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COUNCIL MINUTES
SPECIAL WORKSHOP MEETING
April 14, 2015
A special workshop meeting of the City Council of the City of Jacksonville was held
Tuesday, April 14, 2015 beginning at 4:00 PM in Meeting Rooms A and B of Jacksonville City
Hall. Present were: Mayor Sammy Phillips presiding; Mayor Pro-Tem Michael Lazzara and
Council Members: Jerry Bittner, Randy Thomas, Bob Warden, and Angelia Washington.
Councilman Jerome Willingham was absent. Also present were: Richard Woodruff, City
Manager; Ronald Massey, Deputy City Manager; Gayle Maides, Finance Director; Glenn
Hargett, Assistant Manager for Communications and Community Affairs; Wally Hansen, Public
Services Director; Mike Yaniero, Director of Public Safety; Susan Baptist, Director of
Recreation Services; Michael Liquori, Director of Park Facilities; Carmen Miracle, City Clerk;
and John Carter, City Attorney.
*A video recording of the Council Meeting is presently available for review on the City’s
website.
CALL TO ORDER
Mayor Sammy Phillips called the meeting to order at 4:03 PM.
ADOPTION OF AGENDA
A motion was made by Mayor Pro-Tem Lazzara, seconded by Councilman Warden, and
unanimously approved to adopt the agenda as presented.
BUDGET NOTES
Mr. Woodruff reviewed the budget follow up notes from the meeting held on April 7,
2015 a copy of which is herein attached as Exhibit A.
DEPARTMENT BUDGETS
Using the PowerPoint presentation attached to the official minutes as Exhibit B, the
following budgets were reviewed.
Community Programs: Mr. Woodruff reported that there was a reduction in this budget
due to transferring responsibility for the Youth Center to the Recreation and Parks budget. The
Youth Center had been budgeted in Community Programs for many years. Last year, Council
provided funds for substantial improvements to air conditioning, flooring and the general

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condition of the facility. The transfer to Recreation allowed the facility to be rented like any
other City facilities.
Tourism: This budget was funded by the Occupancy Tax which must be collected and
expended per a formula established by State legislation. The formula stated that one third may
be expended on capital projects and two thirds on public relations and marketing. Mr. Woodruff
said staff estimated revenue for the coming fiscal year of $900,000, which was based on current
collections. Mayor Pro-Tem Lazzara serves as the Chairman of the Tourism Development
Authority (TDA).
Mayor Phillips asked how much of the one third allocated for capital projects was
obligated. Mayor Pro-Tem Lazzara said he thought it was approximately 85%, mostly for
projects such as the Freedom Fountain, Vietnam Veterans Memorial, and Sturgeon City.
Councilman Bittner said he would like information on the impact if the formula was
reversed. Councilman Warden asked about the status of the legislation to change the formula.
Mayor Pro-Tem Lazzara said that it had been approved by the Senate and was now in the House.
Human Resources: Mr. Woodruff commended the HR Staff for their work in identifying
efficiencies. One of those was going out to bid for various insurance services such as life and
supplemental health. The low bidder, Guardian, would also be providing the Employee
Assistance Program as part of their package, resulting in a savings of $10,000 annually.
A brief discussion was held on rising healthcare costs. Mr. Woodruff stated that the
actuarial indicated an 8 percent increase; however, there was no recommendation to pass an
increase on to employees this year. Any increase in costs would be funded out of their
healthcare fund. The healthcare fund was approximately $1 million and was a combination of
City and employee funds. Councilman Warden asked about the impact on the City budget by the
Affordable Healthcare Act. Mr. Woodruff said it was $63,000 this year. In addition, he reported
that the HR Staff and Finance were part of a Study Team who would be looking at optional
approaches to providing healthcare. This information would be brought back for future
discussion with Council.
City Clerk: The Administrative I Position had left City employment about nine months
previously. Workload was reassigned and it was decided not to refill the position resulting in a
reduction in the budget.
Finance: Mr. Woodruff said that the 84.6% increase in Taxes and Other General Fund
Revenues is due to the loss of $750,000 in Business License Revenue. The expenditure line

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reflected a reduction of one employee due to no longer needing a person to handle Business
Licenses. The employee previously in the position was retrained and had qualified for another
opening in Finance.
Councilman Bittner noted that it seemed that one of the benefits of the Business License
Office to the community was to be able to track interim peddlers. Mr. Woodruff responded that
one of the decision packages they would discuss at a future meeting was a section in the law that
allowed the City to require registration of businesses. It was possible the associated registration
fee could generate $40,000 top $50,000. Mayor Pro-Tem Lazzara stated that New Bern had
implemented this fee, which was a $20 mandatory registration fee for all businesses. Mayor
Phillips said he believed this statute had been implemented to assist Police and Fire to maintain
an up to date database for emergency response.
Metering: Mr. Woodruff said this budget reflected a reduction in personnel from six to
five and due to the economic slowdown; the projected revenue was reduced accordingly.
Fleet Maintenance: This Division is an Internal Service division. The revenue source was
charges made to other departments within the City for services rendered. The budget reflected a
small fund balance that helped safeguard against any unanticipated needs that might come up
during the year. In some years the fund was negative and in other years positive. Councilman
Bittner clarified that this fund was created by overcharges to the departments served. Mr.
Massey said that was correct. Mr. Woodruff said he would provide a budget note on the actual
balance in the Fleet fund.
Non Departmental: This account captured all general fund activity not specific to any
other department. Mr. Woodruff said this is the account where the contingency fund is housed as
well as workers compensation fees, 800 Mhz, EDC and Nonprofit contributions, etc. In addition,
this account contained the capital reserve for the $4 million bond issue for the Sturgeon City
Environmental Education project. The TDA had pledged $150,000 per year to this project and
the Sturgeon City Board pledged $75,000 per year toward debt reduction. The most recent
opinion of probable cost for the project was $700,000 above currently available funds. If the
project moved forward it would need additional funding, which was currently not available
unless Council used funds from their four cent Initiatives. He said that after they received the
bids they would come back to Council for further direction.
Police: Mr. Woodruff reviewed revenues in terms of fees (burglar alarms, taxi permits,
wrecker rotation, etc) and pointed out that one misconception is that traffic ticket fees are

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received by the City. Chief Yaniero agreed and stated those fees as well as seized vehicle
monies, fines, and forfeitures, were received by the School system.
In terms of grants, Mr. Woodruff pointed out the School Resource Officer Funding,
which was not paid by City taxpayers, but by the School system. Likewise, the E-911 funds
were generated from a surcharge on telephones.
In terms of expenditures, Chief Yaniero said this year they had to absorb a $75,000 loss
in revenue due to the Attorney General’s recent decision to change the way that drug asset
forfeiture proceeds would be disseminated. In addition, the US Secret Service had contacted the
City about the possibility of four to five visits from presidential candidates for the upcoming
election. These visits would require City police support to assist with security logistics and cost
the City approximately $50,000, which was not reimbursed by the federal government.
Chief Yaniero also reported that this budget included some additional funding to start the
process of body cameras for Police Officers. Officers already carried taser cameras as well as in-
car cameras. A brief discussion was held on the technical aspects of control as well as
integration of the body cameras with in car cameras.
In response to a question from Mayor Pro-Tem Lazzara, Chief Yaniero said the
additional cameras were a necessary tool that added more security and an additional level of
protection. Mr. Woodruff added that Chief Yaniero had been part of a large group of Chiefs
around the State currently looking at training and use of force. The City wanted to make sure
that our protocol and training were the latest and best. He said that while the nation had been
experiencing these tragedies, the City had taken proactive steps to determine what we could do to
prepare our personnel for when they encountered dangerous or volatile situations. Chief Yaniero
added that the officers were also participating in a new model of teaching, including diversity
training, and fair and impartial policing.
Mr. Woodruff reported that last week the City was notified of an award of a Governors
Crime Commission Grant for Crisis Intervention. Consideration of acceptance of the grant
would be an item for Council consideration at the April 21 Regular Council meeting. The grant
was for two years to add a staff member for crisis intervention counseling. The grant did not
require that the position remain on staff after the grant ended. The grant required a local match
but it could be provided as in-kind services such as for equipment, office space, etc. Chief
Yaniero added that if the grant were accepted, the goal would be to see reductions in domestic
violence and child abuse as well as a decrease in the homeless population.

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Fire and Emergency Services: Mr. Woodruff stated this was a service-oriented
department providing emergency and medical services and fire response. Overall, the budget
had decreased due to the purchase last year of self-contained breathing apparatus packs.
Councilman Warden asked about the part time positions. Chief Spencer Lee responded
that one was a part time fire equipment technician and the other two were firefighters.
Parks and Recreation: Mr. Woodruff reported that this budget included the grant for the
final phase of the Lejeune Rails to Trails and revenues for the afterschool program, which
Council had asked them to make self-funding. Ms. Susan Baptist, Director of Recreation
Services, reported that the program was currently self-funding. To date over 326 children were
being served in after school programs in every elementary school in the City including the newly
added Bell Fork Elementary School. This budget also reflected the addition of the Youth Center
expense, which had been moved from Community Programs budget. The Center was now being
rented like other recreation facilities, which allowed the City to recoup some of its investment on
the improvements they had made to the building.
Mr. Woodruff noted that salaries and benefits decreased due to the decision not to fill the
Director position. Currently two top staff had been promoted to Co-Direct the Department and
were doing an excellent job. Ms. Baptist served as Recreation Programs Director and Mr.
Michael Liquori served as Parks Director. Regarding personnel, Mr. Woodruff said that
currently there were 5 temp employees who worked 40 hours year round that were requested to
be added as full time personnel. Mayor Pro-Tem Lazzara commended the decision to appoint
Ms. Baptist and Mr. Liquori as Co-Directors. He thought they were doing an amazing job and he
had received many compliments on their Recreation programs and on the Parks.
Planning Administration – Planning and Permitting: Mr. Woodruff said that the budget
decreased as a result of two employees retiring. Duties were realigned and the positions would
not be refilled.
Building Inspections: Mr. Woodruff said as previously reported the forecast for single
family homes not being a strong part of our economy was correct and should remain the same for
the next several years.
Code Enforcement: Mr. Woodruff said that with the current economy they were still
seeing foreclosures and the need for nuisance abatement such as high grass. If the City
ultimately had to correct the problem, the work was contracted out and the cost of the work plus
administrative fees became a tax lien on the property.

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Community Development: Mr. Woodruff reported that the Community Development
Block Grant funds continued to decrease. However, programs in the form of low interest loans
were currently generating roughly $170,000 a year back to the City. Mr. Woodruff gave a
general overview of an idea for a new program as an outgrowth of the Summit that Council held
with their Advisory Committee members in December. Council and the Committee’s had agreed
they would both like to see the City focus more on older neighborhoods. The program would be
called Livable Neighborhoods and its mission would be to work with some of the older
neighborhoods to help find common solutions to problems.
Mayor Pro-Tem Lazzara stated that at a recent Housing Finance Commission meeting in
Raleigh, Ms. Gray’s Community Development projects were a topic of discussion and an
example of the great work being done in Jacksonville. He commended Lillie and her team for
their efforts in the community.
ADJOURNMENT
A motion was made by Councilman Bittner, seconded by Councilman Thomas, and
unanimously adopted to adjourn the meeting at 6:31 PM.
Adopted by the Jacksonville City Council in regular session this 5th day of May, 2015.
______________________________
Sammy Phillips, Mayor
ATTEST:
______________________________
Carmen K. Miracle, City Clerk

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FY16 PROPOSED BUDGET
April 7 Workshop Follow-Up
Note 1 – Finance – Investment earnings page 10 – Please prepared an analysis that
shows investment earnings over the last three fiscal years and explain why there is a
significant reduction projected for FY16
Response 1: The investment earnings for FY12 through FY15 estimates are
shown below:
Year Budget Actual
2012 82,274 60,704
2013 38,724 68,836
2014 76,320 47,598
2015 70,000 19,835 *
2016 19,835
*Full Year Estimate for FY15
Actual investment earnings over this period have decreased dramatically due in part to
the decline in interest rates and in part to a strategy of staying liquid in anticipation of
rising rates. Prior year budgets have been based on the anticipation of rising rates.
The budget for FY16 is more conservative and based on current interest rates.
Note 2 – Finance – General Fund balance – Please provide additional explanation
regarding the use of General Fund Balance for FY16 and compare that to utilization
over the last several years.
Response 2: The General Fund balance appropriation is less in FY16 than it
has been in the last six years. During this period, the amount of fund balance
appropriated ranged from $2.0 million to $5.2 million. The FY16 year projection is $1.9
million. The “actual” column below shows the audited figures at the end of each fiscal
year and a projection for FY15 (*).
Fiscal Fund Balance Actual
Year Appropriated Change
2010 3,487,709 1,668,506
2011 2,407,417 906,217
2012 4,112,384 (101,841)
2013 2,611,336 1,263,078
2014 5,228,768 (998,157)
2015 2,002,776 *(1,200,000)
2016 1,947,716

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Note 3 – Media – Finance – Council Budget page 24. Fee paid by Onslow County for
production – Please provide information which compares the FY15 and FY16 budget
relative to the fees received from Onslow County for the production of their public
meetings and other County productions.
Response 3: The anticipated revenue from Onslow County for Media Services
for FY15 is $82,000. The FY16 proposed budget includes anticipated fees of $75,000
from the County, which represents the contribution of the County to the base operation
of the shared Government Channel. Actual receipts from the County have ranged from
$73,387.50 to $95,587.50 over the last several years.
The FY16 base budget for Media Services reflects an increase in the depreciation
expense which increased by $77,000. The draft FY16 budget represents a net increase
to the Media budget of approximately $51,000. Media Services is replacing
nonfunctioning and outdated equipment in FY16.
Note 4 – Transportation Planning and Finance – page 45 – Determine whether we
have “double budgeted” the $60,000 figure given the fact that staff time will be used to
conduct the work?
Response 4: This was inadvertently included in the budget in both the
operations and the related project budget. The project budget will be eliminated in the
final version of the FY16 budget. This adjustment will decrease the amount of
appropriated fund balance form the General Fund.

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Note 5 – Transit – page 53 – Transit projects – Further explain the individual annual
transit projects and provide a general overview of at least one year of transit funding.
Response 5: For transit grant purposes, the term “project” refers to a grant
year and an amount of funds, not a capital project such as the construction of a bus
shelter. Transit grant funds appropriated to the City are eligible to support costs
associated with operations, maintenance, planning and capital investment (buses,
shelters, technology, maintenance facilities, etc.). Due to the effort required to comply
with regulations for spending these funds, in addition to the amount of time it takes to
complete capital projects, Transit grants are allowed to remain in-place until activities
funded by the grant are complete. Therefore, it is normal for these to span multiple
fiscal years.
Please find below an excerpt from a spreadsheet that staff uses to track the status of
active Transit grants:
City Project #/ Estimated
Federal Grant # Work Complete Work In-Process Completion
TR0802 − FY 2009 operations Park-and-ride lot FY 16
(drivers, fuel, City support feasibility study and
NC-90-X446-00 staff) preliminary design
− FY 2009 maintenance
(Fleet Charges)
− Bus replacement
− Comprehensive Marketing
Plan
− Transit System
Development Plan
− Construction of bus stops
and shelters
− Expansion of Fleet
Maintenance, Building A
As with TR0802, many of the Grant Projects listed on the Transit summary sheet of the
budget book (Page 53) are moving toward completion and will be closed in the coming
fiscal year.

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Jacksonville City Council
Fiscal Year 2015-2016
Departmental Budgets
Special Budget Workshop Meeting
April 14, 2015
Community Programs Community Programs
Amended Proposed Amended Proposed
Revenues FY15 FY16 Staffing FY15 FY16
Taxes & Other General Fund Revenue 279,372 227,363 Full Time 2 2
Part Time - -
Overhead Allocations
Totals 2 2
Water Sewer, Solid Waste, Stormwater 48,621 49,325
Miscellaneous Revenue 2,500 2,500
Totals 330,493 279,188
Expenditures 330,493 279,188
Slide #55
Slide #55 Slide #56
Jacksonville Tourism and
Human Resources
Development Authority
Amended Proposed Amended Proposed
Revenues Revenues
FY15 FY16 FY15 FY16
Occupancy Tax 900,000 900,000 Taxes & Other General Fund Revenue 587,170 532,858
Totals 900,000 900,000 Overhead Allocations
Expenditures 900,000 900,000 Water Sewer, Solid Waste, Stormwater 175,445 178,517
Totals 762,615 711,375
Expenditures 762,615 711,375
Slide #57 Slide #58
Slide #57 Slide #58

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Human Resources City Clerk
Amended Proposed Amended Proposed
Staffing FY15 FY16 Revenues FY15 FY16
Full Time 5 5 Taxes & Other General Fund Revenue 194,083 149,427
Part Time - -
Overhead Allocations
Totals 5 5
Water Sewer, Solid Waste, Stormwater 43,934 49,380
Fees (Annexation) 1,500 1,500
Totals 239,517 200,307
Expenditures 239,517 200,307
Slide #60
Slide #59 Slide #60
City Clerk Finance Department
Amended Proposed Amended Proposed
Staffing FY15 FY16 Revenues FY15 FY16
Full Time 3 2 Taxes & Other General Fund Revenue 827,492 1,527,843
Part Time - -
Overhead Allocations
Totals 3 2
Water Sewer, Solid Waste, Stormwater 1,089,572 1,085,306
Fees 787,000 27,000
Totals 2,704,064 2,640,149
Expenditures 2,704,064 2,640,149
Slide #62
Slide #61 Slide #62
Finance Department Metering Division
Amended Proposed Amended Proposed
Staffing FY15 FY16 Revenues FY15 FY16
Full Time 25 24 Water & Sewer Revenue 472,869 429,049
Part Time - -
Fees for Meter Purchases 28,000 23,000
Totals 25 24
Debt Proceeds 24,726 -
Totals 525,595 452,049
Expenditures 525,595 452,049
Slide #64
Slide #63 Slide #64

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Metering Division Fleet Maintenance
Amended Proposed Amended Proposed
Staffing FY15 FY16 Revenues FY15 FY16
Full Time 6 5 Charges to other Funds 3,286,322 3,435,112
Part Time - -
Debt Proceeds 103,357 -
Totals 6 5
Appropriated Fund Balance 3,421 (41,917)
Totals 3,393,100 3,393,195
Expenditures 3,393,100 3,393,195
Slide #66
Slide #65 Slide #66
Fleet Maintenance GF Non Departmental
Amended Proposed Amended Proposed
Staffing FY15 FY16 Revenues FY15 FY16
Full Time 11 11 Taxes & Other General Fund Revenue 983,360 990,454
Part Time - -
Fees & Special Revenue Projects 225,200 225,350
Totals 11 11
Totals 1,208,560 1,215,804
Slide #68
Slide #67 Slide #68
GF Non Departmental Police Department
Amended Proposed Amended Proposed
Expenditures Revenues
FY15 FY16 FY15 FY16
Operations 1,208,560 1,186,924 Taxes & Other General Fund Revenue 15,796,664 15,647,184
Capital Projects 721,993
Fees 196,950 211,350
Capital Reserve (693,113)
Grants 582,635
Totals 1,208,560 1,215,804
Debt Proceeds 555,812 482,000
Totals16,549,42616,923,169
Slide #69
Slide #69 Slide #70

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Police Department Police Department
Amended Proposed Amended Proposed
Expenditures Staffing
FY15 FY16 FY15 FY16
Operations 16,549,426 16,629,346 Full Time
Grants 763,252 Sworn Officers 122 122
Civilians 30 30
Capital ImprovementProjects (469,429)
Total 152 152
Totals16,549,42616,923,169
Part Time
Sworn Officers 5 5
Civilians 13 13
Total 18 18
Totals 170 170
Slide #71 Slide #72
Fire and Emergency Services Fire and Emergency Services
Amended Proposed Amended Proposed
Revenues Expenditures
FY15 FY16 FY15 FY16
Taxes & Other General Fund Revenue 7,720,118 7,582,769 Operations 8,272,668 7,692,719
Fees 37,550 42,900 Grant - -
Grant - - Totals 8,272,668 7,692,719
Debt Proceeds 515,000 67,050
Totals 8,272,668 7,692,719
Slide #73 Slide #74
Fire and Emergency Services Recreation & Parks Department
Amended Proposed Amended Proposed
Staffing Revenues
FY15 FY16 FY15 FY16
Full Time Taxes & Other General Fund Revenue 4,877,420 4,598,754
Regular 88 88
Fees 686,729 681,729
Funded by SAFER Grant - -
Part Time 3 3 Grants 900,000
Debt Proceeds 67,206 94,750
Totals 91 91
Totals 5,631,355 6,275,233
Slide #75 Slide #76

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Recreation & Parks Department Recreation & Parks Department
Amended Proposed Amended Proposed
Expenditures Staffing
FY15 FY16 FY15 FY16
Operations 5,631,355 5,345,733 Full Time 40 44
Capital ImprovementProjects Part Time 3 3
NC24 LejeuneBoulevard Trail 900,000 Seasonal 28 28
CIP Total 29,500 Totals 71 75
Totals 5,631,355 6,275,233
Slide #77 Slide #78
Planning Administration Planning Administration
Amended Proposed Amended Proposed
Revenues FY15 FY16 Staffing FY15 FY16
Taxes & Other General Fund Revenue 1,013,153 802,903 Full Time 11 9
Totals 11 9
Overhead Allocations
Water Sewer, Solid Waste, Stormwater - -
Fees 42,000 42,000
Totals 1,055,153 844,903
Expenditures 1,055,153 844,903
Slide #79 Slide #80
Building Inspections Building Inspections
Amended Proposed Amended Proposed
Revenues Staffing
FY15 FY16 FY15 FY16
Taxes & Other General Fund Revenue 161,128 93,476 Full Time 7 6
Totals 7 6
Inspection Fees 600,000 600,000
Debt Proceeds 29,876 -
Totals 791,004 693,476
Expenditures 791,004 693,476
Slide #81 Slide #82

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Code Enforcement Code Enforcement
Amended Proposed Amended Proposed
Revenues Staffing
FY15 FY16 FY15 FY16
Taxes & Other General Fund Revenue 291,988 279,118 Full Time 3.3 3.3
Totals 3.3 3.3
Nuisance AbatementFees 22,000 32,000
Debt Proceeds 24,726 -
Totals 338,714 311,118
Expenditures 338,714 311,118
Slide #83 Slide #84
Community Development Community Development
Amended Proposed Amended Proposed
Revenues Staffing
FY15 FY16 FY15 FY16
ProgramRevenue 181,988 170,675 Full Time 1.7 1.7
Totals 1.7 1.7
Administration Fees 900 883
Grants 365,744 352,202
Miscellaneous 40 100
Totals 548,672 523,860
Expenditures 548,672 523,860
Slide #85 Slide #86