Town Council - Regular Meeting

revenues and our expenses. So you can see on our text of activities we have 3.3 million um revenues expenses 4.4 million. So in that instance we had a decrease um in that position of approximately 1 million on the governmental activities. Um, part of that, if I'm remembering correctly, again, I do just want to mention, um, is there are transfers, especially this year, there were transfers between governmental funds and utility funds because the projects came in, they're booked in the capital fund. Um, we had a lot of grants, a lot of projects, and so there were monies transferred over. So um you know it's I do just want to mention that under our business type activities um statement of net position total assets 53.2 million 34.2 million of that is capital assets again that's a big number that's your infrastructure um 19 million is cash and current assets um 186,000 deferred outflows of resources again related pension total liabilities 15.8 8 million. Um 767 of that is the net pension liability, 14.5 million is debt, and 524,000 is current liabilities. Um and so we have a net position again a positive net position of 37.6 million. Uh 3% of that is unrestricted. Uh statement of activities for our business type activities. You can see total revenues 26.4 million. Total expenses 4 million increase in net position of approximately 22.4 4 million. Again, a lot of that is grant activity. It's um the grant activity that's come in that's going to be spent on the projects. Um so, wanted to point that out as well. So, certainly a very large increase um in that position. So, on the next slide, we actually split uh um switched to our general fund and our governmental. Um again, just the difference between the two sets of financial statements. the governmentwide financial statements on our on a full

acral basis of accounting. Um that which primarily is our long-term assets and long-term liabilities. That's the difference between um the governmentwide which is full acral and the fund um balance uh which is modified acrruel. So the fund balance is uh typically again within one year. That's what you're looking at. So you don't have your long-term assets, you don't have your long-term liabilities. So you're not going to see the debt. You're not going to see um the the assets. So um we had a total fund balance decrease of 3.1 million to 6.8 million. Um again um reason for that is typically if you look at the previous year again you had a lot of those funds come in that are now being spent on the projects. It's it's really a timing thing. Ideally you would have them in the same year but um that's just the way it works. Um unassigned fund balance was 1.7 million. Um that's 40% of 2025 actual general fund expenditures. Um I would need to look back at 2024. That 40% is a good number. You typically want to keep that anywhere around 30%. Don't want it to get below that because what you the the thought process there is you want to have enough in fund balance to cover three months of activities. Um you you have more than that. But also since we did have a decrease um in fund balance typically you know what you're gonna what you have had in the past has been a little bit higher than that. Um general fund revenues and expenditures. This breaks down again on the general fund a little bit more the revenues and expenditures. So you can see total revenue 6.1 million um 3.4 million in taxes 670,000 in licenses and then a lot of other numbers make up that 2 million um that we have in other revenues. Um we did have an increase um in revenues for the year of 10% of 563,000. We were 1.5 million over budget again due primarily to grants and tax revenues being more than anticipated. Seeing that across um in municipalities across the

state uh especially taxes taxes just again continue to go up. Um total expenditures 4.1 million. Um so we can see um that's broken down. And I won't I won't read all the the categories to you, but you can see the different categories there um as far as how that 4.1 million um is split up. And then um we had a 305,000 decrease in general fund um 2024 due primarily to increase um in building and ground expenditures. So one of the things you'll see is your general fund doesn't look as low as the total governmental fund, but that governmental fund includes that capital projects fund. What the capital projects fund does, it gets in the debt and or the grants and then expends those out to to do the project, the capital projects.

So, is this debt service going to go up with our 10th district? Yes. Yes. Um that debt service is going to go up um just in general um because some of those that debt that's coming due that start that we're starting on those starting to come. Yes, absolutely. Is that 2026 or 27? that do you guys off the I have it in my work papers. I don't have it here. Does anyone remember? I would say probably starts in 2026. Yes, ma'am.

Yes, ma'am. Great question. For our utility funds and revenues and expenditures, um again, just a further breakout of what we saw um on the utility fund previous, but total revenues 4.3 million. um two million of that water, 2.3 million of that sewer, $762,000 increase from 2024, $955,000 over budget. Um primarily due to some miscellaneous revenues and um user charges being higher than budgeted amounts. Uh total expenditures 3.1 million uh 2.1 million waterwork system, 978,000 waste treatment. Um $429,000 increase, 16% increase. Um 238 under budget. um you know less capital outlay and debt service um than than anticipated under the full acral method.

Ma'am, I thought that was a modified approval.

Yeah, that's so that would be the difference between the two um the two sets of financials. Um the only other thing other significant items um we always just like to mention Gazsby 6871 um you know net pension liability um is 2.4 million um you know that's that's on your balance sheet on the governmentwide side of the financial statements represents the unfunded portion of the pension benefits owed to the members um and the liabilities determined by PEA and provided to the town. Uh you're well aware of that. We're in the 12th year now I think of that. So um you know it's it's pretty standard at this point. At this time, I'll open the floor to any questions or discussion from council regarding the audit to accept the financial audit.

I second. All right. All in favor expecting that. Good job. Okay. [laughter] Wonderful. Thank you all. Have a great meeting. Good job.

Thank you so much. Great. And and before we move any further, I'd like to go to go on record as saying to um our staff and especially Amy for the good work done with this audit. I know just from being retired uh when you look at your um when you look at the things you have to fund um that comes in for retirements and pensions, especially with PEA. Every time you turn around, PEA is changing something. Just when you get used to what it is they told you you can do. So, you have done an outstanding job and we really do appreciate it. Thank you. [snorts]

The next item on the agenda is a discussion with the Pendleton Volunteer Fire Department regarding the proposed substation across Highway 76. This discussion was requested by town council at its January town council meeting following the first reading of the capital project ordinance to release funds currently being held by the town on behalf of the Pendleton Volunteer Fire Department. At this time, I would like to invite a representative, our representatives of the Pendleton Volunteer Fire Department to address council and provide any relevant information. The fire department was previously provided with a list of questions to ensure they were aware of the topics and inquiries council wished to address during this discussion. Thank you, Mayor Council. Um I'm here for questions. We're um we're not designing a fire department. We're not we're not building a fire department. We're buying a a building for a fire department. So, I'd be glad to take any questions.

So, is the building being designed for a fire department or you're just buying a butler building? I'm just we're the fire department is purchasing a building that is that is um that will accommodate the fire department that has proper footings, proper uh structure for a fire department. I make the motion that we close discussion. I'm not ready to close discussion. I'm sorry. Okay. Well, couldn't finish making you point. I'm sorry. I'm sorry. I realized that. I apologize. I apologize.

But after I make the motion is when you ask for discussion. Am I correct? I just thought you were closing. That's all. I jumped. My apologies. Anyway, carry on however you wish at this particular time. All right. Is I second any uh Can I have a vote to close the discussion? I would like to continue the discussion. I'd like to continue the discussion. All right. Will the purchase building have a community room?

Um, the layout of the building, I do not have [clears throat] any information on the layout of the building at this time because we're not doing a design of the building. We're only buying a 60 by 90 building to house the fire department. Now, this building is being built to accommodate what is needed for the fire department to provide fire protection to homes and businesses out on 76, which is something people don't realize um is is potential for a catastrophic um

That's correct. the the the reason for for wanting this substation over there is because we have about 10 of our members that live on that side of the town and it um will provide better response time to get to an emergency with that that station over there and it'll also help with people that are building houses over there right now with their their insurance. The the idea of this building is a it it's a 60 by 90 building with foundation that will hold the fire trucks in it and that is the whole whole purchase of this building is is to house apparatus. Well, considering the fact that neither of our firehouses actually have firing fulltime and I think people are going to look at this, oh, this is for all the new development. It is not for the new development. I think people don't realize there are established neighborhoods that for years um have gone without that ready access to fire protection. And these are not just continuous housing like your new developments. These are houses that are in highly highly highly flammable areas.

Lots of woods.

Lots of woods. It includes down by Tri County Tech. It includes, you know, behind well to the side of Food Lion and back to the woods and back up to to the to the um arena and things like this. Right now, we have left a good we have a good portion of our population without the needed rapid response that they could get with this fire station. I understand where NY's coming from asking for all these things, which I feel is something if we were designing and and paying for it from the ground up. Right now, this is money that is not coming from us. This is money that the fire department asked us to hold. Um, I know previous councils have been presented with having a fire department built. It was it was voted down because of aesthetics and not looking at need. And right now, if we have to put money into building a fire department from the ground up, it's going to cost us anywhere on the low side of three and a half million to the high side of 10. And I think if we've got somebody who is willing to take on that cost and say, "I'm building this building that'll be able to house the fire department for the needs that it currently needs." Um, then we should look at that because I think this is a great bargain from the town of Hamilton. And I also think on the flip side if we don't approve of this that there will be people who will suffer and we're responsible for their

suffering whether we like it or not. And I'm gonna tell you straight up, if I was one of those people and I knew that y'all didn't want to pay $500 that didn't have anything to raise my taxes come from that the fire department had in an account to get this building and something catastrophic where this was the difference between me losing my home completely or having to have something I could deal with. I would get every and anybody that was affected and we would be fighting a lawsuit all the way to the Supreme Court and I would sue every single person on council who voted to negate this this proposition.

Yes, ma'am. And um like I said, this isn't going to cost the town anything. This is money that was set aside by Brian White when he was in office. And um you know there's no money coming out coming from council or coming from the town to purchase this building and it's not going to close the building that we have now. We're still going to remain in there. Although we do need a new fire department in hopes that the tiff district would would yes would see for us to design a fire department. that is a substation. And generally with a substation, those are just buildings to house fire trucks. They don't have the amenities that that your main station have in them.

And I'm going to suggest and and I truly feel seeing documents come from Nancy and knowing um because if anybody can write a boring book on GPS, she knows all the minutia that needs to be done. And I do feel that we should look to her and I know I will as the representative to make sure that everything we need from the ground up of a fire department that we are going to actually use taxpayer money to fund that she is there as that person who can say this is good this is okay but we really don't need it. So, I I [laughter] think that I'd like to go on record saying I feel that she is a good resource for us to make sure that we have everything we need ground up. Um, not only just for, you know, I don't think she's going to care too much about how it looks as long as y'all don't, you know, put up a pink elephant, but for her to be able to say, "This is where what we need to do. This is what we need to make sure we have to ensure the safety of these volunteer fires who are protecting our county.

Thank you, Barbara. Uh B Tommy, I'd just like to elaborate on a few other things before we go. Just just information to help with the vote. Okay. Um you made you said the statement that this will not cost the town anything. So, how are you going to raise funding to support the ongoing maintenance of this building? I assume it's going to have maintenance as well. So, so when we put up a substation, we'll receive an extra $10,000 a year in tax money from the county tax. So, that's in writing. We'll get $10,000 per year from the county to support the maintenance. That's great. I wasn't aware of that. It goes, but it we get an increase in that

the the fire department. So, we get $48,000 a year right now from the county. And so we'll end up getting another 10,000 which would be $58,000 a year that we'll we'll end up getting that that covers the maintenance of our building covers the the light bill, the gas bill, all of that. Um that's your utilities. I meant in addition to that maintenance if the fire truck runs into the building or when you've got damage. So if the fire truck runs into the building, the county has insurance on the building and the the county pays for the insurance on the building.

Great. So the county holds the insurance for it. The other thing you mentioned is that the insurance rates for the community beyond uh uh southwest uh Pendleton area that the that the addition of this uh building will in fact um your statement was that the insurance rating will go down for that development. What is the insurance rating currently for that for those areas and is as far as far as the ISO? Yep. ISO Anderson County as a whole is a ISO of three and is ours. But if you're right beside the fire department and you go to apply for insurance for your house,

I understand that. But you said the insurance rating would come down because that's what goes in your insurance in your insurance bill, right? So, do we have a separate ISO for the town of Pendleton or do we just we just have Anderson's? We we have the same ISO that the county has. And the reason that I said that it would go down is because if I go to my insurance carrier and say, "Hey, I need insurance on my house." They say, "How far are you from a from a hydrant?" "You a th00and foot from a hydrant." Okay. How far are you from a fire department? Well, I'm I'm 200t from the fire department. Okay. So, that that's going to play in on your insurance rate when your your agent's writing your policy.

Okay, that's great. Good to know. Um, so, uh, you know, that's calculable. That's a calculable gain for people. Um, we can figure out what that is going to be. Um, when you're when you're purchasing this building, um, we've got a grading issue that we've had continuously with buildings that are being built in the in that area as well as in other places around Pendleton. So, um, before we break ground to begin the grading, perhaps it would be useful to let us review those grading plans again, just to make sure because the the grading plans are what's going to affect the load and how the trucks come and go out of that facility.

So, again, I I would tell you that we're not building anything and we're not designing anything. So, you have no control over the design, the structure, the engineering drawings. You're just going to pick up a building and go. That's right. And have you looked at any other buildings? So, could that building have been cited on the Cheney Mill property for example rather than Did Cheney Mill build us one? I'm not sure. I'm asking would they Did we ask them? Anybody ask them? We did not ask them, but we have a fire station that's right beside Cheney Mill. And And I'm And I didn't mean that to come out the wrong way if it did. Just asking. You didn't. You didn't. I'm just asking. talking your message. But I'm just I'm just saying that

you have a you have you have zoning and you have ordinances that tells a developer what they can and what they can't do in that in that. And so therefore, you already have a playbook of what they have to go by for for development. They have to go by for grading. The grading has to be approved by the by DHECK, right, for storm water stuff. So, I mean, that really doesn't have anything to do with the town or the fire department, and it has nothing to do with this money because we're not designing a fire department. So, he's guaranteed the lot. Has the lot that the building is going to be on been assessed?

Is there an assessed value on the land that the building is sitting on? So, you're purchasing a building and a land. Has the assessment for the land and the assessment for the building been separated in that purchase document or is it just a single document that has on it a 60 by 90 foot building on a lot? Is that what you're asking? It's a 60 by 90 on a 0.52 acre lot if I remember correctly.

And there's no we don't have an assessed value of that necessarily. We're just saying that this is how much money it is. this is what they want for it and this is what we're willing to give for it. But we do know that the cost of actually the cost of actually estimated cost of actually building said building. Yes. If if the fire department put out for bid that we're going to build this building here and we put it out to bid and we added everything that we would like to have in there. No,

I'm just I'm saying don't just comparable building. How much is a 60 by 90 building on a halfacre lot? Is this is this definitely a comparable price? Have we checked that at all? You know those answer I can get you. I can get that. I mean I think that would be just worth investigating because I think the citizens even though it's not our money, it is our protection and I think it's good to spend it as wisely as we can. And just I'm just curious because people ask me like why are we paying this much for half an acre and it's like well it includes the building. So, this a legitimate question. The town's got a got a half acre down there and I think what's what's that half acre worth? 800,000. Yeah.

Okay. So, that's without a building. So, if we put this lot, maybe we could put this building on that lot and save you some money. Not really. Because the fact is that's going to cost the town money. It's going to cost the town money because what we're getting is not our property, but will be our property once you purchase. It'll belong to the Pendleton Fire Department. That's not saying by Allen. It'll belong to the fire department. It'll belong it belong to the Pendleton Fire Department, which in turn belongs to the to this community, but not really. It's a separate entity.

It is a separate entity. It is the Pendleton Volunteer Fire Department um board of directors which the board of directors is made up of citizens of this township. Understood. All right. Well, satisfied. I just want to make sure we have

Okay. I just want to clarify what is this discussion is about. So, the fire department is asking the the council to release funding that has been dedicated to the fire department to buy a building across 76. This in no way means we're not going to have fire protection or anything is going to happen to the fire department here like where it is now. Correct. This is just going to be basically a substation that is going to assist our citizens and our town which is growing on the other side of 76.

And it's clear that that money is money that will not be used to support a new fire station because now it is going to be expended on an auxiliary station. So if those resources were going to be contributed to a larger more, you know, primary station in the tiff district, those funds would not be available for that and we would have to come up with another way to raise that money. That that that would be correct. But in the meanwhile, as we're we don't have anything that's shovel ready right now at this time, the the state has been pulling back money and we don't want to lose this money.

Understandable. Understandable. And so we went and to the delegation and I asked the delegation um their permission to do this and that they give us they give us permission. How many bays is 60 by 90? How many bays is that? Um I'm assuming there's going to be three bays. Three bays. So we won't need that will allow us to make the next building a little bit smaller. Then it just depend. it. Well, you have three bays in auxiliary and you don't need as many in the main. Well, maybe not, but we don't know.

I think that we're forgetting that our town is going to be nearly double what it is now by the next census. And so, this isn't about just serving our town where it is, but us being, you know, proactive for [clears throat] the future. And I I have to continuously remind myself to put my feelings aside and do what's best for the 3700 people that put us in these chairs. That's exactly what we're trying to do here is make sure we're spending their money in a [clears throat] responsible manner. And so so when will you know if you're going to how many bays you're going to have? I mean you

I can I can feel comfortable saying that we're going to have three bays. But when you design a building, you design that building for 50 years. We're not designing this building, but when we get ready to design a fire department and build a main fire department, that's what you'll need to keep in mind. Hey, we need to design this building for 50 years. What's What's the town of Pendleton going to look like in 50 years?

Okay. So, but this building is you don't have any control over the building, but you know you're going to have three bays. I I just don't know how I mean, h how do you know what's going to what you're going to get? I mean, are we getting just metal walls up and you can drive in? Are you getting bays or you just going to have one wide open? I just It'll It'll be It'll have three rollup doors on it for fire for a fire. I'm giving you some description of what this fire apparatus to to get in.

Can you get that description for me? Uh, you know, I I'm I'm with Sarah on this. They're not We're not building this building. We've got somebody who's going to put up their own money to construct this building. Turn around. We're paying them. We are paying for the building that will be constructed. And understand,

but I think that for us to sit here, we've done this before before I was on council. people, you know, that's why we don't have a new fire department because what we could have built and the money we did have that we could expend on that, people wanted something different and we're just looking at getting some fire protection out there at this point in time. You know, Lyn, if if somebody had a piece of property, was going to build a $5 million house and say, "You know what, Lyn? I'm gonna build a house, but I'm not going to be able to to live in it. And I'm gonna give you the opportunity to buy the house at this amount of money, like $500,000 for a $5 million house. I doubt if you would turn that down. Right now, we're not at point to me, we're not at point to turning down something that is really landed in our lap. We we stand the chance of losing what funding we do have to pay for this and to provide fire protection for people who currently don't have the level of fire protection because of proximity that those of us sitting on this council and I dare say that we can we can do one two three four five as to how close people are um we need to move on this. We just need to move on this and therefore I am making a motion that we we

Can I ask Tommy just a couple of more questions? Yeah. I really don't think that we need any more questions. I think need to go ahead and and and vote and and get this done. But go ahead. It's going to you know I just want to make sure he's getting he has some asurances that what he wants is what he's going to end up with. And I'm just going to talk to him. I'm not sure that you you might have more information than I have and you've seen a building and you know exactly what it's going to look like. I don't have that information. I don't know. Anybody have enough confidence in this man to work with somebody and have what it is that going to happen.

It has no nothing to do with confidence in I have ultimate confidence in Tommy. But I want to make sure that it's also that have you had a conversation with anybody out there or because this is right next to some residences, right? If I'm looking at the right piece of property, they it's some there's some boarded up residences there right now. I'm not sure what's going to happen with those residences. I I'm I'm assuming somebody went through there and bought those houses down through there. So, I'm not sure if that's going to end up commercial or or what that's going to end up. Okay.

But I know that we're right we're right in a commercial area right there. We're in a good spot. um right at an intersection where you can be on 76, you can be on Dalton Drive, you can be on on Woody, I mean it's it's a great lo great location.

Okay. So, and although we are not building it and and it is going to be yours and somebody said it's not going to be our problem, but if there is a problem with runoff or the building cracks or something happens and it's not done right, then people are going to come back to us and say, "Why did Pendleton not make sure the building was done or that yada yada yada?" That's my concern is I'm trying to make sure that we have adequate checks and balances so that we get the product that we're that we think we're getting and that it's not going to cause runoff problems or sound problems or other kind of things. And just because the building meets the codes just somebody the other day said, "Why are y'all letting some all that this type of buildings be built out there on 76?" They're going to be people who are going to complain about it no matter what it looks like. But I'm trying to make sure that we've had some concern about the aesthetics of a building we're putting in a neighborhood that they have no opinion about or they've not had a chance to come in and have a public hearing about what it looks like. I I understand your concern, but I also I go back to that's why we have zoning and that's why we have ordinances and the [clears throat] county has a a inspector that goes out and inspects. DHECK has an inspector that goes out and inspects storm water. Um, [clears throat] you know, there's a lot of checks and balances in in play that, you know, really would take a lot of a lot of pressure off of you because we have these checks and balances and we have these ordinances that say this is what you can put on this and this is what you can do here. And you know and that and that and when when and I would say when that when people's asking you

questions about why you letting this well this is the ordinances we got right now until we get this new UDO in place we can't we can't do anything different because these is the these is the guidelines that we've give developers to go with and so therefore they're they're following the guidelines that we've give them to go with so the only thing we can do is approve it. Well, I also think that people need to realize that fire stations go through routine inspections from state fire marshals. They have to have what it is they need to get the rating they need to get to function as a fire station. And that's an ongoing thing. And also if there is any problems um that's going to be with the building as far as grading and everything like that to me that's going to have to come before the the board anyway.

That's that's correct. It it'll come back to the fire department and if there's any um structural issues, you know, we'll have we'll have a a warranty just like you would have it in a house. will have the same type warranty in place if something goes wrong with the footings. That'll be the fire department's responsibility to that's why we have we have a fund balance. You know, some people say, "Hey, why have y'all got this much money sitting aside?" Well, we got that money sitting aside. So, if we have a major problem with a truck or major problem with something, we've got the money that we can we can fix that truck or we can we can do whatever we need to do in a spur of the moment and then try to raise some more funds to put back in that fund balance.

I understand there's there's a problem. They're not going to come just to me. They're going to come to you to make That's correct. Ready? That's correct. My other question is more for Amber. Has David looked at the contract and gotten us another contract? Are are we good? We're in the middle of that. We're trying to shoot for the February meeting with that. Okay. So, we will not take a vote tonight. We'll just No, today just just discussion. There is no votes tonight. Um Sorry. Make sure that is clear. There is no votes tonight. Well, I make I I make the motion that we close this session the the discussion and we allow the um we allow that we have this put up for vote. We go on and close it out, but we approve and do what we need to do to get this moving.

Do I have a second to end discussion? I'm not sure that's what our motion was. Yes. End discussion. I will hit motion that we end the workg group discussion. Second. Second. All in favor. All right. Discussion ended. Thank you for your time. Thank you, Tommy. Thank you, Tommy. It's not personal. Oh, I I don't take anything personal. I I'm good. We just checking. We're good. Thank you, sir. I move to I second a motion. I don't think we have open or weird discussion. Was that good enough? Thank you.

Do we need anything else? Are we good? Do I need any more motions or us? [snorts] Sorry.