Board of Commissioners

BOARD OF COMMISSIONERS March 4, 2024 MINUTES PRE-MEETING - 4:30PM Mayor Washam called the Pre-meeting to order at 4:38PM with all commissioners present at the meeting. Agenda Review Manager Grant provided the Board with an overview of the 6PM Regular meeting agenda items. Park Bonds Manager Grant presented the Town’s capacity for future park bond consideration (Attachment1). He outlined the three major financial factors in considering all departmental needs, where the revenue will come from for any added bond and debt service (displaying the CIP and financial forecast), the authority of current and future Boards to sell bonds, available Fund Balance %, and the potential projects for greenways, recreation center development, park improvements and new park developments. Commissioner Sansbury asked where the “cliff” is currently. Manager Grant displayed the financial forecast and stated FY28. Commissioner Osborne asked what the benefits of bonds are vs. raising taxes. Manager Grant explained that doing bond referendums allows the Town to do high-cost projects sooner rather than later, as well as balancing the needs of other departments. Mayor Washam added that just because a bond referendum passes, doesn’t mean they have to be sold. Commissioner Sansbury made a motion to adjourn the Pre-meeting at 5:58PM. Commissioner Osborne seconded the motion and it passed unanimously, 5-0. REGULAR MEETING - 6:00PM 1. CALL TO ORDER Mayor Washam called the meeting to order at 6:09PM. 2. DETERMINATION OF QUORUM All commissioners were present at the meeting. 3. APPROVAL OF AGENDA Commissioner Sansbury made a motion to approve the agenda as presented. Commissioner Johnson seconded the motion and it passed unanimously, 5-0. 03/04/24 Regular Meeting Page 1 4. MOMENT OF SILENCE AND PLEDGE OF ALLEGIANCE Mayor Washam led the pledge after a moment of silence was observed. 5. CITIZEN CONCERNS/COMMENTS April Dunn – 12530 Pecan Hill Ct, Huntersville, shared the positive impact the Cornelius Youth Orchestra (CYO) has had on her family. She expressed her full support for CYO’s grant application submitted for consideration. Amy Bruining – 9018 Cantrell Way, Huntersville, expressed her full support for CYO’s grant application submitted for consideration. Sean and Foster Briselden – 20116 Coachmans Wood Lane, Cornelius, shared their personal experiences with CYO and expressed their full support for CYO’s grant application submitted for consideration. 6. MAYOR/COMMISSIONERS/MANAGER REPORTS Commissioner Higgins reported on the following: • Attended the Black History Celebration at the Cain Center. • Participated in a WSIC broadcast. • Made a presentation with Parks Director Fitzsimmons at the North Meck Rec. Center on greenways and parks. • Peach Cobbler Factor ribbon cutting will be held on Mar. 5th. • Big Day at the Lake kick off will be held on Mar. 8th. • Attending the National League of Cities conference in Washington DC on Mar. 10th-13th. Commissioner Carney reported on the following: • Attended the Investment Committee meeting held on Feb. 27th. • The Lake Norman EDC meeting will be held on Mar. 21st. • The Grant Application Committee will be meeting on Mar. 18th. Commissioner Osborne reported on the following: • Attended the Black History Celebration at the Cain Center. • Planning Board member interviews continue. • Attended the CRTPO meeting held on Feb. 21st. The discretionary funds ($14M) for Cornelius were approved. • LKN Chamber update – Annual Gala will be held on Mar. 21st (6PM-9PM). • Attended the Investment Committee meeting held on Feb. 27th. Commissioner Sansbury reported on the following: • Attended the Black History Celebration at the Cain Center. • Camp Cornelius registration for non-residents will open on Mar. 8th. Commissioner Johnson reported on the following: • VLN update – Carolina Big Dive will be held on Mar. 14th-17th at the Huntersville Aquatic Center and the 4th Annual Lay Up and the Lake tournament will be held at the Huntersville Recreation Center and Community School of Davidson on Mar. 16th-17th. • Centralina Council of Government met on Feb. 21st. 03/04/24 Regular Meeting Page 2  Manager Grant reported on the following: • The demographics/housing study done for the EDC by the Urban Institute will be presented on Mar. 18th. Mayor Washam reported on the following: • Attended the MTC meeting on Feb. 28th. • Attended the Black History Celebration at the Cain Center. 7. PRESENTATIONS A. Ada Jenkins Center Annual Support Grant Application Executive Director Harold Rice presented the grant application for the Ada Jenkins Center to continue providing needed services to the community. He gave an overview of data/demographics/FY23 ROI across their programs and services provided (financial assistance, food pantry, economic mobility, education, VITA, and resource information). Commissioner Higgins stated that he was very impressed with the great work that Ada provides to the Cornelius community. Mayor Washam agreed with Commissioner Higgins and thanked Mr. Rice for his presentation. B. Arts and Science Council Annual Support Grant Application Vice President of Public Relations and Marketing Bernie Petit presented the grant application for ASC to continue making investments in Cornelius. He gave an overview of the Cornelius investments in cultural vision grants, culture blocks, artist support grants, individual artist fellowships, cultural organization support grants, and school funding opportunities. Mayor Washam thanked Mr. Petit for his presentation. C. Cornelius Youth Orchestra Annual Support Grant Application Executive Director Eric Boruff presented the grant application for CYO. He gave an overview on when CYO started with the goal to provide young people the opportunities to learn or enhance their knowledge of orchestral training and performing through weekly instruction and performing opportunities throughout the season. Commissioner Osborne thanked CYO for the good work they are doing in the community. Commissioner Higgins stated that the musical pathway initiative for elementary schools can’t start soon enough as research shows the positive impact music has on the development of young people. He congratulated CYO on their great work. Mayor Washam stated that the music opportunities being provided to the community are outstanding. He thanked Mr. Boruff for his presentation. D. Senior Community Connections Annual Support Grant Application Outreach Director Gerry Mackenzie presented the grant application for SCC. She gave an overview of SCC’s growth in members and volunteers; programs and services; and the goals for the grant request. 03/04/24 Regular Meeting Page 3  Commissioner Sansbury asked what Coffee Klatch was. Ms. Mackenzie explained that is part of a mental health opportunity for people who are feeling blue or lonely. A coffee session brings them together to discuss specific topics or to discuss what they are feeling. 8. PUBLIC HEARING AND CONSIDERATION OF APPROVAL A. REZ 04-23 Royal Bliss Brewing Mayor Washam called for a motion to open the public hearing for rezoning case REZ 04-23 Royal Bliss Brewing. The public notice is attached hereto. Commissioner Osborne made a motion to open the public hearing for REZ 04-23. Commissioner Johnson seconded the motion and it passed unanimously, 5-0. Planning Director Rox Burhans presented a rezoning request from Larry Griffin Jr. to rezone 3 acres of vacant property located at 19149 West Catawba Avenue from Village Center to Conditional Zoning and construct a 10,000sqft. microbrewery and restaurant facility. Vehicular and pedestrian access will be provided from Harbor View Drive. The community meeting held on November 6th had one attendee supporting the proposed rezoning. Also, the Lake Norman Cove at Jetton HOA submitted a letter of agreement for the buffer area. On February 12th, the Planning Board unanimously recommended approval with 11 staff conditions and the applicant has agreed to all conditions. Mayor Washam invited Mr. Griffin to present his request. Mr. Griffin thanked Mr. Burhans for his presentation and stated that he was open to answering any questions the Board may have. Commissioner Carney asked about the project’s timeline. Mr. Griffin stated that upon approval they are ready to get started and construction should begin by the end of the year. Commissioner Osborne thanked Mr. Griffin for his proactive commitment in addressing sound and lighting concerns. The project is a great fit for the area and aligns well with the Town’s updated Land Use Plan. Commissioner Higgins stated that he appreciated the incorporated food piece so that people can have a full experience with drinks, food, and entertainment. Mr. Griffin thanked Commissioner Higgins and stated that Royal Bliss will be more like a restaurant with a brewery vibe. Mayor Washam thanked Mr. Griffin for honoring his promise of expanding Royal Bliss, Denver to Cornelius. He thanked him for his continued investments in Cornelius. Commissioner Sansbury stated that the project is very attractive and asked if extending the sidewalk to the Lake Norman Cove at Jetton will generate heavy foot traffic. Mr. Griffin stated that they are hopeful that extending the sidewalk to the community will entice those residents to visit. Mayor Washam invited the public to speak and the following comments were heard: 03/04/24 Regular Meeting Page 4  Lake Norman Chamber President Bill Russell expressed the Chamber’s full support of the Griffin family’s investments and leadership in Cornelius. The Royal Bliss project will be a great addition to the brewery industry in Cornelius. There being no further public comments, Mayor Washam called for a motion to close the public hearing. Commissioner Johnson made a motion to close the public hearing. Commissioner Sansbury seconded the motion and it passed unanimously, 5-0. Commissioner Osborne made a motion to approve Ordinance #2024-00849 to amend the zoning map to include REZ 04-23 with conditions as presented. Commissioner Carney seconded the motion and it passed unanimously, 5-0. Ordinance 2024-00849 is hereby made part of the minutes by reference. Commissioner Johnson made a motion to approve Resolution #2024-01124 declaring that REZ 04-23 with conditions is consistent with the Town’s Land Use Plan and reasonable in the public interest. Commissioner Higgins seconded the motion and it passed unanimously, 5-0. Resolution #2024-01124 is hereby made part of the minutes by reference. 9. CONSIDERATION OF APPROVAL A. FY24 Operating Budget Amendment Finance Director Niswonger gave an overview of the FY24 budget amendment utilizing asset forfeiture funds in the amount of $241,500 for the purchase of handguns with optics ($52,000); ammunition, training, and SWAT related items ($48,800); breaching tools ($16,400); drug terminator ($6,100); and Police K9s ($118,200). Commissioner Johnson made a motion to approve Ordinance #2024-00850 to utilize $241,500 of asset forfeiture funds as presented. Commissioner Osborne seconded the motion and it passed unanimously, 5-0. Ordinance #2024-00850 is hereby made part of the minutes by reference. 10. CONSENT AGENDA A. Tax Refunds = $290.95 (Approved 5-0) B. Approve Regular Meeting Minutes - February 19th (Approved 5-0) C. Approve Closed Session Minutes - February 19th (Approved 5-0) Commissioner Osborne made a motion to approve the Consent Agenda as presented. Commissioner Higgins seconded the motion and it passed unanimously, 5-0. 11. NEW BUSINESS A. 2024 Legislative Agenda Manager Grant gave an overview of the 2023 Legislative Priorities and then presented his draft recommended 2024 Legislative Priorities that upon approval will be shared with the Mecklenburg County delegation in Raleigh. 03/04/24 Regular Meeting Page 5  As the Board discussed the various priorities, Commissioner Higgins asked if safety improvements for Main Street and Catawba Avenue could be added to the priority list. Deputy Manager Herron stated that staff will be looking into safety grant funds to improve that intersection. Manager Grant stated that if the Board wishes to add this as a priority, staff will have to estimate the cost or it can be added in a year when there is more definitive information and costs associated with it. Commissioner Osborne suggested highlighting the Exit 27 priority and referencing the Atrium letter of support. Manager Grant stated that he will add the letter of support to the listed priority for Exit 27. After discussing the “Highest Priorities”, Manager Grant suggested dropping the NCDOT projects down as to put more focus on the “Funding” bullets. Commissioner Sansbury stated transportation, public safety and parks are the top priorities. Manager Grant stated that he would revise the list for future discussion and approval. 12. COMMISSIONER CONCERNS A. CATS Bus Schedule Commissioner Higgins asked what the impact was going to be on CATS changing the routes and schedules. Manager Grant stated that he believes the frequency has not changed; however, the types of vehicles are being changed. 13. ADJOURNMENT There being no further business to discuss, Commissioner Sansbury made a motion to adjourn the meeting at 8:45PM. Commissioner Higgins seconded the motion and it passed unanimously, 5-0. Approved this 18th day of March 2024. ATTEST: Woody Washam, Jr., Mayor Lori A Harrell, Town Clerk 03/04/24 Regular Meeting Page 6  Attachment 1 Park Bonds 3/4/24 Parks & Greenways Master Plan Update  Nearing Completion  Feb. 8 – Draft Recommendations to Park Commission  Feb. 19 – Draft Recommendations to BOC  Mar. 7 – PRC recommendation for BOC approval  Mar. 18 – Approval by BOC  Identifies current and future needs  Input from citizens, Park Commission, Town Board, Town staff and County P&R staff  Task: Reconciling Input into Capital Projects  Potential projects at end of presentation Financial Reconciliation = What can the Town afford? Three major financial factors to consider 1. Balance of needs across all departments 2. Revenue to pay for bonded debt service – tax increase 3. Debt Service Policy (%) Financial Reconciliation = What can the Town afford? 1. Balance of needs across all departments  CIP  $195M identified capital projects across all departments  $117M in next 10 years  Legitimate/high-cost projects that cannot be pushed out  Assumptions – cost, timing, phasing  Operations  Assumptions for recurring operations/personnel  For example, Fire Dept. Transition Plan  Re-evaluate CIP/Forecast & future assumptions annually  The only thing certain is that it will change! Financial Reconciliation = What can the Town afford? 2. Revenue to pay for bonded debt service – tax increase Existing recurring revenues and anticipated low growth in revenues is not enough to cover operational growth and future bonded debt Referendum language provides an expectation for tax increase Referendum language will reference a potential tax increase amount (annual increase in property tax for each $100,000 of property value) relative to the bond referendum amount Financial Reconciliation = What can the Town afford? 3. Debt Service Policy (%)  Town’s annual debt service cannot exceed 20% of annual General Fund expenditures  However, not a best practice to operate with such a high amount of debt  15% or below is recommended target in order to:  Retain capacity for emergencies, unforeseen capital projects, flexibility in case assumptions are materially wrong  Confidence in receiving LGC approvals for all financing applications (Note: LGC evaluates several factors)  Maintain AAA Bond Rating*  *Note: While rating agencies will be very concerned about a rapid rise in % and approaching 20%, there are no guarantees that staying below 15% will assure maintenance of rating, as rating agencies evaluate numerous factors, including peer groups Financial Reconciliation = What can the Town afford? Calculated Park Bond Capacity is $20M $20M overlayed on the CIP/Forecast Based on selling $20M over three bond sales in three separate fiscal years Allows for realistic timing of park projects Balanced with other departments’ projects’ timing & phasing over 10 years REFER TO CIP TO ILLUSTRATE PHASING OF $20M PARK BONDS Financial Reconciliation = What can the Town afford? Town’s 10-year Forecast tracks D/S % Goal is to remain under 15% Based upon assumptions, Town stays under 15% for next 10 years $20M overlayed on the CIP/Forecast REFER TO FORECAST D/S% Bond Referendum Approval Does Not Equal a Guarantee to Sell Any Amount An approved referendum provides authority to sell up to that amount for up to 7 years (10 years with a granted extension) Future Town Boards will vote on how much is sold and when Staff and Board will annually evaluate conditions with each new fiscal year budget, as conditions may change Bond sales will be included in future fiscal year budgets that Town Boards vote on Available Fund Balance % Park Bond Capacity exercise has been heavily focused on D/S %  AFB % is equally important  Town’s AFB Policy states no lower than 40%  “Cliff” occurs in FY28  Revenue correction needed, such as raising tax rate to pay for bond sales, large installment financing projects, and large operational/personnel increases  REFER TO FORECAST – AFB % (assumed revenue neutral) Potential Park Bond Projects Park Land Acquisition / Open Space Preservation • Master plan recommends acquiring large parks first as land availability is limited • Large parks should have an equitable distribution of active and passive recreation • Target acquisition of 100 acres or more • Maintain flexibility of both active and passive recreation for either park area depending on opportunities Potential Park Bond Projects Greenway Development • Master plan community input indicates strong need for greenways (walking, hiking, biking) • Complete as many miles of greenway as possible that remain on the plan • Seek NCDOT grant funds and work in partnership to leverage available bond funds like the 2013 park bond • Have developers' complete sections of greenways tied to their developments (like Mayes Meadows and Alexander Farms have agreed to) Potential Park Bond Projects Recreation Center Development • Demand for gym space increasing and cannot accommodate current needs • Explore partnership opportunity with CMS on reconstruction of Cornelius ES to add a gym much like JV Washam Potential Park Bond Projects Park Improvements • Master plan community input indicates strong need for improving and/or expanding park facilities • Possible enhancements and renovations include: • Facility lighting • Restrooms • Synthetic turf • Playgrounds • Etc. Example of a park improvement Potential Park Bond Projects New Park Development • Master plan community input indicates strong need for additional active recreation facilities • Work with partners to assist in leveraging available bond funds to build as much as possible Example of a new park development Draft Bond Referendum Schedule • Bond Referendum Amount $ to be determined prior to May 6 • Refer to DRAFT Park Bond Referendum Schedule SCHEDULE FOR GENERAL OBLIGATION BOND REFERENDUM TOWN OF CORNELIUS - NOVEMBER 2024 5/6/24 Board adopts (1) Resolution directing publication of notice of intent to apply to the Local Government Commission (the “LGC”); (2) Resolution authorizing the Finance Officer to apply to the LGC and making certain findings of fact 5/9/24 Publish Notice of Intent in Newspaper of General Circulation [have to wait 10 days after publication of Notice of Intent before applying to the LGC] by 5/30/24 File Application with LGC with draft Sworn Statement of Debt [receive notice from LGC confirming receipt of Application which must occur before the Bond Orders are introduced] 6/3/24 Board (1) Introduces the Bond Order(s); (2) Adopts the Resolution setting a public hearing on the Bond Order(s) by 7/8/24 (1) Send Statement of Disclosure to LGC, post Statement on the Town’s Website and file with the Town Clerk’s Office (day before the notice of Public Hearing is published); (2) Publish Notice(s) of Public Hearing on the Bond Order(s) in Newspaper of General Circulation [at least 6 days before public hearing]; and (3) File Sworn Statement of Debt with the Town Clerk and LGC SCHEDULE FOR GENERAL OBLIGATION BOND REFERENDUM TOWN OF CORNELIUS - NOVEMBER 2024 7/15/24 Board (1) holds public hearing(s) on Bond Order(s); (2) adopts the Bond Order(s) at the conclusion of the public hearing; and (3) adopts the Resolution setting Bond Referendum 7/16/24 Clerk delivers certified copy of the Resolution setting Bond Referendum to the County Board of Elections 7/18/24 Publish Bond Order(s) as adopted in Newspaper of General Circulation File Notice with Joint Legislative Commission by 9/27/24 Publish first Notice of Special Bond Referendum in Newspaper of General Circulation [Not less than fourteen days before last day to register to vote for Bond Referendum] by 10/4/24 Publish second Notice of Special Bond Referendum in Newspaper of General Circulation [Not less than seven days before last day to register to vote for Bond Referendum] 10/11/24 Last day to register to vote 11/5/24 Referendum 11/15/24 Canvass of Election by the County Board of Elections SCHEDULE FOR GENERAL OBLIGATION BOND REFERENDUM TOWN OF CORNELIUS - NOVEMBER 2024 12/2/24 Board adopts Resolution Certifying and Declaring Results of Special Bond Referendum After 12/2/24 Publish Statement of Results in Newspaper of General Circulation Jan/Feb 2025 LGC approval of Bond Order(s) [new LGC policy to approve post-election]