BUDGET HEARING and SPECIAL BOARD MEETING of June 27, 2007, with Mayor Don Mullen and Commissioners Amy Patterson, H. N. James, Hank Ross, Dennis DeWolf, and Alan Marsh present.

Also present were Richard Betz, Lamar Nix, Kim Lewicki, Linsey Wisdom, King Young, Janet Young, Robert E. Smith, John Dotson, Bob Kieltyka, John Cleaveland, and others.


A.    Budget Hearing.

The Mayor called the Budget Hearing to order at 7:00 p.m., and stated that this was the time and place to receive comments from the public on the FY 07-08 Budget, as presented on May 30, 2007; notice had appeared in The Highlander newspaper pursuant to law.

There were no comments, and the Mayor closed the hearing.


B.    Special Board Meeting.

I.    The Mayor called the Special Meeting to order at 7:01 p.m.


II.    Approval of Agenda.

Copies of the agenda had been distributed.

MOVED BY COMM. DEWOLF, SECONDED BY COMM. MARSH, AND UNANIMOUSLY CARRIED TO APPROVE THE AGENDA AS DISTRIBUTED.


III.    Business.

1.    The Board reviewed the Ordinance amending the FY 06-07 budget, copies of which were distributed at the meeting.  The Town Administrator explained that the purpose of amending the budget was to satisfy auditing requirements by adjusting estimates used to prepare the original budget and to recognize decisions made to fund new projects during the fiscal year.  Numbers used for the amended budget were only estimates; actual revenues and expenditures would be reflected in the audit.

MOVED BY COMM. JAMES, SECONDED BY COMM. MARSH, AND UNANIMOUSLY CARRIED TO ADOPT AN ORDINANCE TO AMEND THE BUDGET OF THE TOWN OF HIGHLANDS FOR THE FISCAL YEAR JULY 1, 2006 THROUGH JUNE 30, 2007.  A copy is attached hereto and made a permanent part of this record.

2.    The Board reviewed the proposed FY 07-08 budget, copies of which were distributed at the meeting.  The Town Administrator reported that he had incorporated the items identified at the budget work sessions into the new budget and budget message, including the additional tax increase.

MOVED BY COMM. PATTERSON, SECONDED BY COMM. DEWOLF, AND UNANIMOUSLY CARRIED TO ADOPT THE TOWN OF HIGHLANDS BUDGET ORDINANCE FOR THE FISCAL YEAR JULY 1, 2007 THROUGH JUNE 30, 2008, WITH AN AD VALOREM TAX RATE OF 0.135 PER $100.00 VALUATION, AS PRESENTED.  A copy is attached hereto and made a permanent part of this record.  

3.    King Young, a member of the Pine Street Park Committee, was present and reviewed the history of the Pine Street Park purchase.  Committee member Robert E. Smith then reported in some detail on the results of the public meetings held to receive comments on several proposals for the Park; copies of three different conceptual plans were distributed, together with a detailed summary of the comments.  Comm. Ross said that the Committee had gathered information but had not yet studied the parking issue or possible street closing and how if impacts the area; he thought that should be done before a final decision was made.  At the request of Comm. DeWolf, he also distributed information on the number of people the Park could contain under various conditions.  King Young said that the Committee planned to continue raising funds until a plan could be agreed upon.

4.    Mitchel Sorin and John Fisher reported on their progress with the Town Hall Architectural Study to date.  Mr. Sorin said they were still in the beginning stages of design, gathering information on space requirements, but they had generated some general ideas and done a site analysis.  The space required was between 8,000 and 9,000, and if the Chamber of Commerce Visitor Center was included, between 10,000 and 12,000 SF; the footprint of a two-story building would thus be 5,000 to 6,000 SF.  They then reviewed a developing conceptual design showing a new Town Hall building located at the eastern portion of the property, with its main entrance accessed from a parking lot in the center of the property where the ABC store is now located, and a lower level possibly off a small plaza containing public restrooms, Visitors center, ticket kiosk, and secondary entrance to the main level.  Comm. Ross wondered if the Town had an obligation to provide office space for the Magistrate, a County official; it was pointed out that the office could be moved to the existing Police Station.  Comm. Ross thought that a parking study needed to be done, and asked about resources, using interns or others.  Comm. Patterson thought that traffic flow also needed to be studied.  The Mayor said that the D.O.T. was seeking funds to update the Thoroughfare Plan.  The Board agreed to think about the information presented and forward comments to the architects.


IV.    MOVED BY COMM. MARSH, SECONDED BY COMM. DEWOLF, AND UNANIMOUSLY CARRIED TO ADJOURN.

There being no further business to come before the Board, the meeting was declared adjourned by the Mayor at 8:45 p.m.



                         ________________________________
                        Richard Betz, Town Clerk
































    AN ORDINANCE TO AMEND THE BUDGET OF
    THE TOWN OF HIGHLANDS FOR
    FISCAL YEAR JULY 1, 2006 - JUNE 30, 2007

BE IT ORDAINED by the Board of Commissioners of the Town of Highlands, North Carolina, assembled this 27th day of June 2007, that the Budget of the Town of Highlands, Fiscal Year 2006-2007, be amended as follows:

SECTION I:  General Fund              FY 06-07 Budget      Amended
 
Revenues Anticipated:

    Franchise tax                      $     45,000  $   70,000
    Local option sales tax                750,000      802,000
    Utility penalties & interest              7,500       11,000
    Tax penalties & interest                  6,000        7,000
    Gasoline tax refund                       6,000       10,000
    Tax on Rental Vehicles                  1,000         100
    Zoning certificates                     50,000       61,000
    Gain on Sales of Equipment              1,000           0
    Vehicle Tax                              25,000       32,000
    Prior years ad valorem taxes             13,000       15,000
    Current year ad valorem taxes           2,101,875    2,151,000
    Fund balance appropriated Sanitation    103,876           0
    Sanitation collection fees            488,124      482,000
    ABC store revenues                     96,000        5,000
    Privilege License                      7,500       10,000
    Reimbursement for insurance             24,500       23,000
    Miscellaneous receipts                 30,000       35,000
    Administrative overhead                   67,000       67,000
    Interest (General)                    125,000      111,000
    Cable TV Franchise Fees                 34,000       24,000
    Antenna revenues                     10,000        6,000
    Governor's Crime Commission Grant                     1,800
    Court costs & fees                        500          100
    Interest (Powell Bill)                    3,000        6,000
    Bowery Road Escrow Interest              4,000       14,000
    Fund balance appropriated General        45,000           0
    Chamber of Commerce——Restrooms/Rent      10,000       10,000
    Fund balance appropr. Bowery Rd. Escrow 300,000           0
    Powell Bill allocation                 50,000       51,000
    Fire Department Fire District Tax       288,000      292,000
    Other Fire Department Income                       60,000
    Recreation fees                     26,000       51,000
    Interest (Recreation)                  2,000        6,000
    Macon County contribution Recreation    500,000      124,000
    PARTF Grand                          70,000       70,000
    Fund balance appropr. Recreation        218,000      381,125

    Total:                           $5,508,875  $4,991,125



SECTION I:  General Fund              FY 06-07 Budget      Amended

Expenditures Authorized by Department:

    Administration                      $1,360,250  $1,380,000
    Fund balance increase                 218,000           0
    Transfer to Cemetery Fund                21,500      21,500
    Transfer to Town Hall Fund              110,625      110,625
    Law Enforcement                    861,000      932,000
       Fire Department                       288,000      221,000
    Street Department                   1,191,500      820,000
    Powell Bill Fund                     50,000       65,000
    Sanitation Department                592,000      646,000
    Recreation Department                   816,000      795,000

    Total:                          $5,508,875  $4,991,125


SECTION II:  Scholarship Fund          FY 06-07 Budget      Amended

Revenues Anticipated:

    Interest                          $   21,000  $   33,000
    Contributions to Endowment Fund          40,000       39,000
    Unrestricted Contributions              1,500        1,500
    ABC Revenues                          4,000            0
    NC Beverage Tax Revenues                  4,000        4,000

    Total:                          $     70,500  $   77,500

Expenditures Authorized:

    Scholarships Disbursed              $     32,400  $   30,000
    Scholarship Fund Raising Expense          1,000           0
    Contribution to Scholarship Reserve     37,100       47,500

    Total:                          $     70,500  $   77,500

SECTION III:  Cemetery Fund          FY 06-07 Budget      Amended

Revenues Anticipated:                    

    Sale of Lots & Columbarium          $      4,500  $    8,000
    Charitable donations                  3,000        2,000
    Contribution for Perpetual Care Fund      2,000        6,000
    Interest on Investments                  1,000        1,000
    Transfer from General Fund             21,500       21,500

    Total:                          $     32,000  $   38,500

Expenditures Authorized:

    Operations                      $   30,000  $   32,000    
    Capital Outlay                              0              0
    Contribution to Perpetual Care Fund      2,000        6,500

    Total:                          $   32,000  $   38,500    

SECTION IV:  Water & Sewer Fund      FY 06-07 Budget      Amended

Revenues Anticipated:

    Water:

        Water Charges                  $1,092,000  $1,089,000
        Sale of Materials                  3,000        4,000
        Connection fees                  40,000       21,000
        Miscellaneous revenues                2,000        1,000
        Interest income                     24,000        4,000
        Transfer from General Fund          50,000            0

        Water total:                  $1,211,000  $1,119,000

        Sewer:

        User Charges                  $    300,000  $  295,000
            Connection fees                125,000       34,000
        Interest income                 21,000       33,000
        Fund balance appropriated        232,000      230,000
        Interest income                      40,000       40,000
        
        Sewer total:                  $  718,000  $  632,000

    Total Water & Sewer Revenues:          $1,929,000  $1,751,000
    






Expenditures Authorized:

    Water:

        Water operations              $1,104,000  $1,043,000
        Administrative overhead             20,000       20,000
        Contribution to Water Reserve Fund     12,000       12,000
          Capital Outlay                     75,000       44,000
        
        Water total:                  $1,211,000  $1,119,000

    Sewer:

        Sewer operations               $    329,000  $  343,000
        Transfer to Capital Project Fund   252,000      252,000
        Administrative overhead             12,000       12,000
        Contribution to Sewer Ext. Reserv  125,000       25,000

        Sewer total:                  $    718,000  $  632,000

    Total Water & Sewer Expenditures:      $1,929,000  $1,751,000


SECTION V:  Capital Projects Fund    FY 06-07 Budget      Amended

Current Year Revenues & Financing Anticipated:

    Transfer from Electric Fund          $  252,000  $  252,000
    
    Total:                          $  252,000  $  252,000

Current Year Expenditures Authorized:

    Harris Lake Sewer Project            $  252,000  $   50,000
    Fund Balance Increase                             202,000

    Total:                          $  252,000  $  252,000

SECTION VI:  Electric Fund           FY 06-07 Budget      Amended

Revenues Anticipated:

    Electricity Sales                  $3,000,000  $3,079,000
    Sale of materials & equipment              5,000        3,000
    Temporary connection fees              2,500        2,000
    Sales Tax on Electricity                 89,000       91,000
    Pole attachment fees                 40,000       40,000
    Miscellaneous revenues                 10,000        3,000
    Interest income                      40,000       75,000

    Total:                          $3,186,500  $3,293,000

Expenditures Authorized:

    Operations                           $1,023,000  $1,048,000
    Purchase of power                   1,600,000   1,700,000
    Contribution to Electric Reserve Fund   160,000     160,000
    Administrative overhead                 35,000       35,000
    Capital Outlay                          368,500      350,000

    Total:                          $3,186,500  $3,293,000

This Ordinance adopted this 27th day of June, 2007.



                                                                 
                            Don Mullen, Mayor     

Attest:



                                       
Richard Betz, Town Clerk
    TOWN OF HIGHLANDS
    BUDGET ORDINANCE
              FISCAL YEAR JULY 1, 2007 - JUNE 30, 2008

BE IT ORDAINED by the Board of Commissioners of the Town of Highlands, North Carolina, assembled this 27th day of June 2007, that the following fund revenues and departmental and/or fund expenditures be adopted:

SECTION I:  General Fund
 
Revenues Anticipated:

    Franchise tax                      $     50,000
     Local option sales tax                750,000
     Utility penalties & interest              9,000
    Tax penalties & interest                  4,500
    Gasoline tax refund                       8,500
    Tax on Rental Vehicles                    500
    Zoning certificates                     50,000
    Gain on Sales of Equipment                  0
    Vehicle Tax                              25,000
     Prior years ad valorem taxes             13,000
    Current year ad valorem taxes           2,388,000
    Fund balance appropriated Sanitation    475,000
     Sanitation collection fees            478,000
    ABC store revenues                          0
     Privilege License                      7,500
    Reimbursement for insurance             22,000
    Miscellaneous receipts                 30,000
    Administrative overhead                   67,000
    Interest (General)                    100,000
    Cable TV Franchise Fees                 35,000
    Antenna revenues                     10,000
    Court costs & fees                        500
    Interest (Powell Bill)                    5,000
    Bowery Road Escrow Interest             10,000
    Fund balance appropriated General        31,925
    Chamber of Commerce——Restrooms           10,000
    Fund balance appropr. Bowery Rd. Escrow 300,000
     Powell Bill allocation                 50,000
    Fire Department Fire District Tax       333,552
    Fire Dept. fund balance appropriated    265,438
    Recreation fees                     39,000
    Interest (Recreation)                  6,000
    Macon County contribution Recreation    500,000
    Fund balance appropr. Recreation        156,600

    Total:                           $6,231,015


Expenditures Authorized by Department:

    Administration                      $1,469,300
    Transfer to Cemetery Fund                23,000
    Transfer to Town Hall Fund              110,625
    Transfer to Lake Remediation Fund       150,000
    Law Enforcement                    964,000
       Fire Department                       598,990
    Street Department                   1,210,500
    Powell Bill Fund                     50,000
    Sanitation Department                953,000
    Recreation Department                   701,600

    Total:                          $6,231,015










SECTION II:  Scholarship Fund

Revenues Anticipated:

    Interest                          $   32,000
    Contributions to Endowment Fund          40,000
    Unrestricted Contributions              1,500
    ABC Revenues                              0
    NC Beverage Tax Revenues                  4,000

    Total:                          $     77,500

Expenditures Authorized:

    Scholarships Disbursed                 40,000
    Scholarship Fund Raising Expense          1,000
    Contribution to Scholarship Reserve     36,500

    Total:                          $     77,500



SECTION III:  Cemetery Fund

Revenues Anticipated:                    

    Sale of Lots & Columbarium          $      5,000
    Charitable donations                  3,000
    Contribution for Perpetual Care Fund      2,000
    Interest on Investments                  1,000
    Transfer from General Fund             73,000

    Total:                          $     84,000

Expenditures Authorized:

    Operations                      $   32,000
    Capital Outlay                         50,000
    Contribution to Perpetual Care Fund      2,000

    Total:                          $   84,000



SECTION IV:  Water & Sewer Fund

Revenues Anticipated:

    Water:

        Water Charges                  $1,106,000
        Sale of Materials                  3,000
        Connection fees                  15,000
        Miscellaneous revenues                2,000
        Interest income                      5,000
        Transfer from Electric Fund         307,000

        Water total:                  $1,438,000

        Sewer:

        User Charges                  $    315,000
            Connection fees                100,000
        Interest income                 35,000
        Fund balance appropriated        260,000
        
        Sewer total:                  $  710,000

    Total Water & Sewer Revenues:          $2,148,000
    





Expenditures Authorized:

    Water:

        Water operations              $1,099,000
        Administrative overhead             20,000
        Contribution to Water Reserve Fund     12,000
          Capital Outlay                    307,000
        
        Water total:                  $1,438,000

    Sewer:

        Sewer operations               $    273,000
        Transfer to Capital Project Fund   325,000
        Administrative overhead             12,000
        Contribution to Sewer Ext. Reserv  100,000

        Sewer total:                  $    710,000

    Total Water & Sewer Expenditures:      $2,148,000




SECTION V:  Capital Projects Fund

Current Year Revenues & Financing Anticipated:

    Transfer from Sewer Fund             $  325,000
    CWMTF Grant                       1,724,700
    Fund balance appropriated            325,000
    
    Total:                          $2,374,700

Current Year Expenditures Authorized:

    Harris Lake Sewer Project            $2,374,700

    Total:                          $2,374,700

SECTION VI:  Electric Fund

Revenues Anticipated:

    Electricity Sales                  $3,150,000
    Sale of materials & equipment              3,000
    Temporary connection fees              3,000
    Sales Tax on Electricity                100,000
    Pole attachment fees                 80,000
    Miscellaneous revenues                  4,000
    Interest income                      75,000

    Total:                          $3,415,000    

Expenditures Authorized:

    Operations                           $  989,000
    Purchase of power                   1,640,000
    Contribution to Electric Reserve Fund   164,000
    Administrative overhead                 35,000
    Transfer to Water Fund                307,000
    Capital Outlay                          280,000

    Total:                          $3,415,000        


SECTION VII - Tax Rate Established

An Ad Valorem tax rate of $0.135 per $100.00 valuation is hereby established for the General Fund purposes for the Town of Highlands for fiscal year 2007-2008.  This rate is based on an approximate valuation of $1,805,250,000 and an estimated rate of collection of 98%.


SECTION VIII - Budget Ordinance

This ordinance shall be the basis of the financial plan for the Town of Highlands Government during the fiscal year 2007-2008.  The approved Annual Budget Estimate, which shows line item departmental expenditures, will be used for record keeping purposes.



                                                                  
                            Don Mullen, Mayor     
Attest:



                                       
Richard Betz, Town Clerk