Board of Aldermen Special Called Meeting

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Town of Maggie Valley

Board of Aldermen Special Called Meeting

2017/2018 Budget Presentation

May 16,2017

MINUTES

Members Present: Mayor Saralyn Price, Aldermen: Janet Banks, Clayton Davis, and Mike Eveland

Members Absent: Alderman Phillip Wight

Staff Present: Manager Nathan Clark, Finance Director Shayne Wheeler, Chief Russ Gilliland, Public Works Director Mike Mehaffey, Planner Andrew Bowen, and Town Clerk Vickie Best

Others Present: Cory Vaillancourt with Smoky Mountain News and Allison Richmond with the Mountaineer Newspaper

Mayor Price called the meeting to order at 9:03 a.m. on Tuesday May 16, 2017 in the Town Hall Boardroom. The purpose of the Special Called Meeting is for Manager Clark to present the proposed 2017/2018 Town Budget to Council.

Click on the following link to view the budget presentation created by Manager Clark and Finance Director Wheeler.

As you will see by the numbers from the 2016 valuation, a decade of value has been wiped out by the loss of value in Maggie Valley’s commercial district and a majority of the residential districts. There was a net loss in value of $34,467,460. This is the lowest value since FY 2007/2008. Most commercial properties saw a decrease. Only the Maggie Valley Nursing/Rehilbition Home increaseed in value almost one-half (1/2) million dollars.

Alderman Eveland fears that in another four years, when Haywood County conducts another vauluation, the commercial district will continue to decline and residential districts will continue to increase in value. The Town, as well as many others,is trying to entice a stronger commercial distict; although Maggie Valley does not have a lot of inventory for sale.

Manager Clark explained that he and Planner Bowen are working on a few projects right now that could be a benefit to the tax base and the business community. Once the Pedestrian Safety Road Project is complete, more businesses may be drawn to Maggie Valley. Alderman Banks felt the newly drafted Unified Development Ordinance will bring business to Maggie Valley because developers will know what to expect in the future.

Alderman Eveland was curious why the vacant lot across the road from the Festival Grounds has not sold.

By all indications with vacant lots in Maggie Valley, it’s price, size, and location.

In order for the 2017/018 budget to be revenue neutral; the tax rate would have to be $0.51 per $100 valuation. Although it is never recommended to use the Fund Balance as the “go-to” forbalancing a budget; monies will be taken from the Fund Balance due to the extreme increase from $0.39 to a rate of $0.51 to have a revenue neutralrate. Council and staff are trying to cut all cost feasible, as well as lookinginto dipping into the Fund Balance this one-time, during such a drop in valuations from Haywood County’s assessments.

Manager Clark is proposing to use the Fund Balance to pay off the Town’s debt other than the Waste Water Treatment Expansion and the Police Department Building. If this budget is adopted, the Town will be able to lower the tax rate to $0.43, rather than the proposed $0.45.

Alderman Banks wanted to be assured that if approved, the $0.43 would remain in place for the next four years until the next valuation.

As eariler stated, Manager Clark stressed that the Fund Balance should not be used to balance the yearly budgets. If most of the debt could be cleared off the books through the Fund Balance, the $0.43 will substain the Town and services would remain as currently provided.

The Veterans Park, upgraded playground, and codification of ordinances will be a one time expense. The Police Department Building will be paid off in 2020. The Veterans Park is included in the budget without the statue. Phase I of the Veterans Park will consist of eight (8) flags and remembrance chimes, brick and native stone with red white and blue flowers. The projected cost will be $25,000. The Vertrans Park will be located in the front yard of Town Hall. The projected cost to upgrade the Town Hall Playground is $35,000. The playground will consist of a modern play set (5 to 12 year olds). The insurance company has recommended upgrading the playset as it currently becoming more and more delapidated. The Public Works Department has repaired/refurbished the play set until there are no other options. The existing swing set and monkey bars will be refurbished. Two dueling slides will be added.

If the proposed budget is adopted, Maggie Valley along with the Town of Clyde, will still have the lowest tax rate in Haywood County.

Sales tax is the second largest revenue source for the Town’s General Fund. Haywood County distibutes the sales tax based on a population formula. The sales tax projection is $362,423.

There will not be an increase in fees i.e. Sewer Capacity Capital Charge, Sewer User Fees, Planning and Zoning Fees, or Solid Waste Fees. The Sewer Capacity Capital Charge reserves capacity at the Waste Water Treatment Plant. You can expect an increase in the Sewer Capacity Capital Charge in 2018/2019. Engineering has shown that there should be an increase in fees for the Sewer Capacity Capital Charge.

There will be no cost–of-living salary increases. The proposed budget allows for a 3% salary increase. The monies will be distrubuted using pay class modifications, merit increases and Career Path Bonuses. Not all employees will receive the same amount of monies.

Alderman Eveland added that there should be some employees that have maxed out on pay increases. Alderman Eveland would oppose increasing the tax rate to provide employees raises. The employees are now on the State Insurance Plan which is a good benefit. The employees no longer have to continully change insurance companies/policies.

The recommended coverage amounts remain 100% health coverage for the employee and 80% coverage for dependents. The Town has a worksforce of 23 full-time employees.

No new positions are anticipated. The Public Works weekend employee is working out well for the Town and the Festival Grounds.

The Town did bid out the Town’s insurance each year but now that the employees have state coverage the Town only bids out property and liability.The Town will remain with the NC League of Municipalities for the upcoming year for property and liability.

The Maggie Valley Pedestrian Safety Action Plan was adopted on November 14, 2016. The total project cost is estimated to be $2,370,000. The Town of Maggie Valley is poised to receive funding for this project through the French Broad River MPO and NCDOT as part of the STPBGP funding source. The French Broad River MPO will be voting on Maggie Valley’s road project on May 25, 2017.

The STPBGP is an 80/20% match to the Town. This means the Town will pay $35,000 on engineering costs and $360,000 on construction costs. The funding of the Pedestrian Safety Action Road Project will be funded by the Fund Balance and the Expiring Police Department Building Loan. The Town will have ten (10) years to complete the project.

Planner Bowen added that if the Town is awarded the grant there will still be a need for five (5) or six (6) more meetings because the Town must get NCDOT behind the process.The bidding for construction must be given to a NCDOT approved firm. Construction is most likely at least one (1) to two (2) years out.

Other projects in Haywood County that are scoring well would also benefit Maggie Valley. There are plans to build a bike lane/road project from Dellwood Road to Lake Junulaska. This could eventually meet with Maggie Valley’s Road Project.

The Town of Maggie Valley will Codifiy the new Unified Development Ordinance (UDO) once it is adopted. This process allows the new UDO to be digitized for improved transparency and ease of use.

The Administrative Department will enter a three year lease for a Copy Machine; a Bizhub C458. This is Administration’s central source for printing and copying needs. It is imperative that staff has a highly functioning and responsive copier.

The Public Works Department has requested a new Snapper Zero Turn mower. Eight thousand dollars ($8,000) was allocated for Winter Woods lighting, which has been funded by the HC Tourism Development Authority. Along with the Chamber and a “Winter Days” Committee, they want to do something to Soco Road similar to Fall Days.

Four thousand dollars ($4,000) is allocated in the Beautification Program and $12,500 is allocated for Non-Powell Bill Street maintenance. Campbell Crest, at the top of Campbell Woods, would like to apply for some road repair funds.

The Police Department would like to purchase one (1) new Dodge Charger AWD for $26,000, two (2) pole mounted radar signs for $7,810 and assorted technology purchases that will be 100% funded from the Governor’s Crime Commission for $22,293. The new signs are better designed for the five lane; while the smaller signs are better suited for residential areas.

The Town will be paving in both Brannon Forest and Crocketts Meadow Subdivisions from Powell-Bill funds.

Nine (9) new structures received their Certificate of Occupancy so far this year and there are nine (9) outstanding building permits. Master’s Landing Plateau and The Meadows at Campbell Mountain are both being developed.

The new Welcome to Maggie Valley signs are in the budget as well.

Council commended Manager Clark and Finance Director Wheeler on a job well done in a difficult year.

The meeting adjourned at 10:20 a.m.

______

Mayor Saralyn Price ______

Vickie Best, CMC, Town Clerk