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05/13/2008 Special City Council Budget Work Session - Sutton Park Rec Center CITY OF MONROE SPECIAL CITY COUNCIL BUDGET WORK SESSION SUTTON PARK RECREATION CENTER 2303 BROOKS STREET, MONROE, NC 28112 MAY 13, 2008 - 8:30 A.M. . AGENDA www.monroenc.or~ 1. Budget Message 2. General Fund Departments A. Community Development B. Economic Development C. Engineering 1) Engineering 2) Streets 3) Stormwater Division D. Fire E. Human Resources 1) Human Resources 2) Risk Management F. Information Technology G. Legislative H. Finance and Administration 1) Finance 2) Customer Service and Collections 3) Utility Billing 4) Administrative Services I. General Administration J. Parks and Recreation 1) Monroe Aquatics and Fitness Center 2) Administration 3) Parks Maintenance 4) Golf Course 5) Recreation K. Planning and Development/Building Standards 1) Planning and Development 2) Code Enforcement/Building Inspections L. Police 3. Water and Sewer Fund A. Administration and Engineering B. Water/Sewer Maintenance C. Water/Sewer Construction D. Water Treatment Plant E. Wastewater Treatment Plant Special City Council Budget Work Session May 13, 2008 - 8:30 a.m. Page 35 4. Electric Fund Natural Gas Fund 6. Airport Fund 7. Capital Improvements Budget/Fees Schedule 8. Outside Agency Funding 9. Other Budgetary Information r` Special City Council Budget Work Session May 13, 2008 - 8:30 a.m. Page 36 ~~ CITY OF MONROE SPECIAL CITY COUNCIL BUDGET WORK SESSION SUTTON PARK RECREATION CENTER 2303 BROOKS STREET, MONROE, NC 28112 MAY 13, 2008 - 8:30 A.M. AGENDA The City Council of the City of Monroe, North Carolina, met in Special Session at the Sutton Park Recreation Center, 2303 Brooks Street, Monroe, North Carolina, at 8:30 a.m. on May 13, 2008, with Mayor Bobby G. Kilgore presiding. Present: Mayor Bobby G. Kilgore, Mayor Pro Tem P.E. Bazemore, Council Members John Ashcraft, Billy Jordan, Lynn Keziah, Dottie Nash, Robert J. Smith, City Manager F. Craig Meadows, City Attorney Terry Sholar, and City Clerk Bridgette H. Robinson. Absent: None. Visitors: Bruce Bounds, Mary Lou Clark, Russ Colbath, Mike Courtney, Jason deBruyn, Mark Donham, Debra C. Duncan, Jim Fatland, Ron Fowler, Wayne Herron, Sherry Hicks, Jim Loyd, Don Mitchell, Chris Plate, Debra C. Reed, Mike Torralba, David Williams, and others. Mayor Kilgore called the Special Budget Work Session of May 13, 2008 to order at 8:30 a.m. A quorum was present. Item No. 1. Budget Message. City Manager Meadows read the Budget Message for the record: Dear Mayor Kilgore and Members of the City Council: I am pleased to present for your review the proposed budget for Fiscal Year 2008-2009. The budget as proposed provides funding for the continuation of high quality, efficient municipal services that our citizens. expect, and also provides dollars for investment in capital equipment needed to safely and effectively provide those services. Through your direction, you have also allowed me to recommend continued funding for our employees to receive competitive salaries and benefits. Our employees strive each day to provide our citizens with the best municipal services, and they are our City's greatest resource. Monroe continues to experience a vibrant economy, with growth in the industrial, commercial, and residential sectors. In order to support this growth, the City must add equipment, personnel, and facilities to provide the needed municipal services to our residents and businesses, and to also provide services to those who come to our city each day to work, shop, or visit. However, while we continue to experience significant growth, several of our revenue sources in the General Fund are growing + much more slowly. For example, our sales tax revenue continues to experience slow growth, due to the tremendous growth in Union County's assessed valuation as compared to the City's valuation. Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 37 Union County recently completed a revaluation of all real property, including the property within the ~^'~ City of Monroe. Based on this revaluation, we project that in order to maintain arevenue-neutral F property tax rate, our current tax rate of $0.55 per $100 valuation would be reduced to $0.47. However, in order to support the addition of four police officers, two code enforcement positions, and the reduction of funding from the SAFER Grant with regard to the I2 firefighters hired in the current year's budget, I am recommending that the City Council consider athree-cent real estate property tax rate increase in order to adequately fund the various activities and operations of the City's General Fund. This would establish the tax rate at $0.50 per $100 of valuation for the fiscal year beginning July 1. The recommended budget for the 2008-2009 fiscal year totals $127,399,360, an increase of $14,262,845 over the current year combined budget of $113,136,515. The primary reasons for the increase area $4.5 million increase in the cost of natural gas purchases for resale; a $3.3 million increase in the cost of electricity purchases for resale; $1.9 million for the construction of a permanent fire station to replace temporary station #4; principal and interest payments on the 2007 revenue bond issue of $1.9 million; and an increase in personnel salaries and benefits of $1.7 million dollars. GENERAL FUND The proposed General Fund Budget for the 2008-2009 fiscal year is $34,414,888, an increase of $4,401,272 (14.7%) from the current fiscal year. Highlights of the General Fund Budget include: • A proposed three-cent increase in real estate property tax, from a revenue neutral rate of 47 cents to 50 cents; • $15,359,000 in revenues from real and other general property taxes, up 9.0% from FY 2007-08; • $385,118 in support of the City's airport operations; • $302,124 for the operation of the City's downtown program, with an additional $34,700 collected in Municipal Service District taxes; • An appropriation to outside agencies of $177,700, a decrease of $116,693 from the current year appropriation of $294,393; • Investment earnings of $680,000, a decrease of $40,000 from fiscal year 2007-2008; • The addition of seven new full-time and two part-time employees: four police officers, two code enforcement inspectors, and one recreation center supervisor and two part-time parks and recreation employees to staff the renovated Armory on Johnson Street; • Funding of $16,182,866 for the operation of the City's police and fire departments, an increase of $3,033,235 (23%) from the current fiscal year; and • Total capital funding of $4,252,390 for the new fiscal year. The fiscal year 2008-2009 budget also includes funding fora 2.5% cost of living increase for all non- probationary City employees, effective July 1, and also includes funding for the City's pay for performance program, which allows employees to earn up to an additional 4% increase in salary, based on job performance. Additional funding of $178,900 is also included to bring 96 employees up to the minimum of their pay grades, based on a pay and classification study conducted by Springsted, Inc. earlier this fiscal year. An allocation of $477,000 is also included across all funds to provide funding for the projected increase in employee health insurance premiums for the fiscal year. WATER AND SEWER FUND The proposed budget for the Water and Sewer Fund for the 2008-2009 fiscal year is $14,653,012, a slight decrease of $168,668 (1%) from the current fiscal year. Even though the budget has decreased from the 2007-2008 fiscal year, it is the recommendation of staff that the City increase water and Special City Council Meeting- Budget Work Session May 13, 2008 - 8:30 a.m. Page 38 sewer rates by 4.5% to begin to recover the significant anticipated cost of future capital projects. • Within the next three to five fiscal years, the City will be constructing parallel sewer outfall lines in the Bearskin Creek and Stewarts Creek basins; constructing an expansion/replacement of our existing wastewater treatment plant; and constructing a reclaimed water system. ELECTRIC FUND The proposed budget for the Electric Fund for the 2008-2009 fiscal year is $45,466,900, an increase of $2,371,900 (5.5%) from the current fiscal year. Even though the City anticipates a wholesale power rate increase for the new year, the proposed budget does not anticipate an electric rate increase for our customers, and provides for the continued investment in our system infrastructure to ensure that we maintain a strong electric system. Capital projects in the FY 2008-2009 budget include substation construction and improvements of $250,000; replacement of a line truck for $175,000; new construction to extend lines to serve new customers and to upgrade existing facilities of $900,000; M.L. King Jr. Boulevard relocations and line extensions of $200,000; and Monroe Corporate Center expansion of $250,000. NATURAL GAS FUND The fiscal year 2008-2009 proposed budget for the Natural Gas Fund is $23,336,743, an increase of 27% ($4,962,793) from FY 2007-08. The primary reason for the increase is an increase in the cost of natural gas purchases for resale of $4.5 million dollars. Proposed projects for the upcoming fiscal year include extension of lines into the Monroe Corporate Center of $400,000; relocation of natural gas lines along Goldmine Road to accommodate the expansion of the Charlotte-Monroe Executive Airport of $350,000; and extension of lines into new subdivisions of $175,000. A significant capital project that was budgeted in a previous fiscal year is the construction of a 40+ mile natural gas transmission line to connect the City's natural gas system to the Transcontinental pipeline. Right-of--way acquisition is progressing on this project, and we anticipate beginning construction of this project in late 2008 or early 2009. STORMWATER FUND Based on the recommendation from the Citizens' Advisory Committee formed to review this issue, the City Council agreed to establish a Stormwater Fund to account for the expenses associated with operating the City's stormwater utility operations, and to recommend initial funding of $4 per residential unit, beginning January 1, 2009. An additional four positions will be hired to support the utility, including a crew leader, an equipment operator I, an engineering technician II, and a stormwater maintenance worker II. The total proposed budget for the stormwater Fund for Fiscal Year 2008-2009 is $1,071,500. AIItPORT FUND The fiscal year 2008-2009 budget for the Airport Fund is $3,214,493, an increase of $1,077,974 or 50.5% from the current fiscal year. The reasons for the significant increase are the principal and interest payments on the 2007 revenue bond issue of $594,600; an increase in capital equipment purchases of $142,000; and an increase in aviation fuel purchased for resale of $144,953. Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 39 City Council's decision to assume responsibility for airport operations in 2006 has met with much success, and we anticipate even greater opportunities at the airport in the coming year. We continue to pursue plans to strengthen the airport runway and lengthen it from 5,500 to 7,000 feet, as well as make other improvements to our facilities. We have established an excellent rapport with the North Carolina Division of Aviation, and are appreciative of the support and guidance they have provided to us. CONCLUSION The City's proposed fiscal year 2008-2009 budget continues a tradition of fiscally conservative operating plans, and provides funding for high quality municipal services to our citizens and businesses. It provides the funding necessary to maintain the programs and activities of our various City departments, and allows for the investment in capital and human resources, without which we could not perform our jobs efficiently or effectively. t ' The City's department heads are certainly worthy of recognition for their efforts in submitting prudent and realistic budget requests for the upcoming fiscal year. The department heads were extremely supportive when it came time to find areas to reduce in their respective budgets. Their concern was that our citizens receive the best possible service from the City and its employees. Special thanks goes to Jim Fatland, Mary Lou Clark, and Amy Austin, who spent many hours entering, reviewing, revising, and assembling the budget numbers prior to my presentation to you this morning. Thanks also to Karen Price, Bridgette Robinson, and Sherry Hicks, for their assistance in making the necessary plans and preparations for our meeting at the Sutton Park Community Center today. I cannot conclude my budget message without recognizing a valuable City employee who will be leaving our organization at the end of May. Mark Donham and I have been friends for over a decade, and I have been very honored to have Mark serve as an Assistant City Manager since my return to Monroe in 2005. Mark is a man of loyalty and honor, and his words of advice to me over these last three years have been most valuable. His team spirit and strong work ethic will be missed, and I know that City Council joins me in wishing Mark all the best as he assumes the duties of City Manager for the City of Oxford, North Carolina. Oxford's gain is certainly Monroe's loss. Our City has achieved many noteworthy accomplishments in the last twelve months, and I am confident that the upcoming fiscal year will be another year of progress and improvement for our community. We will be reviewing the proposed budget information in more detail as a part of our May 20 City Council meeting, and we will also review the budget during our June 3 City Council strategic planning meeting. The public hearing for the proposed FY 2008-2009 budget will be held on June 3 at 6:30 p.m. as a part of our regular City Council meeting. I am grateful to each of you for your leadership and support, and I welcome your comments and suggestions as you review the attached information in the days ahead. /s/ F. Craig Meadows, City Manager Item No. 2. General Fund Departments. A. Community Development. Assistant City Manager Wayne Herron advised that staff was in the process of closing out the 2006 Community Development Block Grant and starting up the 2009 Community Development Block Grant. He advised that Scattered Site Grants are allocated to counties and Union County has chosen not to participate and the grants are deferred to the Special City Council Meeting- Budget Work Session May 13, 2008 - 8:30 a.m. Page 40 City. Mr. Herron advised that the grants come around every three years and the next one is scheduled for 2009. B. Economic Development. Economic Development and Aviation Director Chris Plate reviewed the goals achieved in 2008 which included recording capital investment exceeding $303 million; holding two industry seminars; producing the third Existing Industry Handbook; completing the construction of Goldmine Road Relocation (Phase 1) for Turbomeca; completing the construction of AeroPointe Parkway for ATI Allvac; developing "podcasts" for the website; fully integrating "Executive Pulse" (the Existing Industry Program) into the Retention and Expansion program; hiring an Economic Development Specialist; holding the 9th Annual Industry Appreciation Week and "Hook and Slice" golf tournament; and working closely with the new divisions assigned to Economic Development: Public Information, Tourism, and Airport. Objectives for 2009 include continuing with the Industry Seminars; continuing with Podcast development; developing the fourth Existing Industry Handbook; developing new versions of marketing materials; including cluster pieces; major renovating of the website; and holding the 10th Annual Industry Appreciation Week and "Hook and Slice" golf. , C. Engineering. Engineering Director Jim Loyd reviewed the goals and objectives for the Engineering Division, Streets Division, and Stormwater Division for FY 2008-09. 1) Engineering Division. Goals for the Engineering Division included continued implementation of Monroe's NPDES Phase II Stormwater Permit response; developing and obtaining approval of the Stormwater Management Ordinance to address post construction and illicit discharge requirements of the Phase II permit; receiving approval from NCDENR for the continued delegation of Monroe's Erosion and Sedimentation Control Program; providing project management services for the Goldmine Road Phase I Re-alignment Project and AeroPointe Industrial Park; and providing project management services and coordinating with the Airport consultant for the proposed Capital Improvement Program at the Charlotte-Monroe Executive Airport to extend the runway by 1,500 feet and also constructing of a 10-Unit T- Hangar. Objectives for the Engineering Division for 2009 include continuing the enforcing and refining of the Erosion Control Program as required; continuing to develop a stormwater program in which activities and goals comply with the Phase II requirements while meeting customer needs with regards to flooding and erosion; and continuing to provide project management services and coordination with the Airport consultant for the proposed Capital Improvement Program at the Charlotte-Monroe Executive Airport. 2) Streets Division. Goals achieved for the Streets Division included maintaining the municipal street system; replacing and upgrading cross drains as required to accommodate stormwater runoff; repairing and replacing sidewalk within the downtown area and replacing asphalt sidewalk on Secrest Short Cut Road; rebuilding curb line on Talleyrand Avenue between Charles (~ _ Street and Maurice Street as part of the Reclamation Program; and reclaiming, rebuilding, and resurfacing 3.5 miles (18,480 feet) of street as part of the Reclamation Program. Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 41 Objectives for 2009 include continuing maintenance of municipal streets; continuing to improve (~"~1 roadside ditches and upgrade cross drains as part of the Reclamation Program; continuing to fine-tune operations in sign maintenance, concrete construction, storm drain improvements, street sweeping, and full-depth patching; and continuing to develop and refine the Reclamation Program to reclaim or rebuild at least a minimum of 16,000 linear feet of roadway from May to August each year. 3). Stormwater Division. Goals for the Stormwater Division included working with stormwater consultant, CDM, to complete the first step of the Stormwater feasibility study which defined the current level of service and any challenges to a Stormwater utility implementation and working to convene a stakeholders group to evaluate existing and future service needs as ~ well as funding recommendations. Objectives for 2009 include proceeding with the implementation of a stormwater utility in January 2009 upon approval by City Council; creating afour-person construction crew for implementation of stormwater improvements; and replacing 1,000 feet +/- of deteriorated 36- inch and 48-inch corrugated metal pipe in Belk- Tonawanda Park. D. Fire. Chief Ron Fowler reviewed the goals achieved in 2008 which included maintaining public confidence and a positive image for the Fire Department and the City of Monroe by providing an effective, efficient, professional and compassionate fire protection service that met the needs of the citizens; improving public appearance; increasing firefighter pride and enhancing operational readiness by completing renovations to Fire Station 5; improving firefighter safety by apply>ng for and receiving a $210,000 Federal Fire Act Grant to purchase and replace all self-contained breathing apparatus for the department; increasing ability to serve the citizens through accessing electronic data during field and emergency operations by placing five laptop computers, two funded by a grant, in two fire apparatus and three staff vehicles; increasing ability to communicate and to share data and resources regionally during a disaster by partnering with the Charlotte Urban Area Strategic Initiative (UASI) to implement a grant funded, web-based, disaster management program; and obtaining local access to the statewide 800 MHz radio system (VIPER) by partnering with the state in receiving a $150,000 state homeland security grant, which was allocated back to the state to fund system hardware at the Highway Patrol Headquarters site in Monroe. Objectives for 2009 include continuing to maintain public confidence by providing an effective, efficient, professional and compassionate fire protection service that meets the needs of the citizens; designing and beginning construction, if funded, of a permanent facility for Fire Station 4, which would replace the temporary facility and serve the Airport and western areas of the City; improving emergency service levels by obtaining interoperable communications with other city, county and regional emergency service agencies through continued implementation of an 800 MHz radio system; improving the level of service provided by the fire department by pursuing the multi-year accreditation process; improving the emergency management functions and public education efforts, particularly if requested positions are approved in the budget; continuing to work with Union County to complete the computer aided dispatch (CAD) system implementation and implement amulti-alarm plan; placing additional laptop computers in fire Special City Council Meeting- Budget Work Session May 13, 2008 - 8:30 a.m. Page 42 apparatus and provide mobile data capabilities for field operations; and continuing working with civic clubs, Union County, and others to establish a Firefighter Memorial. E. .Human Resources. Human Resources Director Debra Reed reviewed the goals and objectives for the Human Resources Division and the Risk Management Division. 1) Human Resources. Goals for the Human Resources Department achieved in 2008 included assisting in evaluating health insurance costs for employees through shopping the market, and/or recommending plan design changes, such as increased co-pays, increased contributions by employees, etc.; providing a recommendation regarding consultant and vendor services for the City's medical, dental, and volunteer benefits programs and coordinating presentation of the results to the Insurance Committee and City Council; continuing to work with City departments to facilitate developing a diverse workforce and continuing to participate in the diversity advisory group; continuing to ensure that City employees are familiar with and abide by the Human Resources Policies and Procedures; evaluating and recommending actions to be taken for broadbanding related to the Employee Merit Program; implementing the Health Risk Assessments (Wellness Program) with 92% participation; training the entire workforce on diversity; and recommending and obtaining a survey for the City's compensation and benefits plans. Objectives include continuing to develop the succession plan using the pilot program and then expanding it for all City departments; assisting in evaluating health insurance costs for employees through shopping the market, and/or recommending plan design changes, such as increased co-pays, increased contributions by employees, etc.; providing a recommendation regarding consultant and vendor services for the City's medical, dental, and volunteer benefits programs and coordinating presentation of the results to the Insurance Committee and City Council; continuing to work with City Departments to facilitate developing a diverse workforce and continuing to participate in the diversity advisory group; continuing to ensure that City employees are familiar with and abide by the Human Resources Policies and Procedures; and continuing to evaluate the newly implemented Health Risk Assessment Program (Wellness). 2) Risk Mana;?ement. Goals for the Risk Management Department included holding quarterly Accident Review Committee meetings to review vehicle accidents and submit summary reports to the Department Heads and City Manager; selecting and training a representative from each operational department to be "certified" trainers for their department; researching Total Cost Risk Analysis as the first step to investigate the possibility of setting up a 501(c) claims corporation; using web-based products and other methods to increase safety training and awareness for all departments; and developing a method for reporting OSHA updates and activities in the City to supervisors and Department Directors. Objectives include continuing to use web-based products like Safety Catch from the N.C. League of Municipalities to increase safety training; awareness and compliance obligations in all departments; continuing to develop methods for reporting OSHA updates and activities in the City to supervisors and Department Directors; completing the update of the Health & Safety ~? Manual; holding quarterly meetings to involve all departments except the Police Department and Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 43 possibility the Fire Department to review vehicle accidents; and continuing to coordinate the new Health Risk Assessment Program (Wellness). F. Information Technology. IT Director Bruce Bounds advised Council of 2008 achieved goals which included conversion of the retirement reporting system to Orbit; conducting a telephone system audit; installing E-Team; GIS Training program; Phone Tree Rollout; implementing the Storage Area Network; and ServiceDesk rollout. IT Objectives for 2009 include Web page redesign; HTE to OSSI conversion; networking reconfiguration; remote Internet connectivity for Police, Fire, and Building Standards; server upgrades and replacements; Blackberry server and software rollout; new SCADA System; Energy Services GPS of infrastructure; implementing new orthos; and implementing digital in- car camera system for police. G. Legislative. City Manager Meadows advised that the biggest change was the reduction in appropriation for Outside Agencies. He advised that Downtown Monroe had been funded out of this budget in the past; however, it was now going to be a separate City department. City Manager Meadows advised that salaries and benefits for elected officials was being reviewed and would be brought back for discussion at a later date. H. Finance and Administration. Finance Director Jim Fatland reviewed the goals and objectives for the Finance Division, Utility Billing Division, Administrative Services Division, and Collections Division. 1) Finance Drv><sion. Goals for the Finance Division included completing Actuarial Study for GASB 45 Post Employment Retirement Benefits for Financial Reporting in FY09; receiving the "Certificate of Achievement for Excellence in Financial Reporting" from the Government Finance Officers Association for the 15th consecutive year; scanning financial documents in Laserfiche; issuance of $30.9 Million in Combined Enterprise System Revenue Bonds (Water, Gas, Electric and Airport); investment earnings exceeding budget to improve fund balances; establishing a City Council Finance Committee; improving financial reporting to Finance Committee and City Council; updating department's webpage, continuing to streamline work processes to make division more efficient; approving the selection of Potter & Company to serve as independent auditor for FY09; revising procedures regarding travel authorizations and allowing procurement cards to be used to pay for class registrations; using electronic forms and approvals to replace current methods in order to reduce administrative time and costs involved in requesting and approving travel; notifying and providing instructions to departments on accessing and using Laserfiche to research accounts payable issues or vendor activity; and the hiring of a new Director of Finance and Administration and Accounting Manager. Objectives for 2009 include preparing five-year forecasts for all funds (General, Airport, Aquatic Center, Gas, Electric, Water & Sewer); developing written investment policies; developing revenue, accounting, capital improvement, operating budget, and debt management policies; preparing budget documents to submit for the Government Finance Officer Association's "Distinguished Budget" Program; issuing additional revenue bond debt. for enterprise funds; establishing new enterprise fund for storm water; updating Cost Allocation Plan; working with Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 44 Department Directors on revenue enhancement and cost reductions to improve the financial condition of the City; and cross training of personnel. 2) Utility Billing Division. Goals for the Utility Billing Division included auditing the remaining AMR gas meters and comparing visual readings to ERT readings, and verification of meter number to address; modifying billing process by billing on "fixed" bill dates of the 7tH, 14tH, 21St and 28tH of each month; modifying meter reading schedule to read all meters in a cycle in one day enabling us to process bills within one week of read date; setting up new rates and modified billing processes to accommodate base allocated billing of water during Phase III water restrictions; and implementing additional reduced electric sales tax in accordance with North Carolina law. Objectives for 2009 include enhancing the billing process by giving customers the choice of receiving an electronic or paper bill; re-evaluating consumption variances; enhancing customer bills to include detailed information relating to the billing of garbage and area lights; modifying classes of service and rates to accommodate the billing of stormwater and modifying classes of service and rates to accommodate the billing of reclaimed water; and implementing the new proposed stormwater fee on the billing system. Administrative Services Division. Goals for the Administrative Services Division for 2008 included continuing to work with Centralina Clean Fuels Coalition; renovating warehouse inventory across divisions depleting obsolete items, continuing HTE conversion of fixed assets; implementing full electronic purchasing, and continuing electronic disposal of surplus property. Objectives for 2009 include continuing to work with Centralina Clean Fuels Coalition; continuing inventory balancing; further developing procedures in fixed assets to better suit the new conversion; continuing electronic disposal of surplus property; and striving for winning the Sustained Professional Purchasing Award. 4) Collections Division. Goals for the Collections Division included designating specific customer service representatives to answer customer calls during high call months (January through March); exploring option of using Telecheck to reduce the number of returned checks; meeting with Cheryl Kane from Barton and Kane and received and implemented results from a Customer Service Audit and tips on improving customer service; assisting customers with complying with water restrictions by offering tools on how to read their meters; conserve usage and offering toilet tank and shower restrictors; assisting with implementation of fixed due dates; penalty dates and cut off dates; implementing document imaging of business license information in an electronic format available to all customer service representatives and other City personnel; modifications to the Customer Service Policy to provide more flexibility in working with customers to meet their needs; working with City media contact on water heater rebate notification to customers; receiving commendation from Customer Service Committee for improved customer service, receiving Public Power Award of Excellence in Customer Service from ElectriCities; and completing internal audit of offsite cash collection deposits (Golf Course, Airport, Aquatic Center, Ellen Fitzgerald Center). Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 45 Objectives for 2009 include exploring options to save daily collection posting reports on disc to reduce storage space of paper reports; auditing area businesses to ensure proper privilege license compliance; obtaining crowd control post and ropes to help direct customers in collections area; considering options of using other vendors that process credit/debt card payments; and searching alternatives in processing online bill payments. I. General Administration. City Manager Meadows reviewed General Administration goals achieved in 2008 which included selling of Combined Enterprise Revenue Bonds worth $43,000,000 to support growth in the Gas, Electric, Water, and Airport Enterprise Funds; improving Bond Ratings with S&P from A to A+ and Moody's A3 to A2, issuing Installment Financing Debt of $1,900,000 for the Police Firing Range and Parks and Recreation; conducting three Neighborhood Walks; continuing to work with State and Federal political leaders to provide funding for the Airport, Armory (received $500,000), and Police radios; completing first half of Goldmine Road for the Runway Extension; beginning design of 1,500 feet extension of Airport runway; continuing progress on the gas pipeline; providing monthly activity update for City Council; holding joint meetings with the County Commission to discuss water resources, economic development, and telecommunications; improving the undesignated Fund Balance for Fiscal Year 2007 to 33.7%; and initiating a TQI Team for Meters. Objectives for 2009 include continuing to update City Council on a regular basis; continuing to aggressively pursue the gas pipeline; conducting three neighborhood walks; continuing to seek Federal and State funding for the water reclamation system, the Airport expansion, and Police radios; continuing to meet with Union County on water resources, economic development, and communications issues; maintaining Undesignated General Fund Fund Balance at a minimum of 25%; selling Combined Enterprise Revenue Bonds for the gas system and the airport; and completing TQI Team for Meters. J. Parks and Recreation. Parks and Recreation Director Mike Courtney reviewed the goals and objectives for the Monroe Aquatics and Fitness Center, Administration, Parks Maintenance Division, and Golf Course. 1) Aquatics and Fitness Center. Goals for the Aquatics and Fitness Center included addition of office space, resurfacing racquetball courts, implementing the Phone Tree service; increasing membership by 7%; and installing video surveillance security. Objectives for 2009 include completing renovations in the locker rooms (new lockers and new floors); purchasing new fitness equipment to replace 10 year old equipment; adding a second express circuit in the fitness room; replacing one-third of the cardio equipment; resurfacing parking lot; draining and resurfacing indoor. pool; and increasing membership by at least 5%. 2) Administration. Goals for the Administration Division included beginning Phase II of Bearskin Creek Greenway; renovating the Old Armory; renovating Winchester Day Care Building; and making improvements to recreation facilities. Objectives for 2009 include completing Phase I renovation of Old Armory; beginning plans for Phase II renovation of Old Armory; and starting construction of the new Winchester Building. Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 46 3) Parks Maintenance. Goals and objectives for the Parks Maintenance Division included ~"-1 improving ball field lights at Sunset Park and making ADA improvements. Objectives for 2009 include continuing ADA improvements for City facilities and establishing a work order system to better track and complete orders for internal customers. 4) Golf Course. Goals achieved for the Golf Course Division included installing new grass on back nine greens; continuing to clean overgrown areas around the golf course; continuing to remove dead trees and clearing the tree line on the golf course; and installing drainage on three fairways. Objectives for 2009 include the installing new grass on front nine greens; sprigging of the front nine fairways; and continuing clearing the overgrown areas. 5) Recreation. Goals for the Recreation Division included holding the first BBQ Cook-Off Festival; providing renovations to recreation centers that will enhance the safety and appearance of each facility; continuing to offer and expand programming at recreation centers; adding additional part-time staff at J. Ray Shute and Winchester Centers which enables the City to extend operating schedules at these facilities; continuing to expand and improve the annual Christmas Tree lighting; and partnering with Downtown Monroe, Inc. to combine Halloween festivals. Objectives for 2009 include opening a new recreation center at the Old Armory location; continuing to offer and expand programs at recreation centers; applying for PARTF grant for construction of Phase III of Parks Williams Athletic Complex; and adding lights and irrigation to multi-purpose field at Parks Williams. K. Planning and Development/Building Standards. Assistant City Manager Herron reviewed the goals and objectives for the Planning and Development Division and the Code Enforcement Division. 1) Planning and Development. Goals achieved for the Planning and Development Division included continuing to work to update the Land Development Plan; continuing recycling programs with citizens and schools; beginning implementation of 2006 Scattered Site CDBG; and adopting the Downtown Master Plan. Objectives for 2009 include adopting an updated Land Development Plan; expansion of South Monroe Historic District; begin implementing the Downtown Master Plan; and beginning a Neighborhood Plan for the Kerr Street area. Code Enforcement/Building Inspections. Goals for the Code Enforcement/Building Inspections Division included providing excellent service to both internal and external customers and providing training for inspectors. Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 47 Objectives for 2009 include scanning plans and creating files of all commercial establishments to be utilized by several departments, including Police and Fire in emergency situations; continuing to provide excellent service to both internal and external customers; continuing to update the Building Standards Department's website; and continuing to provide training for the inspectors. L. Police. Police Chief Debra Duncan reviewed the 2008 goals which included completing the accreditation process and becoming a fully accredited Police Department; creating a position for an Accreditation Manager for the department; creating a civilian position for the evidence custodian and freeing up a sworn position for the department; creating an Information Technology position within the department to help with technology issues; implementing an online reporting system so that the citizens can make a report by going to the website; continuing to address the problems and issues with the growing Hispanic community; creating the Violent Crimes Task Force that targets repeat violent offenders; and creating a Street Drug Interdiction (SDI) Team that targets high crime areas within the City. Objectives for 2009 include continuing the Violent Crimes Task Force that targets the most violent criminal offenders; implementing the Domestic Violence Task Force; expanding the Community Intervention Team to address community concerns and problem areas within the City; and continuing to fulfill all the accreditation requirements for the department. Item No. 3. Water and Sewer Fund. Water Resources Director Russ Colbath reviewed the goals and objectives for the Administration and Engineering Division, Water/Sewer Maintenance Division, Water/Sewer Construction Division, Water Treatment Plant, and Wastewater Treatment Plant. A. Administration and En>ineering Division. Goals for the Administration and Engineering Division for 2008 included completing the design of the 2008 Water Main Replacement Projects work which included Harris Street, Wilson Street, Lane Street, Sikes, East Park, West Park Drive Area, Pedro Street, Wingate Phase II Water Main, Skyway Shopping Center, Magnolia and Bickett Street; completing design for the replacement of the Buck Hill Pump Station; completing design review of large subdivision and project plans including Glendalough Phase 2, 3, and 4, Rocky River Elementary School Water and Sewer Main Extension, AeroPointe Industrial Park, Monroe Corporate Center Phase III, Monroe Airport Hanger, The Park at Monroe, Wren Way Subdivision, Carmel Village Expansion Phase II, Woodlands Creek, Willow Oaks Sewer Main Relocation and others; updating and publishing the water distribution and sewer collection system maps per standard operating procedures and continuing to enhance the mapping system and quality of maps for staff and other City personnel use; maintaining the Self Permitting Program with NCDENR to self-permit water and sewer main extensions; providing high quality service to commercial and residential customers requiring service with the City by providing prompt review of residential and commercial building permits; providing prompt plat and plan review of commercial and residential subdivisions involving donated water and sewer main extensions; and completing the update of the Water Resources Standard Specifications and Details Manual. f ~ Objectives for 2009 include completing in-house design of Kimberly Court Pump Stations; completing design and improving upon the program of the 2009 Water Mains Replacement Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 48 Project involving various City Streets; managing construction of the Raw Water Main Replacement Projects Bid Administration; reviewing and approving subdivision plans for water and sewer main extensions; managing bid and construction of Water Resources Western Zone Transmission Water Main Extensions including easement acquisitions; managing design of Stewarts Creek Parallel Sewer Main and Pump Station Capital Project including easement acquisitions; managing consultant design of a reclaimed water system; site and route selection procurement of property and necessary easements; managing design of Bearskin Creek Parallel Sewer Main Capital Project; managing a large water and sewer utility relocation for the MLK, Jr. Boulevard Expansion; completing enhancement of the Water System Maps with utilization of GPS hardware to locate to sub meter accuracy all water valves; maintaining high quality of service provided to commercial and residential customers requiring service with the City; completing the archiving of all as-builts water and sewer mains; integrating and scanning drawings into the ArcGIS mapping system for the City; and continuing to update and improve specifications and~submit revisions to City Council for approval B. Water/Sewer Maintenance. Goals achieved for 2008 in the Water/Sewer Maintenance Division included continuing the inflow-infiltration reduction program; replacing 11,500 feet of sewer main using the pipe bursting technique and slip lining; cleaning and inspecting the yearly 10% goal of 140,000 feet of sewer main; continuing the manhole rehabilitation project (rehabilitation 50+ manholes); continuing to smoke test basins as part of the City's sewer rehab program; continuing to improve sewer right-of--ways; replacing 2000+ water meter ERT's; continuing a comprehensive program of tying water services over to newer water mains in order to abandon older water mains; continuing to enhance the lake inspections to ensure State Compliance Regulations; changing out 40 + 2-inch and larger water meters from compound to single het technology for more accuracy and reliability; completing and moving into a new maintenance office building; testing twenty large meters for accurate meter reading for proper billing; constructing office building at the WWTP; comprehensively approaching and dealing with the water shortage program; constructing an above ground line from Lake Lee to the rock quarry for the purpose of water transfer; and completing staff involvement in the NCLM on-line safety training . Objectives for 2009 include starting a valve maintenance program including the GPS of the water valves; continuing the inflow-infiltration reduction program and replacing 15,000 feet of sewer main using the pipe bursting technique and slip lining; cleaning and inspecting yearly 10% goal of 140,000 feet of sewer main; continuing to smoke test basins as part of the City's sewer rehabilitation program; continuing a comprehensive program of tying water services over to newer water mains in order to abandon older water mains; continuing to change out large water meters to the single jet technology; continuing to improve sewer right-of--ways; continuing the manhole rehabilitation project; continuing to enhance the lake inspections to ensure State Compliance Regulations; and continuing to replace water meter ERT's that fail to ensure accurate billing reads. C. Water/Sewer Construction. Water/Sewer Construction goals for 2008 included installing a new 8-inch force main for the 200 South Pump Station; rebuilding the 200 South Pump Station; rebuilding the Buck Hill Pump Station; continuing a comprehensive water main replacement program including in-house and contractor installation of water mains; installing new mains on Special City Council Meeting-Budget Work Session May 13, 2008 - 8:30 a.m. Page 49 Hargett Road, Hart and Valley Streets, Wingate Phase I, Poplin Place, Lane Street, Harris Lane, and Wilson Street; rebuilding flash boards on Lake Lee Dam; installing integrated metered connection between City and County water mains in Wingate; installing transfer pumping system from the rock quarry to Lake Lee, and continuing to smoke test basins as part of the City's sewer rehabilitation program. Objectives for 2009 include continuing the comprehensive water main replacement program utilizing two construction division crews to focus on maintenance and paving schedule driven priorities; constructing a covered pipe rack for PVC pipe; replacing the Kimberly Court Sewer Pump Station; installing approximately 1,300 feet of the new Raw Water Main Phase II from Lake Lee to Lake Twitty and inspecting the contractor installed portion; installing a portion of the Western Zone Water Main along MLK, Jr. Boulevard from Union Academy toward Highway-. 84; monitoring the construction of the Western Zone Water Main project; and monitoring the construction of the. new Elevated Water Tank project. D. Water Treatment Plant. Goals achieved for the Water Treatment Plant included completing IDSE (Initial Distribution System evaluation) plan for new water regulations; starting required 12 month unregulated contaminant monitoring as per Federal UCMR (Unregulated Contaminant Monitoring Rule); replacing carbon feed system; replacing Lake Lee splash boards; rebuilding filter #2; submitting new bacteriological sampling plan to State that addresses population growth and system wide distribution of collection points; 100% treated water meeting/exceeding compliance standards; publishing and distributing 2007 Water Quality Report; and completing initial sampling then drafting and submitting schedule and plan for intent to grandfather data for the LT2 (Long Term 2 Enhance Surface Water Treatment Rule) to the EPA. Objectives for 2009 include publishing and distributing the 2008 Water Quality Report; rebuilding filter #1; access and security improvements to City's lakes; start sampling for the IDSE plan; 24-inch raw water line replacement and relocation of services that are in raw water line trench; and Sodium Hypochlorite Conversion Study. E. Wastewater Treatment Plant. Goals for the Wastewater Treatment Plant included publishing WWTP annual performance and regulatory report; completing public education requirement of collection system permit; completing bio-solids annual report and submitting to DWQ and EPA; completing pretreatment annual report and submitting to DWQ; purchasing and installing bio-solids belt press; updating Process Safety Management Plan and submitting to EPA; and completing Reclaimed Water Bulk Fill Station at WWTP. Objectives for 2009 include publishing WWTP annual performance and regulatory report; completing public education requirement of collection system permit; completing bio-solids annual report and submitting to DWQ and EPA; completing pretreatment annual report and submitting to DWQ, updating Process Safety Management Plan and submitting to EPA; installing reclaimed water reuse system to deliver water to golf course; completing NPDES permit renewal application; completing new pretreatment headworks analysis; completing improvements to filter building (new MCC); replacing chlorine gas disinfection system with Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 50 possible ultra-violet disinfection; and starting engineering and environmental permitting for new plant expansion. Item No. 4. Electric Fund. Energy Services Director Don Mitchell advised that goals achieved in 2008 included no lost time. accidents; achieving load factor of 122%; achieving RP3 status for 2008; Benton Heights substation converting 4 kV lines to 13 kV and retired station; completing re-conductoring of Highway 74 from Dickerson Boulevard to Roland Drive; completing re- conductoring of Lancaster Avenue from Charlotte Avenue to Brooks Farm Drive; and replacing 35 kV transformers #1 and #2 at Hal Coan substation. Objectives for 2009 include no lost time accidents; achieving a load factor of 122%; achieving a continuity of service of 99.996%; completing GPS data acquisition for electric system; completing Airport 100/35 KV substation; completing 100 kV transmission line section from Goldmine substation to Airport substation; and replacing 35 kV transformer #3 at Camp Sutton substation. Item No. 5. Natural Gas Fund. Energy Services Director Mitchell advised that goals achieved in 2008 included no lost time accidents; no low pressure calls due to system problems; keeping Operator Qualification Plan up to date, completing first year of Public Awareness survey; continuing with Northern loop (Rocky River to Highway 601); and obtaining easements for the pipeline project in order to begin construction. Objectives for 2009 include no lost time accidents; initiating development of SynerGEE system pressure design model and having no system low pressure problems; initiating mapping improvement process with GPS or other methodologies; updating Operating and Maintenance Plan and execute training program consistent with the updates; keeping Operator Qualification and Public Awareness Plans and activities up to date; improving communication with existing and potential customers; continuing with Northern loop (Rocky River to Highway 601); and obtaining easements for pipeline project and initiate construction process. Item No. 6. Airport Fund. Economic Development and Aviation Director Plate advised that goals achieved in 2008 included obtaining a letter from NC Division of Aviation approving the expansion projects; beginning design of the 1,500 foot runway extension; completing Goldmine Road Relocation Phase 1; beginning design of Goldmine Road Relocation Phase 2; completing construction of T-Hangars; completing name change from Monroe Regional Airport to Charlotte-Monroe Executive Airport; creating Fuel Storage Agreement and Recruitment Incentive Policy to entice corporate fleets; holding first Veterans Day Airshow; completing new carpet installation in terminal, and planning and conducting a customer appreciation fly-in and open house. Objectives for 2009 include completing design of a new maintenance hangar; completing design of two 12,000-15,000 square foot bulk box hangars; completing new website and other marketing initiatives; completing construction of Goldmine Road Relocation Phase 2; ~ completing land acquisition(s) necessary for future developments; completing grading necessary ~ for temporary grass parking for aircraft; completing design of Terminal Building expansion; recruiting new corporate hangar(s); and holding second annual Veterans Day Airshow. Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 51 Item No. 7. Capital Improvements Budget/Fees Schedule. Copies of the Capital Improvements Budget and Fees Schedule were provided to Council for review. Discussion of the Capital Improvements Budget will be held during the Regular City Council Meeting of May 20. Item No. 8. Outside Astency Funding. Council was provided with a copy of the 2006-2009 Outside Agency Funding History: ORGA'NIZATION!NAME :~ - y 2006 Actual Fundin 2007 Actual Fundin 2008 Budgeted ~~ Fundin 2009 Requested 2009 Recommended Benton Hei hts Partnershi .$5,000 $5,000 $- $- $- Communi Health Services of Union Coun ,Inc. 2,500 2,500 2,500 5,000 2,500 Communit Shelter - Utili Subsid 16,723 16,500 18,500 - 15,600 Council on Aging of Union Coun 5,000 5,000 5,000 5,000 5,000 Downtown Monroe, Inc. 57,813 61,045 69,793 - East Villa e Subdivision 3,575 20,865 - - - eBusiness Center - - - - HealthQuest 7,014 1,586 2,500 - 2,500 Literac Council of Union Coun 2,000 2,000 2,000 2,500 2,000 Monroe Athletic Association 5,000 5,000 5,000 - 5,000 Monroe High School Band Boosters Club 36,000 - - - - Monroe Middle School 6,000 - 5,000 - - Monroe-Union Coun CDC -Down ayment 50,000 50,000 - - Monroe-Union Coun CDC -Administration 38,500 42,600 42,600 42,600 42,600 Police Athletic Lea ue - 5,000 5,000 - 5,000 Pro'ect Blue Light 150 - - - - Rota Club -Memorial - 2,500 - - - Turnin Point, Inc. - O erating 6,000 6,000 5,000 - - Union Coun Cha ter of the American Red Cross 5,000 5,000 5,000 12,000 5,000 Union Coun Communi Action, Inc. 25,000 25,000 25,000 25,000 25,000 Union County Communi Arts Council 32,500 32,500 32,500 35,000 35,000 Union Coun Crisis Assistance Minist 15,000 15,000 15,000 25,000 15,000 Union County Historic Preservation Commission 3,875 6,000 6,000 12,000 12,000 Union Coun JobRead Partnershi 10 r commit 5,000 5,000 5,000 5,000 5,000 Union Smart Start (formerly UC Partnership for Children) 37,000 43,000 48,000 52,000 Union Coun Public Libr -Children's Services - - - 4,019 - United Famil Services - 5,000 - 7,500 - Utili Fees Waived 47,835 - - - Walter Bickett Stadium - 105,000 - - Home Town Heroes - - - - 500 Communi Enrichment ($25K fundin - - - - - TOTAL $412,485 $467,096 $299,393 $232,619 $177,700 Fundin General Fund Contribution $412,485 $467,096 $299,393 $232,619 $177,700 Communi Develo ment Fund Contribution $- $- $- $- $- Mayor Pro Tem Bazemore stated that Smart Start was a very important educational program and questioned why they were not receiving any outside agency funding. Outside Agency Chairman Nash advised that Smart Start did not provide responses to questions that all Outside Agency applicants must complete. Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 52 Following a period of discussion, Mayor Pro Tem Bazemore advised that if City Manager Meadows would provide him with a written copy of the missing information, he would have the questions answered and responses would be provided in a written format. Item No. 9. Other Bud;?etary Information. City Manager Meadows provided Council with graphs illustrating various expenditures. After further discussion regarding the projects and funds included in the budget, City Manager Meadows advised that the Council would have further opportunity at the June 3, 2008 Strategic Planning Meeting for questions and comments on the budget. It was the consensus of the Council to hold the budget public hearing at the June 20, 2008 Regular City Council Meeting. There being no further business, Council Member Keziah moved to adjourn. Council Member Smith seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None The Special Budget Work Session of May 13, 2008 adjourned at 12:30 p.m. Attest: ~ri~c~e,:~{,e~ ~?, c~'Ro6i so~S. Bri gette H. Robinson, Crty Clerk B by re, Mayor /~~ _ '~ q~Q 10"x.,:{~,:~~ ~`~r:a .yt CA~ Special City Council Meeting -Budget Work Session May 13, 2008 - 8:30 a.m. Page 53