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HomeMy Public PortalAbout03-21-22 Budget RetreatMinutes BOARD OF COMMISSIONERS Budget Retreat 7 p.m. March 21, 2022 Board Meeting Room of Town Hall Annex, 105 E. Corbin St. Present: Mayor Jenn Weaver and commissioners Mark Bell, Robb English, Kathleen Ferguson, Matt Hughes, and Evelyn Lloyd Staff: Budget Director Emily Bradford, Administrative Services Director Jen Della Valle, Budget and Management Analyst Josh Fernandez, Stormwater and Environmental Services Manager Terry Hackett, Police Chief Duane Hampton, Assistant Town Manager and Community Services Director Margaret Hauth, Town Clerk and Human Resources Technician Sarah Kimrey, Finance Director Tiffany Long, Town Manager Eric Peterson, Utilities Director Marie Strandwitz, and Public Space and Sustainability Manager Stephanie Trueblood 1.Opening of the budget retreat Mayor Jenn Weaver called the meeting to order at 7 p.m. Town Clerk and Human Resources Technician Sarah Kimrey called the roll and confirmed the presence of a quorum. 2.Agenda changes and approval Motion: Commissioner Kathleen Ferguson moved to approve as presented. Commissioner Mark Bell seconded. Vote: 3-0. 3.Community survey results Administrative Services Director Jen Della Valle presented results of the biennial survey. She noted there was good geographic representation throughout the town in responses, with respondents also reflecting the population of the town in race, ethnicity, age and gender. Commissioner Evelyn Lloyd joined the meeting at 7:07 p.m. Overall, the results show residents have a very positive perception of Hillsborough, with 95% of respondents rating Hillsborough as an excellent or good place to live and 88% stating they are satisfied with the quality of services provided by the town. A look at trends over the past years show satisfaction ratings are similar to previous years despite the pandemic. Commissioner Matt Hughes joined the meeting at 7:11 p.m. Della Valle noted a significant change in ratings of at least 5 percentage points up in 8 areas and down in 10 areas, with significant increases in several water and sewer services. The significant changes are denoted by green circles around up or down arrows in the presentation. Satisfaction with town services is much higher than other cities when compared regionally and nationally. The percentages provided in parentheses on the comparisons slide in the presentation show the ratings advantage Hillsborough has. In three survey questions denoted as key, Hillsborough was significantly higher than its counterparts, including more than 23 percentage points of greater satisfaction in the value received for local taxes and fees. March 21, 2022 Board of Commissioners Budget Retreat Approved: ____________________ Page 1 of 3 April 11, 2022 Della Valle said staff will examine responses for key questions across demographics and areas of town. She said she interpreted the question about satisfaction with the appearance of Hillsborough to regard its physical appearance, but interpretation of the question is subjective. She noted survey questions could be clarified or changed; but for responses to be benchmarked against other communities, the questions have to be worded similarly. The survey shows 34% of respondents are willing to pay an increase in taxes to enhance services, with the top services desired by those respondents for enhancement being trails and greenways; new sidewalks; and affordable housing. Alternatively, 45% did not way to pay higher taxes. Overall, across the survey, respondents indicated the top priorities for the town’s focus are maintenance of town streets; quality of water and sewer services; and condition of sidewalks in neighborhoods. 4. Staff financial forecast/overview Budget Director Emily Bradford provided an overview of the financial forecast at this time, highlighting that property tax revenue projections are on target for this fiscal year despite Orange County’s revaluation last year and that sales tax collections are at unprecedented high levels. She cautioned there is concern about inflation and the possibility for a recession. Gas tax revenues have increased by 38% over the last fiscal year. Bradford noted the town is still awaiting final financial audit figures and said the town’s fund balance is a key indicator of financial health. Continuing current operations without any expansion requests shows deficits in each of the next three fiscal years for the General Fund, the budget director said. In the Water and Sewer Fund, the cost of providing the same level of service is increasing due to inflation and drastically higher prices for the chemicals used to treat drinking water and wastewater. Water and sewer rate increases are projected for each of the next three fiscal years. American Rescue Plan Act funds are expected to be used for several needed water and sewer projects, with additional Building Resilient Infrastructure and Communities funds being sought from the Federal Emergency Management Agency. No increase in stormwater fees is projected. 5. Requests The mayor and commissioners discussed budget requests, both those currently planned for funding and those that are not. There were no questions regarding stormwater requests. Regarding the General Fund, there was some discussion on Police Department requests for replacement vehicles, a radio software update, handheld radio replacements and in-vehicle cameras. Discussion largely was spent on a proposed skate park for Cates Creek Park. Public Space and Sustainability Manager Stephanie Trueblood noted that Cates Creek Park was the second highest scoring location when the Hillsborough Parks and Recreation Board initially ranked sites for a potential skate park. Exchange Club Park narrowly emerged as the top location due to its central location in town, but development would be more costly due to the privately owned park’s current restroom, parking and utility and stormwater issues. The Parks and Recreation Board determined it would be best to install a smaller-scale skate park at Cates Creek Park, which is a well-used park in the southern portion of town, with a bus line in use and additional homes expected nearby. The appointed board plans to continue to look at other places around town for skate parks or safe places for adolescents and teens to hang out, Trueblood said. Ferguson expressed interest in a competition-scale skate park. Trueblood noted the Parks and Recreation Board’s intent is for the park to serve the community vs. serving as a tourist destination. March 21, 2022 Board of Commissioners Budget Retreat Approved: ____________________ Page 2 of 3 April 11, 2022 Regarding the Water and Sewer Fund, there was discussion regarding contracting services of a public outreach specialist, including whether it would be better to build capacity over time in the Communications Division. The contracted service is not currently planned for funding. There also was discussion about a utility mechanic I position and whether it should be recommended for funding before Fiscal Year 2025. It was noted that staffing levels for line crews likely have not changed in the last decade, yet several miles of sewer pipes have been added. 6. Discussion topics A. Assistant finance director The board also discussed a request to restore the assistant finance director position before the end of this fiscal year. Town Manager Eric Peterson and Finance Director Tiffany Long both noted the increased workload and complexity expected due to financing utility infrastructure needs and complying with grant and bond requirements. The position also could lead contract management for the town, assist with procurement needs, and help with implementation of an enterprise resource planning system and an overhaul of the procurement policy to improve processes. The board was supportive of restoring the position. B. Affordable housing Assistant Town Manager and Community Services Director Margaret Hauth led a discussion about affordable housing and two related funding requests: • Orange County Affordable Housing Coalition requests financial support from each jurisdiction in the county for new housing development, preservation of existing units, owner-occupied repair programs, rental vouchers, and other housing creation and preservation programs. • Inter-Faith Council requests an interlocal agreement with financial support from each jurisdiction in the county for its sheltering programs. Hauth said the board has continually identified affordable housing as a priority since at least 2016, the town has accomplished a lot in this area, and it commits about $20,000 annually to housing security. She noted she was using the term “housing security” because the assistance the town provides is for more than affordable housing. She noted a desire for clear direction from the board regarding the amount of effort and ongoing funding to put into housing security and a need to develop related requirements for builders. The board discussed additional staffing or a dedication of a percentage of current staff time, a desire for short- and long-term goals, the addition of related requirements in the Unified Development Ordinance, and a dedicated funding stream. There was support for trying to increase the amount spent annually on housing security. It was noted that the Comprehensive Sustainability Plan, which is currently being developed, will address some affordable housing issues. 7. Adjournment The Administrative Services director that as budget issues arise, staff will add items for discussion at a future work session. Otherwise, staff will return to the board in May with refined budget projections. The mayor adjourned the budget retreat at 10:04 p.m. Respectfully submitted, Sarah Kimrey Town Clerk Staff support to the Board of Commissioners March 21, 2022 Board of Commissioners Budget Retreat Approved: ____________________ Page 3 of 3 April 11, 2022