Smithfield
Town Council
     report from budget sessions
held May 20 & 25

All present for both sessions: Mayor Andy Moore, Councilmen David Barbour, John Dunn, Marlon Lee, Steve Rabil, Travis Scott, David Stevens, and Roger Wood
EDITOR'S NOTE: What follows is a summary of matters discussed during the council's budget sessions held last Thursday and this past Tuesday:

MONTHLY HOUSEHOLD-WASTE PICKUP FEES GOING UP $1

Town Manager Mike Scott proposed raising monthly fees for collecting garbage and picking up yard debris by $1 across the board, even though he said fee increases of $3 would be necessary to cover the cost of those services.

The council agreed to accept the $1 increases, then added another $1 to an extra fee paid by 50 or so residences where town crews collect garbage from containers that aren't rolled out to the street. "I'd like to increase that backyard collection fee," Councilman Barbour asserted, taking note that the extra fee for such service isn't charged residents who are disabled or over the age of 70.

As a result of the discussion, here's how the monthly fees will look after July 1:
• Standard collection (one roll-out container) --- $17.24, up from $16.24.
• Backyard collection (one container) --- $22.24, up from $20.24.
• Backyard collection for disabled and elderly --- $17.24, up from $16.24.
• Yard debris collection ---  $11.00, up from $10.00.

In addition, the fee for picking up a large pile of debris will rise from $80 to $90 for a truck load up to 8 cubic yards.

Manager Scott warned the council that those rates may have to go up during the year ahead if the county follows through with its intent to raise "tipping fees" charged the town for dumping solid wastes at the Johnston County Landfill.


ELECTRIC RATES ADJUSTED TO LINE UP WITH COSTS

The council left intact a consultant's recommendation to tweak the town's electric rates to line up revenues closer to the cost of delivering service to various categories of consumers.

"This causes some fees to increase slightly while others decrease slightly," the town manager noted. "Cumulatively the town's electric revenues remain unchanged."

The new rate schedule to take effect July 1 would slightly raise the flat "customer charge" on monthly bills while reducing rates per kilowatt-hour consumed during each billing period. Overall, the change would produce an increase of 0.17% in monthly residential bills, although higher-use customers would likely see a decrease, consultant Mark Beauchamp of Utility Financial Services told the council during an earlier budget session.

 
ACROSS-THE-BOARD PAY RAISES OK'd FOR JULY 1

The council agreed with the manager's recommendation that salaries for all town employees go up 2.5% starting in July, then instructed him to come up with a plan for awarding "merit pay" raises next year. (The 2.5% across the board is consistent with the town's practice in recent years.)

In his Budget Message to the council, Manager Scott noted that state legislation will require the town to increase its contribution rate to the Local Government Employees Retirement System from 10.15% to 11.35% for most employees and from 10.9% to 12.1% for law-enforcement personnel.

In addition, he's budgeting an increase of 7% in the cost of health-insurance benefits provided town employees.


PART-TIME FIREMEN TO HELP HANDLE EMS CALLS

After learning that 64% of the Fire Department's calls are related to medical emergencies that require three men on a fire truck at a cost of $47.11 per call, the council at a previous session instructed Fire Chief John Blanton to work out a less expensive plan.

Chief Blanton reported to the council on Tuesday that a two-man squad riding a smaller vehicle like an SUV could render the service at a cost of $24.16 per call, but to put that plan in place would require employment of additional part-time personnel at an annual cost of $128,424.

"We've been doing the work with the same amount of personnel since 2008," the chief noted. Adding more part-time staff is "just a band-aid" and is "not the final answer," he said, "but it will give our guys a break" from the demands of a rising number of medical calls. (The County of Johnston is primarily responsible for EMS service but relies on assistance from the town's Fire Department and reimburses the town more than $20,000 annually for that aid.)

In the end, the council agreed to try the plan with part-time personnel during the coming year and then re-evaluate how things should be handled after that.

Tuesday's meeting, by the way, was the last one to be attended by Chief Blanton as head of the Fire Department. He is retiring at the end of this week.


PUBLIC WORKS TO TRY ADDING PART-TIME MECHANIC

Tackling another personnel issue, the council agreed to move forward with employing a second mechanic for Public Works on a part-time basis, even though Councilman Wood insisted that it would be "a nightmare keeping somebody in that position" instead of employing another full-time mechanic.

Town Manager Scott said making the new position full-time rather than part-time would add another $37,000 to the budget to cover salary plus benefits required for full-time staff. "Try it part-time," he suggested; "if it doesn't work out, re-visit it."


MORE FUNDING ADDED FOR AMPHITHEATER FIXES

Responding to earlier preferences expressed by council members, the town manager reported that he has increased from $54,000 to $74,000 the budget for making repairs to the Neuse River Amphitheater on the Town Commons. That will cover the cost of drainage fixes in addition to structural repairs to the facility.

Donna Bailey-Taylor, director of the Johnston County Visitors Bureau, was asked about expenditures of 2% hotel occupancy-tax revenues set aside for Smithfield's benefit. Other than directing about a third of that money for marketing, she said the town could use the balance for whatever it chooses so long as it's tourist-related.

Currently, the Smithfield account has close to $400,000 available for discretionary uses, she reported. That will provide the $74,000 for immediate amphitheater improvements, with a second phase re-working the embankment seating expected to cost about $50,000, the council was told.

Councilman Scott asked if the 2% money could be set aside over a number of years to construct a civic center that could accommodate conferences and similar events. Ms. Bailey-Taylor said a similar idea was put forth in 2001 but the idea "wasn't politically acceptable" at the time.

"Things have changed," responded Councilman Barbour. "We're all pro-growth."


AN EXTRA $1,000 FOR SMITHFIELD-SELMA HIGH

Following an earlier suggestion from Councilman Wood, the town manager announced at Tuesday's meeting that $1,000 has been added to the town's annual contribution to Smithfield-Selma High School.

Meanwhile, West Smithfield Elementary got $2,000 this past year and will be joined this coming year in receiving that amount by South Smithfield Elementary and the Innovation Academy at South Campus as well as SSS.

Scheduled to receive $1,000 grants again are Neuse Charter School, Smithfield Middle School, and the Johnston County Career & Technical Leadership Academy.


COUNCIL AGREES TO PAY OFF EMS BUILDING DEBT

Acting on a recommendation from the town manager and Finance Director Greg Siler, the council authorized paying off the $103,000 balance on a USDA loan for construction of the EMS addition to the main fire station on Fourth Street. That will save the town about $38,000 in interest payments.

The loan carried an interest rate of 4.125% --- the highest rate on any of the town's loans, Mr. Siler noted --- and was due to be retired by installment payments continuing till 2037.
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