Council - Regular Meeting

Down. Doo. Heat. Heat. Heat. Heat. Everybody

down. Good evening and welcome to the town of Surf city regular council meeting for April 7th, 2026. At this time, I would like to call upon our um Pastor Bobby Owens from the gathering to lead us in a invocation and John Kowski will follow us with a pledge. If you would please stand.

All right. Thank you. Let's pray and give thanks. Father, we do praise you and thank you again for the opportunity we have to come together as a community. And we thank you for loving us, for blessing us. We thank you for this town in which we live in which we are reminded so often of this sanctuary of your creation that you've provided. And I thank you for this council. I thank you for our mayor, our town, all the staff members. I thank you for all that they do to provide for our community. God, help us to remember that community is not simply government and it's not simply a building. It's people. And God, you've called us to love one another. So God, help us to do that in every way that we can so that we honor you. We pray it in Jesus name. Amen.

Amen. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

Okay. Miss Sandy Maro will come up from the beautifification enhancement committee to present awards for the business of the month and the home of the month. Good evening. Um, first up we have our home of the month which is Miss Vicky Anderson if she would like to come forward please. And she lives at 19 Maritime Drive. want to give her a little presented to her. I'm really impressed. Um my mom really I am. And my husband David, if he was here, he'd be right here and he'd be happy.

Thank y'all so much. Well, thank you so much for the beautiful job you do keeping up your yard. Started. It's very difficult this time of year, so we appreciate. Thank you. Thank you so much.

And for our business of the month this month, we have High Tides and Good Vibes. And um the owners are Frankie Williams and Eric Shirley. I'm not sure if anyone they were not sure if they were going to be able to make it, but we think that they are a wonderful addition to our community. They put a lot of effort into making everything look beautiful inside and out. And um we're so happy that they're here. So give them a And then if I may, I just had two little things I would love to share that are happening. On March 18th is the all island beach sweep. It's organized by the Topsel Island Longboard Association in conjunction with all three towns on the island. And if you wish to participate in that, you can meet at Salty's Surf Shack at 10:00 a.m. and then meet up back there again afterwards for some music and food. But they'll be busing people all across the island um to do a big beach sweep. And if anybody's into gardening, the um Greater Topsil Community Garden on April 23rd, which is a Thursday, from 8 until 3, they are putting together with the help of Home Depot Foundation, uh a hoop garden system, and we are desperate for some extra volunteers. We will have leaders from Home Depot. But anyways, um if anybody's interested in helping with that, you can see me afterwards or find out on Facebook um if you follow their Facebook page. So, thank you.

Thank you, Sandy.

Okay. Next up, we have a proclamation um from the town of Surf City for volunteer appreciation week. Whereas since its establishment in 1974 by Richard Nixon through an executive order, National Volunteer Week has served as time to recognize and celebrate the vital contributions of volunteers across United States. And whereas volunteers are the backbone of strong and resilient communities, generously giving their time, their talents, and their compassion to improve the quality of life for others. And whereas the town of Surf City, North Carolina is fortunate to benefit from the dedication of individuals and groups who volunteer in support of public safety, environmental stewardship, civic engagement, youth development, and community events. And whereas these selfless acts se of service strengthen the fabric of our community foster unity and inspire others to become engaged in making served city a better place to live, a better place to work, and a better place to visit. And whereas National Volunteer Week provides an opportunity to honor those who give back and encourage all residents to seek meaningful ways to serve their neighbors and neighbors and community. Now therefore, be it resolved, I, the mayor of Surf City, North Carolina, do on behalf of the town council, proclaim April 19th through the 25th as National Volunteer Week in Serve City. And we urge all residents to recognize their contribution of the volunteers and to consider joining in service and strengthening our community. At this time, I would like to invite any and all volunteers that are on any committee in the town of Surf City. if you would please stand. I know there's a lot of you here.

A lot.

Yes. So, this is just just a few of our and we appreciate all that you do. Okay. Um, next we have the agenda. But before we consider the adoption of the agenda, the town manager has requested that we add an item under new business related to the installment financing of phase 2 of the public utilities building. This would be a resolution approving the transaction and the terms of the installment financing contract and the ded. A unanimous vote is required to add this item for consideration. May I have a motion to add this resolution as an item number four under new business preceding the budget pres preceding the budget presentation?

I'll make that motion. Mayor, second. I have a motion and a second. All in favor say I. I. Any oppose? Same sign. Motion carries. Um then moving on to the consent agenda. Agenda. Mayor. Yes. agenda. Uh, may I have a motion to adopt the agenda as amended? I'll make a motion to adopt the agenda. Mayor, I'll second. Have a motion and a second. An item. Are you pulling an I? Were you going to pull that item? That's for the consent agenda. This is Were you going to pull it before if you're going to approve or if you're going to ask for something?

I'd like to make a motion to pull a charter revision from the consent agenda and table it for further discussion at the April 16 work session. I second that motion. I have a motion and a second to pull the charter revision resolution from the consent agenda. All in favor say I. I. All oppose, same sign. Motion carries to remove the item number two, charter revision resolution from the consent agenda. Now, may I have a motion to adopt the agenda as amended? I'll make a motion to adopt the consent agenda as amended. Mayor, I'll second that. I have a motion and a second. All in favor say I.

I. All those opposed, same sign. Motion carries. This time we have public comments and I will call upon Carla. You we need to adopt their consent agenda as amen. I think he said consent agenda meaning agenda as amended. Yeah, we're good. But then we have to still do consent agenda. Okay. So now we have to adopt the consent agent agenda. Do I have a motion to adopt the consent agenda as amended? Yes. I make that agenda. Make that uh motion. Mayor, I have a motion and a second. All in favor say I. I. Okay. I feel like we did that twice, but we're good. That's okay.

Okay. Public comments. Um, this is the time for citizens have the opportunity to address the council for no more than three minutes to speak on topics. So, I will ask Carla to call upon anyone that has signed up. I have Maria Mikl.

Michael. It's always mispronounced. Um, hi. Uh, my name is Maria Michael. I'm a resident of the Surf City. Um, I would like to know if the town council would be interested in adding this to your plans for the following. Um, as our nation approaches the historic milestone of the 250th anniversary of the United States in 2026, I would like to propose a meaningful community initiative, planting 250 palm trees across our town as part of a campaign for 250 trees for 250 years. This project would serve as a lasting visible tribute to the founding of our nation while providing tangible benefits for our community for decades to come. Palm trees are not only beautiful landscape features, they also contribute significantly to the well-being of a city. Planting 250 trees would help improve air quality, provide cooling and shade, enhance community pride and tourism, increase property values, support environmental sustainability, and create a living historical marker that future generations will associate with the 250th anniversary celebration. Um, imagine residents and visitors alike walking beneath these palms um, years from now, remembering that they were planted to commemorate this important moment in American history. Rather than a temporary celebration, this project would leave a lasting legacy rooted in our community. I respectfully encourage the council to consider launching um, the 250 trees for 250 years um, initiative as part of the upcoming anniversary celebration. It would be a simple yet powerful way to honor our nation's history while investing in the future of our town. Thank you for your time and your continued service to our community. So, I think the ask is are

you are you interested in it and would um would you support it in um maybe committees that are currently in the parks and recreation or um developing to beautify the town. So, um, and yeah, if you would like leave your information and then someone will will get back to you. Yep. Um, you can I don't know if you have your phone number. Okay. Okay. Great. Thank you. Thank you.

That's it.

Okay. Okay, next we have um a public hearing and it's a zoning text amendment for parking standards and Jeremy Smith, our town planner, will come up and present. So, while Chris brings that up, madame mayor, members of the council, before you is a zoning text amendment for section 7.6, off streetet parking and loading standards. This proposed amendment was submitted by Nick Laneir, an engineer with Creek Development Group LLC. This proposed amendment proposes to change the surfacing requirements or allowances for off streetet parking for parking lots five spaces or greater. The proposed amendment would allow alternative surfacing requirements beyond our current allowance of pave pavement concrete asphalt or pvious concrete pvious asphalt. Um the proposal is to allow surfacing that would match or be similar to what is already allowed by NCDQ via storm water management be it a true grid PA system any type of permeable or perus surfacing material and I've got a couple of examples and Mr. Laneir had provided some in his supplemental uh which is part of your packet. Uh this is supported by our CAM comprehensive land use plan under policy 5.1x and it encourages to adopt new development standards that would help us control storm water runoff, storm water controls

and this is a perfect example of what our ordinance is trying to create. uh we significantly limit lot coverage, impervious lot coverage throughout all our zoning districts. And this would allow development to continue with designed pvious and permeable uh surfacing standards for our large parking lots that often come with commercial and um some residential development. Before you on the screen is some example examples. The three slides above are the true grid payer system which is already used across the state by NCDOQ NCDEQ storm water. Um it is a grid system engineered compacted with 57 stone gravel type. It is contained and allows water to infiltrate through it. Uh the bottom is a pvious paver system. Uh this is actually an example from a national park parking lot. Um the planning board reviewed this request at their February 2026 meeting. They along with staff are recommending approval of this tax amendment as it is something that was in our previous ordinance adopt prior to November of 2024. Uh back to this slide, we allowed alternative paving material uh along with turf stone or similar material that could exhibit equivalent water resistant wear resistance and loadbearing but allowed that water to infiltrate through it. Again, the planning board heard this at their February 2026 meeting and they would along with staff are recommending approval. Mr. Laneir and staff are happy to answer any questions that the board may have. At this time, do I have a motion to open the public hearing?

I have a motion to open the public hearing. Mayor, I have a motion and a second to open the public hearing. All in favor say I.

I. All those post, same sign. Motion carries. Public hearing is now open. Now is the time for any type of public comment or questions. Mike McCusker 1606 uh South Topell Drive. I'm a resident and a citizen. Um what's the cost effect to the taxes for us or the budget for the city uh with all of this changes? This would have no cost bearing on taxes. This is something that was driven by the development or the developer who chooses to use this. The total cost of this would be on to the developer had no impact on the tax taxes or tax cost.

This is basically we're just allowing for an additional type of material to be used for larger parking. Correct. Our current standard uh for parking lots five spaces or more is a pavement system. Um you can do pvious concrete, pvious asphalt, but this would allow alternatives similar to what NCDQ already allows with their storm water design and staff believes that it would be a better storm water system. Hopefully reduce the amount of large storm water ponds we have. Um and it would definitely control runoff coming off of a site. Uh because the water would infiltrate through the parking lot.

Excuse me. Basically that we have like we just installed at Roland, but it's a different one of the options. The PAS a PA system um it it could be as long as it's engineered um could be used in in this type of application as an alternative material. um those systems are a little bit more complex is that um it's not I mean it's designed to take on more than just what that that little section is covering but uh look of a paver system uh would be very similar to like what is at Roland. Okay. Yep. That's fine.

So I just need a a clarification. And you you mentioned the BUA by putting pvious material do you increase the density potential for a lot or for Okay. So instead of if you don't use asphalt which is non-pervious you can build more buildings because you your lot coverage.

Correct. Currently our lot coverage definition is impervious and it says anything that's pvious is not counted towards your lot coverage and impeous would be your pvious design pvious pavers pvious true grid system if allowed gravel system would not count toward your lot coverage. Right? So it would pro provide development of higher density in terms of building than if they had used a non-pervious service potentially. Yes. Okay. Just so everybody

and it does not come at a cheaper cost. It's a the true grid system or a pvious system is well more expensive than a full concrete parking lot and there is a maintenance aspect of it. Yep. So it's the drainage. Correct. And we currently allow for non-pervious surfaces like non-pervious asphalt. Yes. As well. So this is just adding specific to additional types of pvious.

Typically what you're going to see is your standard paved drives, concrete or asphalt drives and your parking spaces are going to be your more pvious material. Uh that is generally what's seen across the state and across the nation as this is a developing trend. um as a alternative because you just cannot put the standard BMP is a stormwater detention pond or retention pond. This allows your underground infiltration system. Uh that that's I think it's a it's a strong positive on the storm water side. The rules on island the seafod stay the same though already requires. That's right. We already allow just extending the type of material you can

correct. Does anyone else have any questions concerning the zoning text amendment for parking standards? Hearing none. Do I have a motion to close the public hearing? I'll make a motion to close the public hearing here. I'll second. Have a motion and a second. All in favor say I. I. All oppose, same sign. Motion carries to close the public hearing. So, it is requested that the town council consider approving the text zoning text amendment as presented. Do I have a motion to do so?

I'll make a motion to uh ex accept it as presented. I'll second. A motion and a second. All in favor say I. I. All oppose. Same sign. Motion carries. Next item. Item number two is annexation. in the town of Surf City Properties in Enso County and Carlos Citadel, our town clerk, will present.

Thank you, mayor. So, recently we revised an agreement with the town of Holly Ridge that would allow us to go into Enslo County to annex the town owned properties only. Um, so we are looking to annex three parcels that are adjacent off of Sarge Martin Road. They total about 248 acres. Um, it's been advertised, notice has been sent to adjacent property owners and they're asking that we annex this into the town of Surf City. Do I have a motion to open the public hearing? I'll make a motion to open public hearing. I'll second.

Have a motion and a second. All in favor say I.

All oppose, same sign. Motion carries to open the public hearing. There any public comments concerning the annexation of town owned property that the town owns in the town of Surf City in Oo County? Madame Mayor, if I if I may just add real quick, the property being requested to annex um is is currently being used as our wastewater treatment facility location where we operate um that service as well as uh spray fields and subsurface irrigation. And uh essentially when we make improvements or adjustments to that system, we would prefer to be under surf city regulation as opposed to uh going to another municipality to request permits or or certain approvals. We did a project a couple years ago and um had to go get a special use permit through Holly Ridge. So, just want to make sure that there's clarity in that that this isn't um land that's going to be used for something that it's already being used for, which is uh the um system wastewater treatment system that's already in place.

Are there any other discussions or questions? So, Mr. Brewer, the zoning will stay G1. That That's correct. Yes. The land use is is what? government institutional in the land use plan. I'm not sure. I'd have to ask our planner about our land use plan, but this pro parcel may not be part of our land use plan just because it was not necessarily in our jurisdiction in Holly Ridg's jurisdiction. Uh but through the annexation process and the zoning process um that would essentially direct us to modify our land use plan to put the appropriate land use classification onto that as a sort of retroactive um retroactive process.

That's correct. um as adopt when you adopt it um when annexed and that zoning is applied that is a automatic update to our land use plan for properties not currently identified in the land use plan future land use categories right it's G1 but it's inst the the land use plan says what something institution institutional yeah okay so it's yeah we're not looking at turning around and selling bits of it to not at all is our wastewater treatment plant that We need it. Thank you. Thank you.

Just one question. Yes, ma'am. If you would state your name and address. Um, my name is Tracy Rener, 70127th Street. Would this result in any additional cost to the residents of Surf City by annexing this land? I mean, I I can answer. This only provides efficiencies for the town. Um, once again, as I mentioned, we had to do a modification of the wastewater treatment plant. I had to bring in our legal counsel to represent us through a special use permit hearing. Um, so if anything, it it improves efficiencies from the town side. Right. Thank you. Thank you.

Does anyone else have any public comments? Hearing none. Do I have a motion to close the public hearing? I'll make a motion to close the public hearing. Second. Have a motion and a second. All in favor say I. I. All oppose, same sign. Motion carries to close the public hearing. It is requested that the town council consider approval of the annexation as presented. Make a motion to approve the annexation as presented. I'll second. A motion and a second. All in favor say I.

All oppose, same sign. Motion carries. Okay. Under old business, um we have an ordinance amendment. This is chapter four of the beach strand and our town clerk Cara will present.

Okay. This actually came to the council back in September. Um it was first brought by request and review from the shoreline and resiliency committee. Um the original intent was related to regulations regarding hole digging, polystyrene foam use, dune protection, beach driving and other beach related activities while also establishing civil pen penalties for non-compliance. Um but inadvertently somewhere in there we left out some of what you all had discussed and approved. So, this is kind of an administrative cleanup. Um, only applying to article one, section 41 through section 413 to make the changes as originally intended. And that is in your packet, a clean draft of that.

Okay. Does anyone have any questions? I go ahead. No, no. I just wanted to comment or maybe ask our manager to um comment on who's on that committee so the public could know who worked to make those decisions. Oh, excuse me. Um put me on the spot here. So the the shoreline I know is a volunteer committee as well. Yeah, it is. It's another group of volunteers. It is, but we also had um additional staff on this committee to look over this specifically like a subcommittee, right? Um which included our police chief. Um, who else was on that?

Fire had some representation. But our our shoreline and resilience committee um is a council appointed committee that uh oversees and listens to uh updates on not just beach nourishment activities but also um things like this. They helped with our post and rope and sand fencing plan um and also resilience um elements. So they helped uh guide us through the resilient coastal communities program and the grant opportunities that we had had received. So part of their work plan um this year was to look at the ordinances and make updates um as a lot of the ordinances hadn't been changed in in quite some time. So, uh, a subcommittee of that group worked like the clerk had mentioned with other staff members to make sure that those were being updated, listening to input, uh, that those committees, excuse me, committee members bring from the community, um, so that we can try to keep our Surf City beaches safe and operational. Um, you know, me clerk had mentioned that a section was left out. Uh, one thing that was in there because I had looked at it and applied it was our uh, beach driving, which applies really to uh, town staff or contractors. Uh, we have beach monitoring going on. So, being able to communicate that we require spotters uh, when people are driving on the beach uh, to conduct this work even though they're doing it in in their best intentions. Um we've seen a trend uh in other communities, thankfully not in Surf City, about um you know just pedestrians just being being uh that interaction with a vehicle can can be very treacherous and and potentially deadly. So that's just one element that was already put into the ordinance and the remainder of it it was again trying to address the use of um polystyrene which is uh styrofoam as trademarked but um you know allowing

certain types of glass to be used understanding that people bring uh containers that are made of glass now and not plastic and and just recognizing some of those updates to uh the town's ordinances. I do want to comment though, it was a it's a great group of volunteers from the community, a lot of different input from various um business owners and and surfers and all all the likes. So, um I've attended several of those meetings and thought it was good conversation.

I I I do have one one actually two questions. One is 44 is about uh advertisements uh facing the beach. I'm I'm curious, are we exempting for sale signs from that? If if a particular beachfront home is for sale, can the realtor put a sign facing the beach that says for sale?

I don't I'm sorry I don't have my language um pulled up in front of me, but I can I understand the spirit of of your uh question. Yeah. Yeah. I mean, I would say uh a real estate sign advertising the property for sale from the beach side could potentially be a violation. Yes. And that's something that we want. Yeah. The committee had made the recommendation and and brought forth and so any messaging so the sign ordinance that we have as part of our community is now being further restricted by That's correct.

The beach strand facing the the beach. That's correct. That's good. Um, and then in 410D we still have this I know we we've talked about this a couple of times is the incidental removal of sand versus the purposeful removal of sand. But putting it in 410D you have a double negative which is uh so it 410D starts with do uh the following doesn't apply and then we have purposeful removal is strictly prohibited. So does it that not apply? I think it doesn't apply to the incidental removal. Sure. But it does apply to purposeful removal. Yes. So if there's a way to fix that.

Yeah. And and if again I would just say Councilman Pile, if you want to make the motion, we'll make sure it is it's cleaned up. I understand what you're what you're referring to.

Um then I'm going to ask that we amend the that section to read uh incidental removal of sand. followed by however the purposeal removal of sand is prohibited and then the last thing is 410F. The way it's worded, I'm unclear as to whether or not a beach crossover built by the homeowner on the adjacent property to go over the dunes is in violation or is is permitted in that it speaks to authorized mark crossover of designated beach access is the only way to get across the dune. As far as with a like a camera permit,

if you have a camera permit, so that would be an authorized mark crossover. If you have a CAMA permit to put a a crossover from your property onto the beach, then it's it's appropriate. I mean, consistency wise, I would say yes, because this was not has not been changed. Okay. So, and we can clarify that as well, but a permitted I would say a permitted through division of coastal management is going to be there. I think there are still some remaining lots where there aren't crossovers, but they're pathways through the dune. I know after beach nourishment, this is going to look a whole lot different. Sure. Sure.

So, until beach nourishment, I'm assuming we're not going out there and and writing violations for that. Okay. Thank you. Any other discuss? We'll make those adjustments and thank you for pointing those out. Thank you. So, did you you made a motion? Did you make a motion there, Andy? I make a motion to accept the uh the wording for the uh uh beach strand ordinance changes with the amended uh recommendations. Second. Have a motion and a second. And all in favor say I. I.

All oppose, same sign. Motion carries.

Okay, moving forward. Um the resolution um and Kyle Brewer will present is the resolution authorizing and approving an installment financing contract for the JP Morgan Chase Bank and authorizing the execution and delivery of the documents in connection there in and call. So, this is this is really a followup to the public hearing that was held last month in regard to the financing of uh phase two of the public utility building. So, this item uh went to the local government commission um on April 1st and that was approved on their agenda um for the town to uh enter into installment financing uh not to exceed $5.2 million for the construction of those facilities. Once again, the funding for that uh comes out of our utility account. Um and it is uh as represented to the local government commission, the financing of this project does not um implement uh any sort of rate changes uh in order to fund that. I think that was a point of clarity we wanted to bring out uh last month with a public hearing. Um, so what the resolution uh essentially does is authorizes us to uh move forward with the installment financing contract with JP Morgan Chase um as well as approving the deed to trust uh which will be placed onto the property. Uh we did go ahead and and divide out the portion of the property that contains the water treatment plant to to not encumber that through this financing. Um so the the deed trust is simply on the tract and which contains the um existing public utilities building and then this phase two. Uh this resolution also

authorizes uh the attorney, the manager, the finance director, uh the mayor or the clerk to execute necessary documents for the financing. Um the contract uh financing contract with JP Morgan has been reviewed not not just by our attorney but also our B uh bond council that represents the town uh through this process. So um essentially you know this resolution will give us those approvals to to move forward and keep this project rolling. That's what it's for. Thank you. Do we have uh contract terms or is that still negotiated?

Uh no, that's um I mean any contract terms, Brett, you might want to jump in on this, but those have been discussed and any any red flags that might come up have been discussed through the attorney side. Um but the financing terms have been we put out a request for proposals on those and um went with the best rate that we could get uh for the project. Oh, we know the rate. Yeah, it's uh Melissa, you might know off top of your head. I don't have it on top of my head. It's four something. I know that. I'm I'm sorry, Andy. Well, as long as we know the rate as opposed to it becoming Yeah. Yeah. No, we went through a formal require

request for Yes. Um and and had a a healthy um submission of um lending institutions. So there was competition in the rate. Okay. And the term uh the the term in terms of years 20 Yeah. 20-year term. Yes.

If there are no other questions, it is um requested. One other question. I'm sorry. This does not include the pole barn that's going out in Junifer Swamp, right? These are the three buildings. This is on to Highway 210. Oh, yeah. This is Yeah. 210. Yep. Right. It is requested the town council consider approval of the budget office. Um it's not the budget office. Would it be the budget office? Ma'am, is it from the budget office as presented? Uh that that would be fine. Yeah. Call the budget office. Finance office. Finance.

Do I have a motion to do so? I'll make a motion to do so. Mayor, I'll second. Have a motion and a second. All in favor say I. I. All oppose, same sign. Motion carries.

All right. Our last item um before we get to reporting is the budget officer submission. And this is going to be um our 26 27 presentation of our budget. And madame mayor, I'm going to um have a seat at the table and the finance officer is going to join me um while we give this presentation or while I give a presentation. And I will say, you'll have to forgive me. My seasonal allergies um continue to attack relentlessly. So, I'm sure you've already heard it, but um if I'm trying to clear my throat or or whatnot, it's uh I've got water. Thank you, Councilman.

Feel your pain. So we are um at the time to present um the budget for fiscal year 2026 2027. Uh as a reminder um this will affect uh basically come into effect July 1 uh 2026 and then run through uh June 30 of 2027. That's why it covers two two years on there. that is uh the local government's fiscal year. Um so we're going to go ahead and get started. I've got just some background information um that I'm going to provide and then really the the information that establishes um expenditures, revenue numbers and uh proposed tax rate will come with the with the budget message that I will deliver um towards the end of the presentation. So um we uh we met uh at our March work session uh for a good part of the entire day um here and and heard from departments. Um the town had prepared the um draft budget at that point, but we still did not have um key numbers from our counties gone through the reevaluation process. So, uh, listening to department heads, listening to council, then incorporating, uh, feedback from the community through various, um, opportunities, a strategic planning process, um, etc. is is all what craft, you know, goes into crafting the budget. So, um, and I'll kind of cover some of that stuff in the presentation. So, this is the overview um of what the the presentation will cover. We'll cover just some demographics, um strategic planning and key strategic initiatives,

uh building the budget, uh revenue and fee schedule updates, um the county revaluation and tax rate, uh the capital improvement plan, and then the budget outlook and and next steps as we move forward uh through this process. So our budget begins with understanding of who we are serving uh the growth, demand and evolving needs of Surf City that shape uh the financial decisions. So our year-round population is estimated at around 5,000 residents uh 4,976 that is the uh certified population estimate as of July uh 2024. Um we can make estimates on what this would look like. They certainly would not be certified, but um as you can see, we we really we average about 300 or so new residents a year in the recent um recent history. However, as we all know, that number changes significantly during the summer months along with continued growth in surrounding communities. During peak season, our population increases to approximately 30,000 people. Uh, which is a substantial shift and it places significant demand on our infrastructure, our services, and our staff. Since 2020, uh, Surf City has grown at a remarkable pace, approximately 28%. Uh, this growth has positioned Surf City as the 10th fastest growing municipality in North Carolina, reflecting the increasing demand to live, work, and invest in our community. uh released just on March 26th, updated population estimates uh show that Pender County is the second fastest growing in North Carolina, right behind Brunswick County. I think Brunswick County has held that position for uh quite some time. But percentage growth, uh Pender

County is is right behind uh Brunswick County. Service demands are not based solely on our permanent population. During peak tourism season, our population increases dramatically, placing additional strain on water systems, roads, public safety, and beach access infrastructure. uh as we have seen uh in in recent observations is that uh with the growth in our surrounding communities, it's not just the peak season that we see these impacts. Um a a warm weekend in March is going to uh bring a lot of folks to the beach. Even though the water might be 55 degrees, um people are still coming to Surf City. So, we as a a town still have to manage uh that growth even though it might not necessarily be within our walls per se. So, just wanted to kind of point that out even though people I'm sure recognize that um as they go the as they go out and about um on warm weekends even in the um what we would call the the off season. The town's median age and demographic composition also influence service needs. Um, coastal communities have a mix of working families, retirees, and visitors, each with different expectations for safety, accessibility, and quality of life. Surf City trends below average for median age in comparison to other coastal communities. In southeastern North Carolina, those differences directly influence how we plan services and allocate resources. We are also seeing continued growth in property values. This is reflected in the recent revaluations conducted by both Pender County and Enslo County which capture current market conditions.

While these updated values affect how property taxes are calculated, they do not change the underlying cost of providing the services. Growth and development reflects strong demand to live and invest in Surf City, but it also places increased pressure on the infrastructure and town services. This is just a a snapshot of certificates of occupancy that have been issued um since fiscal year 2122. Uh that uh can fluctuate especially with our current uh wastewater capacity. Um so again, as we bring a new project online, additional development occurs. Um and as we all know that that the next year we may have some residual projects that have been allocated wastewater but um we do see the fluctuation in in certificates of occupancy. It's not just a continuous uh upward trend uh or flat trend uh per se. Our local econom economy is heavily influenced by tourism and seasonal activity. Sales tax revenues and business activity are closely tied to visitor patterns and surrounding growth which play a significant role in supporting town operations. As you'll note here, uh we are uh we lag in reporting for sales taxes. That's typically funneled down through the state and and there's a a month lag in in numbers. Um so our our fiscal year that we're currently in um we anticipated 2.86 86 million in in sales uh sales tax revenue. Our yearto date uh which again is is going to be lagging a month or so behind is currently sitting at 2.1 million. Um and then what we are projecting for next fiscal year uh is 3.6 million. So, um, fairly aggressive projections, but we feel like, um, based on recent histories that that that's a

number that we could potentially see in, uh, local sales tax revenue. And then this is just the adjusted value of of, uh, the dollar essentially represented by $100. So, um, a little difficult to see, uh, from from the audience here, but in 2016, uh, in comparison to 2026, $100 now is, uh, valued at $138. Um, so that's basically your inflationary trend. Uh, and how far that dollar can stretch um, in today's rates. Again the inflation um if the inflation rate continues to rise so do the cost of delivering services, maintaining infrastructure and completing capital projects. Um so when we go to do a construction project um we are faced with higher cost uh just like anybody else would. All these factors population growth, seasonal demand, development trends and rising costs directly drive the need for services, infrastructure and investment. Uh the next consumer price index report will be issued on April 10th which covers the month prior. So technically uh the March numbers cover uh February and and those were at about 2.4%. Moving on into uh strategic planning and priorities. Um these factors are a portion of what shapes the priorities outlined in our strategic plan and ultimately drives uh the budgetary process. So um what is a strategic planning? Uh strategic planning is the town's primary governance tool for ensuring that growth is managed responsibly, infrastructure investments are deliberate, environmental systems are protected, and services remain high quality and sustainable. It allows us to align policy decisions, budgeting, and

day-to-day operations while maintaining transparency and accountability to our community. Our strategic plan is both communitydriven and data informed. It reflects input from residents, businesses, and stakeholders along with analysis from town staff and leadership through tools like uh SWAT or strength, weaknesses, opportunities, and threats and pestl assessments where we can come together and talk about what influences are affecting Surf City that may be outside of the realm of Surf City, but um you know, will certainly have an impact. You know, when we talk about this, it's um the price of fuel right now that has an impact on not only the consumer but also town operations. So, it's good to understand what some of these external um actions are occurring so that we can make the best decisions and or pivot if we need to um on the the current trajectory. This ensures that decisions are grounded in real world conditions, operational capacity, and the priorities of our community. The strategic plan is not developed in isolation. It is aligned with our long range planning efforts, including our comprehensive land use plan, parks and recreation master plan, and our utility and infrastructure planning. This also ensures that all our efforts from policy to projects are coordinated and working toward the same long-term vision. The strategic plan is organized around five key goal areas which serve as the framework for all of our funding decisions. These are growth in natural resources, infrastructure and transportation, organizational excellence, safe, vibrant and healthy community, tourism and cultural resources. These goal areas guide how we prioritize investments and allocate the resources

to move from planning to action. Key strategic initiatives or KSIS are identified each year. These are the town's highest priority projects. Initiatives that require focused funding, staffing, and coordination across departments for the upcoming fiscal year. Key initiatives include continued coordination on the Army Corps beach nourishment project, development of the island town center master plan, water system modeling and capacity planning, advancement of multi-use path segments as part of the Topsel Island connector, enhancements to communication and technology systems, public safety investments, including fire apparatus replacement and emergency communications upgrades. These initiatives are carefully selected based on community impact, urgency, and available resources. Our strategic plan is directly integrated into the budget process. Strategic priorities guide financial planning rather than operating independently from it. Departments develop their requests based on these priorities, and the budget is the policy document that can be tied to a goal, objective, or an initiative. This year's budget is shaped by several key drivers. Uh continued growth in development, increasing infrastructure demand, revaluation impacts in both Pender County and Enso County, rising service expectations, and opportunities to leverage external funding. The strategic plan ensures that we respond to these challenges in a thoughtful, coordinated, and financially responsible way. Implementation is just as important as planning. Projects are carried out through coordinated efforts across departments with performance tracked through financial reporting, capital project monitoring, infrastructure assessments, and community feedback. This allows us to continuously evaluate our progress and make adjustments as needed.

Through this process, the strategic plan moves from vision to action. It defines what we need to do and the budget determines what we can afford to do now. So next I'll walk through how we take these priorities and build a balanced budget to support them through the pro through this process the strategic plan. Um excuse me I think I already covered that. So building the budget once expenditures are defined and all other revenues are applied we calculate the remaining remaining funding gap. This is a critical point in the process. The budget determines how much revenue we need, not necessarily the tax rate. So the first step is determining total expenditures. These costs are driven by strategic plan priorities, service level expectations, growth, and seasonal demand. This includes personnel, which is our largest cost driver, and in a large percentage factored, excuse me, by fixed costs uh from the state. um operating expenses, capital transfers or pay as you go funding and debt service for previously funded projects. At this stage, we are defining the full cost of providing services and delivering on our priorities. Next, we identify all available nonpropy tax revenues. These include, as I mentioned, sales tax, which is heavily influenced by tourism and surrounding growth, fees and permits, including updates to the fee schedule, utility revenues where applicable, state and federal funding, and other sources such as interest earned on investments. As part of this process, staff also evaluate opportunities to reduce cost and improve efficiency. This includes identifi identifying operational efficiencies, delayed or reduced

expenditures and adjustments that help minimize the impact on taxpayers. These efforts are reflected in the general fund adjustments uh that I will talk about right now. So across almost all departments, certain cuts are necessary in order to balance a budget and to recognize budget efficiencies. In total, these represented approximately $700,000 just from the initial budget request. This is reflected by evaluating salary and overtime cost, extending the funding of certain non-C capital projects across two fiscal years, as well as trend analysis to better determine actuals versus requested funds. Once expenditures are defined and all other revenues are applied, we calculate the remaining funding gap. Uh this is a critical point in the process. The budget determines how much revenue is needed, not necessarily the tax rate. So to recap and before we move on, I wanted to briefly go over what we've covered. This process is structured and disciplined. We begin by identifying the cost of delivering services and advancing our priorities. From there, we apply all available revenues such as sales tax, fees, and other sources before determining what remains. That remaining amount is what must be funded through property taxes. So, the budget drives the revenue need, and the tax rate is one mechanism used to generate the revenue. So, now that we've walked through how the budget is built and how the property tax requirement is determined, uh the next step is look at the revenues that help fund this budget. Our goal is to fund services in a balanced and sustainable way. That means maximizing all available revenue sources before relying on property taxes. The town's revenue structure is made up of several key sources. Property tax, sales tax, fees and permits, intergovernmental

revenues, including state and federal funding, and other sources such as interest income. A strong and diverse revenue structure helps reduce reliance on any single source, especially property taxes. Sales tax is one of our most important revenue sources and is heavily influenced by tourism and seasonal activity. As we discussed earlier, Surf City's economy is visitor supported and supported by uh growth outside of Surf City that come to Surf City for goods and services. That means our sales tax revenues benefit from the increased activity we see during peak seasons. This allows visitors to help support the cost of services they use while they are here. Uh and again, just to to note the um year-to-ate uh sales tax revenue here versus the anticipated um but the 3.6 million is a pretty pretty healthy projection for sales tax for the upcoming fiscal year. Fees and permits are another important revenue source. These include development related fees, permits and inspections, parks and facility usage, and other service-based charges. As part of the budget, we evaluate and update our fee schedule to better align with the cost of providing services. These updates help ensure that services are funded by those who use them rather than relying solely on property taxes. This is especially important as our community continues to grow. Where appropriate, we are implementing and adjusting fees to ensure that growth helps fund the infrastructure and services it requires. In addition to sales tax and fees, the town also receives revenue from state shared state shared revenues, grants, and external funding, franchise fees, and investment earnings. These sources all contribute to reducing the amount that must be funded through the property tax.

After accounting for all the other revenue sources, the remaining portion of the budget is funded through advalorum or property tax revenue. Adalorum tax is the town's largest and most flexible revenue source. It is based on property values and is used to fund core services such as public safety, infrastructure, and general oper operations. As we saw in the previous section, all these revenues are applied first. Only after these sources are accounted for do we determine the remaining amount that must be funded through property taxes. So now I'm going to get into county revaluations and tax rate. So now that we've reviewed the revenues that support this budget, the next step is to look at how property values, particularly following the recent county revaluations, affect how that remaining cost is distributed. So what is revaluation? Uh North Carolina law requires counties to periodically reappraise all real property to reflect current market value. This process ensures that property values are updated based on real world conditions, including market sales, replacement costs, and income potential. The purpose of a revaluation is to ensure fairness. It helps ensure that property owners are paying taxes based on the current value of their property so that the tax burden is distributed equitably across the community. It's important to understand that revaluation does not determine your tax bill. Property values are determined by the county through the revaluation process. The tax rate, however, is set separately by the town council as part of the annual budget process. These are two completely independent steps. Value is determined first. The tax rate is determined later. For properties located in Pender County,

revaluation notices were mailed in late March reflecting updated property value values effective January 1, 2026. Property owners have the opportunity to review and appeal those values through the county's established process. Similarly, properties located in Enslo County have also undergone revaluation with updated values reflecting current market conditions. Again, this process is managed entirely at the county level and is separate from the town's budget decisions. Even though they the revaluation process does play a key factor. So, while revaluation changes property values, it does not change the cost of providing the services. That cost is determined through the budget process just as we have discussed. So, I'm going to try to go through the revenue neutral tax rate and what that means. To help provide a baseline for comparison, the state requires municipalities to calculate what is known as the revenue neutral tax rate. A revenue neutral tax rate is the rate that would generate relatively the same amount of property tax revenue as the prior year based on the new property values. As property values increase, the tax rate is adjusted downward to keep total revenue level. So property values go up, the rate goes down. What this means in practice, here's a simple example. Even though the property values increases, the lower tax rate results in the same overall tax levy under a revenue neutral scenario. The revenue neutral rate is not a re recommendation. It is a benchmark. So as you can see here, the revenue neutral which is adj adjusted for growth. The statutory requirement uh would be 30.2 27.

The revenue neutral tax rate adjusted for growth prevents revaluation from automatically increasing taxes on existing properties ensures fairness by separating marketdriven value changes from new development and provides a transparent baseline for policy decisions by elected officials. The adjusted revenue neutral tax rate resets the tax rate so that existing properties generate the same total revenue after revaluation while any additional revenue comes only from new growth in the community. First, revaluation does not automatically mean a tax increase. It simply updates property values to reflect current market conditions. Second, the budget determines how much revenue the town needs to operate and deliver services. that need is established before the tax rate is set. Third, the tax rate itself is a policy decision made by the town council to fund those services and investments. And finally, the revenue neutral rate serves as a benchmark. It provides a point of comparison, but is not a final rate. Together, these concepts help explain how we move from updated property values to a final tax rate in a clear and transparent way. Now that we've walked through how the budget is built, how revenues are applied, and how the tax rate is determined, the next step is look at how we are investing those resources back into the community. The capital improvement plan, or CIP, is the town's primary tool for planning and prioritizing major infrastructure investments over a multi-year period. It allows us to align long-term infrastructure needs with available financial resources while supporting the goals outlined in our strategic plan. The CIP focuses on major capital investments such as transportation infrastructure including roads, sidewalks, multi-use paths, water, wastewater, and storm water systems, public facilities and parks, and capital

equipment necessary to support the town's operations. Key point is that these are long-term investments that support the community today and into the future. The CIP is an important management tool that strengthen strengthens the connection between community needs and financial capacity. It allows the town to plan ahead for infrastructure needs, coordinate projects across departments and ensure that investments are made strategically and not reactively. Projects are identified and evaluated through a structured process. Departments submit project requests which are then reviewed based on objective criteria such as alignment with adopted plans, public safety impact, infrastructure needs, financial feasibility, and community benefit. This ensures that projects are prior prioritized based on need impact and available resources. It's important to note that the CIP is a planning document. It reflects the town's best judgment at a point in time, but projects and timelines may change based on funding availability, emerging needs, or new opportunities. In other words, the town cannot fund everything that goes on a CIP within one single year. And we work really hard to try to project these needs over departments uh beyond five years, uh 10 years, and and try to even plan further than that when we can. The fiscical year 2627 general fund projects recommended include a fire dep department ladder truck uh estimated at 2.75 million uh with an annual finance cost estimated at $378,500. Fire department battalion chief vehicle at $75,000. Police department fleet replacement vehicles uh at $180,000. Multi-use path funding in the amount of

$500,000. Parks, recreation, and tourism, $75,000 for a transportation bus. And emergency management for $80,000 for the disaster disaster strategic technology reserve trailer or DSTR for short. Ultimately, the capital improvement plan represents how we invest today to support the needs of tomorrow. It ensures that our infrastructure, services, and community assets remain strong, reliable, and prepared for continued growth. Next, I'll walk through the town's overall budget outlook and what this budget means moving forward. As we've discussed, the capital improvement plan represents how we invest in our community for the long term. To close, I'd like to step back and look at the town's overall budget figures moving forward. The town remains in a strong financial position. This budget is balanced, aligns with our financial policies, and reflects a responsible approach to managing both current needs and future operational and capital obligations. We continue to maintain healthy fund balance levels, which provide stability, flip flexibility, and the ability to respond to unexpected events such as storms, economic shifts, or emergency needs. Maintaining financial stability is critical to sustaining services and supporting long-term investments. So to the honorable mayor Bats and members of Surf City Town Council, it's my pleasure to provide the fiscal year 2627 budget message in accordance with section 15911 North of the North Carolina general statutes. I'm pleased to present the proposed fiscal year 2627 budget for the town of

Surf City for your review and consideration. Nothing. This budget represents a sound financial plan that aligns with the council's adopted goals and objectives. All sections of the proposed budget comply with the North Carolina Local Government Budget and Fiscal Control Act as amended. A B a balance budget or an interim budget must be adopted by June 30th, 2026. Pursuant to North Carolina General Statute 15912, a public hearing on the proposed budget will be held on Tuesday, May 5th, 2026 at 6 p.m. at the Surf City Municipal Complex. Notice notice of this hearing will be properly advertised, and copies of the proposed budget will be made available to the public, including distribution to local media. The proposed budget will also be available for public inspection on the town's website, in the office of the town clerk, and at town hall. The proposed fiscal year 2627 budget is balanced and totals $40,160,494 for all operations. Appropriations are distributed among the following funds. General fund 20,657,787. Accommodation tax fund 3,147,658 the water enterprise fund 4,146,251 the sewer enterprise fund 6,74,226 stormwater enterprise fund at $541,157 and beach nourishment fund at $4,963,415. $1. The town's capital improvement plan is also presented for consideration as part of the budget adoption process. Getting into revenues, the town's largest single source of revenue

continues to be property taxes estimated at 10,914,877 representing approximately 53% of general fund revenues for fiscal year 2627. Based on information provided by the Pender and Enso County tax offices, the town is using a projected tax base of three billion799,245,749. The town of Surf City is located within both Pender and Enso counties. For tax year 2026, both counties have completed property revaluations. Enso County operates on a 4-year revaluation cycle, while Pender County's last revaluation occurred in 2019. Following a revaluation, North Carolina law requires local governments to calculate a revenue neutral tax rate using a prescribed methodology. The rate represents the tax rate that would generate the same amount of property tax revenues as the prior year adjusted for natural growth. Natural growth reflects increases in the tax base from new construction and improvements within existing boundaries since the last revaluation. It is important to note that the revenue neutral rate is based on total assessed valuation, not individual properties. As a result, individual tax bills may increase or decrease depending on how to how a property's valuation change compares to the overall tax base. The calculated revenue neutral tax rate for Surf City is 30.2. 27. This reflects an average annual growth rate of approximately 4.64% since the last revaluation in 2022. The recommended tax rate for fiscal year 2627 is 29 cents per $100 of assessed valuation, which is a reduction of 24 cents from the current rate of 53 cents

and is below the revenue neutral rate as uh defined through statute. Applying the recommended rate to the tax base along with the projected collection rate of 98.7% yields 10,914,877 in property tax revenue. Each 1 cent change in the tax rate generates approximately $374,985 in revenue. The second largest general fund revenue source is local sales tax, as we've discussed, which is estimated at 3.6 6 million for fiscal year 2627. Additionally, water and sewer operations are projected to generate 10,850,477 in the town's enterprise funds. Investment income is projected to decline due to anticipated easing of interest rates and market uncertainty. Other revenues, including telecommunications taxes, ABC distributions, and video programming taxes, are expected to remain relatively flat. Getting into expenditures, uh, Surf City continues to experience steady population growth, increasing from 3,894 in 2020 to an estimated 4,998 in 2024. This growth places additional demand on town services to maintain service levels and support new initiatives. The budget provides for necessary personnel, equipment, supplies, and infrastructure investment. Expenditure estimates were developed collaboratively by the budget officer, the town manager, and finance director based on departmental request and supporting justifications. These requests were made available for council review and incorporated into the budget workbook. Each request was evaluated based on historical spending, operational needs, inflationary pressures, and service delivery priorities. Revenue projections rely on guidance from the North Carolina North

Carolina League of Municipalities, county ta county tax data, existing agreements, departmental estimates, and year-to- date performance. As in prior years, expenditure requests exceeded projected revenues, necessitating prioritization. For fiscal year 2627, requests exceeded available revenues by more than $700,000. to maintain service levels without overextending the general fund. Select capital expenditures will be funded through the capital reserve fund. To hit on a couple of highlights, uh general fund personnel, department heads submitted requests for seven new positions, three battalion chiefs, three firefighters, and one communications coordinator. The recommended budget includes funding for these positions based on strategic priorities and operational needs. The fire department positions will complete the staffing for the ladder truck program while the communications position will enhance internal and external engagement. The budget also includes a 2.4% cost of living adjustment which we uh utilize the uh latest CPI uh numbers that are available to us. Merit based pay adjustments and retirement contributions. There's no change in major medical costs this year. Contribution rates for the local government employees retirement system are set at 15.1% for general employees and 17.1% for law enforcement officers. I'll remind you that you have really no control over the state retirement system. Um that varies between general employees and and law enforcement. So um we can't necessarily cut uh some of those dollar amounts as I mentioned. And I'll just quickly scan over our general fund capital um expenditures, the fire department ladder truck. Um and again, just for the

benefit of the public that are here and listening online, um that's a $2.7 million uh expenditure. However, uh the town will evaluate the most appropriate way to purchase that. And essentially the way we do that is uh interest earned on money in the bank versus interest applied to a potential installment financing or loan. Um but we would anticipate um putting that into a debt service and annual payments uh being at $378,000. the battalion chief vehicle, the police fleet replacement, uh multi-use path funding, parks and recreation transportation bus, and the emergency management DSTR trailer. As I mentioned in my prior uh message, key strategic initiatives um growth in natural resources, continued investment in beach nourishment with 4.963 million allocated to the beach nourishment fund. Funding sources include accommodations tax, property tax, and paid parking revenues. The fund balance is projected to reach approximately 34 million in preparation for the US Army Corps coastal storm risk management project. growth in natural resources, advancement of the island town center master plan to support resilient infrastructure, environmental stewardship, and community oriented redevelopment. Infrastructure and transportation completion of a systemwide hydraulic model to evaluate capacity, pressure zones, and fire flow capabilities in our water system. Infrastructure and transportation. The advancement of priority multi-use path segments to improve connectivity between the mainland and island. Organizational excellence. Expansion of the town's communications capacity through additional staffing. Organizational excellence. Strategic planning and procurement of replacement fire apparatus and safe, vibrant, and healthy

community. Completion of phase three of the town's two-way radio system and deployment of the deployable strategic technology reserve. In summary, the recommended budget reflects a disciplined financial strategy that balances service delivery, infrastructure investment, and long-term planning. I commend the mayor, town council, department heads, finance director, and staff for their commitment to responsible fiscal management and stewardship of public resources. This budget includes a recommended property tax rate of 29 cents per $100 of assessed valuation which is below the calculated revenue neutral rate. So to recap, this budget reflects the balance between meeting the current service demands, investing in infrastructure, managing growth, and maintaining long-term financial health. We recognize that there are real pressures facing this budget. Continued population growth, seasonal demand, rising costs due to inflation and construction pricing, and increasing expectations for service delivery. But through careful planning, disciplined budgeting, and strategic investment, we are addressing these challenges in a responsible and sustainable way. From demographics and growth to strategic planning to how the budget is built and how we fund it. This process is intentional and connected. Each piece builds on the next to ensure that we are making informed and responsible decisions. And most importantly, this budget reflects who we are as a community, growing, evolving, and planning for the future while remaining committed to responsible stewardship of public resources. Next steps uh in the process include continued discussion and feedback. Uh as mentioned, the budget will be available to view at town hall or on our website under the finance tab. The public

hearing will be held um and final adoption of the budget uh would be scheduled. I will note that um you know the budget is a it's a lengthy document and it's full of spreadsheets and numbers and um if anybody wants to dig into the budget throughout this this next phase or next period please reach out to us um as we're more than happy to try to explain um each expenditure or each revenue uh to the best of our ability and how that fits in with the overall plan for the town. Um, so with that being said, madame mayor, that is the uh manager's recommended budget overview um presented to council uh this evening.

Thank you, Cal. You need a need a water now? Need a water? I've got water. Thank you. I appreciate it.

Okay, if I keep going. Um, we are very excited that to see all the adjustments and each staff member that put in all the recommendations to Melissa and Melissa and Kyle. I know along with the other staff, they have worked tremendously hard over the last few months to come up with a balanced budget and to reduce the rate from 53 cents um down to 29 cents per per 100. So, um, what is the pleasure of the board? At this time, it's requested that the town council consider approval the budget officer submission as presented. And it, like I say, it will um sit in town hall or on our website until our next meeting on May 5th. And there will be a public hearing at that time to accept the budget.

Mayor, I'd like to make a motion to approve as presented. Well, and and just as a reminder, you're not approving the budget. Um, it's just submitting submitting. And and I will note, you know, we do have a work session scheduled and we keep that on our budget calendar in case the board wants to hear additional information or set aside additional time uh to discuss the the budget. So, you know, that's one thing I would want to know if the board um would would want to see that back on the work session agenda in a couple weeks. I guess next talking about Thursday this particular segment budget. Sure. Understood. Anybody have any questions?

I just have one quick comment, I guess. Well, a comment and maybe a question. Um, you discussed the revenue neutral rate is recommended to be at 32.7 cents. 30. So, the way I um communicate is 30.27. 27 27 cents but 3027. Yes. And and we are actually going below what's recommended for that.

Yeah. So, so re revenue neutral um is calculated you you take the the aggregate or the average of the um valuations from the last four years. So even though Pender County hasn't done their their reval since 2019 since we're split between two counties, we only go as far back as what Enso has um you know completed that their last reval of 2022. So the 4.64% of growth uh realized is really in that four-year cycle which we would have anticipated a little higher growth number if we were going back to 2019. So

and then um just the portion of that that goes to beach nourishment has been adjusted as well. Yeah. So um the town uh historically has operated um on 10 cents of the adorum rate um you know to be dedicated to storm water and uh the tax rate remained the exact same for beach nourishment for what did I say storm water

storm water sorry beach nourishment um tax rate has been consistent for years on that and it it has grown because pro the valuation has grown um But now that the valuation has been adjusted that the pennies on that are are like five and a half cents. Uh but what we would prefer to use is these target numbers uh of maintaining a healthy uh beach nourishment fund so that we are prepared uh to fund our portion of the coastal storm risk management project and not be subject to uh federal fluctuating interest rates uh on a pay as you go sort of scenario because we will uh the federal government would be happy to finance our portion of the project But uh right now our money is all invested and is earning interest. Um you know and that's what helps again offset property taxes in developing the overall budget.

Anyone else? Andy, do you have a question? I I have Yeah, just couple points of clarification uh for Miss Moore. Um we talked briefly about uh the magnitude of our personnel costs being over 50% of our total budget and we had talked previously that we had a 2.4% cost of living increase plus a merit increase. Uh and we had talked about the merit I think was 2.5 target or max. Um have we made the adjustments or have we kept that 2.4 plus 2.5 in in our budget? Currently the 2.4 four and 2.5 are there. So it's

so we had talked about that in implies that all employees get the maximum merit increase and whether or not that's realistic or not is a question I suppose that Mr. Brewer can can help us answer. In my experience that isn't realistic.

Yeah. So, uh, in our conversation, uh, merit increases again based on core competency, achievement, and goals that are set out to, um, either reflect professional advancement or reflect uh, initiatives uh, that are achieved based on our strategic plan. And, um, I can assure you that the evaluations that I provide 100% um, are not handed out. Um, so that that 2.5 could be evaluated. We could go back a couple years and and look at what um was paid out of the 2.5 if that's the pleasure of the board to to take a look at.

Well, that would be an a worthwhile metric to understand as we go forward and looking and trying to identify other opportunities for cost savings on the operating side. And we also talked about that not all employees are evaluated on the same uh metrics. Uh everybody is evaluated on a core competency metric. But then you have certain departments and certain positions that um are evaluated based on their latter system. So if you achieve uh X, Y, and Z certification in the wastewater treatment field, then that's where your your quote unquote merit would be achieved as opposed to meeting specific goals,

right? And so the what we could be higher than the 2.5 it could be higher. Okay. So certainly we'll need to understand that perhaps between now and the and the workshop. The other question I had for you, uh, I know that the the ladder truck is is an important, uh, component of our fire safety system and and, uh, uh, Chief Wilson has has convinced me of that. So, um, the we have budgeted 378,000 in the first year in the CIP. Will we be borrowing the 2.75 million all upfront?

We will most likely borrow the million upfront to make the prepayment. Okay. So, we should be looking at what is the debt service on 1 million in the first year, not what the average debt service would be over the 10-year period. And the other two was we had talked briefly about perhaps is a 10-year uh period the appropriate one. And that's why I'd asked the question earlier about the other investment we're making with a 20-year period. So there there's some flexibility there, particularly if we're starting to look at uh what the interest rates might be if if we use a different length. So the three 378 I think overestimates the first year cost. How much do you think it overestimates Andy?

By about $200,000 or 230,000 something. Well, 378 divided by three give or take, right? We can go back to Civic and get all the numbers for certain. Yeah. So, so the amortization schedule and then that so the first two years we would overestimate the payback that we would need and the last two years we would overestimate the payback. In effect, it's not really a 10-year note, is it? It's going to be a 13-year note, right? We would have to look back at the amateurization schedule. Yeah. So, that and that's that's a number uh that that we have an opportunity to look at,

but I would like to point out that does not come out of the general fund. that does not impact the tax rate. It's in well, it's under the CIPs and the CIPs are funded out of the general revenue. They're going to be re they're going to be funded out of the CIP fund and then we have a a transfer into the CIP from general revenues. Um I would be more than happy to have it uh uh transferred from the uh general fund balance. Uh, and that might be another consideration as well, using some of the He felt comfortable doing a text amendment or doing an amendment on a transfer. Felt comfortable doing a budget amendment this year. Budget amendment this clear.

And the the other one, and Mr. Brewer and I had talked about it briefly, too, and I think it's a work in progress, is one of the adjustments that Pender County has made to their uh tax base assessment, right? They they went out and surveyed all the properties and they came up with a number and then they said, "But we think we're only going to collect 90% of that be or well we're only going to end up with 90% of that tax base because the appeals process

which to me seemed like a rather big number of successful appeals from a historic perspective. And if you look at what has happened in other towns in in other communities within North Carolina and outside North Carolina. So I think Mr. Brewer has assured me that he's working with the county tax assessor office and the the the county Pender County to see if we can get uh some clarity around how much really will the appeals process reduce our tax base. Currently, the tax base that we're using to to calculate budget neutral or revenue neutral is the uh a tax base that's 10% less than what if you took everybody's assessment that came in the mail and subtracted 10%. So, um and I' I'd like to see some better evidence to support that. Uh typically, it's in the two to 2 and a half% range. Uh but we are in an unusual time. I and I and and I understand that the the assessments increased by a substantial amount. And if I remember correctly, you said the top number before the 10% adjustment was a 104% increase overall.

Overall, yes. Average. Yes. Yeah. And that includes Pender Surf City, not Enslow.

That's correct. And I and I just just to note that uh when tax values are provided to the town, those are provided by the tax assessor in like we'll use Enzo County for example. The tax assessor in Enso County already reduces that valuation to provide to Pender County based on their best judgment. the process in which was delivered from Pender County uh was via the county manager and the message was um you you may want to reduce this 10 to 15% uh because we as as the town manager and finance director are not making the calls on appeals and what the ultimate value should be based on for um you know delivered to the town of Surf City. So we rely on external expertise to to provide us that number and historically every year uh that number is adjusted before we even obtain it. So uh it we don't have readily available to say okay well in 2019 that adjusted number was X. We can we can drill down and try to talk to the Pender County Tax Assessor. Um, I've not had any successful direct communications with, um, they have co-ax assessors right now. They don't even have a singular official tax assessor in Pender County. So, um, so we'll we'll do our absolute best to give you the best numbers that we can. What is presented to you is is the the information that is provided to us.

I and and I I totally agree. Yeah. And the reason why I bring it up, I I did some math in my head and I apologize in advance, but what the 10% reduction in in tax base means in terms of the appeals process is that half the people will appeal their tax uh their assessment increase and of those half of them will have them approved and the average adjustment in their tax will be 40% or tax assessment will be 40%. That's what that means. 50.5.4. When I look at it from simply that math perspective, I find that to be a pretty big change in the assessed value. Half the tax, half the people go in and appeal. Of those, half are approved. And of those approved, they get a 40% reduction in their tax assessment. That's what that 10% number means. That's why I question it.

Sure. No. And I I just want to make sure and and speaking to the public more so is that I just want to make sure that we're all clear that numbers presented are not inflated by the town for any reason. Absolutely not. We we are providing the best information that we can. What they said I would like to understand from them perhaps what exactly were you thinking when when you did this? Sure.

I think the unknown there is that we've got such a varying price point for houses where we're anywhere from three or 400,000 maybe less a little bit maybe more a little bit up to 3 million in Surf City. So if you have somebody that can test the $3 million house and they get that 40% that's a big chunk there. So that's where you can't really pick something in the middle because you don't know which of those people that file an appeal are going to get approved or not approved.

Council Maholi, that is an excellent observation in that the data demonstrate that the average appeal rate is higher as the value of the pro relative value of the property goes up. You're absolutely right. And uh it's 10 to 15% would be a typical expectation on the high value, a 5 to 10% on the lower value. Uh again, we are in a very unique situation. These values, the assessed values of homes have gone up 104% overall. So on average across Surf City, that that's unheard of. Um it it is what it is and it's nothing that the council has done, nothing that uh the town staff has done to us. It's what Pender has determined is what we are worth.

So again, it's um Enzo County did it four years. When it comes seven, eight years, it comes as a sticker shock to to the rest of the the Pender County residents um because of the long time in between. So, um, I just want us to remember that we work together to serve our community with honesty, fair, and respect. And that's what Melissa and Cal have done. They presented a a budget that is um, balanced and John made the recommendation to for us to go ahead and submit it. It's just going to be there. Absolutely. I have one more question if you don't mind.

One question. Yeah. One question. The sale of the police department 1.1 million. Where did that money end up? General Currently in the general fund. We have anticipated coming back to you to ask to move it to the capital improvement fund. And that would then offset the 1.7 that's in the CIP. That would be I think the most appropriate way to do it. And the rest of the council can either agree agree or disagree with me. though it is owned by our town and we should be able to use that money to fund other infrastructure uh investments including firet trucks and and vehicles for the uh police battalion chief and uh and things like that. So, thank you. I'm done.

I I just want to follow up by saying uh to Kyle Melissa, I think you've done a great job. I think the process you've uh put forward tonight was uh reasonable. It was rational. It was logical. you you're having to deal with the numbers that you're presented. We don't get to create numbers this process. Um you've worked out this budget uh and given details that we've actually been able to go below what our revenue neutral was uh rate is considering um taking in the growth that you talked about. Uh I I Alicia and I both got a lot of comments and I'm sure Trudy and John had but I know Alicia and I have specifically spoke uh to the same people at the same time with the tax rate before. Well, why didn't why didn't we plan ahead for why didn't you see this coming that we were going to have to hire these? Well, we know that uh the fireman and his fire truck is coming and you've been able to put together a budget that drops us below our revenue neutral rate and prevents or highly anticipating preventing another tax increase before our next evaluation. I appreciate what you've done and I want you to know it and I want you to hear from me and I want you to hear it in the public forum. Thank you.

That was pretty good question. My question was the um sale of the p you know police department building and and I do agree. Yeah. So thank you. I'm good. Okay. So John did make a a motion to submit for submission as presented. I second. I have a second. All in favor say I. I. All oppose. Same sign. Motion passes to submit for submission. Um, next we have our manager's report. If you're ready to talk some more,

I'll hang out down here if that's okay. Um, and again, just just as a reminder, um, council's action just essentially means that we will we will have what was submitted available to the public. there won't be any modifications to this um before the adoption of it. So, just want to make sure everybody's clear on that. Um madame mayor and council and members of the public, it's um always my pleasure to provide you uh updates on various things that are going on with the town. Um obviously never all inclusive as um there's there's always so much happening. Uh just wanted to talk about real quick the waterline resilience project and where we're at with that. So the town is awaiting review and approval of the contractor submitts to the project engineer. Uh once this is completed, they will begin excavation and installation of of the new water line starting at Dolphin and moving south towards Roland Avenue. The process will include the replacement of a blocks worth of line and then going in and making household connections. The general public notice has been sent out about work starting and we will transition now into focused messaging for those that are impacted by the project. Um and that we will give a two-day notice through code red utility call outs um before the work is completed on the block and then follow up with uh communication once it's been completed. U once again hooking the individual service meters back up is a a fairly quick process. Um but they're doing a blocks worth. Um so you know a dozen houses or so, but it still shouldn't be a very lengthy time. This does not require a boil water uh advisory. Um so there won't be mass communications going on about it.

The uh Delmare storm water project happening at Meckllinmberg and North Topsil. Um this project is scheduled to begin on April 20th. Uh as a reminder, crews will remove the asphalt at the intersection and replace it with a similar infiltration system as Roland and Seahorse. Uh in addition, bioailes will be installed along Meckllinburgg Avenue. staff have coordinated with Pender County Schools for bus route disruptions and GFL for trash and recycling services. There will be an inc there will be an inconvenience to the residents during this construction project anticipated to uh last approximately 60 days. As a reminder, we had a held a community meeting with those impacted. Um there will be a temporary access for residents only that goes through a portion of um one of our property owners in that area. Um and then there will be a uh traffic route that uh and signage to allow people and motorists to understand what's going on. But that impacts Meckllinburgg and North Topsel just north of um the Surf Condos. want to uh let you know something that's been discussed at our TISPC or Tops Island Shoreline Protection Commission meetings. Um and specifically the North Carolina Coastal Federation will be holding a listening session related to on the water experiences uh for access, navigation, density, safety, viewshed, and more uh here at Surf City Town Hall on Tuesday, April 14th from 1 to 3:30. This is in uh relation to shellfish aquaculture in Stump Sound. Um so the town town's legislative priorities the the TISPC legislative priorities has been um to our legislators that the density of shellfish leash le leases existing and

and being approved through uh the division of mean marine fisheries may be causing uh impacts to other users of our waters. Um so this is a step to try to identify what those impacts are. Uh there is a flyer that was prepared by the coastal federation uh and that is posted on our website. Um so you can go there. Once again, registration is required for this because of space limit uh limitations, but if you cannot make it, there's also a link that you can provide comments um if you so choose. Segment five of the multi-use path. Um, so staff is actively working with the town's engineers to finalize the segment 5 multi-use path, adding the portion from community center drive to the Earl G and INZ recreation complex. Uh, draft easements have been prepared to present to property owners along this stretch and are being presented and finalized right now. An update on the Army Corps project. Uh a formal response was provided to the district regarding confirmation of non-federal responsibilities as outlined in the general reevaluation report. Staff is also actively working on property eligibility justifications through prior development on parcels as well as documenting vegetation lines and erosion conditions to help determine as many properties as possible for developed classification and consideration. reducing the overall cost sharing responsibilities for the town. These elements are points that are used in developing the project partnership agreement a parallel path of advancing the project while we wait on official word from the office of budget and management. The town will be submitting to the division of coastal management a public

access grant. This application will be to develop a public parking area and 8-foot boardwalk providing public access and non-motorized vessel access and an overlook deck at town property along Goldsboro Avenue. The application is due April 24th for preliminary review and then projects will be selected for final review which will then be due by July 31st. Final applicant notification of funding will be in September October of this year. Uh wanted to remind everybody about the town's backyard beach bash. Uh the town is hosting an inaugural be backyard beach bash at Southside Park on Saturday, April 18th from 3 to 8:00 p.m. This family-friendly event will have live music, games, and food trucks. uh and uh working with our promotion, special events and tourism committee and our parks, recreation and tourism staff trying to develop events that fall within the shoulder season um to boost visitor spending, uh sales tax, accommodations tax, etc. But this is geared towards our residents. Um so let's make this an annual tradition and plan on coming out um on April 18th. Lastly, um just want to talk about a couple of personnel items. Um on April 1st, we celebrated um Susan Valiiente, uh who officially retired from the town of Surf City. Um if you've ever visited the community center or gone to a special event or anything with parks and wreck, uh you've probably been greeted with uh nothing but a smiling face and positive attitude. Um you know, the epitome of of a a positive employee for Surf City. Um Susan will be sorely missed and contributed so much to the parks and recreation department by helping coordinate and leading many programs that they offered. Um being a

personal liaison to me through staffing transitions and um just an overall great person. Uh in other retirement news, uh Chief Phil Vorhees uh has decided that he will retire from the town. Uh Chief Vorhees has also been with the town for uh little over 19 years, has faithfully served our residents, visitors, and officers of the police department. Uh through this chief transition, um Chief Vorhees has always been a consmate leader in our community. He's been uh direct, objective, fair uh in addressing the challenges within the town. um he he doesn't like to talk about these types of things, but he is he's really the individual who has introduced the technology and policing and making sure that Surf City adopts these standards uh for policing that we see uh nationwide and has uh essentially represented Surf City Police Department as a leader uh within our our region. Um, and I commend Chief Vorhees for his leadership ability and the places that he has taken the Surf City Police Department. Um, again, I can't speak enough about Chief and the community policing efforts. Uh, being within our schools, taking that responsibility head on. Um, understanding that, uh, that responsibility, yeah, generally lends itself to the county. However, Surf City Elementary and Middle School are in Surf City and forming that relationship um can can extend well beyond uh the school boundaries and back into our community. So, um August 11th will be his last week of work uh within the town. So, we do have time. However, uh this leadership

transition is not taken lightly. uh a chief chief of police u must be able to communicate with our residents um must be able to communicate with uh their officers must be able to communicate with council and other department heads and serves as an integral uh piece uh to the leadership team in in Surf City. So um the recruitment and hiring process will begin soon uh so we have some time for a transition period uh before his departure u so we can look for advertisement highlighting um the wonderful things that Surf City has to offer uh for the next uh professional leader within our community. Um so we'll probably start to get some of that information out there next week. So uh with that, Madame Mayor, that is u my update. Happy to answer any questions that you may have.

Thank you. All right. If there are no questions, we will move to the town attorney. Brett Delms.

Yes. I got one thing this evening, Madame Mayor. Um there was a question about the contract terms on the financing. I had the opportunity during Mr. Brewer's presentation to to look at the contract to to remind the council what those terms were. It's a 15-year um loan, 3.74% interest rate, so a little bit better than the 4%. And what's important on that is we negotiated to make sure we had a payoff without penalty after 5 years. So if the town happens to have money or if we need to refinance and have a better rate after five years, we can do so without penalties. So um finance staff, uh Melissa did a great job in negotiating those rates. And um that's all I have for her. Thank you, Brad. Thank you.

All right. Well, we'll start with Andy.

Well, we had a pretty nice turnout tonight and I'm sure there are going to be a lot of people who are going to watch the the YouTube video. Maria, are you still here? No. She She asked about the uh putting in palm trees. Um I would say yes. Trees are a good thing. I'm I'm a little curious to understand what the palm tree and and Surf City have in common. Um, I think uh we have a a beautiful uh pine forest and uh and and local trees that uh we could uh evaluate and I would uh Sy's not here. Sandy Moore, our beautifification and enhancement committee chair probably would be the person to uh kind of delegate this to to to do it. I think it's a fantastic idea and I think I bet we can get people to donate some money. I certainly would. I'll buy the first 10 trees. How's that sound?

A a nice tree is about to start off with. It's about at least 350. All right. I'll buy the first 10 trees. Well, I think we do have a palm tree regulation. Do we not Mr. It's not a tree. It's a bush. Mr. A palm tree is Sure. Come on up. For our zoning ordinance, palm trees are not on the recommended planning list. if a development were to install them, those are above and beyond what they're required to plant. Um, not prohibited. They're just not on the recommended planting list because they're not considered a native species. It's actually not a tree. It's a grass. Cannot categorize. It's not even a bush.

It's a grass. Oh, boy. Um, I will just ask with this opportunity, would is it the council's pleasure to direct staff to work with um the individual who spoke and uh to work with beautifification enhancement committee? Is that where you'd like this to develop a plan and bring it back to you or I do think we should get back to her.

Sure. Sure. I do know that um the veterans of Pender County, which I want to say Jason Simus is the leader of of that now, and he told me that he was going to be contacting the town of Surf City. I think they were they were going to do something more of a donation type agreement just to do some type of recognition for the 250th. Okay. we we will reach out to her and

No, I I think it's I think doing something is important and I think that the tree idea is good considering that you know I think we all enjoy the the fact that we have a lot of trees and and things. So anyway, um that was I think it's great. Uh again, thanks for coming. Uh the budget process is started doesn't mean we're finished. So, if you have any questions, comments, uh suggestions, uh please feel free to reach out to me individually, reach out to your other council members, reach out to to town staff with that. Uh and I do think we decided to put it this quick discussion on the workshop meeting and at that time, maybe we'll have a little clarity around some of the questions that were raised um and so we can at least reconnect before the May 5th meeting. questions. Okay.

Is it okay? You're gonna question. Not at this time. If you stay after the meeting though. Okay. Thank you. So, with that, I'll pass the baton over here to Councilman Kolski. Thanks. Well, thank you both of you for what you've done because the DO

sentence. I think it's great how you put it together and I think it's pretty clear as to what it is. Um, Susan will be missed, our parks and recck person. Phil Vores will be extremely missed. I don't know if anybody's ever had um the opportunity to have Phil shake your hand. I have on several occasions and I think I have early onset arthritis from that. Uh, his handshake is, as my grandfather used to say, very, very masculine and manly. I mean, I can't, you know, I try to counteract it. No, it doesn't happen. But uh he will be missed because he is one heck of a guy. Thank you.

Spring is here. I hope y'all are surviving in the pollen. Hopefully it won't last long. We did have a great turnout. I'm I'm digging it. We're having as many people been coming out having these even meet evening meetings. I think uh Andy mentioned the budget. We're just getting started. So keep a breast, keep informed, stay informed, voice your opinion. Um, and thank you for doing what you do. Thank you. Thank you.

Thanks everybody for coming out. It was nice to see a lot of people here tonight. Um, and again with our retirees over there, I know Chief, the kids aren't going to know what to do without seeing him there in the mornings and in the afternoons. But, um, and Susan is a wonderful human being. They'll they'll both be very much missed. And again, you know, questions, comments, concerns. We I think everybody up here does a really good job of trying to put ourselves out there and make ourselves available. Um, our phone numbers and emails are online on the town website. So, if you have questions, like this is the time to really reach out and give us your thoughts and feelings about stuff so that we're not after a budget's been approved trying to retrograde stuff because that's not really a feasible option. Um, but thanks everybody for coming out and hope you all had a great Easter.

I knew we were all gonna comment on the amount of people here tonight because we

I know John's already counted, but we we spent a lot of time, you know, talking about that and if we moved the meetings later, was it really going to help people show up? So, we're we're thankful that um that one of our decisions um has worked out really well. So, um for all of us, I hope so. Um we do have a great a lot a great amount of information to consider from the budget um submission and not just a considerable amount of time but an extreme amount of time was spent on this by the department heads and all that. I see that more and more every year and um that just is uh you know indicative of how fabulous our town employees are. This is important. This should is important to all of us. Um we have a lot to consider. So, um I hope everybody will dig in in whatever way they can. Um there's obviously YouTube um presentations and there's information you can come talk to anybody at the town about. And um and we are available and I I have people come talk sometimes say to me, "Well, I don't want to bother you while you're out dinner with your family or whatever." But I mean, this is where we live and this is what we do and this is I'd rather talk to you in person than get a Facebook comment to be honest. So, um and maybe even a text. Um, so I'd really like to interact with everybody in per in person. That's just a lot more enjoyable and I can understand a lot more of your interests and concerns and that's um just preferable. So I encourage all of us just to act as neighbors and talk to each other whenever possible wherever we run into each other. So um I am going to miss Susan and Chief Vorhees. And I was going to comment that since Chief's here, um, it will be a great loss when you're gone. And I have never lacked or been disappointed at any of your presentations. They have been extremely thorough.

And I just always appreciate all the time and energy and um, data you put into things to helping us understand when we don't come from a police background and things like that. But um, but I also knew from day one you had a great compassion for others and especially our young people in the community. And that's extremely valuable to a lot of us, especially if you consider our median age is 36.9 or whatever it is. And we have a lot of young families here. And so, and I I want the kids to to be familiar and comfortable with our police. And so, thank you for for making that happen. I see it happening every day. So, um that's it's just something um I'm very proud of with our town. And I thank you for mentioning the beach bash. I encourage everyone to attend that on April 18th. So, at the park. So, thank you. Mhm.

I'm just going to say I want to encourage all of our employees to stand proud for all of your work because you're providing safe streets. You're providing strong services and a resilient community. Um, and that's something to be proud of. Cal Brewer is probably the most ethical person that I know. I mean, when it comes I mean he he's going to run everything by us. Melissa Moore, you've done an outstanding job and you should be very proud of yourself for for what you've done. I know that I am and everyone else that sits up here is extremely proud for for what you've done. So, including your finance committee, every every department head that has,

you know, diligently went through their budget. I know we cut, you know, or Kyle cut a lot of things before it even got to us and then we sat and went line by line by line by line and you know unfortunately we can't buy we can't we I mean on the low end three 250 trees on the low end which if they're going to be a nice tree and you're going to plant a tree to stay alive on the low end you're looking at least $90,000. So we just sat here and we we slashed this budget. So, um, you know, maybe it can be some type of donation. I don't want to, you know, what she's trying to do was a a very nice gesture and it should be recognized, but, um, to ask for for the town to to pay for that we just cut, we just made some major cuts. Um, unfortunately, I don't think that we'll be able to do. But, um, I want you to remember that we we work every day to serve our community with honesty, fairness, and respect. And if you have any questions, we are basically here seven days a week, 24 hours a day. Someone's going to answer their phone. Um, so thank you for coming out. It was a well attended me meeting. Um, look forward to seeing you at all of the events that are are to come this spring. So, do I have a motion to adjurnn?

I will make a motion to adjurnn. I'll second. Motion and a second. All in favor say I. I. All those post, same sign. We are adjourned.