Clayton Town Council Meeting - May 18, 2026

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[00:07:22]Clayton, I'd like to call this Clayton Town Council regular meeting to order. I ask you to stand for the pledge of allegiance and remain standing for the invocation.

[00:07:34]I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Let us pray.

[00:07:51]Most gracious and heavenly father, we pause to give you thanks for the many blessings of this day. And we ask Lord now that you be with us as we proceed with the business for the town of Clayton. For it's in Jesus name I pray.

[00:08:02]Amen. Amen.

[00:08:07]>> Do we have any adjustments to the agenda?

[00:08:11]>> Yes, sir. I'd like to remove items 3B and 3 C from the consent agenda at the applicant's request.

[00:08:33]Okay, got that noted. Any others?

[00:08:38]>> All right, I'll entertain a motion to adopt the agenda.

[00:08:42]>> So moved.

[00:08:45]>> Second.

[00:08:46]>> We have a motion and a second to adopt the agenda with those modifications. Is there any further discussion?

[00:08:52]All in favor say I. I. Oppose. like sign. Motion carries. Up next is your consent agenda.

[00:09:01]>> Motion to approve.

[00:09:04]>> We have a motion and a second to approve the consent agenda. Is there any further discussion? All in favor say I.

[00:09:11]>> I.

[00:09:11]>> Oppose. Like son. And motion carries.

[00:09:16]Next under administrative items is the Clayton for you.

[00:09:26]Good evening, Mr. Mayor Council.

[00:09:28]Tonight, we bring an episode of Clayton for you on how to report a concern in the town of Clayton using our new online portal.

[00:09:38]>> Ever notice something around town that needs a little extra attention? Good news. Reporting a concern in Clayton is quick and easy. Start by visiting the town's website and heading to the report a concern page. From there, you'll find a categorized list of issues you can report. Everything from potholes and street light outages to park concerns, storm water issues, and more. To ensure your report is received by the correct department, just select the category that best fits your concern and fill out a short form with details like the location and a description of the issue.

[00:10:14]In some cases, you can even upload a photo to help staff respond faster.

[00:10:20]If you're not sure which category to choose, no problem. There's also a general inquiry option. Keep in mind, if it's an emergency, always call 911. And for urgent issues like power outages or water leaks, call 919-5531530 for immediate assistance. By reporting concerns using the online portal, you're helping keep Clayton safe, clean, and running smoothly for everyone.

[00:10:49]Thank you, sir. Awesome. Very informative. Thank you.

[00:10:56]Up next under introductions and special presentations will be the National Public Works Week proclamation. And I'd like to give the floor to Council Member Casey to present to public works. Thank you. Uh Town of Clayton National Public Works Week rooted in service powered by community proclamation. Whereas public work professionals focus on infrastructure, facilities and services that are vital to substantiable and resilient sustainable and resilient communities as well as to public health, quality of life, and the well-being of the citizens of the town of Clayton. And whereas these infrastructure systems and services could not be provided without the dedicated efforts of public works works professionals, engineers, managers and employees at all levels of government who are responsible for building, maintaining and protecting our transportation, water supply, water, wastewater, solid waste systems, public buildings and other essential facilities. And whereas it is the public in it is in the public interest for citizens that civic leaders and youth of the town of Clayton to gain knowledge and maintain an ongoing understanding of the importance of public works and the programs that support their community.

[00:12:10]And whereas it is crucial for residents, visitors and employees and leaders to recognize and appreciate the vital role of public works professionals, including frontline workers, specialists and administrative staff. And whereas their dedication and continued efforts foster community pride, support everyday routines and activities, and strengthen the overall performance and vitality of the town through essential programs and services. Whereas in 2026, we celebrate the 66 66th annual National Public Works Week sponsored by the American Public Works Association to acknowledge and honor the work and contributions of public works professionals across the nation and within our community. Now therefore, on behalf of the Clayton Town Council, we hereby proclaim May the 17th through May the 23rd, 2026 as National Public Works Week and urge all citizens to recognize and celebrate the contributions of our public works professionals proclaimed by the Clayton Town Council this 18th day of May, 2026, signed Jody Mloud. And I'm going to give them a big round of applause and also ask them to come up and uh receive this proclamation. Thank you.

[00:14:06]Then let me get you to more towards the center if we can.

[00:14:13]All right.

[00:14:15]See, Rusty, come on.

[00:14:22]Swap with a Mar. Yeah, >> we have to prove you were here, Rusty.

[00:14:40]>> Perfect, guys. Thank you.

[00:14:42]>> Awesome. Thank you.

[00:14:56]Up next is the National Gun Violence Awareness Day Proclamation. And I'd like to give the floor to Council Member Underwood to present the Mom's Demand Action.

[00:15:06]>> The Town of Clayton National Gun Violence Awareness Day Proclamation.

[00:15:10]Whereas people in the United States are 26 times more likely to die by gun homicide than people in other highincome countries. And whereas North Carolina has 1,81 gun deaths every year with a rate of 16.6 deaths per 100,000 people, a crisis that cost our state 195 19.5 billion each year, of which 471 million is paid by taxpayers. North Carolina has the 21st highest rate of gun deaths in the US. And whereas support for the Second Amendment goes together with keeping guns from those who pose a danger to themselves or others. And whereas gun violence prevention is more important than ever as we see gun violence continue to impact communities across the country. And whereas in January 2013, Hadia Pendleton was shot and killed at the age of 15. On June 5th, 2026, the nation will honor Hadia Pendleton's 29th birthday by observing National Gun Violence Day, wearing orange in tribute to all victims of gun violence and their loved ones. And whereas this tradition began when Hadia's friends asked classmates to wear orange, a color symbolizing safety and the value of human life. And whereas by wearing orange on June 5th, 2026, people across the United States will raise awareness about gun violence and honor the lives of gun violence victims and survivors.

[00:16:42]And whereas we renew our commitment to reduce gun violence and pledge to do all we can to keep firearms out of the hands of people who should not have access to them and encourage responsible gun ownership to keep to help keep our families and communities safe. Now therefore, on behalf of the Clayton Town Council, we hereby proclaim the first Friday in June, June 5th, 2026 to be National Gun Violence Awareness Day. We encourage all citizens to support their local community's efforts to prevent the tragic impacts of gun violence and to save lives. Proclaimed by the Clayton Town Council this the 18th day of May, 2026. Jody Mloud, Mayor.

[00:17:24]And uh if I could have the members of Mom's Demand Action to receive this please.

[00:18:03]right here.

[00:18:09]He's not awesome.

[00:18:34]Up next will be the elected officials day proclamation. And I'd like to give the floor to town clerk Heidi Heidi H.

[00:18:41]Heidi Holland. Say that three times fast.

[00:18:46]Town of Clayton elected officials day proclamation. Whereas local elected officials serve as the closest link between government and the people making decisions that directly impact the quality of life in our communities. And whereas these public servants accept the responsibility of leadership with integrity, transparency, and a strong commitment to public service, often making difficult decisions in the best interest of their constituents.

[00:19:15]And whereas recognizing our elected leaders encourages civic engagement and fosters a deep understanding of and respect for the democratic process. And whereas our elected officials work to enhance the quality of life in the town of Clayton by listening to and valuing the needs of our of all citizens. And whereas it is on this day we recognize our elected officials of the town of Clayton, Mayor Jodie Mloud, Mayor Prom Andrea Archer, Council Member Ruth Anderson, Council Member Porter Casey, Council Member Amanda Amanda Underwood, and Council Member Gretchen Williams.

[00:20:00]Now therefore, the town of Clayton hereby proclaims May 19th, 2026 as elected officials day in the town of Clayton and encourages all residents to join in expressing gratitude to those who serve in elected office for their commitment to public service, community improvement, and leadership proclaimed this day, May 18th, 2026. And I would just like to say as town clerk, I see firsthand the care and dedication that each of you bring to your roles and I'm proud to work with such an exceptional group.

[00:20:36]>> Awesome. Thank you so much.

[00:20:50]Up next on the agenda is the North Carolina League of Municipalities mayor recognition video.

[00:20:58]>> If I could say a few words about what this is. So there is a league, the League of Municipalities in North Carolina that represents every municipality in our state and therefore all of us. They do amazing things and they make sure that all the municipal challenges that we face stay on the forefront of not only our entire state but our entire country. And so this organization is highly respected, very important, and our very own mayor is now the president of this organization. So it is a tremendous honor. We have seen you do so many great things in the town of Clayton, and now we get to see what he does for the entire state of North Carolina. So thank you, sir.

[00:21:37]>> Thank you.

[00:21:38]No brush.

[00:21:41]>> And just to catch the public up to speed, this video was created as a way to congratulate Mayor Mloud, on being named the president of the North Carolina League of Municipalities. And people in the community, they showed up for you, Mr. Mayor. They wanted to participate and they had nothing but good things to say about you.

[00:22:00]>> I'm glad we have that on a video.

[00:22:05]Congratulations, Mayor Mloud.

[00:22:13]>> Watching you serve as mayor has been nothing short of inspiring. Being sworn in as president is a welldeserved honor, and I know you will bring to it the same heart and integrity you bring to everything you do. Lead well, lead boldly, and know that you have an entire team of people cheering you on every step of the way.

[00:22:37]>> Congratulations, Mayor Mloud.

[00:22:40]>> Mr. Mayor, on behalf of the Clayton Police Department, we want to congratulate you on your appointment to the president of the League of Municipalities.

[00:22:48]And we would all like to say >> congratulations.

[00:22:52]>> Thank you, Mayor Mloud, for all your support of THE FIRE DEPARTMENT.

[00:22:55]>> CONGRATULATIONS, MAYOR MLOUD. From all of us in the electric department, thanks for lighting the way with your leadership. We're proud to help keep our town energized and moving forward.

[00:23:06]Here's to an even brighter future ahead.

[00:23:08]>> From your public works crew, we're proud to help keep this town running smoothly under your leadership. Thanks for steering us in the right direction.

[00:23:16]We're all geared up for what's ahead.

[00:23:18]>> From all of us in water resources, we're overflowing with pride and appreciation for your leadership. Thanks for keeping our city flowing in the right direction.

[00:23:26]We're pumped for what's ahead.

[00:23:28]>> CONGRATULATIONS, MAYOR.

[00:23:30]>> Mayor Mloud, thank you very much for your leadership here at the town of Clayton. We're looking forward to seeing you do it at the state level.

[00:23:35]>> Congratulations, Mayor.

[00:23:37]>> I want to offer my congratulations to you on the recent election to be the president of the North Carolina League of Municipalities.

[00:23:45]>> Hey, I'm so proud of you. This is an outstanding opportunity. Uh, congratulations, but most of all, you're going to leave an impact on the League of Municipality. That's what it's all about.

[00:23:59]>> CONGRATULATIONS.

[00:24:01]>> I'd like to congratulate Mayor Jody Mloud, Mayor Clayton, North Carolina, my mayor, on becoming president of the North Carolina League of Municipalities.

[00:24:09]>> We are so proud of you, and we can hardly wait to to see that North Carolina to see how proud they will be OF YOU.

[00:24:17]>> CONGRATULATIONS, Mayor Mloud. We're so proud of your new role as the president of the North Carolina League of Municipalities. I know you're going to do Clayton proud.

[00:24:26]>> I know with your leadership skills that North Carolina cities are going to be in good hands.

[00:24:31]>> CONGRATS, MAYOR MLOUD.

[00:24:33]>> The best I can say about you is simple.

[00:24:36]You have always been a servant leader and Diane and I want to congratulate you on your special special opportunity to lead one of the most important organizations in the state.

[00:24:51]>> Who ever would have thought a boy mayor 20ome years later would be a great mayor >> or president?

[00:25:02]>> President. He could never be president.

[00:25:05]Never.

[00:25:22]>> Awesome. Thank you so much. Thank you.

[00:25:30]Thank you everybody. is very kind and thoughtful and I'm appreciative to everybody who has sent their congratulations and um it really is a tremendous honor for Clayton, North Carolina because um it really exemplifies the good work that we have been doing here for for a long time. It isn't just about what the mayor has been doing, but it's the entire team and it's the entire community and it's the entire town. So I am just one small entity in the biggest picture that makes Clayton, North Carolina, my own town, the greatest place I know. So thank you.

[00:26:08]Thank you.

[00:26:13]All right, let's talk about budget. How about that? Um, so up next on the agenda is the fiscal year 2627 budget. Uh it is a public hearing and I'm going to give the floor to our budget manager Todd Melton uh to get us started. Mr. Mayor, well Todd's making his way to the mic here. U just want to say uh tonight we'll be presenting the manager's recommended budget for fiscal year 27.

[00:26:38]Uh this is built around the priorities that have been we've been focused on here over the last several years and ensuring we can continue to deliver the services the residents need and expect.

[00:26:48]Uh it's a lot there's been a lot of planning and a lot of conversations, a lot of meetings uh that have gone into this. So I do want to really thank the team, all the staff, everybody that's provided input. Uh special thanks certainly though to Todd and and to Lanny for uh all the hard work they've done in the budget office. There's been uh uh every year we've gotten better with this and been able to expand kind of the the the the process. And so uh they've been really the ones carrying the water on that and I just really appreciate all they've done. Um, just need to acknowledge as always, you know, for the departments, you know, the the needs always outpace what we can what we can afford to do, but I do think we attempted in this budget to try to get as much of that uh those requests that we could uh afford to do within it. Um, but certainly want to make sure that everybody understands it's not that if if they're requested to make it in the recommendation, it's not that we don't see it as a as a need, it's just we can't uh can't always make everything happen. So, with that, turn it over to Todd and let him walk you through it.

[00:27:49]>> Thank you, Rich. Good evening, mayor, members of council. Thank you for allowing me to come up here and talk about this. I have far fewer puns than the video that we just watched. I hate to say, I'm sorry to say. Um, yeah, as Rich said, this is the manager's recommendation or manager's recommended budget. We have certain statutory guidelines that we have to sort of adhere to to get to this point. One being uh that we have to provide a copy of our budget for public inspection, the clerk's office. We have to deliver the budget no less than 10 days before we are asking council to adopt the budget.

[00:28:25]A couple other things, notice of newspapers and things like that. So, with that said, here's a little outline of what we're going to talk about tonight. I started with um the base for this presentation was basically what I gave you guys in in May. Um just sort of started from there and added on. This may be a different audience tonight. So some of the same information.

[00:28:53]The budget is presented uh in accordance with the local government budget and fiscal control act NC general statute 159-11.

[00:29:03]Some of those statutory requirements I was speaking about a few minutes ago are located in that statute. Uh the budget and um several attachments were delivered to the mayor and council last Wednesday has also been available in the clerk's office um for an amount of time.

[00:29:21]I think um we presented this presentation, the manager's the uh budget message, which is also statutory requirement, uh a line item budget report out of our ERP, uh and a couple other things like a copy of the changes to the comprehensive list of fees that we'll talk about at the end of this presentation and uh salary grades that reflect a 3% cost of living adjustment for full-time part-time roster and elected officials. So, for those folks at home, you can go to town ofnc.org/budget.

[00:29:59]There's a list, there's a link for all those uh attachments that I just spoke about. You can click them. It'll take you into the agenda at the location where the attachments are located.

[00:30:10]We um encourage folks to review those and access them. So tonight we're going to talk give you a little summary of the budget uh insight into projections decisions made to balance the budget some external pressures that we're kind of dealing with that that everyone is dealing with right now and a little bit of information on rate model a little bit information on the fees adjustments.

[00:30:33]So very high level the budget is balanced across all three funds which is also a requirement of the fiscal control act. It includes um $4.7 million committed for CIP funding. Just a reminder, that includes $2 million that you as a council had approved to go towards CIP a few years back. Also, the 5 cents at our current tax rate for CIP as well. So this year, that total is a little over $4.7 million.

[00:31:01]We're accessing that. I'm jumping down to the bottom bullet here, but we're accessing that for the first time this year as we make our first debt payment for the limited obligation bond that we took out this this year. So, you'll see fund balance appropriated at 1.767 million, but all that is is the mechanism by which we're funding the debt service for the for the limited obligation bond. So, in the budget, this $4.7 million goes into the fund balance, but is earmarked for CIP funding. We're just accessing some of that this year for the first debt payment.

[00:31:37]Also, a few um notes on some long-term planning. Generally speaking, the fiscal year 27 budget is for fiscal year 27, right? But we do have um some funds set aside for some longer term purchases and and and things like that.

[00:31:54]So, uh just a few examples, street repaving and conditioning project. We do that about every other year. It's somewhere between three half and $4 million. So, we save up portions of that in each budget. So, it's not uh as big a hit. Same thing for sidewalk repair and replacement, storm water system improvements, utility infrastructure, new water lines, new electric lines, things like that. We um are planning for years ahead in uh in this year's budget as we do in every year.

[00:32:25]uh a few notes on economic indicators that we're seeing, observing, and trying to make decisions based upon. Uh CPI, most recent CPI year-over-year shows inflation at 3.89%. That's May this year over May last year. Um also notable is 4.2% CPI uh increase from April to May.

[00:32:47]So still seems like it's going up or at least in May it was. Uh fuel prices are up 40% year-over-year on May 6th.

[00:32:55]Um so those are some of the economic stuff and a couple of other things that we've talked about before, but the state health plan retirement fund searchcharge 2.4% on all salaries in the town. Estimate that to be about $620 something,000 hit to u to the town's budget this year. Also, the Johnson County Fire District funding changes.

[00:33:18]That number has moved around a little bit and we hope to settle on that in uh the next few weeks, but as as of recently, we estimated the impact of that to be about $233,000.

[00:33:31]Now, a note uh I meant to say this before we got into this, but uh some of the budget reports will reflect some numbers, especially in the fire department. That'd be a good example.

[00:33:41]fire department's budget looks like it jumped way up in 27 and I want to explain why that is the case since this funding mechanism changed it the one of the metrics one of the variables that decides what we're the funding we get from Johnson County is the total fire budget in years past the general fund we had not included things like HR IT legal uh access to the town attorney in the fire budget because it's all been in the general fund uh through our support services analysis through uh through Black & Beach through our uh consultant we've been able to identify and justify with numbers and data around the support services charges that the fire department um uses. I'm sorry I got an alarm going off here. So that number for the fire department uh looks like it jumped way up uh next year. Mostly that is because we're applying support services charge to the fire department for the very first time. We usually do that for the enterprise funds for the water, sewer, and electric fund. We also do it for inspections because of regulatory requirements around fees and what we can do with those. We did it again for the fire department this year. So, whenever you see that number, remember that we received 36 requests for positions this year across all three funds.

[00:35:05]Obviously, we have been unable to say yes to everything. Um we are recommending an a total of 18 that is one in each of the enterprise funds and 16 in the general fund.

[00:35:17]These are mostly folks that are doing work out there in the public, right? We got some public works positions. You can see here couple of the parks positions are due to taking on the Clayton Fitness property. Um, so I think we saw these in the work session, but just so the folks back home, folks out there can can uh see that data as well. There it is.

[00:35:41]Um, one level down a little more detailed at the fund level, general fund is balance of 62.5 million. Um, we are not recommending a tax increase. That is something we've um worked pretty hard to get to.

[00:35:56]We're projecting about 2.9% million in um normal growth from property taxes and sales taxes.

[00:36:05]That number is uh made up of actuals from this year's tax scrolls for property taxes. And we're projecting, as I said in the work session in May, 3% growth in sales tax year-over-year.

[00:36:18]3% is pretty conservative based on what we're actually receiving this year, but it is directly in line with the North Carolina League of Municipalities most recent projections of 3.1% across the state.

[00:36:30]16 recommended FTE, 9.9 million in capital outlay across the general fund.

[00:36:36]Um, and again a note about the appropriated fund balance. When you see that line in the budget, you want to think, hey, what are we doing with the with fund balance? That is just the lob the first debt payment for the limited obligation bond for this year. Water sewer fund is balanced of 54.3 million recommending uh 8.3 combined rate increase. We're recommending one FTE and capital outlay is 5.6 electric fund balance to 23.5 2.5% re recommended rate increase also 1 FTE capital outlay at 1.8.

[00:37:10]Here's a table. I presented this in May as well. The numbers have been updated a little bit based on um an updated support services analysis that we got after the May work session.

[00:37:22]You can see general fund is 62.5, water sewer 54.3, electric fund 23.5, and there are the major categories. You can see salaries and operating and things like that there. A note also, I want to bring this up again, little asterisk beside the miscellaneous expenses. That negative8 million number is the support services charges from the enterprise funds. So the enterprise funds in effect, the general fund supports the enterprise funds to the tune of about $8.6 million or somewhere around that.

[00:37:58]Pie chart showing the um proportion of all of our general fund revenues that come from different sources. As you'll see, ad valorum and sales tax make up about 66% of the budget this year.

[00:38:19]Percentage over the last 5 years of each of the categories. Um, percentage of the total expense budget. Again, there's a note down here at the bottom. We removed that negative 8.6 6 million just so you can sort of see and kind of throws off our column chart if we're doing negative numbers. So percentage of total expenses of each of those categories. Salary and benefits at about 50%.

[00:38:43]And I and 50% is pretty in line. Um I think last year we had a pretty big capital outlay number. So that number would have been a whole lot closer to 50% without that big capital outlay number.

[00:38:56]You'll see in the water sewer fund story looks a little bit different.

[00:39:00]Salaries and benefits at about 8%. This is because of two things really. Um the dark gray the third one up there programs and special appropriations.

[00:39:11]Programs is where we buy our water for resale. That's a big chunk of the water sewer budget. Also you'll see the marooned uh sections of the charts on the first three years and then the corresponding flip to the large gray sections. That is the story of Sam's branch.

[00:39:28]A lot of capital, a lot of capital outlay leading up to it. And now that now that we've finance the purchase and the building of that, it's flipped and it's now to debt service electric fund. It's all about programs and that's the purchase of power for resale. I have a note on um some of the expected increases in that in the next few years in a in a slide upcoming.

[00:39:54]But again the program the purchasing of the utilities kind of uh minimizes the effect you know the proportion of salaries on the total budget there.

[00:40:04]So jumping into the general fund.

[00:40:08]Um again recommended budget balance 62 and a half. The only thing different on this slide and nothing different from the May work session. But I do want to point out 3% cost of living adjustment.

[00:40:19]That is right directly in line with another uh North Carolina League municipality survey. They do a survey across the state every year for local municipalities. Ask them what are they doing for cola? What are they doing for merit? are they doing one or the other or neither or both? And uh 3% I think 2.9 across the entire state is the average for uh cost of living adjustment this year. So we're pretty in line with that and no recommended tax increase. Should have put that on top.

[00:40:47]Uh revenue assumptions again uh 2.9% increase projected from sales tax and property taxes. We also adjusted some uh sales permits and fees revenues as well based on actuals for the last few years and we have the appropriate fund balance which is technically a revenue water sewer fund overview again budgets balance 54 million one recommended FTE recommended rate increase 8.3% combined uh a note here that we We have been told that the bulk water purchase for us from Johnson County is 10.1%.

[00:41:32]So, we're able to eat some of that. Here is a rate table from our consultant that shows the 8.3% revenue increase. Um, it also shows some economic or some uh benchmark indicators down here at the bottom. Days cash on hand. Uh this is row number 17 on this um slide and number 18 debt service coverage. You'll see our benchmarks there. Minimum days cash on hand 185. So we're well above that at this point. Um we are also planning for some pretty large capital expenses coming down the pike. As you all know, we're having to um work on water supply.

[00:42:14]Couple of possible projects out there.

[00:42:16]We've been very conservative and in and in and projecting that we're going to have to take on both of those. Uh we'll see how how that shakes out.

[00:42:27]But that's the reason for building up today's cash on hand. Otherwise, we'd have a big large expense in one year, 5 years down the road, four years down the road.

[00:42:37]Okay.

[00:42:40]Electric fund uh budget is balanced again. 23.5 million one approved FT or recommended FTE recommended rate increase average of 2.5% across all rates.

[00:42:53]Uh a note on wholesale power.

[00:42:56]We get this question a lot that you know when when Duke's in the news about 18% increase over the next two years worrying about town increases. Um but do the the 18% increase over the next two years is retail rate and that's not what we pay. We pay the bulk rate, right? And so they've given us Nika which is where we buy our power from have given us their uh projected increases over the next three years between four and four and a half%.

[00:43:27]Generator project. We've talked about this a couple times but just so the public can see it. Um there's a um our our electric director Matt Proctor has this uh project in the budget next year where there's going to take some upfront costs to for some some bigger maintenance projects, some upgrading some equipment that will allow us to turn our generators on at strategic times um and and implement a load management strategy that we hope in the future will reduce our dependence on uh power purchased. It's not going to get rid of it, but it will reduce our our footprint there. Um, in the current budget, we don't have that projected. Trying to be a little conservative about that because of timing of the project being finished and all that sort of thing, but in out years, we expect that that's going to have a really positive impact on the budget.

[00:44:18]And here's the rate model, the slide for the electric fund, you'll kind of see the same thing here. Rate adjustment 2.5%. I will point out I think it was projected that we were going to ask for 4% this year based on this rate model last year that was a positive improvement.

[00:44:34]Um the indicators at the bottom the sort of the benchmarks we have days cash on hand our benchmark for days cash on hand for electric fund is 110 right and so we are above that and it's it's been the the margins for electric are so thin it's been difficult to get to that point. So with this fiscal year 27 budget, we think we'll be there. Debt service coverage ratio 3.7. That's higher than than the benchmark. Uh so that's good. So we have room to borrow and if the need arises. Operating ratio was 1.16. I think our benchmark for that is 1.25. So we're still trying to get there on that. So solid waste, there's a recommended increase of $2 a month for solid waste. Um, just a note on why that is the case. Solid Waste is is not technically an enterprise fund, but the idea is that we want to recover our costs with the revenues that we earn from this from this service.

[00:45:37]There hasn't been a rate increase, a rate adjustment for water for uh solid waste since fiscal year 24. So, this would be year three out of that. And we do have a provision in our contract with the with the service provider that we there is a yearly cost escalator. So we've been able to sort of deal with that deal with those escalations uh for the last few years, but it's time to catch up. That's our recommendation anyway. So this is what that looks like.

[00:46:07]$24 a month going up to $26 a month and some minor adjustments to extra carts.

[00:46:13]Folks that pay for extra carts.

[00:46:14]basically just rounding those up. That allows us to capture the cost a little a little along with the rate increase.

[00:46:23]This uh average total monthly utility bill impact, $16 total increase. It's about 5% on average. These are all average utility bills. electric uh 900 kwatt hours uh water sewer 4,000 g.

[00:46:49]Now we also adopt the comprehensive list of fees and charges every year. So, moving into that, um, what I have attached, what we've listed on the website, what we attached in the email to you, uh, members of council and mayor, were changes to the fees, right?

[00:47:07]So, that that list of the big old spreadsheet that was colored in all these different colors, um, were only the fees that were being changed or deleted or added. So, if the fee if you were looking for a fee and it wasn't on that list, that means we're assuming it's the same next year than it is this year.

[00:47:25]Just for ease of navigating that that big thing, we tried to make it a little more simple. So, I'm going to jump through a few of the changes that we made um categorize. I think back in I think the last time we had mended the the list was in January or so. So try to follow that same pattern so it becomes a little more um uh recognizable for you folks and we can talk about it a little more efficiently. Um one of the first things we did, I'm very excited about this. We changed some of the language in the department column. So if you're looking at the list, the far left is the is department.

[00:48:02]We've got some um some information here that that may be old, maybe need have needed updated for a while. So here are some of the changes. Electric department. So there are two different electric fees on in the list. There's electric utilities which is the 2 and a.5% rate increase and then there's some infrastructure sorts of things like meter fees and things like that. So we added we tried to clarify that section.

[00:48:24]It used to say electric utility and electric department which I think was confusing. So electric department is now electric infrastructure. Made a similar change to water. That bottom row there water resources is now water sewer infrastructure. There were some fees in the general department that I felt could be a little more straightforward. So, we've ch we've added cemeteries, solid waste and utility billing to that category to that column. Foc memorial library, we change that to library. Uh recreation department, which we don't have, we change that to parks and recreation. Planning department, we just removed the the word department.

[00:48:56]Hopefully, that makes it a little more efficient to navigate that list. So, uh, about five different kinds of changes to the fees in that list. I think it's the second column. I'm not looking at it right now.

[00:49:12]Second or third column, you can sort by these update types if you'd like.

[00:49:17]And, um, as opposed to going through every single line here, I'm just going to kind of kind of breeze through it.

[00:49:22]So, this is available for folks online for for for anyone to access. Uh, clarifying language. There's always something to clarify, it seems. Make it a little more easy to read. Uh, here are some examples here. Um, the fire department just had one little change this year. We added a language in one of their inspections.

[00:49:44]Uh, parks and wreck had one one I think one fee for vendors and we broke it out to make to to be a little more flexible in how we charge vendors for vendor fee.

[00:49:54]Uh, these are not adding amount. They're not changing amounts and fees. So, mostly I hope it's making things simpler for folks to navigate.

[00:50:06]Some fee adjustments, some increases, some decreases. We remove some fees entirely. Um, a good example, the temporary sign fee for community development. We reduced that from $50 to $10.

[00:50:20]Certain inspections that we were no longer providing, we just removed them off the list. Um the library had some had some good uh fee adjustments removing uh hourly internet fees to um so folks that that uh find that as a burden can now access the internet.

[00:50:39]Some things like that.

[00:50:42]So and uh electric rates there were some rates that we we tried to simplify the rate structure on electric. So, we remove large general service rates and institutional charges.

[00:50:55]This is a slide on on the utility rate adjustments that we've already talked about, but just to put a finer point on them.

[00:51:03]A few new fees. There's a technology fee for community development.

[00:51:09]There are uh we adjusted camp fees at parks so to be a little more flexible in the kind of camps that we offer and the kind of um um kind of in that way. Cultural arts clarification on some fees um in addition to some new fees or some requests we've been getting for audio upgrades and things like that.

[00:51:34]And then we have a technical we have some technical adjustments. One of the big ones is um engineering permit fees had a certain number of reviews before resubmitt is triggered. We changed that to that number from 3 to four to match the planning department.

[00:51:50]So to be a little more consistent next steps.

[00:51:58]That's not the that's a current step.

[00:51:59]We're in the middle of the current step.

[00:52:00]Well, the public hearing is coming up today. Talked about budget and fees. Uh next steps would be we would bring an ordinance uh to you folks on June 1st and um perhaps adopt the budget then after the public hearing.

[00:52:20]Budget and performance web page. This budget engagement button down here. If you're used to going to town claytonc.org or budget and performance.

[00:52:27]There's the button to get to the budget engagement page where all of these uh materials that I've been going over and talking about are all accessible there.

[00:52:37]We hope you use them.

[00:52:43]All right, I'll open the floor for questions.

[00:52:47]All right. Um I'm um whatever the pleasure of the council is, we can entertain your questions now or comments or we can open the public hearing and then entertain that and have questions and comments. What's your choice?

[00:53:01]>> Open the public hearing. So if there's questions that are generated >> Sure. Okay. So at this time I'll go ahead and open the public hearing. Uh anyone wishing to speak, please step forward and state your name for the record.

[00:53:21]Good evening, mayor. Good evening, members of the council. Um, I know that was a lot of word, a lot of number and a lot of percentages. Um, I have about 10 pages in my hand that just for Parkinson's right alone. So, I know that's a lot of information to swallow.

[00:53:36]Um, but I'm also IT project manager by trade. tell processes and and and program and procedure that's my deal and that's kind of thing that um very interesting and so um when I hear about the um when I hear about budget manager Todd putting together a um what is called the community actional partner I sign myself up um so we already gone through about three sessions of that we learn a lot of thing where he just cover a lot of thing um we learn a lot about budget process timeline um you know a lot of thing that you all had just heard about earlier and also how budget eventually get allocated to all the different departments. Um we also get a little sneak peek on how the budget is prioritized um how the prioritize process going and some and also some of the um scoring matrix that you all use to to put together that that list right there. Um so what I'm here to advocate it on is um that was a really good educational opportunity and I do hope that once this session end that might become a regular thing cuz I know a lot of time you may have seen in public forum a lot of people do questions about this kind of thing. Um so I think this really good opportunity for people to actually just come in and learn about these might be boring for some but some might be really interested. There's a few folks that sitting right here that are in the session with me and we're all very interesting about this kind of thing. Um that is number one and number two I'm also in front of you today um as the um the chair of the parks and recreation advisory board and I'm also want to for the budget I also want to advocate for for our department over here for a little bit. Um I know all the departments are important. Public safety is important. Public work is important which is why we have proclamation earlier today. But I also just want to say that um parks and recreation is the department that you actually get to see every single dollar invested in right away, right? We all know that. So um that's why I'm here advocating to you all. Um also want to share a little interesting fact with you all. Our advisory board just met last week and we got an update from our d from director Todd. Um you may or may not know one of the most popular program that our parks and rec put on is the summer camp camp.

[00:56:00]Um 10 weeks to camp and then it's always the most popular programming that we put on by far. Um give you a little statistic. The very first week we're admitting 85 people and we have just as many people on the waiting list waiting to get in. Um there are weeks where we're admitting 95 people adding up more capacity and there are more than 100 family that are still waiting online.

[00:56:24]Why I'm telling you that? I'm telling you that because I'm hoping that you all can consider helping me helping director T here um help fund our parks and recreation. Okay. um fund the department so that we can get more staff so we can execute more program just like camping and also help fund our department by perhaps finding more space finding more locations so that we can turn that into more recreational and park spaces for us to utilize cuz a lot of those people that's waiting on the waiting list and that's just for summer camp we do have a whole lot of other programs too that have waiting list which mean those are the thing that we can bring in we can execute we turn back around and show the town that we actually have a lot to offer as well.

[00:57:12]So, um that's it. Um that's really all I have for you today. Thank you for that.

[00:57:19]>> Thank you, >> Mayor. I'm not sure the clerk got the name and and address.

[00:57:27]>> Yes, they did. Okay.

[00:57:28]>> Okay. Thank you, sir.

[00:57:31]Okay.

[00:57:32]>> Yes. Okay.

[00:57:37]I would just take a minute to address a few concerns I have. First, I'd like to address the current proposed budget increases for the water and sewer. Um, this year, just like in the last 3 years that I've been a resident within the town of Clayton, um, my water rates have increased. Uh when I moved to the into the town of Clayton, my water bill averaged about $75 a month, which was already a shock for me since I came from the county. Um but here we are 3 years later and my average bill is $95 a month. Um and my consumption has not changed. That's a big increase. Um, and you stated that your costs have increased, but when I looked at the 24 to 25 budget, your costs for water and sewer had actually decreased, but the income had soared. Um, so it seems to me that your statement about your cost increasing is not exactly truthful. And I think water is a basic necessity and it's becoming too unaffordable. With the new proposed increases, my water bill will be over $100 a month for just one person. Um, and I can't even imagine what the water bill would be for a family of four. Um, and a lot of times because I live alone, my my Duke Energy bill is lower than my water bill, and I've never had that happen before.

[00:59:04]And as the fact that my water bill is $100 a month isn't bad enough, what makes it worse is that the water is not even drinkable. Um, I can taste and smell the chlorine in the water so much that I can't drink it. I have to had add expenses of filtering my water and buying bottled water for myself and my pets to drink. Um, and I think clean drinking water should be a basic human right, but the quality of the water has just gotten worse and I'm forced to take other measures.

[00:59:38]And the next I would like to address the the growth. Um, I know growth can be good, but it seems overwhelming right now in Clayton and the infrastructure is not keeping up with it at the moment.

[00:59:51]The traffic is becoming worse and worse.

[00:59:53]And it takes longer and longer to get to work due to the traffic backing up. And there's sometimes almost daily where it takes me over 5 minutes just to get through one intersection on my way to work and three cycles of the light. um that becomes very frustrating and I just have real concerns about what's going to happen when we keep adding more businesses and stores and restaurants to the Highway 70. And um I I get frustrated with the fact that there's so many fast food places. Do we really need four chicken places across from four burger places? Um I don't think so. But everywhere I drive in Clayton now, all I see is the orange cones and the barrels and the construction equipment tearing down more trees. And I'd like to know how are we planning to handle this increased traffic due to all the new homes and the stores being built.

[01:00:52]Um, and these things combined with the overinflated housing and rent prices and the soaring tax values are just making it less and less desirable to live in Clayton. Um, I moved from Raleigh to Johnson County 10 years ago and I came here to escape the city life and I wanted a space to breathe and not be on top of everyone and I value nature and green space and I think when I first moved here, Cleveland area in Clayton had that, but due to all the growth, it just doesn't have that vibe anymore and it doesn't feel like the small neighborly town anymore. And maybe that's okay for some people, but for me it's becoming a little bit overwhelming.

[01:01:36]Um, and to me it just seems like with the budget increases and the growth, it just feels like it's all just about the dollar signs to me. And I think it's just a lot of it is greed.

[01:01:51]And it's not for the well-being of the citizens. costs are going up, but it seems like it's only going up for the citizens, not for the government and corporations like Duke Energy and Walmart and Geico. If your costs were truly increasing, then your net financial position would remain steady.

[01:02:06]Instead, the profits are increasing exponentially.

[01:02:11]And as you review these budgets and make decisions for everyone that it will affect thousands of people, I would just ask you to consider, are you really doing what's in the best interest for the citizens or are you just doing it out of greed to be in a better financial position at the expense of the citizens?

[01:02:30]So, >> and and can I get you to state your name for the record? Oh, >> Cara Chester.

[01:02:35]>> Thank you.

[01:02:35]>> Thank you.

[01:02:36]>> Yes, I have.

[01:02:43]Anyone else?

[01:02:51]>> Good evening, Mr. Mayor, and congratulations from me, too.

[01:02:55]>> Thank you, >> members of the uh town council. Okay. I think it's pretty clear that this uh this town has uh has been growing and because we're growing and because we live in the United States and because there's an inherent inflation, obviously things are going to go up from time to time. I wanted to give my own personal congratulations to those who put this budget together for the constraints that they showed. However, that doesn't mean that I'm completely happy. And I'd like to just express my own uh disappointment at what's going on with the water situation. And the water situation, as the lady before me said, and by the way, for the record, I'm John Scarpa. I know you know who I am. The thing is that um growth is something that uh we all recognize is happening. The question is at what speed will the board will the will the town allow it to happen and what priorities we should give in terms of the budget. Okay. So last year I think it was I asked uh Mr. Capola to give me an analysis and he did in in a public forum just like this as to whether or not residential housing uh adds to the budget or takes away from the from the budget crisis that that we face. And it turns out that we need way way more industrial and we have to hold back a little bit on our uh our development of additional open lands into living area.

[01:04:36]You know, you've heard me every single time I come up and get the chance to talk about trees.

[01:04:42]We need to preserve them. If we preserve the trees, we preserve the water, too, though. You know, it's an e ecosystem that is it goes hand in hand. I agree with the with the lady who spoke before me. The water quality has gone down a little bit. I know we were doing some mandatory treatment of the water and that contributes to the uh to the flavor of it. Hopefully that'll return. Uh, but I'd just like to once again just say I appreciate the efforts of every one of you in trying to keep the constraints on the budget, but the water situation is something that is of great concern and perhaps we can maybe figure out some place to supplement uh the water so that if you got a cut someplace, let's make sure people can still drink. Okay? and then take it from some other place, you know, and supplement uh the the water budget by, let's say, taking it from uh parks and recreation is not what I meant to say, but it's it's a place where you could look. I'm not saying that you should look there, but there's got to be some other place in the budget where we can make sure that our fellow citizens can afford the water that they have.

[01:06:00]It's it's ridiculous that the water costs more than an electric bill. I I think that's unacceptable.

[01:06:06]Those are my thoughts and once again, congratulations, Mr. Mayor.

[01:06:10]>> Thank you. Thank you, John.

[01:06:14]Anyone else?

[01:06:22]All right. No one else wishing to speak right now. I'm going to turn it back over to the council so they can have their uh say for the record in so far as the public um hearing goes. So, um, we'll start with you, Mr. Mr. Council Member Casey.

[01:06:35]>> Um, Mr. Mayor, um, I do I know the public hearing is open. I request that we keep the public hearing open and we continue the public hearing till next uh council meeting. I know we have to vote to be, you know, within the timeline to make sure we have a a budget um, as expected, but could we keep could we please keep the public hearing open and uh, give the citizens uh, an opportunity to come and speak some more about this if if possible? And I kind of, you know, I also want to say obviously there's a lot of people here tonight and I appreciate that. That shows that people care and people are paying attention and uh thank y'all and thank y'all for the comment. So I don't know if we need to make a don't make a motion on that, but I if that's the will of the other council or will of yourself, I hope we could do keep that.

[01:07:17]>> Well, I wish it were the will of myself, but fortunately I'm just a mayor, so it is the people who vote up here. So, um, if there is a general consensus for this to continue until the next meeting, then, um, I think we certainly can do that, but I wouldn't need to know if that's good. Yes. And Miss Williams, yes. So, we can definitely, for the record, have this continued until the next town council meet.

[01:07:41]>> Thank you. Thank you. And other thing, too, to add and obviously I know the staff uh posted something on Facebook.

[01:07:46]Um, could we just could we also just, you know, maybe do another post suggest, you know, noticing or not noticing but letting informing them that the public hearing is still open and reference that uh link that Todd did a great job uh presenting on uh his presentation. So anyway, that's that. Thank you all.

[01:08:05]Appreciate that. I do have some kind of just general thoughts and comments and excuse me if I'm all over the place. Um I will say budget season's stressful. Um it's stressful for definitely the citizens. It's stressful for us up here on council and it's stressful for staff and and whoever in the hell thought we should do a um public official pro you know week or whatever the same time as budget season uh must be playing some sort of joke because this is uh appreciate the proclamation and you know I know we didn't do that but um um anyway it's just kind of kind of crazy but anyway um you know a couple things too um again I you know I look at this budget every time I see I I see something different, see something, you know, that I have a question about, but you know, I know it it's it makes my head spin. So, the fact that we have a staff and we have a team that, you know, obviously are dedicated to try to do the best that they can um in an area and in a town that's growing very overwhelmingly. Yes. Um you know, is is is important. So, there's a lot of obviously trust and um you know, a lot of lot of uh attention to that. So I know Todd appreciate I know your job's not easy. Um so I just want to I want to leave at that and thank you um and for rest of rest of staff. So I did have a couple questions as well. Um I also have some more comments. Again I said I'm all over the place so please forgive me. Um I did notice on the uh the budget that there was um in our electrical enterprise there was a a decent equipment increase up from prior year.

[01:09:39]Um, for people that were on the budget, it was page 70, 78 and 79, uh, 52-53 and 52-60. Could you kind of go over that? I think you touched base on it a little bit. Um, and I think it may have something to do obviously with some peak shaving and all that, but um, don't I know you're not the electrical guy, but if you just maybe highlight the if people notice that bump um, it it kind of explains it.

[01:10:05]>> Yeah. Uh, thank you, Councilman Casey.

[01:10:08]uh that that those two lines make up the entirety of the generator project that we spoke about a little bit earlier. So that includes um some pretty hefty maintenance of the generators to get them ready to to perform this duty. Um some I don't know equipment I don't speak that language very well, but some equipment upgrades switches switches switch upgrades for the generators. Uh and it is it is a front-loaded uh cost to get those things to get them ready.

[01:10:36]Um, so that that's th those two lines make up that entire request.

[01:10:41]>> Okay. Thank you. So, obviously there's an intent there to to to hopefully help mitigate or subsidize some of the electrical cost. Um, anyway, the other thing I had too, so just so people know, and I know some people have heard this and some people that are new in the audience, so I I get the utility rates, they s they in seem like they increase time and time again.

[01:11:03]um they are on our enterprise fund and please forgive me I just want to kind of throw this out here real quick. So an enterprise funds like our utility and water and sewer are funds that are outside of our general funds and so basically like you know if you know it was our you know our own personal account they have to basically stand up on their own. So in other words, those funds, the water, sewer, the utility, all that, you know, they have to make a, you know, they have to break even.

[01:11:30]Otherwise, if they don't break even, that's bad, right? That means they're negative. Um, and then, you know, that's a best practice. And you could essentially use the general fund to help subsidize those funds, but again, that's not recommended. And, you know, if you want to talk about that, Rich, you can, but that's just not a good practice. So yes, the utility fund and the electric fund, the water sewer is just just an unfortunate issue that um and stressor that the town has to uh has has to contend contend with. Um is that good?

[01:12:03]Okay. Yeah. So anyway, um have that um let me let me jump in just a second because I think you make a valid point.

[01:12:09]So I think it's important for everybody to be able to understand that the water and sewer enterprise fund and the electric fund enterprise fund both of those entities create profit but those profits have to stay in those enterprise funds. So, we can't take profits from electricity and expand park and recreation, or we can't take the water and sewer and use that to build a new facility uh for public use. Like, they have to stay in there. And there are guidelines that require us to keep those um adequate funding for both of those enterprises. And I think a lot of us have seen lately uh some municipalities across North Carolina who have not charged enough to even break even. And now those municipalities are in really dire need when it comes to the finances of their town and community. And it's going to take a few years for them to rebound from that. So that's just uh educational information only. Uh but I thought you brought up a valid point. I just want to offer some clarification.

[01:13:17]>> Yeah, thank you. Thank you. Yeah, thanks for that additional input too. Um, so there there's that. Um, you know, and please I mean still the feedback is important. I think you know obviously the comments about the rates. I mean I I assume you have a lot of information to back up regarding the rate increases that we're getting. And I would also say too that our our water we also we buy Porter buy not Porter I'm porter we buy water from the uh the county and also we do we buy it from the city of Raleigh too. Is that correct?

[01:13:50]>> So technically all the water is purchased through the county. However, the county does have an agreement to purchase water through the city of Raleigh which the connection basically is at the county line on 70. So the water that's being purchased by the county from the city of Raleigh is really feeding our system. So on the on the western side of our Okay. And I know so we also we had an email and then we also had this this this lady um I appreciate her comments. So the the the challenge is I guess if there's challenges with the water quality, it's I hate to say it, not I guess misery loves company. It's kind of like every everybody around us is experiencing that same challenge. Is that safe to say?

[01:14:27]>> Uh yes. And I do think you know I think Mr. Scarpa kind of mentioned it. You know, there's a period of time here early in the year where there is a it's called a burnout or it's a disinfection process where there is a significant amount of chlorine added to be able to essentially clean the pipes and everything that the water flows in. So, uh, it's about 45 days, I believe, or so, plus or minus, that the county typically runs that. So, for that period of time specifically, uh, the water may have a a different taste than it does normally. Uh, but to your point, uh, our staff is is, uh, required by our by by permit, by our utility to to test the water uh, at various intervals and provide that data to the to the state to ensure that we are meeting the water quality standards. And to my knowledge, we have been continuing to meet that.

[01:15:14]Um, but we can certainly talk to uh the county about any other opportunities for any improved water quality levels. Uh, I do I do know that they have different disinfection um uh methods than the city of Raleigh. So, it's also possible that two different sides of our system could experience different different water effectively.

[01:15:34]>> Okay.

[01:15:34]>> So, there there is some variation in our system with that regard.

[01:15:37]>> Okay. Thank you. Thank you. Um, next thing I had, I know it was it was kind of mentioned by some in the community regarding um the colas and the cost of living. Um, you know, I guess because we're considered kind of town staff, you know, that cola applies to elected officials, too. Um, you know, that's just kind of, you know, it's kind of a sensitive subject, but I just wanted to kind of bring that up. Um, you know, for for me personally, I don't take this for the paycheck. Uh, you know, and I could imagine the rest of the people on council here, um, do the same thing. You have that same mentality. Um, and I also want to just add, you know, there's a lot of expense, you know, and sacrifices. um you know that you know we have you know there's there's there's gas there's there's there's there's parking fees there's other expenses that are cost to like going to a bunch of different meetings that we have to go through all over the county all over the the triangle area and even all over the state. So um I you know I'm safe to say that you know for me and I imagine others a lot of those fences we just eat ourselves um as we do this job you know as we try to do it for the community. um you know so I can't speak for everyone else but you know for me yeah I'm happy to cost you know this cola that uh is being passed on the staff and everyone else at least for my me personally I I'll be happy to use that as a you know part of my philanthropic um endeavors in in the community. So just wanted to kind of throw that out throw it out there. Um other couple things I had is um you know um I appreciate the parks and recck comments. I was happy to see on the budget that there was uh some increases in the uh parks and recreation special events. So I did see that there is you added some some of that there. Um it is painful to see some of the fuel increases that we've had to incur uh due to some unfortunate circumstances that are facing everybody not just the town but the entire community. Um and um you know you know anyway that's kind of I guess that's it. Again, I said appreciate what's been done and um you know um I know people in the community are struggling. I think the there's a lot of people in the whole country that are struggling and uh it it makes it more difficult when you're in a you're not in only in a town but in a uh a whole area that is struggling with growth too and um I think it just kind of exacerbates those challenges. But I do appreciate staff and you know I'm glad the hearing is open and if there's any other comments please please please reach out to us and so anyway thank you.

[01:18:15]I'm done.

[01:18:16]>> All right. Thank you sir. Can >> can I uh Mr. Mayor I'm sorry.

[01:18:20]>> No go ahead.

[01:18:21]>> Um just a note on when we're talking about profits in the in the enterprise fund. I just want to be clear that our goal is not to have a profit in the enterp in the utilities. If we are making if we are bringing in more money than we're spending, it's because we are long-term planning for some of these big projects. We've all heard about the huge county water supply project that's looming down the road. We have two different options for us to gain more access to water for our growing community and we have to plan for those starting now, right? And if if that project those uh the big project may be I don't know five years down the road or more I don't know how many years it is but if we waited until that year to pay for this thing it would be astronomically more expensive and so it may look like technically it is a profit revenues over expenses is a profit I think if I remember my accounting classes correctly but we're not in this to be making money to be making a profit I just want to point that out and I know um not anyway that's No, but I think your point is well taken in that there has to be some um act u ext extra revenue in there because like for example this budget season that we're speaking of, right? So the county is increasing our cost by 10%. Like so the county is like the only water it it is our primary water provider. Okay, they're charging us to charge the town of Clayton 10% off the top extra starting with this new fiscal year, right? But we're only doing an 8% 8.3%.

[01:19:59]So, because there's extra funding in that enterprise fund, the town of Clayton is able to help offset where we don't have to do a full 10%. Right?

[01:20:09]We're able to, you know, and I know that's only 2%. But it's something, right? And that's what we're trying to do. I I think that's important for people to understand and to recognize because the count if the county extends you a 10% increase, that's not negotiable.

[01:20:30]That's what you will pay, right?

[01:20:36]All right. Um, Miss Anders, >> I just wanted to add to that while we're talking about our enterprise and community funds and and I'm not going to call out the name, but I watched a um a town council meeting of one of our community neighbors. And the town manager put it extremely eloquently about the the problem they have because rate hikes weren't passed on as they were given. and they had to they had to um go into those funds to um help um whatever the word is I'm looking for to add to the to the amount that those rates were costing because they weren't passing the increases on and they ended up with no funds left. And and I remember his statement, it stuck with me. It was profound and I felt very grateful to how our town is managing these things. Um, and he said that when that really bad ice storm was projecting to come through because they didn't have any enterprise and cushion funds is what I call it. Um, if one line had gone down in that town, they had no money to repair that line. We do not that was that was a staggering statement to me.

[01:21:50]If if our if their water treatment sewage plant had gone down, they had no money to make those repairs. So he didn't sleep for a lot of lights nights.

[01:21:59]Luckily that storm did not come through.

[01:22:02]But that really stuck with me as to how we're managing these funds and these cushions cuz that's what I call them. We don't want to be left in a position where we can't make repairs to something that a hurricane comes through and damages. An ice storm comes through and damages. Um I I feel very grateful we're all paying these rates. I'm paying these rates. Everybody up here is paying these rates. Um, nobody likes increases, but we've got to do the due diligence for our community to make sure that we can make the repairs and be good stewards of our system. Um, and I think that's I think that's critical and and I appreciate the job that's being done.

[01:22:44]>> Thank you. Anyone else?

[01:22:50]>> All right. No one else from council, then I want to uh give the floor to our town clerk because we had a couple of items uh that were requested to be entered into the record for this public hearing.

[01:23:05]We have received um excuse me two emails, one from Jacqueline Jones and Candace Russell about this um this budget item and these will be entered into the minutes um for the May 18th minutes.

[01:23:23]>> All right. Thank you. So, both of those has been recorded on the record will be entered for council consideration uh expressing their concerns.

[01:23:36]All right. Anyone else?

[01:23:40]>> All right. Yes.

[01:23:42]>> For the record, I do want to state that council um all of council and the mayor has received a copy of these comments and they have been read. So, just wanted to state that.

[01:23:52]>> Thank you. Thank you for the clarification for the record.

[01:23:56]All right. Anyone else?

[01:23:59]Anyone else in the uh in the audience?

[01:24:01]Anything else you want to contribute?

[01:24:03]>> Yes. Would you please step forward and state your name for the record?

[01:24:15]>> My name is Shar.

[01:24:19]>> I'm sorry. My name is Lean Sharpless and I've been a resident of Clayton for almost 20 years. This June will be 20 years. And um I was reading the news and I found out about the increase that was coming up for public utilities. Um and I wanted to comment on that one. Uh we moved here retired military to this small town almost 20 years ago and raised our family here and I have enjoyed all of the improvements that have taken place. um the park right across the street, everything is great.

[01:24:58]But as we get older, and we are senior citizens now, every time that they see an increase in or we see an increase as seniors or people on a fixed income in these different areas, it affects us all around. Um I am blessed to still be working and I'm glad to do that, but my husband is retired completely. If we were both at that stage, I just received a utility bill that was $634.

[01:25:33]And it has nothing to do with electricity or water or sanitation. It all boiled down to sewage, which was $234.

[01:25:46]Now my question is or my statement is how much do you believe is acceptable for people in not just in the seniors category but those people who are trying to start a family maintain their home in this area that purchased it 15 20 years ago or even recently. Um how much is it going to be where you say we will not tax the citizens? Um, we've supported all of the advancements. This I do not support. Now, I I do remember getting it in the mail. You know, you voted for it.

[01:26:26]Do you want the waste treatment plant?

[01:26:28]And I did. I love it. It's great. The odor is atrocious. But I live with that because I say it's the greater good. I do not see the greater good in this.

[01:26:39]There must be another way. add more competition to different things that we do solely here. I don't know. Um but to continue to do it, if we do it this time, next year there'll be something else. And you've noticed when I moved here it was like 18,000 people. Now it's getting close to 50,000.

[01:27:01]Uh Clayton Clayton is starting to look like Raleigh and Smithfield is starting to look like the Clayton I used to know.

[01:27:10]I'm okay with some advancement. I like what we see downtown, but I do not believe that the cost of more should be put on the people that have done what we've done the last 20 years to bring us where we are now. Find another way.

[01:27:28]That's all I have to say.

[01:27:29]>> Thank you.

[01:27:35]>> Anyone else?

[01:27:38]All right. Since that's no one else, we're going to um hit the pause button on the public hearing for the budget meeting and we will pick this up at our next meeting in two weeks. Uh thank you all for your input. Up next under old business will be the 2025-41 CZM Arbors at East Village phase 2 type 3 conditional reszoning.

[01:28:05]And I believe yes sir, Mr. Yes, sir. Mayor, good evening. Good evening, council. Give me one second.

[01:28:18]Load this presentation.

[01:28:30]All right. So, this is conditional reszoning project 202541 CZM, the arbors at East Village. Um, you last heard this project on at your April 20th meeting. At that time, you all decided to close the public hearing, but wanted the applicant to provide some revisions based on the discussion you had. Um, so tonight, I'm going to have a really quick presentation. I have a couple um recommended action items for you all, but want to kind of just share history of the board and council progression for this project.

[01:29:00]So really quickly, um this resoning request went to the planning board at at the February 23rd meeting. At that time, it was provided with a recommendation of approval by the planning board.

[01:29:12]Subsequently, it um arrived at the town council agenda on the May March, excuse me, 16th public hearing. Um that's where you opened and continued the public hearing to April 20th. Then on April 20th, your last meeting for this case, um the public hearing was closed.

[01:29:32]Now, the applicant did decide to make some revisions based on the discussion from April 20th. They provided the updated concept plan and conditions of approval to staff um on May 4th. Now, what's important is that um because they did provide revised conditions and concept plan, you all will need to reschedule a public hearing um and authorize staff to um revertise that public hearing. So, today um your action items are you have two options. Um, your first option is what staff and the applicant is recommending and that is to schedule that new public hearing for July 20th and authorize staff to readvertise the notice for the public hearing or you still have the option on the table to continue discussion based on the contents that were presented to you prior to today and May 4th. So, whatever you heard on May on sorry, whatever you heard on April 20th is um the action items that you can decide on today. So, your agenda packet does include no new information. Um, just only the ordinance and information that you were provided on April 20th. So, again, you have those two options. Um, but staff and the applicant is recommending that you schedule the new public hearing for July 20th. I'm available for any questions.

[01:30:45]>> All right. Any questions or comments for staff?

[01:30:50]>> Hearing none, I'll entertain a motion to schedule a new public hearing. I'd make a motion that we uh reschedu and make create a motion to have a hearing on July 20th on this issue on the arbors at East Village and allow staff to advertise that.

[01:31:10]>> Yes.

[01:31:10]>> Thank you.

[01:31:12]>> Second.

[01:31:13]>> We have a motion and a second to schedule a new public hearing on this item for July 20th and to authorize the town staff to advertise a new public hearing. Is there any further discussion? All in favor say I.

[01:31:26]>> I.

[01:31:31]>> Oppose. Like sign on.

[01:31:33]>> Motion carries. Thank you.

[01:31:38]Uh up next, since there's no new business, we'll jump down to public comment. Anyone wishing to speak, please step forward and state your name for the record.

[01:31:47]This is on any topic. Three minutes.

[01:31:53]>> Anything, Mr. mayor.

[01:31:56]>> We got to turn your mic on, sir.

[01:31:59]>> Hi. Congratulations, Mr. Mayor. Dave Stamp 465 Rolling Meadows Drive. Um, just a question. Uh, on one of the consent things was the uh contract for the special resource officers and I noticed that there seven resource officers on that and where they were going to. And one of the schools that was not least listed is East Clayton Grammar School is not listed to have an SRO. And my I only have the question of why >> East Clayton Elementary.

[01:32:33]>> East Clayton Elementary.

[01:32:34]>> Okay.

[01:32:35]>> Uh all the other schools that look like that in Clayton were listed but not East Clayton Elementary. West Clayton Elementary was listed but not East. And I was just wondering why was East Clayton Elementary School not included on the list for an SRO?

[01:32:50]>> I thought we had SRO in every school in Clayton public.

[01:32:55]>> I'm just going by what was on the >> not private school?

[01:32:59]>> No, I was going to say Meredith may have to fact check me here, but I believe East Clayton is not annexed into the town of Clayton. Therefore, we do not have police jurisdiction.

[01:33:06]>> Um, I believe the sheriff's office covers that, but I I'm not >> Boom. Thank you, Meredith. So, they do have an SRO. It's just not the town of Clayton officer because um their property is still technically that that school is still in the county's jurisdiction. So, >> so it's funded through the county taxes.

[01:33:25]>> It was just curiosity. Thank you very much.

[01:33:27]>> Yeah, no problem. Great question. To my knowledge, all the all the schools that our residents do attend as well as correct including the charter school uh because we do provide one in the charter school because it is it is annexed into the town. So, I believe all schools have SRO's at this point.

[01:33:41]>> Okay. Thank you.

[01:33:42]>> Thank you. Anyone else?

[01:33:47]>> All right. No one else wishing to speak.

[01:33:49]I'll jump down to staff reports beginning with town manager.

[01:33:54]Well, uh in all honesty, I did not pro uh create a whole bunch of manager comments for this evening because I wasn't sure how the public hearing was going to go as uh for both of these items. Uh but I did just want to say uh I appreciate the public coming out and taking part in our budget uh p uh public hearing. I think, correct me if I'm wrong, Todd and and Nathaniel, but I believe this was the first time we actually ever had somebody come speak at the mic during our public hearing. So, um, appreciate the actual uh, feedback.

[01:34:21]So, um, big milestone for us in that regard and look to hear look forward to hearing any other comments uh, June 1st.

[01:34:27]Thanks.

[01:34:28]>> Town attorney, no report. Mayor, >> town clerk, >> no report.

[01:34:33]>> Other staff I don't think we've ever had a reaction like that.

[01:34:42]>> No.

[01:34:43]>> Well, it's the first official staff report now that I'm officially here. Uh, good evening, council members, members of the public. My name is Lauren Box, assistant director for the parks and recreation department. Um, I'm here in my, like I said, first official report.

[01:34:56]Um, to share some small but big things on behalf of the department. So, recently we just hired our first inclusion supervisor, Mackenzie Doich.

[01:35:05]She comes from a neighboring municipality and she'll be supporting our inclusion efforts or therapeutic recreation programs along with our senior programming um at the hopefully soon to be named uh new facility uh and at Clayton Community Center as well. As part of her efforts um we have two community feedback forms that have gone out to members of the public. Um this is available on our social media platforms uh and on the department website under adaptive uh recreation programs and services. So there's one specifically designed for individuals um trying to understand their accessibility adaptive recreation needs um as well as our senior services uh population. So, those are out and available through the end of May for the accessibility and therapeutic recreation survey as well as our senior survey which will close that first week of June. So, really want to encourage folks to give us their feedback to inform our programs and services. Members of the council, you all received a copy of that survey um along with some flyers and other tidbits about the website as well. So, thank you.

[01:36:12]>> Awesome. Thank you. Questions or comments?

[01:36:15]Thank you.

[01:36:19]Uh, now jumping down to other business for mayor and council comments.

[01:36:26]Got nothing. All right, we're all good.

[01:36:28]Thank you so much. Uh, well, if that is the case, then that pretty much clears up our agenda except for the close session and this council will be going into a close session to discuss a legal matter, uh, to discuss purchase of real property and to discuss a personnel matter. So at this time I will entertain a motion to go into close session.

[01:36:48]>> So moved. Second.

[01:36:49]>> All in favor say I.

[01:36:50]>> I.

[01:36:51]>> Motion carries. So thank you all for joining us tonight. And if you'll please clear the room.

[02:49:28]back in regular session. And at this time, I'd like to give the floor to Mayor Pro Tim Archer.

[02:49:33]Mr. Mayor, based on the excellent results of the most recent performance evaluation of the town manager, I move that we pay him a onetime bonus of $10,000.

[02:49:45]We have a motion. Do I hear a second?

[02:49:47]>> Second.

[02:49:49]>> Is there any further discussion? All in favor of the motion say I.

[02:49:53]>> I.

[02:49:54]>> Opposed like son. Motion carries. Thank you. Is there any other business to come before this council hearing? None. I'll entertain a motion to adjurnn.

[02:50:04]Second.

[02:50:04]>> All in favor say I. Oppose. Like sign.

[02:50:07]Motion carries. Good night. Thank you.