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Hiawassee Budget Hearing will begin at 6 PM with Work Session to follow immediately. Budget is available on the City website: www.hiawasseega.gov questions should be directed to 770-605-5243 during this meeting 

HIAWASSEE WORK SESSION AGENDA
May 26^th, 2020

The May Work Session Meeting will be held immediately after the Budget Public Hearing. 

1. Call to order
   • Invocation – Ann Mitchell 
   • Pledge of Allegiance 
   • Mayor’s Introductions of Guests and Announcements 
   • Approve the Agenda as distributed 
2. Old Business
   • Mayor’s Report 
3. New Business
   • Adoption of the GMRC Comprehensive Plan to include broadband readiness 
   • Package Alcohol Sales ordinance 
   • Consent Agenda
     • Minutes from the May 5^thCity Council Meeting
     • Minutes from May 26^thWork Session
     • March Financials 

4. Police Report
5. Economic Development Update
   • New DDA Appointment 
6. Executive Session
7. Adjournment

City of Hiawassee

Minutes of May 26, 2020, Public Hearing and Work Session 

The City of Hiawassee convened a public Budget Hearing at 6 PM on May 26^th, 2020.  Due to the Covid-19 pandemic, it was broadcast over Facebook Live and not open to the public.   The public was able to receive the Proposed Budget by downloading from the City’s website, calling City Hall and having a document mailed or emailed, or stopping at City Hall to pick up a copy.  Comments and questions were taken by email or phone prior to the meeting to be read into the record and also by phone or FaceBook comment – also read into the record – during the public hearing.  There were also 2 phone numbers listed for available call-ins, 770-605-5243 and 706-994-5244. 

Mayor Liz Ordiales gave a brief overview of the proposed budget while waiting for any questions or comments.  The overall budget for the City of Hiawassee is $4 million.  There are 4 operating funds (General, Water, Sewer, and Water Treatment) and two special funds (Hotel/Motel and SPLOST).  She described each fund’s purpose, main revenue sources, greatest expense lines, and noted anything significant about the fund.  The General Fund covers City Hall, city parks, the Square, electricity to those as well as street lighting and directional lighting (stoplights).  Also, the General fund covers the municipal elections costs.   The top income generators are LOST (local option sales tax - $210K) and Property Tax ($168K).  This year’s projected budget has been lowered due to the anticipated effect of COVID-19 on the City’s economy. The two biggest expenses -after salaries- are Professional services (accounting, audits, and attorney - $75K) and Electricity (City Hall, streets, parks $40K).  The General fund covers the salaries of the city clerk (Kendrick), the Mayor (Ordiales) and part of the Court Clerk (Garner - her responsibilities include permitting and compliance issues which fall under General, not Police). 

The Police department budget falls under the General budget and covers the 5 full-time police officers (Insurance, retirement, additional protective gear, etc.) and completes the Court Clerk salary.  The Police department’s only income is the Municipal court Fines ($140K).  The top two expenses -after salaries- are payments to other agencies (GSCCCA-Georgia Superior Court Clerks’ Cooperative Authority $25K) and gasoline ($13K). The Police salaries include 5 law enforcement officials (Smith, James, Barrett, Henderson, and Deyton) and part of the Court Clerk (Garner) as well as some part-time law enforcement to cover training, vacation time, etc.

The Water Distribution budget covers the pipes throughout the system, 21 pump houses with 30 pumps, power equipment, etc.  The only income generator for the Water distribution system is water charges ($900K).  The top two expenses -again after salaries- are water payments to the Water Treatment Plant ($310K) and supplies and materials repairs/maintenance ($65K). Water Distribution salaries include 3 in distribution (Grizzle, Lingerfelt, Barkley part-time) and part of the Billing Clerk (Izquierdo). 

The Sewer Fund budget covers the Sewer plant operations, testing/supplies, chemicals for treatment, electricity, and professional assistance (i.e. EPD/EPA). The only income is from sewer charges ($500K). Top expenses -after salaries- are electricity ($100K) and supplies (Chemicals, lab supplies $70K). With the completion of the Sewer Plant upgrade, we will soon begin the repayment of the $800K GEFA loan and the $475K Screw Press loan. The Sewer fund salaries include 2 in operations (Royce, Richards) and part of the Billing Clerk (Izquierdo).

The Water Treatment budget covers plant operations, chemicals for treatment, testing, electricity, professional assistance (i.e. EPD/EPA).  The only income is the water sales from TCWA and the City of Hiawassee.  The top two expenses -after salaries- are electricity ($100K) and supplies (chemicals $65K). The Water Treatment Expansion (3^rd filter) is in the initial stages but, we will probably not be beginning to repay that loan in the next fiscal year. The WTP salaries include 3 in operations (Thomas, Davis, and White).

The Hotel/Motel Funds come from the tax on accommodations within the City (Holiday Inn, Mull’s Motel, Budget Inn, and any B&Bs, AirBNBs, and VRBOs). The expenses are the partial 1/3 salary payment for our Economic Development Director (McKay), DDA funding, and economic development efforts/event promotion.

The SPLOST fund – there has been no SPLOST for 3 years.  If the SPLOST referendum passes in the election, we may see income in late 2020 or early 2021.

No questions or comments were presented either before or during the Public Hearing on the proposed FY 20/21 budget. There was a 5 minutes wait period to address any questions received by any method. 

The May Work Session meeting was called to order immediately following the Budget Public Hearing at 6:20 PM on May 26^th, 2020 by Mayor Liz Ordiales. Present in addition to the Mayor were Council members Anne Mitchell, Amy Barrett, Nancy Noblet, Patsy Owens, and Jay Chastain, Jr. Staff present were Economic Development Director Denise McKay, Police Chief Paul Smith, Court Clerk Jennifer Garner, and City Clerk Bonnie Kendrick.  City Attorney Thomas Mitchell was also present.

The invocation was given by Councilmember Anne Mitchell and was followed by the Pledge of Allegiance.

The Mayor welcomed the online community and welcomed Court Clerk Jennifer Garner to the meeting.  Mayor Ordiales has been asked when we will return to live meetings, but the rooms used for meetings are not large enough to be able to social distance at appropriate levels for now.  We have 11 in the room this evening and only room for approx. 2 more.  Until we can have more people in the room, we are unable to open to the public.

Motion to approve the agenda as distributed was made by Councilmember Amy Barrett, seconded by Councilmember Jay Chastain with all in favor.  Councilmember Anne Mitchell asked about the GMA ballot for District 2 submission (only 1 vote is allowed per city).  Mayor Ordiales has already submitted the ballot as the deadline was May 18^th, prior to tonight’s meeting.

In Old Business, the Mayor’s Report included information regarding an update on the pandemic, sidewalk and curb work, the 2020 graduating Senior parade, Memorial Day celebration at Veterans Park, the sewer plant tour, major leaks at Bugscuffle Spur (approx. 200K gallon loss) and Sneaking Creek (approx. 840K loss), the new meter at the nursing home, storm damage, the reopening of City Hall, Municipal Court sessions scheduled for June (8^th and 19^th), Music on the Square – beginning June 20^th with the Cloggers, the passing of Ron Schott (Music on the Square Musician and co-promoter) and J.C. Berrong (tireless work on Clean Sweep, SPLOST committee and running for Tax Commissioner), work on the City Square (rerunning electrical and running speaker wiring), Paris Pocket window coverings, and the 2020 Census (we are way behind and need EVERYONE to complete the Census for the City. Councilmember Jay Chastain made the point that correct numbers allow us to participate fully in federal monies for disaster relief, for example.  Councilmember Anne Mitchell mentioned that if you do not have a form that got mailed, you can log onto 2020census.gov and put in your address and it will allow you to submit your census. 

In New Business, the Mayor spoke regarding the adoption of the GMRC Comprehensive Plan to include broadband readiness which will be on the agenda at the June City Council meeting.  The legislature is providing money to assist with getting broadband available to everyone and this will get us designated as a broadband ready community once it is adopted. 

Council members Amy Barrett and Patsy Owens updated the council on work for the Package Alcohol Sales ordinance.  Because there is an effort underway to allow for package stores in the City, it is important to craft an ordinance to control it.  There was much discussion around what controls should be put in place, how to award the privilege of opening a package store and placement of the package store. A lottery system was discussed. Some discussion was about the possibility of a bond being required to be part of a lottery to determine who will have the privilege.  Economic Development Director Denise McKay offered to work with Councilmember Amy Barrett and Patsy Owens to define the elements to an ordinance, that Mr. Mitchell would craft providing the elements the council feels is appropriate.  Further discussion is scheduled for the next work session on June 29^th.

At the June Council meeting, the consent agenda will consist of the Minutes from the May 5^th City Council Meeting and the May 26^th Work Session and the March financials.

In the Police Report, Chief Smith reported traffic stops are increasing, (two arrests last night 5/25/2020) but it has been generally quiet.  There was discussion about the overflowing trash at Mayors Park and Lloyds Landing.  2 more trash cans have been relocated to Lloyds Landing.  The trash is picked up Friday afternoon and Monday morning, but with restaurants still virtually closed and people taking out, many are coming to the parks to eat and it is creating more trash.  A suggestion was made to have someone empty the trash over the weekend, but we will wait to see if it was just the volume of people here for the holiday weekend.

In the Economic Development report, Denise McKay advised the Council that Theresa Andretta has resigned because she cannot devote the time necessary to help the DDA due to her business (Tata’s) and other personal commitments.  She hopes in a few years to be able to come back to the DDA.  Rob Sollie, from Trailful Outdoors, has offered to serve the remainder of Theresa’s term.  He has a landscape design degree from UGA and has been an active volunteer for the DDA.  The DDA respectfully request the Mayor to appoint Rob to fill Theresa’s unexpired term.  The appointment will be on the agenda at next week’s council meeting.  Thursday 5/28/2020 at 8:45 am there will be a ribbon-cutting celebrating the grand opening of Dollar Tree. Two businesses will not be reopening, McLain’s on Main and Times Past Creations.  Threadz Inc has moved into the City at the Towne Place Plaza. A new business is coming.  Hob Nob will start as an online store featuring home décor and gifts – www.hobnobhiawassee.com  is the website. The mural is scheduled to begin in Mid-July. The business plan for the Paris Pavilion Business Center has gotten a big boost.  Steven Harper, a retired attorney from Miami, who has worked with business incubators and has been instrumental in helping to complete the business plan.   Eight partnerships, with local businesses, supporting the business center have been formed with several more in the works. The partnerships are a commitment from the business of their time and talents to help create a sustainable business center. The business plan is a component of the $500K grant application to be submitted to ARC in July.  The grant, if awarded, would be sufficient to do all that needs to be done on the Paris buildings.  

Mayor Ordiales thanked Jennifer Garner for her diligence in collecting delinquent property taxes - $6000 was received just today.  She doing a great job keeping up with grease traps, business licenses, etc.  We are very happy to have her as part of the City Hall team.

Motion to enter executive session to discuss potential litigation was made by Councilmember Jay Chastain, seconded by Councilmember Anne Mitchell with all in favor.  Motion to exit executive session was made by Councilmember Jay Chastain, seconded by Councilmember Nancy Noblet, with all in favor.

Motion to adjourn was made by Councilmember Amy Barrett, seconded by Councilmember Patsy Owens with all in favor.  The meeting was adjourned at 8:00 pm.