Board of Commissioners Regular Meeting

The following is a staff-prepared summary of key discussion points and decisions from this meeting. For the complete official record, please refer to the approved minutes above.

Fiscal Year 2020 Audit Presentation Auditor Eddie Carrick of presented the Town's annual audit report for the fiscal year ending June 30, 2020.

• The Town received an unqualified (clean) audit opinion, meaning the financial statements fairly represent the Town's books and records for the year.
• The General Fund ended the year with a deficit of approximately $641,000 in expenditures over revenues. This was nearly identical to the $645,000 fund balance appropriation the Board had budgeted in advance, meaning results came in essentially as planned.
• The deficit was driven largely by one-time capital purchases made with cash rather than borrowed funds, including two garbage trucks (approximately $425,000 combined), a new 800-MHz radio system required by a county bandwidth change, and a parking camera system. The auditor noted the upside is the Town avoided taking on new debt service.
• Total revenues were up approximately $120,000 over the prior year. Ad valorem taxes were up $125,000 and local option sales tax was up $26,000, reflecting continued economic activity in the county.
• The Town's tax collection rate was 99%, approximately 3% above the state average.
• The unassigned fund balance stood at approximately $575,000, or 21% of current-year expenditures. The auditor noted the state may flag this as low compared to the state benchmark of around 40–50%, but explained the percentage was temporarily deflated by the large one-time expenditures and should rebound in a normal budget year.
• The Water and Sewer Fund ended with a deficit of approximately $228,000, with unrestricted cash remaining at $944,000. Rising costs for water and sewer services were noted as a contributing factor. The auditor indicated the State Treasurer's Office may recommend a rate study going forward.

Boulder Court Stormwater and Street Repair — Engineering Report A representative from the Wooten Company presented findings from an investigation into sinkhole, settlement, and pavement deterioration problems on Boulder Court, a subdivision street approximately five years old.

• The investigation included a visual inspection, smoke testing of the stormwater drainage system, closed-circuit television (CCTV) camera inspection of the pipes, and a geotechnical investigation with soil borings.
• The CCTV inspection found that virtually every stormwater pipe under Boulder Court is cracked, most with cracks running the full length of the pipe. Several joints have separated by as much as 2 to 3 inches, allowing soil to wash into the pipes and creating voids beneath the road surface — the cause of the sinkholes.
• Smoke testing revealed gaps between the precast concrete junction boxes and their iron frames at several stormwater inlets, also allowing soil erosion.
• Geotechnical borings indicated the primary cause of failure is insufficient compaction of soil during original construction — not unsuitable soil. The engineer noted this level of failure on a five-year-old system is highly unusual and should not have occurred.
• The existing soil appears suitable for reuse during repairs, which would reduce project costs.
• The problem appears isolated to Boulder Court. Borings taken on nearby streets showed better compaction and no similar issues.
• Three options were presented: (1) No action — continue band-aid repairs by public works staff, which does not resolve the underlying problem and poses safety risks to heavy vehicles such as garbage trucks, fire trucks, and school buses; (2) Full single-phase repair — replace all stormwater piping, seal junction box frames, recompact subgrade, and repave the entire street at once; or (3) Phased approach — complete repairs in sections over time to reduce upfront costs, though this loses economies of scale and takes longer.
• The estimated total project cost was presented based on 2020 pricing figures, with the caveat that COVID-19 has made cost projections more uncertain. The project scope involves approximately 1,000 linear feet of pipe (primarily 24-inch diameter on the main line, with 18-inch pipe at the cul-de-sac branches).
• If done as a single project, construction is estimated to take approximately four months. Residents would maintain access to their homes throughout, with the contractor filling excavations each evening and using steel plates or stone base as needed at driveways until final paving is complete.
• Grant funding is generally not available for stormwater and pavement projects of this type. Potential funding sources discussed included the Town's capital reserve account (over $300,000), Powell Bill road funds (approximately $95,000–$96,000 per year for all town streets), and a possible split between stormwater utility funds and the general fund.
• Board members expressed concern about public safety risks, particularly the possibility of a school bus or other heavy vehicle breaking through the road surface over a hidden void. One commissioner stated a preference for completing the full project at once and financing the remainder.
• No formal vote was taken on a repair approach at this meeting. The presentation appeared to be informational, with next steps to be determined.