HomeMy Public PortalAbout05-22-17 Work Session
Hillsborough Board of Commissioners Work Session Minutes
7 p.m. May 22, 2017
Town Barn, 101 E. Orange St.
Present: Mayor Tom Stevens and commissioners Mark Bell, Kathleen Ferguson, Evelyn Lloyd, and Jenn
Weaver
Staff present: Town Manager Eric Peterson, Budget Director Emily Bradford, Economic Development
Planner Shannan Campbell, Human Resources Director/Town Clerk Katherine Cathey, Acting Finance
Director Phillip Cordeiro, Assistant to the Town Manager Jen Della Valle, Police Chief Duane Hampton,
Assistant Town Manager/Planning Director Margaret Hauth, Town Attorney Bob Hornik, Town
Engineer/Utilities Director Kenny Keel, and Public Information Specialist Cheryl Sadgrove
Absent (excused): Commissioner Brian Lowen
Open the Workshop
7:01:15 p.m. Mayor Stevens opened the workshop.
1. Agenda Changes & Agenda Approval
Mr. Hornik added potential litigation to the closed session as Item 9C. Ms. Hauth informed the board that
Economic Development Planner Shannan Campbell was delayed by another meeting and advised that the
board discuss Item 6 before Item 5 to give her time to arrive.
7:02:18 p.m. Commissioner Ferguson moved to approve the amended agenda. Commissioner Weaver
seconded. The motion carried upon a unanimous vote of 4-0.
2. Committee Updates and Reports
Commissioner Lloyd reported the meeting of the Orange Rural Fire Department may be moved to another
date in May.
Commissioner Ferguson reported that the budget of the Triangle J Council of Governments had been
approved. She reported that the Tourism Board’s logo and collateral materials subcommittee was meeting
this evening.
Commissioner Weaver reported that the Upper Neuse River Basin Association has been lobbying to get
dates amended. She explained state legislation has been proposed with a deadline that would make it
difficult for municipalities to do what they need to do on time. She reported good conversations are
happening, and she added that showing forward momentum and good faith effort would probably work
out better for all parties than a random deadline.
May 22, 2017
Board of Commissioners Work Session
Approved: June 12, 2017
Page 1 of 6
3. Miscellaneous budget amendments and transfers
7:05:23 p.m. Commissioner Ferguson moved to accept budget amendments and transfers as presented.
Commissioner Bell seconded. The motion carried upon a unanimous vote of 4-0.
4. Request for town board approval of a street or greenway event where the attendance is expected to
exceed 100 people on a public greenway
This was discussed after Item 6.
8:09:14 p.m. Ms. Campbell said this event — a run from River Park to Gold Park and back as part of Hog
Day — was held last year but was limited to 99 people. It would take place early in the morning. The
organizers did not have capacity issues last year. Ms. Campbell is requiring that the event be listed on the
Hog Day organizers’ liability insurance.
Mayor Stevens suggested it be supported.
8:11:32 p.m. Commissioner Ferguson moved to approve the event. Commissioner Weaver seconded. The
motion carried upon a unanimous vote of 4-0.
5. Public hearing to collect public comment on the proposed Fiscal Year 2017-18 budget
There were no public comments.
7:06:15 p.m. Commissioner Ferguson moved to close the public hearing on the budget. Commissioner
Lloyd seconded. The motion carried upon a unanimous vote of 4-0.
6. Budget Workshop
a. General Fund
Mr. Peterson said town staff was projecting a 20-percent increase in health insurance. Blue
Cross came back with a 54-percent rise. The town’s broker negotiated 18 percent. Town
employees have given feedback that they like Blue Cross and like the coverage they have, so
staff is trying to keep the same insurance.
Human Resources Director Katherine Cathey said this is the first overall increase in
premiums in several years.
Mr. Peterson said it is always good to have a Plan B or Plan C, so staff will start exploring
other ways to tweak the plans to keep costs down for future years.
Mr. Peterson also said the City of Raleigh just raised police salaries. The starting salary for
that department is now $42,000. It is continuing to be a challenge nationally to recruit
officers.
Also, Mr. Peterson said, town staff is aiming to create lean concepts by the fall to identify and
cut wasteful spending.
In this year when the county has reassessed property values, Mr. Peterson said the calculation
of the town’s revenue neutral rate is 62.16 cents. Boards sometimes round up or down.
Mayor Stevens said he wants to have a discussion with the board about the revenue neutral
rate and the options. He is concerned about how thin the budget is. He asked for questions or
May 22, 2017
Board of Commissioners Work Session
Approved: June 12, 2017
Page 2 of 6
comments from the board. Commissioner Ferguson said she is nervous about some of the
things the town board is deferring. She appreciates the care and caution in avoiding raising
taxes, but she is a little nervous the town board may be cutting too close to the bone.
Commission Lloyd said she prefers to be cautious.
Mayor Stevens said the board needs to talk about possible rate increases. He believes the tax
rate was raised one time in the last 12 years and that was when the town had a major shortfall
due to the state’s restructuring of the sales tax during a recession. He said the town has
become really good at tightening its belt. It concerns him that the town does not have enough
staff to meet the town’s needs and the town board continues to delay facilities that are
desperately needed. He said he recognizes the town board may have other options going
forward, such as a bond fund. He suggested that raising the rate to 63 or 64 cents per $100
would give the town a small cushion. I also do not take that lightly, he said. He
acknowledged that would hurt commercial businesses. He recognized this is an election year,
too. He said he and the rest of the town board need to do the right thing.
Mr. Peterson said there tends to be concerns from the public when the assessments go up and
the tax rate increases. He is hopeful the county’s projections on the town’s income are
conservative. The town will know more in February.
Mr. Peterson did a quick calculation of the rate per penny and informed the board that the .16
cents on the tax rate would equal $15,400.
Mayor Stevens said the rate would go from 68 to 64 cents with the revaluation. If not this
year, then in the next year or two, I think we are going to need to be prepared to make some
revenue adjustments, he said.
Commissioner Ferguson said she is concerned.
Commissioner Weaver said she feels so unsure about what is the right thing to do. She noted
the state raised taxes for small businesses last year or the year before. She hears that it is
expensive for people to live here. We have our tax burden, the county has its tax burden, so I
do not want to add to that unless it is really important, she said.
Commissioner Ferguson said there are citizens who it would hurt.
Mayor Stevens said we are getting a lot of new development that is giving us some revenue
growth. Commissioner Ferguson said there is a gap, and she is concerned about state
mandates that are unfunded.
Commissioner Ferguson asked Ms. Hauth whether her department can work effectively
without the geographic information systems planner position that she requested. Ms. Hauth
answered if development at Waterstone is completed just as development at Collins Ridge is
starting, staffing in the Planning Department is probably OK. If someone buys and redevelops
May 22, 2017
Board of Commissioners Work Session
Approved: June 12, 2017
Page 3 of 6
Daniel Boone Shopping Center soon, then she does not have enough staff to closely monitor
the redevelopment to be sure that the town gets what the board would have approved.
Mayor Stevens asked if there is flexibility in six months to accelerate hiring someone if the
Planning Department needs to. Mr. Peterson answered yes and that staffing discussions take
place throughout the year.
b. Water and Sewer Fund
Mayor Stevens asked if the reservoir expansion would affect tax rates. Mr. Peterson answered
the town will spread out the financing of the reservoir expansion over 20 or 30 years. He
expects water and sewer rates to be raised two and three years from now.
c. Stormwater Fund
There was no discussion.
Ms. Hauth reviewed she had sent an email to the board about changes to event permits that
sets up a tiered fee structure. She said the financial impact is insignificant, but it is a change
in how things are done. She said she, Mr. Cordeiro, and Ms. Campbell agree on these
changes.
Commissioner Weaver asked whether the town will charge groups like churches, the
Exchange Club, and the Masonic Lodge for a special event permit even when those groups do
not need town support for their events. Ms. Hauth answered yes and said right now about 20
nonprofits a year pay the town $20 for the package of off-site signage. Instead of that fee, the
nonprofits would file an application for a special event permit so that town staff can share
expertise on how to run events smoothly. The signage package will be rolled into that fee.
The fee would be $20 for the smallest events.
Ms. Hauth said there is already a town event fee of $50. She could not say whether groups
holding events — like the Exchange Club holding a fish fry fundraiser — had been paying
the $50 event fee and the $20 signage fee each time. Ms. Hauth thinks, overall, organizations
will pay less in fees. Ms. Campbell said $50 is a lot for the Exchange Club but not for Hog
Day.
Ms. Hauth said an issue to consider is the nonprofits that come to the board for sponsorship.
She is thinking about the Martin Luther King Jr. Day organizing group, which closes streets
and asks for sponsorship for police presence during MLK events. That group has not been
paying anything. The board would not be able to waive the fee. The MLK Day group is the
one known entity that does not seem to benefit from the proposed change.
Chief Hampton asked about First Amendment implications. Mayor Stevens suggested the
application form ask whether the organization is requesting a First Amendment exemption.
Mr. Hornik said the town needs to figure out how to define a First Amendment exemption.
Mayor Stevens said the definition could be whether the primary purpose is to make a public
statement. Commissioner Ferguson suggested asking that rather than asking whether the
group wants a First Amendment exemption. Mr. Cordeiro suggested if there was no
commercial or fundraising component, it could qualify as a First Amendment exemption.
When asked about the tiered fee structure, Ms. Hauth explained a church or the Burwell
School Historic Site would pay $20. An event like Last Fridays that involves closing streets
May 22, 2017
Board of Commissioners Work Session
Approved: June 12, 2017
Page 4 of 6
would cost $35. An event that involves closing a street and closing the Riverwalk greenway
would have a fee of $55.
After the event fee discussion, Ms. Della Valle pointed out a change she had made to the
budget objective on public safety on Page 78 of the draft budget. Commissioner Weaver
asked what “increased police presence” means. Ms. Della Valle answered the language has
been there for quite some time. Commissioner Ferguson said it speaks to what people are
asking for when they say they do not feel they have enough police presence in their
neighborhoods. Mayor Stevens suggested adding “accessibility and approachability.”
Commissioner Ferguson said that was a good addition. Commissioner Weaver said it is
important to her that her community is safe but not important to her whether she sees an
officer drive by.
Commissioner Weaver said regarding the Police Department memo, she wondered whether
Chief Hampton expected the cost of storing the body camera footage to increase every year.
Chief Hampton answered affirmatively. He added that everyone now expects officers to wear
body cameras, so avoiding this storage expense by not using the cameras is not an option.
7.Other business
There was none.
8:12:08 p.m. Commissioner Ferguson moved to go into closed session. Commissioner Bell seconded. The
motion carried upon a unanimous vote of 4-0.
8. Closed session
a.Closed session as authorized by N.C. General Statute Section 143-318.11(a)(5) to discuss
and give direction to staff regarding negotiating terms for the possible acquisition of real
property (the former Colonial Inn, 153 W. King St.)
b. Added Item — Closed session as authorized by N.C. General Statute Section 143-
318.11(a)(3) to consult with the town attorney in order to preserve the attorney-client
privilege (House Bill 2)
c.Closed session as authorized by N.C. General Statute Section 143-318.11 (a)(6) regarding
personnel matters
9. Adjourn
8:58:29 p.m. Commissioner Ferguson moved to adjourn. Commissioner Bell seconded. The motion
carried upon a unanimous vote of 4-0.
Respectfully submitted,
Katherine M. Cathey
Town Clerk
May 22, 2017
Board of Commissioners Work Session
Approved: June 12, 2017
Page 5 of 6
BUDGET CHANGES REPORT
TOWN OF HILLSBOROUGH
FY 2016-2017
DATES: 05/22/2017 TO 05/22/2017
REFERENCE NUMBER DATE BUDGET CHANGE BUDGET
ORIGINAL BUDGET AMENDEDCHANGE
USER
10-10-6600-5300-080 TRAINING/CONF./CONV.
05/22/2017 10,500.00 -4,178.00Yr-end departmental supplies/OSHA over 6496 14,721.00JDELLAVAL
05/22/2017 10,500.00 -400.00To purchase replacement printer 6502 14,321.00JDELLAVAL
10-10-6600-5300-332 DEPT.SUPPLIES/OSHA
05/22/2017 28,500.00 4,178.00Yr-end departmental supplies/OSHA over 6497 32,678.00JDELLAVAL
10-10-6600-5300-338 SUPPLIES - DATA PROCESSING
05/22/2017 2,000.00 400.00To purchase replacement printer 6503 3,489.00JDELLAVAL
30-80-8220-5300-320 CHEMICALS
05/22/2017 111,120.00 -2,000.00To fund lab supply overages 6500 95,420.00EBRADFORD
30-80-8220-5300-332 SUPPLIES - LAB
05/22/2017 11,340.00 2,000.00To fund yr-end overages 6501 17,340.00EBRADFORD
35-30-5900-5300-338 SUPPLIES - DATA PROCESSING
05/22/2017 0.00 1,500.00To purchase 2 tablets & accessories 6499 3,500.00EBRADFORD
35-30-5900-5300-570 MISCELLANEOUS
05/22/2017 6,064.00 -1,500.00To purchase 2 tablets & accessories 6498 3,609.00EBRADFORD
0.00
EBRADFORD 3:38:53PM05/17/2017
fl142r03
Page 1 of 1
Safety &
Wellness
Safety &
Wellness
Safety &
Wellness
WWTP
WWTP
Storm-
water
Storm-
water
APPROVED: 4 - 0
On: May 22, 2017
VERIFIED:
___________________
Town Clerk
May 22, 2017
Board of Commissioners Work Session
Approved: June 12, 2017
Page 6 of 6