, they can there's quite

a bit of variance between your budget and other units that you would be compared to.

Any other questions? Just got to chew on it a little while. I don't know how to ask questions. Thank you so much. If there are no other questions, absolutely. And feel free if there are any questions that come up after the fact, you can reach out to the town manager and also Tresa as well and they have our contact information. We'll be happy to try to answer any questions that the court does have. Thank you so much,

Hunter. I I do have a question for you with regard to the police vehicle leases and and the Gazsby requirements at the time we budgeted, which we're doing right now. um additional lease vehicles. So, we need to include in the budget not only the lease payments, but the actual value of those. What my rule of thumb is is with Gazby 87 and the LGC does have a workbook that they provided as well. But if you don't want to go through the workbook entirely and you want to just be able to do something for budgetary purposes to establish that opening budget, I would say if it's a 60-month lease and this is going to be our monthly payment each month, each of those months, take the 60 months times that monthly payment. That's what you would want to budget up front because that is how we will establish the right to use asset. Now, you're probably wondering if that's the expenditure side, what is the offset to that as far as a revenue? What do we increase? What you're going to be increasing as the offset to that is other financing sources or proceeds. So when we do our journal entry, we are going to do a journal entry that records the proceeds of the lease just like essentially if you go out for debt, how you record proceeds from issuance of debt.

And then we're going to record the offsetting right to use asset. Ultimately, both of those don't really have an impact on changing, you know, the underlying where your budget's going to end up. revenues minus expenditures. But if you don't have that in place, what happens is when we go to make the journal entry to move those capital assets or right to use assets, they're not there. We have to establish them as an expenditure so that way they can then be moved through the conversion process for the statements. So that's my rule of thumb. easiest way to implement it is to look at the total number of payments expected times the payment amount and that will help you with establishing that opening budget and that is only in the year of implementation that that needs to be done.

Okay. Well, I was concerned about skewing the the budget. Yes. No, but on one side and off on the other offsets. There's an equal give and take to both sides. Yes, sir. Okay. Mayor Randy, I understood nothing of what he just said, but my my my question is, are we still saving budgetary money by using the lease process? You know, is there is there a clear savings in this?

It helped us out for the three previous years. The police chief and and uh Tresant have talked about that. Um, I think we're going to be recommending to the council to go back to actually purchasing our own vehicles again. Like I said, it helped us out. Um, but I think it's it's time to go back to buying them.

Justin, do you have any questions? Thank you so kindly. Yes, ma'am. And thank you all again for accommodating. and I apologize for my lateness. Thank you. And trust, thank you for all you do. Um, do at this time do I hear a motion to accept and approve the town of Nashville's annual financial audit for the 20242 fiscal year which began July 1st, 2024 and ended June 30th, 2025. Move to accept. Second. All those in favor say I. I.

I. Mayor, maybe just one follow comment. Uh, you know, one of the charts that Hunter presented showed our tax collection rate being lower than the state average for other towns. Um, you know, we we have our contract with uh um Sacris and uh they're helping us collect on a number of those unpaid property taxes. So, that's going to help us bring our our rate back up. How much of a response have we got because of that? Jesse, you want to comment on that?

Um, I would say every week we're getting emails. Um, we did get our first well, I'm not going to call the name, but we did get our first um parcel come in the other day. A client came and made the payment and we have to pass the charges on to them unfortunately. But at this point, we have turned over all past property taxes and we are collecting. We are getting a tremendous response. So, they're worth what we paid. I mean, you know, yes. Um, we are having to recall some um and by recall you mean

we shouldn't have sent them like it could have been a billing error or they don't typically handle those or bankruptcies. if they are recalled then we have to pay their fee which hasn't been that much but um two it's just been two of them but um we have been getting a lot of response but that's good every day every day they're emailing us telling us you know this is taking off the list so that means that they collecting on it so any any of any of some of those big accounts that we have big numbers

none of the big ones I think that that you know um some of the big ones are are like they're tied up with a lot family. So that those would take a little bit longer. I think he had mentioned that it might be next year before we start seeing some of those accounts because it's they have to reach every party and they could take a while serving them to everybody. So with the two that we sent out that we have to recall, can we learn from that? Is there anything we can do to do not do that in the future or or is it kind of we don't know until we send them?

Yes. I asked your vet, could she go back and um pull any that were just billing strictly storm water too and verify if if they should have really went there because they were over $500, that's how it went to them. She just ran the report and if they had a balance over 500, they received them. But they are working because they're they're sending out a lot. We did file our first suit. That's the one customer that came down and paid, but it was too late. We had already they had already started on the process. So, any other questions or input?

One of those two. I mean, the armory, it's it's owned by the state of North Carolina and they haven't paid their storm water and we we should have not sent that one for them to collect because it's not a property tax. It's a storm water fee that, you know, statute allows us to build with our property taxes. And the other one was a the house that uh um bankruptcy and we were trying to figure out how come we didn't get notified on that bankruptcy. If we did, you know, we we misplaced it or something, but those are the two that we should not have sent to the attorney for collection uh because there's nothing they can do about it.

Are we going to be able to collect that storm water from the state? Well, I I think we just need to contact uh get a hold of an administrator uh you know in that in that particular department and find out. I mean, we send the notice to the armory. I think there's maybe somebody there every other weekend. Is there How much money are we talking about there? Um I think it's like $671. $671. That's that's an estimate. I don't know the exact number. I know it's it's over 500.

You know, the the statute doesn't allow us to apply our storm water fee to any public rideway or do or or railroads, but it does allow us to apply our storm water fees to both privately and publicly owned facilities. So Nash County pays them because of, you know, the the courthouse and the jail and the administrative buildings. Um, and we we've never had a problem there uh collecting and it's not tremendous amount of money by any means.

Any other questions or input? If not, do I have a motion to adjourn? Move to ajourn. Second. All those in favor say I. All right.