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.

FY 2021–2022 Budget Presentation The Town Manager presented the recommended budget for the upcoming fiscal year for the Board's consideration.

• The recommended budget balances at approximately $4.69 million, consisting of a General Fund (~$2.1 million), a PAL Fund (~$370,000), a Stormwater Fund (~$38,870), and a Utility Fund (~$1.5 million).
• The General Fund is projected to add approximately $241,000 to fund balance; the Utility Fund projects a ~$133,000 surplus; and the Stormwater Fund projects a ~$21,000 surplus. The PAL Fund is the only fund requiring a fund balance appropriation, totaling approximately $279,000.
• The Town is current with all outstanding audits required under NC General Statute 159-34 for the first time since 2016. However, recent audit findings were not entirely positive, and the NC State Treasurer's Office has issued three written exceptions identifying irregularities in the water/sewer fund.
• As a result, the Local Government Commission (LGC) has placed the Town on its Unit Assistance List, which requires the Town to submit its FY22 draft budget to the State Treasurer for review and approval before adoption, and limits the Town's ability to borrow money for infrastructure investment.
• To replenish fund balance, the budget proposes increasing the property tax rate to 50 cents — the first increase since 2014. Over the past four years, the Town's total fund balance declined from approximately $2.2 million to $1.1 million.
• The budget also proposes an approximately 11% increase to water rates, an approximately 9% increase to sewer rates, increased base rates for water and sewer services, and increased garbage service fees. Two Rivers Utilities, the Town's water and wastewater provider, is imposing a 5% rate increase on both services.
• The budget allocates $300,000 toward the Boulder project (estimated total cost over $1 million) and $25,000 for the replacement of 100 water meters across Town.
• A public hearing on the budget is scheduled for the June 10, 2021 regular Board of Commissioners meeting at 7 p.m. The recommended budget is available for public review at Ranlo Town Hall during normal business hours and on the Town's website.

Response Letter to the Local Government Commission The Board considered ratifying a letter responding to findings from the FY2020 audit and a separate compliance matter related to a 2019 state law.

• The Town was required to submit a detailed response to the State Treasurer's Office outlining how it plans to address audit findings. The Town Manager coordinated with the new director of the LGC's Local Government Finance Division on this response.
• Staff also identified that the Town had not complied with a 2019 state law requiring submission of local ordinances punishable under NC General Statute 14-4 by November 2019. The Town Manager worked with the NC League of Municipalities and the Joint Legislative Oversight Committee to resolve the matter. The response letter was accepted, and the Board was asked to ratify it to provide formal support.
• The Board was asked to approve motions to ratify both letters.

FY2021 Audit Contract The Town Manager presented proposals for the annual audit contract.

• Three firms were contacted for proposals. Martin and Sterns and Associates declined to submit a bid. A Charlotte-based firm quoted fees between $37,000 and $40,000. Andy Carrick, who assisted the Town in completing its outstanding audits, submitted a proposal estimated between $15,000 and $18,000.
• The Board considered awarding the contract based on the two proposals received.

Regional Law Enforcement Mutual Aid Agreement The Board reviewed a renewal of the regional mutual aid agreement through the Council of Governments for the Police Department.

• The agreement was set to expire. The Town Manager and Police Chief Munford indicated they did not believe it was beneficial to continue the agreement and sought Board approval to allow it to expire.

2021 Meeting and Holiday Schedule The Board reviewed an updated meeting and holiday schedule for 2021.

• The updated schedule incorporated the rescheduled May 14 meeting and additional holidays previously discussed at the March 2021 regular meeting.
• Town Hall will be closed on Monday, May 31 in observance of Memorial Day. Garbage pickup normally scheduled for Monday will shift to Tuesday and Wednesday that week.

Town Manager Updates The Town Manager shared several operational updates.

• The Boulder Core project is being re-advertised after receiving no bids on the initial solicitation. A June 10 closing date has been set. The Town will not approach the LGC for financing approval until bids are received and financial proposals from lending institutions are in hand.
• The Town Manager recommended reopening the Lodge and Community Building for rentals beginning in June, following relaxed state guidelines on gatherings and mask requirements. Proposed rental fees (without a security deposit) would be $125 for the Lodge (inside), $225 (outside), $65 for the Community Building (inside), and $100 (inside with additional cleaning fees built in).
• The Town's splash pad has been prepared and is ready to open. Public Works addressed issues following the facility being closed for a year, and fresh mulch was installed. Staff indicated the splash pad could open as early as that week.
• Board meetings will continue to be held at the current location unless the Board directs otherwise. Town Hall continues to operate on a limited, appointment-based basis due to being short-staffed.