Smithfield
Town Council
    report from April 11 & 15    
      budget sessions    

Thursday, April 11 session
Council members present:  David Barbour, John Dunn, Stephen Rabil,
Travis Scott, David Stevens, and Mayor Andy Moore
 Absent: Emery Ashley, Marlon Lee

Monday, April 15 session
Council members present:  Emery Ashley, David Barbour, John Dunn, Marlon Lee,
Stephen Rabil, Travis Scott, David Stevens, and Mayor Andy Moore
 Absent: None


Town to sell more water to county;

rate rising to $2.20 per 1,000 gallons


The Smithfield Town Council, at the first of two budget sessions held this past week, approved construction of a second in-ground storage tank at the town's water plant to accommodate additional sales of water to the County of Johnston.

That decision came after the council agreed to ratify a contract to increase the volume of water that could be delivered to the county's system --- from 2.5-million gallons a day to 3.5-million gallons. For that, the town will receive a one-time payment of $3.25 million.

Currently, the county draws about 2-million gallons a day from the town, the council was told. The Smithfield plant's production capacity is 6.2-million gallons a day.

The county has recently been lining up additional water commitments as rural Johnston continues to increase in population at record-setting levels. The county pays the City of Wilson $3 per 1,000 gallons, Wayne County $2.50, Harnett County $2.10, and recently added Sampson County as a water source at $2.50 per 1,000 gallons.

In light of those numbers, the Smithfield Council voted last Thursday to increase its charge for water sold to the county by 10 percent in early July --- from $2.00 now to $2.20 then.

Meanwhile, a larger expansion of Smithfield's water plant is on hold pending results of a rate and capacity study expected to be finished by summer.

PAYMENT APPROVED FOR NEW INTERCHANGE LIGHTING

The council approved a one-time payment of $93,000 for lighting to be installed at a reconstructed interchange of I-95 and US 70 Business. The N.C. Department of Transportation will pay the balance of the estimated $226,000 cost. Councilman Barbour cast the lone dissenting vote against that agreement, voicing his dislike of NCDOT's method of deciding how much municipalities contribute to such projects. He and other council members referred to new interchanges at Four Oaks and Benson that apparently got more favorable treatment. The Smithfield project is scheduled to go to contract in July 2020.

PAY RAISES FOR MAYOR AND COUNCIL MEMBERS?

Town Manager Scott said he is including funds in his proposed budget to raise annual compensation to the mayor and council members by $1,000 each. Currently, the mayor receives $6,000 and council members $4,000 per year. "You're quite a bit under other communities of your size and responsibilities," he told the board. Checking local numbers, he found that Clayton is paying its mayor $9,000 and its council members about $6,600 plus health insurance; the County of Johnston pays its board chairman $7,600 and commissioners $5,600 plus health insurance and a $400 mileage allowance; and the Town of Selma pays its mayor $7,200 and its council members $4,800 with no benefits. The Town of Smithfield cut out extra benefits for its elected officials several years ago.

3% PAY RAISE PROPOSED FOR TOWN EMPLOYEES

The town manager said his proposed budget includes 3% pay raises for town employees. Additional personnel expenses may include a 9% increase in retirement benefits and an 8% increase in insurance costs, Mr. Scott said. His proposal at this point includes funding for a full-time administrative assistant in the Fire Department and an assistant director's slot in Finance.

CAPITAL REQUESTS FAVORED BY THE COUNCIL

Town Manager Scott said his "draft" budget includes capital-improvement projects favored by council members whom he surveyed by "paper ballot" to learn their priorities. His goal is to keep spending for capital projects at $750,000 --- no more than the current year's budget allocates. "Big ticket" items making the "cut" so far are $160,000 for 19 "air packs" for the Fire Department, $137,000 for five new police cars, and $125,000 for a "splash pad" at Smith-Collins Park. Among several items not included in the manager's proposal at this point are two major pieces of equipment requested by Public Works: a "knuckleboom" truck ($160,000) and a "mini excavator" ($90,000).

PLAN TO PAY VENDORS WITH CREDIT CARDS OK'd

The council endorsed a plan from Finance Director Greg Siler to begin paying vendors of services provided the town via credit cards rather than checks. He said he's negotiating with First Citizens Bank for a "cash back" rebate of $50,000 for every $1 million charged. He estimated two to three years to reach that threshold. Among advantages to vendors, he said, is quicker payment for services by credit card instead of checks written by the town. At the same time, vendors will be paying credit-card fees. "They'll work that into their pricing," Councilman Ashley predicted.

ADDITIONAL POLICE POSITIONS DRAW SUPPORT

Police Chief Keith Powell wants authorization for two more police-officer positions at a cost of about $200,000 including vehicles and other equipment. Town Manager Scott said the extra expense could likely be covered without adding more money to the department's budget because of employee turnover. About five officers leave for jobs elsewhere every year --- a trend that's typical for police forces throughout the nation, he noted. Councilman Travis Scott asked the manager to include in the budget funding for two "community policing" positions: one within the town's corporate limits, the other within the town's extraterritorial jurisdiction.

SHOULD TOWN PAY FOR FIREMEN'S "PHYSICALS"?

Fire Chief John Blanton made a case for the town to pay for mandatory physical examinations for all firemen. He said a contractor could provide that service for $15,900 a year, but added that he has been talking with Johnston Health about a less costly arrangement. The fire chief said the leading cause of death among firefighters nationwide is heart attack, in many instances caused by firemen's use of "air packs" to enter burning buildings. He said mandatory "physicals" could reduce that risk. Councilman Barbour backed the request: "It's not just about (the town's) liability but about the health and well-being of our firefighters." Councilman Stevens questioned the extra expense for physicals since those should be covered by health insurance the town already provides for its employees. At this point, the town manager's proposed budget doesn't include the chief's request.

BUDGET WORK TO RESUME TUESDAY, APRIL 30

The council recessed Monday's budget session until 7 p.m. Tuesday, April 30 at Town Hall. Budget deliberations will continue then, including appearances by representatives of various non-profits that receive funding from the town.
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