Minute Book # 53 Page 6

MINUTE BOOK # 53 PAGE 6

SEPTEMBER 4, 2012

The regular meeting of the Board of Aldermen was held on Tuesday, September 4, 2012 at 7:00 p.m. in the Assembly Room of the MunicipalBuilding.

The following members of the Governing Body were present:

Mayor: Richard Propst

Alderman: Terry Yount

Alderman: Carroll Franklin

Alderman: Benny Orders

The following members of the Governing Body were absent:

Alderman: Danny Ritchie

Others present:

Town Clerk: Sherry Dula

Attorney: Jonathan Jones

Alderman Orders opened the meeting with prayer.

Approval of Minutes – The Council approved the previous minutes for the month of August by a motion from Alderman Orders, seconded by Alderman Franklin and the vote was unanimous.

2011-2012 Fiscal Year Audit Presentation– Ronnie Crump with Boggs, Crump and Brown was present to review the annual audit report for the fiscal year ending June 30, 2012. Mr. Crump stated that the Town is still in excellent financial condition overall. Some highlights from the audit review that affected the audit this year:

Net Assets down 280,910 for year end June 30, 2012
Current Ratio 22 to 1 (5,018,622/232,650)
Net Income Loss in Electric of $137,365
Net Income Loss in Water/Sewer of $133,930
Investment Earnings for all funds was $13,121 which is a decrease of $16,856
Cash and Investments of all funds are 4,618,732, a decrease of $385,261 over last year
99% Collection Rate on Property Taxes

Ronnie stated that some budget amendments will need to be made to the current budget within

the next few months to accommodate for certain line items that were under-budgeted. For further details, see audit summary notes attached as part of the minutes. The Council voted unanimously to approve the Audit Report for fiscal year ending June 30, 2012 by a motion from Alderman Franklin, seconded by Alderman Yount.

Annual Tax Settlement - Chelsea Carswell, Tax Collector was present to review the tax settlement for the fiscal year ending June 30, 2012. The Council commended the tax department on the excellent tax rate of 98.77% at the end of June. The Council voted unanimously to approve the tax settlement report and to charge Chelsea Carswell to collect taxes for 2012-2013 tax year by a motion from Alderman Yount, seconded by Alderman Franklin. A copy of the tax settlement is attached as part of the minutes.

MINUTE BOOK # 53 PAGE 7

SEPTEMBER 4, 2012

BurkeCounty React - Last month Terry Houston with Burke County React approached the Council with a request for the Town to sponsor Burke County React and the decision was tabled until the September meeting. After some discussion, the Council voted unanimously to sponsor Burke County React with $1,500 per year toward the utility bill by a motion from Alderman Yount, seconded by Alderman Franklin.

Drexel Elementary 5K Run – The Town has already sponsored the 5K run with $100 but the Board would like to sponsor with an extra $150. The Board unanimously voted to sponsor with the extra $150 by a motion from Alderman Franklin, seconded by Alderman Yount.

Update on Application with the State of North Carolina to Request Loan/Grant Assistance for the Sewer Project - R.J. Mozeley with McGill & Associates called with an update on our application requesting assistance. He stated that our application was received by the state and is currently being reviewed. Mr. Mozeley will call us as soon as he receives information.

Town of Drexel Recreation Commission Bylaws - The Board unanimously voted to adopt the Recreation Commission Bylaws by a motion from Alderman Yount, seconded by Alderman Franklin. A copy of the bylaws is attached as part of the minutes.

Departmental Reports - The Council reviewed the Financial and Police reports for the month of August, 2012.A copy of each report is attached as part of the minutes.

Attorney Report - Attorney Jones updated the Board on the status of the County/Booster Club issues. He stated that as soon as we get more financial documentation on payments made by town to County and the engineer report for the R.O.HuffmanCenter then we should probably go forward with the lawsuit. Also he updated us on the status of collecting taxes on the Drexel Property. As of September 4th no response has been received from the owner of the property therefore, Attorney Jones stated that he would wait another week and then take legal action.

Miscellaneous –

The Board agreed to call 2 special meetings. The first meeting to discuss the resumes received and the candidates that have already been interviewed and the second meeting for second interviews of candidates chosen to be considered for the town manager position. Once the decision is made then it will be announced in our regular monthly board meeting.
Leaf Machine & Truck – Public Works Director has been looking but can’t find a used truck at this time. Roger says we may not be able to find one in time for leaf season this year. He says we may have to use current machine for one more year and keep looking for a replacement before next year.
Mimosa Avenue and Park Avenue Paving Project – West Consultants has started the bid process for these two streets and they stated that there is still time to have the project completed by the end of this year.
Mimosa Intersection – J.M. Teague Engineering has sent the design for this intersection project to NCDOT for review and they will contact us as soon as the results are complete.

MINUTE BOOK # 53 PAGE 8

SEPTEMBER 4, 2012

Adjournment - With no further business to discuss, the meeting was adjourned at 8:20 p.m. upon a motion from Alderman Franklin, seconded by Alderman Yount.

TOWN CLERK______

MAYOR ______

ALDERMAN ______