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					           MINUTES OF THE REGULAR MEETING
            OF THE REIDSVILLE CITY COUNCIL
          HELD TUESDAY, JUNE 10, 2008 AT 6:30 P.M.
             COUNCIL CHAMBERS, CITY HALL

CITY COUNCIL MEMBERS PRESENT:                       Mayor James K. Festerman
                                                    Mayor Pro-Tem Donald L. Gorham
                                                    Councilman John H. Gentry
                                                    Councilman John Henderson
                                                    Councilman George O. Rucker
                                                    Councilman Clark Turner
                                                    Councilwoman Joan Zdanski

COUNCIL MEMBERS ABSENT:                             NONE

CITY STAFF PRESENT:                                 D. Kelly Almond, City Manager
                                                    Angela G. Stadler, CMC, City Clerk
                                                    Donna Setliff, Assistant Community
                                                     Development Director

Mayor Pro Tem Gorham called the meeting to order at approximately 6:30 p.m.

ALL-AMERICA CITY DELEGATION ENTERS CHAMBERS.
Mayor Festerman, leading the All-America City delegation that won the award
designation in Tampa, Florida, the week before, entered Council Chambers with the
group chanting “Reidsville … in the house.” This was the chant the group used as they
went into their All-America City Award presentation June 5th in Tampa.

The Rev. Michael Long, Pastor of Zion Baptist Church, in Reidsville, then provided the
invocation.

Everyone then recited the Pledge of Allegiance to the Flag.

RECOGNITION OF REIDSVILLE’S STATUS AS 2008 RECIPIENT OF THE
NATIONAL CIVIC LEAGUE’S ALL-AMERICA CITY AWARD.
Mayor Festerman then recognized the Honorable Dwight Lake, Mayor of Mayodan.
Mayor Lake congratulated the City of Reidsville on winning the award and read a
resolution passed by the Mayodan Town Council on Monday night, the first municipality
to meet after Reidsville was honored.

The Resolution as read by Mayor Lake follows:




                                            1                             June 10, 2008
                              TOWN OF MAYODAN
                           210 W. MAIN STREET  MAYODAN, N.C. 27027  (336) 427-0241
                                              FAX (336) 427-7592




            RESOLUTION HONORING THE CITY OF REIDSVILLE
                        ON BEING NAMED AN
                        ALL - AMERICA CITY

Whereas, the All-America City Award is America's most prestigious civic recognition
program; and

Whereas, this award recognizes civic excellence, honoring those communities which
demonstrate successful resolution of critical community issues - in short, those
communities which serve as models for all others; and

Whereas, the City of Reidsville staff, a visionary All-America City Award Committee,
and a legion of supporters have dedicated countless hours to preparing an application
which showcases their abundant resources, conveys the charm and vitality of the
community; and captures the spirit of the citizens of the City of Reidsville; and

Whereas, this application has resulted in one of our sister cities being named All-
America City.

Now, therefore, be it resolved that the Mayodan Town Council heartily congratulates
the City of Reidsville citizens and staff and all those who played a role in this
achievement. Your efforts have not only engendered civic pride and community
collaboration, they may reap long-term economic benefits as well.

We, The Mayodan Town Council and its citizens, applaud your tireless efforts to bring
the All-America City Award and the nation's recognition to Reidsville and Rockingham
County.

Presented this 9th day of June, 2008.

                                             E. Dwight Lake, Mayor

                                             Attest:


                                             Melessa K. Hopper, CMC, Town Clerk

                                  - End of Resolution -


                                            2                                June 10, 2008
Mayor Festerman then recognized Rockingham County Commissioner Harold Bass, who
offered greetings and congratulations from the Board of Commissioners. He noted that
the Commissioners had not met since Reidsville had received the designation, but that he
would introduce a resolution even if he had to write it. Bass stated that he had learned of
Reidsville’s win at the Charlotte airport when he ran into one of the delegation,
Reidsville Police Chief Edd Hunt. He said he “couldn’t keep still in my seat” after
learning of the honor. He said that Reidsville should wear this wonderful achievement
with honor and pride.

The Mayor then introduced Reidsville Chamber of Commerce President Beth Simmons,
who he stated “stood out” among the many people who played a “vital role” in the City’s
success. Simmons stated that this process took over a year, but that the community really
pulled together to accomplish this. She then read a “Letter to the Editor” for the
Reidsville Review from David Bradley, President of the Greater Statesville Chamber of
Commerce. (A COPY OF BRADLEY’S LETTER IS HEREIN INCORPORATED AND
MADE A PART OF THESE MINUTES.) She also presented to City Council the
temporary plaque given out by the National Civic League on the night of the
announcement. A permanent plaque will be coming from the Civic League, she noted.

Mayor Festerman recognized Reidsville resident Denise Brady, who worked as the All-
America City Coordinator on the project once the City learned it was a finalist. Brady
admitted that when she was asked to come in as coordinator, she thought there was no
way this money could be raised in such an economic down time, but when she met the
clients from the three projects (Free Clinic, Outreach Center & Teen Center), she knew
she had to help them get to Tampa so they could tell their stories. She thanked everyone
who had helped her, including Simmons, Greg Cox, Angela Stadler, Kevin Bottomley,
Judy Yarbrough and Chief Edd Hunt. She said someone asked her “All-America City?
How did Reidsville get that?” She asked them “how much time do you have” so she
could answer them which drew a round of applause from the audience.

Brad and Tammy Spencer were also recognized by Brady. The Spencers videotaped the
presentation and announcement as well as took digital photos of the trip. Brad Spencer
explained that once the video presentations are compiled, others will have the opportunity
to relive the Tampa experience with those who went. He said there will be presentations
of differing lengths that can be shown to churches, civic groups, etc.

Mayor Festerman introduced Ellie Bartlett, a client from the Free Clinic of Rockingham
County. She noted that so often one hears bad things about the City, but she had the
honor of being a volunteer and a patient at the Free Clinic. After this experience, she said
she now wants to volunteer at the Reidsville Outreach Center and the Reidsville Teen
Center. She stated that in October, she got new dentures with a lot of people helping her.
She said she would never have been able to afford them by herself. She said she had
always covered her mouth so that people couldn’t see her bad teeth.

Going to Florida and coming back was the greatest honor in her 50 years of life, Bartlett
stated. She said when her plane landed Saturday afternoon, she was “still in the clouds.”



                                             3                                June 10, 2008
She said everyone knows that Reidsville won because she can’t stop telling them about it.
She thanked Free Clinic Executive Director Leslie Deaton for asking her to go. She said
it had enriched her life and changed it. She said she just wants to “hug the whole world.”

The Mayor noted that Ellie had gone through about 10 practices without crying, but she
started breaking up during the actual performance. “Needless to say, 50 other people
started breaking up right behind her,” he said. “I think she did that on cue.” The judges
did too, we all had a tear in our eye, Mayor Festerman said.

Greg Cox, who was President of the Chamber when the application was filed, said he
wanted to thank everyone who had a hand in the project. He noted that some 150 people
helped in the process. He talked of the other groups that had started these projects (Free
Clinic, Outreach Center and Teen Center) many years ago and had the foresight to see
what the community needed, which was very difficult to do. Cox said he was proud to be
part of a community that meets the needs of our citizens. He thanked Mayor Festerman
for his wonderful leadership and thanked Denise Brady’s family for letting her work on
the project. He asked anyone who is a client of any of the three agencies to stand. He
said, in his opinion, that’s what made the difference -- telling the stories of how these
people had been helped put the City over the top.

Cox noted that Reidsville was the second smallest city out of all of the finalists and had
the second largest contingency there. By far, we were the most enthusiastic, he said. The
theme throughout was “a window of opportunity.” He said the All-America City is now a
window of opportunity for all of Reidsville for grant applications, marketing, etc. “We
just need to take it and run with it,” he said.

Mayor Festerman said he calmed himself down by realizing that the City would not win
or lose the designation because of the Mayor. It was going to be about the stories that the
City had to tell, and he said they couldn’t have picked a better group of people to tell
those stories. The Mayor noted that Reidsville was one of 16 cities there, and all of them
had problems. How you address those problems makes you an All-America City, he
noted, and he thought they showed that while they were there.

Clara Gunn from the Reidsville Outreach Center noted that this was the first time she had
gotten up at a City Council meeting and not complained. She said that several years ago,
she had won the “2 Who Cares” award from WFMY-TV 2, but that was nothing like the
honor of representing Reidsville in Tampa for this award.

Councilwoman Zdanski talked of the unity that was created during this process. She said
they all knew we had a winner, but if people had been with them the last half hour before
making the presentation when the Mayor led the group of 52 people with joined hands in
asking for God’s guidance, “I knew we had it made.” She talked about rooting for Lenoir
which had its presentation before Reidsville. She noted that there was a “unity and a
bond” there between the North Carolinians. Lenoir was the final winner announced. She
noted that the group from Lenoir was stunned, but all 52 blue shirts from Reidsville got
up and yelled for the other North Carolina city. She also noted that God and her guardian



                                             4                               June 10, 2008
angel were on her shoulder and kept her from falling into the street when she fell one
morning down in Tampa.

Councilman Henderson said he was extremely proud to be a part of the group as the City
worked together on all aspects of the activities there. He mentioned several people who
had worked on it for over a year, including Beth Simmons, Johnette Scales and the Board
of Governors for the Chamber of Commerce. He said he would like to especially
recognize Denise Brady who did a tremendous job keeping everyone together, all the
“cheerleaders,” Mayor Festerman, Councilwoman Zdanski, Councilman Turner and City
Manager Almond. He said they all worked with the group, and he hoped everyone will
continue to work together in Reidsville.

Mayor Festerman said he thought one of the most telling comments made while there was
made by City Manager Almond. The Mayor, noting he was more nervous than when he
ran for Mayor, said his election was all about him, but this was about the City of
Reidsville and bringing the honor home. He said he was extremely nervous and was also
losing voice. In the hallway, City Manager Almond told him that the judges have already
decided Reidsville is going to be a winner, now they’re just trying to pick the other nine
cities.

Councilman Turner described it as a very emotional and bonding experience for
everyone. He said they made new friends and met new people. He said some of them
wanted to adopt some of the children on the trip. “I think I’m changed because I went,”
he told the audience.

City Manager Almond said he still gets too emotional to talk about it. He said he is very
proud of Reidsville.

Local businessman Sam Phillips said he was there to speak on behalf of the people who
don’t have blue shirts on (and didn’t go to Tampa). He said his family was here because
they wanted everyone to know how much it means to them. People are very proud, and
this honor will help the City and its businesses because Reidsville is an All-America City,
he said. We always knew it, Phillips said. He also noted that this is a great example of
what can happen and what people can accomplish when they work together. He said
obviously they had all worked together well on this and had come out on top.

Shelby Clyburn from the Teen Center spoke on behalf of the young people who went.
She said they were all so appreciative of the experience and the opportunity to go. They
might never have been able to go on such a trip, and she said they were most proud of
being part of such a caring community.

City Manager Almond talked about future plans. He said everyone is going to see the All-
America City logo everywhere on letterhead, signs, etc. He noted that once you’re an All-
America City, you’ll always be one. He said the City plans on bragging about the honor
for a long, long time.




                                            5                                June 10, 2008
Mayor Pro Tem Gorham, noting that he didn’t have the opportunity to go since he had
opened up a “daycare” with his new granddaughter, said that as a school principal, he had
become a pretty good observer. He said he could tell a lot by looking into the eyes of
these men tearing up. He said it softens his heart to see so many men in support of what’s
going on in Reidsville. He said we feel like a family. He noted that when he was sworn
in, he said he wanted Reidsville to be Number One – we are Number One, he said.

Councilman Gentry said he always ran on the platform that Reidsville was a good place
to live and that there is a lot to be proud of here. Councilman Rucker noted that everyone
here is Number One. He thanked Reidsville, noting it was Number One and they were
going to keep it Number One.

A gentleman from the audience stood up to say he had just moved back to Reidsville. He
had been so proud of the City that he had called everyone he knew about the honor. He
said he was glad he was back.

Leslie Deaton, Executive Director of the Free Clinic, asked all of the youngest delegates
to come forward because “this is our future.” The audience clapped for the young people.

Before concluding this part of the meeting, Mayor Festerman read a letter from
Representative Nelson Cole of Reidsville. (A COPY OF THE LETTER IS HEREIN
INCORPORATED AND MADE A PART OF THESE MINUTES.)

Mayor Festerman said it was a real honor to be recognized. He noted that Reidsville is
not perfect, but works on its problems. He said the City is only going to get better.

The Mayor led the group again in the chant “Reidsville … in the House” before a brief
break was taken.

APPROVAL OF THE CONSENT AGENDA.
The Mayor then asked Council members if there were any items they wanted pulled from
the Consent Agenda for further consideration? Councilman Henderson asked that Item
No. 3, Approval of agreement for joint operation and fund sharing with Rockingham
Community College of PEG Channel, be pulled for clarification.

Councilman Gentry then made the motion, seconded by Mayor Pro Tem Gorham
and unanimously approved by Council in a 7-0 vote, to approve Consent Agenda
Items #1 and #2.

CONSENT AGENDA ITEM NO. 1 - APPROVAL OF THE MAY 13 SPECIAL
MEETING MINUTES, THE MAY 13 REGULAR MEETING MINUTES AND
THE MAY 28, 2008 SPECIAL MEETING MINUTES.
With the approval of the Consent Agenda in a 7-0 vote, the Council unanimously
approved the May 13 Special Meeting Minutes, the May 13 Regular Meeting Minutes
and the May 28, 2008 Special Meeting Minutes.




                                            6                               June 10, 2008
CONSENT AGENDA ITEM NO. 2 - APPROVAL OF BUDGET ORDINANCE
AMENDMENT NO. 25, WHICH RECORDS THE RECEIPT OF GRANT
PROCEEDS IN THE POLICE DEPARTMENT AND AUTHORIZES THE
RELATED EXPENDITURES.
With the approval of the Consent Agenda in a 7-0 vote, the Council approved Budget
Ordinance Amendment No. 25, which follows:

          BUDGET ORDINANCE AMENDMENT NO. 25
    WHEREAS, the Mayor and City Council of the City of Reidsville adopted a budget
ordinance on May 9, 2007 which established revenues and authorized expenditures for
fiscal year 2007-2008; and

   WHEREAS, since the time of the adoption of said ordinance, it has become necessary
to make certain changes in the City's budget to record the receipt of grant proceeds in the
Police Department and to authorize the related expenditures;

   NOW, THEREFORE, BE IT ORDAINED, by the Mayor and City Council of the
City of Reidsville that the budget ordinance as adopted on May 9, 2007 is hereby
amended as follows;

       Section 1. That revenue account number 10-3413-1000, Federal Forfeiture
       Funds, be increased by $3,471.00; that revenue account number 10-3413-2000,
       State Unauthorized Substance Tax, be increased by $7,474.00; that revenue
       account number 10-3431-9004, Annie Penn Community Trust, be increased by
       $2,000.00.

       Section 2. That expense account number 10-4312-2605, Police Supplies, be
       increased by $6,945.00; that expense account number 10-4310-5501, Firearms, be
       increased by $4,000.00; that expense account number 10-4310-5800, Capital
       Improvements, be increased by $2,000.

This the 10th day of June, 2008.
                                                          /s/ _____________________
                                                             James K. Festerman
                                                             Mayor
ATTEST:
/s/ _____________________
Angela G. Stadler, CMC
City Clerk

                               - End of Consent Agenda -

Council members then turned to the pulled Consent Agenda item.




                                            7                               June 10, 2008
CONSENT AGENDA ITEM NO. 3 – APPROVAL OF AGREEMENT FOR JOINT
OPERATION AND FUND SHARING WITH ROCKINGHAM COMMUNITY
COLLEGE OF PEG CHANNEL.
City Manager Almond explained to Council that several years ago, the General
Assembly, in its infinite wisdom, took away the franchising rights of City government
and created State franchising rights for cable television. He noted they decided that the
State would collect the fees and send it back to the municipalities. As part of the bill,
cities were given $25,000 for operation of a Public Education and Government Access
(PEG) Channel. If you don’t have a PEG, the City doesn’t get the additional $25,000
from those fees, he explained.

The City Manager gave Council members background on the process. In 1991, a
committee which included former Mayor Benton Gooch worked on setting up a PEG
channel using part of the franchise fees from Time Warner Cable, he explained. At that
time, franchise money was put in a fund for the project but they opted not to set a channel
up. As they worked on it, they realized they would have to set up a studio, etc. One of the
hazards was that once the channel was up and running, if they allowed one person on it,
they would have to let everybody on it due to freedom of speech issues. Therefore, the
cities in Rockingham County agreed to establish a channel operated by Rockingham
Community College. However, the billboards, etc. for RCC seen on Channel 2 don’t
qualify the channel as a certified PEG so the cities don’t get the $25,000, City Manager
Almond noted. RCC must update its equipment before being able to establish a true PEG.
Dave Harris, regional cable administrator with the Piedmont Triad Council of
Governments, explains in his memo that RCC needs 75% of the fees for operation of the
channel with the remaining 25% of the annual $25,000 fee divided among the
municipalities. (A COPY OF HARRIS’ MEMO IS HEREIN INCORPORATED AND
MADE A PART OF THESE MINUTES.) City Manager Almond likened the
arrangement to industrial packages the City has been involved in. If the City doesn’t do
it, it gets nothing. If the City agrees to do it, it gets 25% of the $25,000, he said.

Mayor Pro Tem Gorham made the motion, seconded by Councilman Henderson
and unanimously approved by Council in a 7-0 vote, to approve the agreement for
joint operation and fund sharing with RCC of PEG Channel. (A COPY OF THE
AGREEMENT IS HEREIN INCORPORATED AND MADE A PART OF THESE
MINUTES.)

PUBLIC HEARING:
CONSIDERATION OF REQUEST TO REZONE A PARCEL AT THE CORNER
OF NC 14 AND MADISON STREET FROM RESIDENTIAL-AGRICULTURAL
20 TO HIGHWAY BUSINESS AND A SECOND PARCEL FROM
RESIDNETIAL-AGRICULTURAL-20 AND RESIDENTIAL-12 TO HIGHWAY
BUSINESS.
Before making the staff report, Assistant Community Development Director Donna
Setliff commented on the All-America City award. She said she was proud to be a City
employee and that Reidsville was a wonderful community in which to work.




                                            8                                June 10, 2008
Setliff informed Council that staff had received an application to rezone two parcels and
referenced the zoning maps in the Council members’ packets. The application calls for
the first parcel to be rezoned from Residential-Agricultural-20 to Highway Business with
the second parcel currently zoned Residential-Agricultural-20 and Residential-12 to
Highway Business. The property is owned by the estate of Inez Driscoll, Setliff said. She
added that in 2004, the land between the two parcels was rezoned to Highway Business.
The area to the southwest is also zoned Highway Business, she said.

Setliff explained that there have been many rezonings in this area where there has been a
lot of growth as well as potential for commercial growth. She said that this rezoning
would be a continuation of the existing zoning. If Council chooses to rezone the property,
any commercial development would be responsible for buffering. Setliff said that due to
its location, staff thinks it is an unlikely site for residential purposes. The Planning Board
unanimously recommended approval of the requests.

Mayor Festerman asked Setliff if the requests can be handled with one motion? She
replied in the affirmative.

The Mayor opened the public hearing at 7:29 p.m. by asking if there was anyone who
wished to speak in favor or in opposition to these requests. No one came forward, and the
public hearing was closed at 7:30 p.m.

Councilman Turner made the motion, seconded by Mayor Pro Tem Gorham and
unanimously approved by Council in a 7-0 vote, to approve the rezoning requests.

CONSIDERATION OF THE PROPOSED OPERATING BUDGET FOR FISCAL
YEAR 2008-2009.
City Manager Almond told City Council members he was pleased to present this budget
to them. He noted that copies of this proposed budget are also available at the Reidsville
Public Library and in the City Clerk’s office.

The City Manager stated that the proposed budget had received some publicity but not as
much as officials would have liked. The budget maintains services and expands services
in some area. It does not include a tax increase or water or sewer increase, he pointed out.
He stated that there is one fee increase regarding landfill fees, including a “pretty hefty”
$2.00 State excise fee paid per ton. In keeping with past practices, the City passes on
these landfill increases to residents, he said. This means that residents will see a 70-cent
increase per month in their landfill fees.

City Manager Almond concluded by asking City Council members for their approval of
the Budget Ordinance and the Resolution of Understandings.

Mayor Festerman, noting this was a public hearing, asked whether the proposed budget
should include a line item for marketing of the honorable All-America City designation.
The City Manager said he preferred that Council leave the budget as is and appropriate
the monies out of the General Fund’s Undesignated Fund Balance and carry those monies



                                              9                                June 10, 2008
over. Mayor Pro Tem Gorham questioned whether this was something that had to be
done tonight? City Manager Almond said he was going to have to spend some money
soon to get City seals, banners, etc. reflecting the designation. Mayor Festerman said they
could return to this subject later in the meeting.

Mayor Festerman opened the public hearing at 7:34 p.m. by asking if there was anyone
who wished to speak in favor or in opposition to the proposed budget? No one came
forward. The public hearing was closed at 7:35 p.m.

CONSIDERATION OF THE ADOPTION OF A BUDGET ORDINANCE FOR
FISCAL YEAR 2008-2009 AND THE RESOLUTION OF UNDERSTANDINGS
ACCOMPANYING THE BUDGET ADOPTION.
Councilman Turner then made a motion, seconded by Mayor Pro Tem Gorham, to
approve the Budget Ordinance (“An Ordinance Establishing Revenues and
Authorizing Expenditures for Fiscal Year 2008-2009 for the City of Reidsville).

During the discussion phase, Mayor Festerman said during his 10 years on Council, this
was the easiest budget session he’s ever been involved in, especially being able to
maintain services without any employee cutbacks..

The Council then approved the Budget Ordinance in a 7-0 vote.

The Budget Ordinance as approved follows:

                  AN ORDINANCE ESTABLISHING REVENUES
                     AND AUTHORIZING EXPENDITURES
                        FOR FISCAL YEAR 2008-2009
                       FOR THE CITY OF REIDSVILLE

WHEREAS, the City Council of the City of Reidsville has prepared an operating
         budget for the City of Reidsville in compliance with Article 3, Chapter
         159-7 of the General Statutes of the State of North Carolina, otherwise
         titled the Local Government Budget and Fiscal Control Act; and

WHEREAS, after a public hearing on said budget at 6:30 p.m. on June 10, 2008, and
         after receiving public comment, it is now the desire of the Mayor and City
         Council to adopt said budget;

NOW, THEREFORE BE IT ORDAINED, by the Mayor and City Council of the City
         of Reidsville that:

Section 1.     The following revenues are hereby established for the operation of the
               City of Reidsville and its activities for Fiscal Year 2008-2009:




                                            10                               June 10, 2008
General Fund Revenues

2008 Property Taxes                                    $6,980,000
State-Shared Revenues                                   4,459,000
Transfer from Water Fund                                  418,700
Interest Earned                                           200,000
Charges to Other Funds                                  1,140,000
Landfill Fees                                             282,000
ABC Revenue                                                45,000
Other Revenue                                             974,700

                                  Sub-total           $14,499,400

Recreation Fund Revenues

Concessions                                               $15,000
Lake Reidsville Camping                                    85,000
Lake Reidsville Gate Receipts                              35,000
Grant Revenue                                             112,700
Transfer from General Fund                              1,002,100
Other Revenues                                            126,400

                                  Sub-total            $1,376,200

Downtown Corporation Revenues

2008 Downtown District Taxes                              $35,000
Transfer from General Fund                                 40,000
Cruise-In                                                   7,500
Rental Income                                               3,600
Festival Income                                            10,000

                                         Sub-total        $96,100

Fund for 911 Fees

911 Charges                                               $83,300

                                         Sub-total        $83,300

Water Reserve Fund

Fund Balance Appropriation                               $277,100

                                         Sub-total       $277,100




                             11                      June 10, 2008
Water Fund Revenues

Water Sales                                                    $2,509,900
Interest Earned                                                   210,000
Transfer from Sewer Fund                                           80,000
Transfer from Water Reserve Fund                                  277,100
Other Revenue                                                     244,000

                                               Sub-total       $3,321,000


Sewer Fund Revenues

Treatment Charges                                              $3,455,200
Interest Earned                                                     50,000
Fund Balance Appropriation                                        233,800
Other Revenue                                                      77,000

                                               Sub-total       $3,816,000



Police Separation Trust Fund

Transfer from General Fund                                        $95,500

                                               Sub-total          $95,500

Internal Service (Garage) Fund Revenues

Garage Fees                                                      $590,600

                                               Sub-total         $590,600

Insurance Reserve Fund

Workers’ Comp Revenue                                            $153,500
Insurance Revenue                                                 149,100

                                               Sub-total         $302,600

                                  Less Interfund Transfers   ($3,946,600)

                                               Total          $20,511,200




                             12                              June 10, 2008
Section 2.   The following expenditure totals are hereby authorized for the City of
             Reidsville and its activities for Fiscal Year 2008-2009:

             General Fund Expenses

             Governing Board                                                   $249,200
             Administration                                                     339,300
             Personnel                                                          214,600
             Public Works Administration                                        230,400
             Community Appearance                                                22,300
             Finance                                                            702,700
             Information Technology                                             298,300
             Public Buildings & Grounds                                         251,200
             Police Administration                                              762,300
             Police Detective Division                                          994,900
             Police Patrol Division                                           2,059,800
             Police Community Policing Division                                 351,600
             Fire                                                             1,953,000
             Code Enforcement                                                   297,900
             Street                                                           1,956,700
             Solid Waste Management                                           1,370,800
             Cemetery                                                            91,800
             Planning                                                           211,700
             Economic Development                                               349,100
             Community Affairs                                                1,145,100
             Business Development                                               150,000
             Penn House                                                         144,700
             Engineering Services                                               352,000

             Sub-total                                                     $14,499,400


             Recreation Fund Expenses

             Administration                                                   $199,700
             Facilities                                                        251,800
             Teen Center                                                       145,700
             Athletics & Other Programs                                        335,300
             Senior Citizens’ Center                                           116,100
             Lake Reidsville                                                   327,600


             Sub-total                                                      $1,376,200

             Downtown Corporation Fund Expenses                                $96,100



                                          13                              June 10, 2008
             Fund for 911 Fees                                                  $83,300

             Water Reserve Fund                                                $277,100

             Water Fund Expenses

             Administration                                                  $1,117,700
             Meter Reading                                                      245,600
             Water Plant                                                      1,289,200
             Water Distribution System                                          586,500
             Park Ranger                                                         82,000


                                                           Sub-total         $3,321,000


             Sewer Fund Expenses

             Administration                                                     $551,000
             Waste Water Treatment Plant                                       2,169,500
             Sewer Collection System                                           1,095,500

                                                           Sub-total         $3,816,000

             Police Separation Trust Fund                                       $95,500

             Internal Service (Garage) Fund                                   $590,600

             Insurance Reserve Fund                                            $302,600


                                          Less Interfund Transfers         ($3,946,600)

                                                          Total             $20,511,200

Section 3.   There is hereby levied a tax at the rate of $.73 per one hundred dollar
             ($100) valuation of property as listed as of January 1, 2008 for the purpose
             of raising the revenue listed as “2008 Property Taxes” in the General Fund
             revenues of this ordinance. This rate is based on an estimated total
             valuation of property for the purpose of taxation of $991,460,000 and an
             estimated collection rate of 96.44%.

Section 4.   There is hereby levied a special tax on the property in the downtown tax
             district of $.25 per one hundred dollar ($100) valuation for the purposes of




                                          14                               June 10, 2008
               revenue listed as “2008 Downtown District Taxes” in the Downtown
               Corporation Fund revenues of this ordinance.

Section 5.     The water rates currently in effect will remain unchanged.

Section 6.     The sewer rates currently in effect will remain unchanged.

Section 7.     The monthly landfill tipping fee shall be increased from $4.10 per month
               to $4.80 per month.

Section 8.     The City Manager, as chief administrative officer and as budget officer,
               shall be authorized to carry out the activities as approved in this adopted
               annual budget in accordance with all applicable state and local laws,
               ordinances and regulations.

Adopted this the 10th day of June, 2008.

                                              /s/
                                              _________________________________
                                                        James K. Festerman
                                                             Mayor

ATTEST:
/s/_______________________________________
          Angela G. Stadler, CMC
               City Clerk

Discussion then turned to the Resolution of Understandings, which the City Manager
noted reflects the understandings reached between staff and Council during the budget
work sessions.

Mayor Pro Tem Gorham said the City was fortunate to have this budget, and it was a
pleasure to work on such a budget had it not been for the State landfill increase.

City Manager Almond noted that he had neglected to thank Assistant City Manager Terri
Stamey and Finance Director Chris Phillips for their work on the proposed budget. He
also pointed out that the City employment figure of 173 includes a new Gang Investigator
position. This position was added recently after the City received a letter dated May 30
from Governor Easley announcing that Reidsville had been awarded a $142,107.00 grant
to assist the City with the hiring of this new officer. The City has a 12% match, he said.
He thanked Police Chief Edd Hunt and Mayor James Festerman, a Governor’s Crime
Commission member, for their efforts.

Councilman Gentry then made the motion, seconded by Mayor Pro Tem Gorham
and unanimously approved by Council in a 7-0 vote, to approve the Resolution of
Understandings.



                                            15                                June 10, 2008
The Resolution of Understandings as approved follows:

       RESOLUTION OF UNDERSTANDINGS
     ACCOMPANYING THE BUDGET ADOPTION
          FOR FISCAL YEAR 2008-2009
       WHEREAS, the City Council of the City of Reidsville has adopted an annual
operating budget for Fiscal Year 2008-2009, which raises revenues and authorizes
expenditures for the operation of the City; and,

       WHEREAS, during deliberations on said budget, certain understandings were
reached concerning the operation of the City and it is the intention of the Mayor and City
Council to outline those understandings;

        NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of
the City of Reidsville that the following understandings are hereby defined:

       (1)     Landfill Fee – The monthly landfill tipping fee shall increase from $4.10
               per month to $4.80 per month effective July 1, 2008. This increase is
               necessary in order to recoup the City’s cost of landfill fees, which are
               expected to rise on that date due to a recent law passed by the North
               Carolina General Assembly imposing a $2.00 per ton State excise tax on
               all landfills in North Carolina. With this increase, no additional increase
               will be necessary on October 1, 2008.

       (2)     City Employment – Full-time City employment is to be maintained at
               173 positions.

       (3)     Performance-Based Pay Program – The City’s Performance-Based Pay
               Program is maintained at its current level with pay adjustments being
               awarded at 2½%, 3½% and 4½% based on evaluations. Department
               managers and supervisors are encouraged to be cognizant of the City
               Council’s concern regarding the number of City employees receiving
               above standard ratings and to use the performance-based pay system to
               properly reward realistic levels of performance.

       (4)     Pay and Classification Study – Funds are included in this budget to
               implement the findings of the Pay and Classification Study conducted
               during Fiscal Year 2007-2008 for Public Works employees to be effective
               July 14, 2008, which is the first payroll in the new fiscal year. Money is
               also included in the budget to conduct the Pay and Classification Study
               next year for positions in the “All Other” category which includes
               Administration, Community Development, Finance, Fire, Information
               Technology, Parks and Recreation, Personnel, Police (non-sworn), Public


                                            16                               June 10, 2008
               Works (administrative support) and management team. This continues our
               triennial rotation of the job study.

       (5)     Health Insurance Rates – Group health and dental insurance premiums
               were increased 18.5% across-the-board by the City Council in April of
               2008. However, it is recognized that these increases are not reflected in
               this budget due to City Council’s decision to fund up to $708,232 from
               insurance reserves in the event that full funding of the plan is needed.

       (6)     Lease-Purchasing of Capital Items – The City Manager has
               recommended, and the Council approves, lease-purchasing of seven
               passenger vehicles (6 police, 1 fire), one mowing tractor (street), one
               refuse truck (solid waste), one household garbage truck (solid waste), one
               light duty truck (meter reading) and one dump truck (water distribution).
               The City Manager and the Finance Director are authorized to execute the
               necessary paperwork to effectuate this lease-purchase agreement.

       This the 10th day of June, 2008.

                                             /s/__________________________________
                                                    James K. Festerman, Mayor
ATTEST:
/s/_____________________________________
    Angela G. Stadler, CMC, City Clerk

PUBLIC COMMENTS.
Mr. William Totten of 105 Shirley’s Trail said he had talked to the secretary and asked
about getting more time to speak, and she had noted that the Council doesn’t have to
respond to questions. He said he thinks the Council needs to rethink putting asphalt in the
middle of the road on Scales Street. He also questioned of Council who has the ability to
get the Reidsville Review to stop printing his articles? He said he got the first article
printed without any problem, but he couldn’t get others printed. He said he doesn’t think
that’s right. He said he thought bad choices were being made and costing the taxpayers
money. He again said he didn’t think asphalt in the middle of the road was a good idea.
Councilman Turner told Mr. Totten the asphalt is for a crosswalk, not a speed bump.

Mr. Gerald Withers of 703 Piedmont Street said congratulations to the City of which he
was a citizen and part of an All-America City. Mr. Withers said he had attended a City
Council meeting several months ago because he had issues with nuisance noise coming
from vehicles late at night/early morning. He said he had a convalescent mother at home,
and it takes a while to get her down to sleep. He said noise had become a problem, not
only in the a.m. but also in the p.m. as well. He said this issue has been discussed quite
frequently at Community Watch meetings as well. He said if the Police Department is
short on help, what can the City do to help with the problem. He asked if an additional
officer can be brought in to help catch some of the offenders.




                                            17                               June 10, 2008
City Manager Almond informed Mr. Withers the problem is not just in his neighborhood,
he has the same problem on his street. He noted that while important, noise nuisances are
not necessarily the highest priority for officers. He said the City could use 10 more
officers, but the City can’t afford it. He said he understood what Mr. Withers was saying.
The Mayor noted that if the City funded another officer just for noise violations, there
would be others screaming that the officer should be working on drug cases, etc.

Mayor Pro Tem Gorham noted that as the Mayor had said, the City writes tickets, but if
judges “won’t inflict the pain …” The Mayor said that Police Chief Hunt was going to try
and speak to one of the judges, and they would get the judge’s name for Mr. Withers in
case he would like to contact him.

Mayor Festerman recognized County Commissioner Bobby Stanley and invited him to
make any comments. Commissioner Stanley apologized for being late to the meeting, but
he was at the funeral home for Dr. Jim Austin, the Rockingham County School Board
member who had passed away. The Commissioner noted that with Reidsville winning the
All-America City designation, “everybody wins.”

CITY MANAGER’S REPORT.
Amendment to Teen Center Capital Project Ordinance.
City Manager Almond stated that Finance Director Phillips had given him budget
ordinance amendment yesterday afternoon, which will be the final BOA for Teen Center
improvements. He noted that the amendment is not asking for any more money. In the
original capital project ordinance, it did not recognize two revenue sources. The City
applied for and received reimbursement money from the State for expenses related to
removing an underground tank. Money set aside for the project also earned interest
totaling approximately $15,800, he explained. All the money has been spent with the
exception of $7,500, which will be used to build a sidewalk on the Teen Center side of
Sprinkle Street, he said. The interest was earned by investing those monies, the City
Manager explained after Mayor Festerman questioned where the $15,800 came from.

Councilman Turner made the motion, seconded by Councilman Gentry and
unanimously approved by Council in a 7-0 vote, to approve the amendment.

The amendment as approved follows:

      AMENDMENT TO THE CAPITAL PROJECT ORDINANCE
        AUTHORIZING TEEN CENTER IMPROVEMENTS

       WHEREAS, North Carolina General Statute 159-13.2 authorizes the
establishment of a Capital Project Fund to account for expenses and revenues
that are likely to extend beyond a single fiscal year; and

       WHEREAS, it is the desire of the Mayor and the City Council of the City
of Reidsville to amend the Capital Project Fund established for improvements to
the Teen Center on June 14, 2006;


                                           18                               June 10, 2008
      NOW, THEREFORE, BE IT ORDAINED by the Mayor and the City
Council of the City of Reidsville that:

       Section 1.     That the following revenues for this project are hereby
established:

       54-3612-3000           Tank Removal Funds                            $    21,300
       54-3831-4910           Interest Earned                               $    15,800


       Section 2.     The following line items of expenditures are hereby
established:

       54-6120-5800           Construction                                  $    37,100

       Section 3.    The City Manager is hereby granted all necessary authority
       to carry out this project, including the approval of payment requests as
       earned under approved contracts, the acquisition of land, to approve
       change orders in each contract, to transfer funds from the established
       Contingency Fund to cover such change orders and cost overruns, and to
       transfer funds between project line items as needed to complete the
       project.

This the 10th day of June, 2008


                                            /s/________________________________
                                                    James K. Festerman
                                                    Mayor

ATTEST:
/s/___________________________________
      Angela G. Stadler, CMC
      City Clerk

Possible Need for a Special Meeting.
City Manager Almond said his second item was to remind Council members that
sometimes a special meeting is needed during the last three weeks of the fiscal year to tie
some things together. He said he didn’t think Council would need to meet, but it may be
needed.




                                            19                               June 10, 2008
Recognition of City Clerk’s Efforts on All-America City Award.
The City Manager noted that a lot of accolades had been given out tonight for the All-
America City. He recognized the hard work of City Clerk Angela Stadler on the project
and thanked her for her efforts.

CITY COUNCIL MEMBERS’ REPORTS.

Councilman Henderson – No report.

Councilman Turner – No report.

Councilman Gentry – The Councilman, noting that July 4th is a time of celebrations,
stated that Lake Reidsville Recreation Park is 25 years old. He encouraged people to
celebrate the 4th at the park, especially with the prices of gasoline.

Councilman Gentry also noted that he and wife, Christine, had celebrated their 50th
wedding anniversary on June 8.

Mayor Pro Tem Gorham – The Mayor Pro Tem said he doesn’t have a report, but he
said he is very proud to be a citizen of Reidsville. He also noted that today is
Councilman Rucker’s birthday. Everyone sang “Happy Birthday” to Councilman Rucker.

Councilman Rucker – No report.

Councilwoman Zdanski – The Councilwoman said she was unable to attend the
Appearance Commission meeting because she was out of town, but a draft of the minutes
are in the packets. The Historic Preservation Commission did not meet. She said for the
record, she had deposited the $35 for Special Olympics which had been donated by
Council members for her walk.

Line Item for All-America City items.
Mayor Festerman said he would like to go ahead and include a line item for marketing for
the All-America City. He said they needed to get out of the box running.

Mayor Festerman made a motion, seconded by Councilman Rucker, to take $15,000
from the Undesignated Fund Balance to begin promotion of the All-America City.

Mayor Pro Tem Gorham asked the City Manager if he thought that would be enough?
City Manager Almond said it probably wouldn’t be enough but it would get them started,
and he would report to them how that was being used.

The motion was then approved by Council in a 7-0 vote.

The Budget Ordinance Amendment as approved follows:




                                           20                              June 10, 2008
          BUDGET ORDINANCE AMENDMENT NO. 26
    WHEREAS, the Mayor and City Council of the City of Reidsville adopted a budget
ordinance on May 9, 2007 which established revenues and authorized expenditures for
fiscal year 2007-2008; and

   WHEREAS, since the time of the adoption of said ordinance, it has become necessary
to make certain changes in the City's budget to appropriate funds to promote the City’s
designation as a 2008 All-America City winner;

   NOW, THEREFORE, BE IT ORDAINED, by the Mayor and City Council of the
City of Reidsville that the budget ordinance as adopted on May 9, 2007 is hereby
amended as follows;

       Section 1. That revenue account number 10-3991-0000, Appropriated Fund
       Balance, be increased by $15,000.00.

       Section 2. That expense account number 10-4110-4455, All-America City
       Promotions, be increased by $15,000.00.


This the 10th day of June, 2008.
                                                          /s/ _____________________
                                                              James K. Festerman
                                                                 Mayor
ATTEST:
/s/ _____________________
   Angela G. Stadler, CMC
   City Clerk

More Congratulations on All-America City Honor.
Councilwoman Zdanski noted that the honorable Wayne Tuggle, an Eden Council
member, had called offering his congratulations to Reidsville for its All-America City
honor from Eden, our sister city. The Mayor said he had also received a phone call from
Eden Mayor John Grogan congratulating Reidsville as well. City Manager Almond said
he had also received a call from Senator Phil Berger offering his congratulations.

Mayor Festerman noted that the Council needed to go into closed session under G.S. 143-
318.11 (a) (5) regarding property acquisition.

The Mayor then made the motion, seconded by Councilman Henderson and
unanimously approved by Council in a 7-0 vote, to go into closed session regarding
property acquisition under G.S. 143-318.11(a)(5).

The Mayor informed the audience that Council didn’t expect any action to be announced
as a result of this closed session.


                                           21                              June 10, 2008
RETURN FROM CLOSED SESSION.
Upon their return from closed session, Mayor Pro Tem Gorham made the motion,
seconded by Councilman Turner and unanimously approved by Council in a 7-0
vote, to adjourn at approximately 8:10 p.m.



                          _____________________________________________
                                James K. Festerman, Mayor
ATTEST:


_________________________________
 Angela G. Stadler, CMC, City Clerk




                                      22                          June 10, 2008