Town Council — Boone, NC
Date: 2025-05-22

Town of Boone
 Town Council Special Meeting
 9:00 AM, May 22, 2025
 Town Council Chambers
 1500 Blowing Rock Road

 Annual Budget Retreat


 I. Call to Order

 II. Moment of Silence

 III. Announcements

 IV. Public Comment

 V. Tentative Agenda Adoption

 VI. Discussion Regarding Budget Expenditures for FY 25/26

 VII. Discussion and Possible Action Regarding Outside Agency Funding Allocations

 VIII. Adjournment




Town of Boone Town Council May 22, 2025
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MINUTES - TOWN COUNCIL SPECIAL MEETING
 BOONE TOWN COUNCIL
 MAY 22, 2025

I. Call to Order

 A Town Council Special Meeting of the Boone Town Council was called to order at
 9:00 AM on Thursday, May 22, 2025 at the Town Council Chambers 1500 Blowing
 Rock Road. Council members present included Tim Futrelle, Dalton George, Todd
 Carter, Edie Tugman, Virginia Roseman, Eric Plaag. Staff present included .

II. Moment of Silence

III. Announcements

 Mayor Futrelle asked if there were any announcements. Hearing none, Mayor Futrelle
 asked to move to the next agenda item.

IV. Public Comment

 Mayor Futrelle asked if there was anyone in attendance that would like to provide
 public comment. Ms. Wise noted that no one had signed up, and that no members of
 the public were present. Mayor Futrelle then moved to the next agenda item.

V. Tentative Agenda Adoption

 Mayor Futrelle asked for a motion to tentatively adopt the May 22nd, 2025 Special
 Meeting of the Boone Town Council.

 Mayor Pro Tem George made a motion, which was seconded by Council
 Member Plaag, to Approve the tentative agenda for the May 22nd, 2025 Special
 Meeting of the Boone Town Council.

 VOTE: Aye: Dalton George, Todd Carter, Edie Tugman, Virginia
 Roseman, Eric Plaag
 Nay: None
 Absent: None

VI. Discussion Regarding Budget Expenditures for FY 25/26

 Mayor Futrelle asked Ms. Davis to provide an overview of the proposed Fiscal Year
 2025/2026 budget for the Town of Boone. Ms. Davis began by proposing a 1-cent
 increase to the current property tax rate, raising it from 39 cents to 40 cents per $100
 valuation. This increase would fund three additional firefighter positions and increase
 the affordable housing line item to $227,595. Ms. Davis explained that after Hurricane
 Helene, the Town of Boone and the Rural Fire District experienced an increase in fire
 fuel, heightening fire risk. Chief Isaacs noted that this level of fuel has not been seen
 since Hurricane Hugo and presents a significant risk to the Boone community.
 Councilmember Plaag asked Ms. Wise to present the property tax rates for all
 municipalities in Watauga County and pointed out that from 2014 to 2021, Boone’s
 property tax rate ranged from 41 to 44 cents per $100 valuation. He asked Ms. Davis
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to explain the reduction from 44 to 36 cents in 2022. Ms. Davis responded that it is
common to lower tax rates during revaluation years to remain just above revenue-
neutral, a practice also followed by other municipalities in the county. Councilmember
Plaag then asked if the Downtown Boone Development Association applied the same
approach to the Municipal Service District (MSD) tax. Ms. Davis confirmed they had
done so in the past. She also noted that although the Blowing Rock Road corridor was
most impacted by Hurricane Helene, she did not include a separate MSD tax for that
area following discussions with the Town Council and Attorney. Despite Hurricane
Helene, property valuations for the Town of Boone, the Rural Fire District, and
Watauga County have increased. A brief discussion followed.

Ms. Davis presented proposed revenue increases, including a rise in solid waste fees
from $10.50 to $12.50 per month, in alignment with the solid waste and recycling
contract. Water and sewer rates are proposed to increase by 8.5% and 5%,
respectively, based on a rate study by Raftelis, which the Council previously adopted.
She stated that, based on projections from the North Carolina League of Municipalities,
sales tax revenue is expected to increase by 2.8%. Councilmember Tugman inquired
about the accuracy of property valuation figures provided by Watauga County. Ms.
Davis noted that the initial figures were inaccurate due to a new tax evaluator but that
she had worked with the County to obtain more reliable data. A discussion followed
regarding lost sales tax revenue due to a change in the distribution formula by
Watauga County. Councilmember Plaag asked whether staff had considered
establishing a disaster reserve fund in light of Hurricane Helene. Ms. Davis explained
that although unwritten, the Town maintains a 35% general fund reserve for
emergencies. Chief Isaacs said that the Town has started receiving FEMA
reimbursements, and thanked the Council for funding the Emergency Manager position
before the hurricane, allowing one person to focus solely on FEMA-related efforts. A
discussion followed regarding the storm’s severity and recovery operations. Ms. Davis
stated that the Town has spent $780,752 on Hurricane Helene repairs not yet
reimbursed (excluding staff salaries). To date, $1.35 million has been reimbursed, and
$4 million in projects remain pending due to engineering requirements. She suggested
that in 2027—another revaluation year—Council consider increasing the general fund
reserve from 35% to 50%.

Ms. Davis proposed a parking rate increase to $1.50 per hour. Projected on-street
parking revenue is $600,000 which is $50,000 less than last year. While on-street
revenue is restricted to parking improvements, off-street revenue is unrestricted. She
proposed reallocating $175,000 from off-street parking to fund parking improvements.

Mayor Futrelle called for a break at 10:00 a.m. The meeting resumed at 10:10 a.m.

Ms. Davis outlined budgeted expenditures, including modest increases in health
(4.05%) and dental (1.5%) insurance rates. $150,000 was allocated to Sustainability
and Special Projects, including a $50,000 reduction for Appalachian State University's
Green Power Program due to underutilization.
She recommended backfilling the vacant Environmental Specialist position and
pausing the Housing Specialist role until further planning. A 5% cost-of-living
adjustment (COLA) was proposed to stay competitive with Watauga County.
Councilmember Roseman asked whether the COLA could be reduced to avoid a tax
increase. Ms. Davis clarified that the tax increase would fund firefighter positions and
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affordable housing, not the COLA. Councilmember Roseman requested a cost
breakdown per percentage point of the COLA, which Ms. Davis said she would provide
later with Mr. Miller. Councilmember Carter emphasized the importance of supporting
staff post-Hurricane Helene. Councilmember Roseman then asked whether Council
would forgo its own COLA. Ms. Davis noted a proposed stipend increase to
$1,000/month for Council and a proportional increase for the Mayor. Mayor Pro-Tem
George wanted it stated that this stipend is made possible due to cuts in other aspects
of the governing body budget, like for travel and subscriptions. Further discussion
showed that the total cost difference in the governing body’s total operating budget was
$200, less of an increase than the typically applied 5% COLA. The increase was
intended to help Councilmembers reduce barriers to serving.

Ms. Davis presented inflation forecasts from Forecasts.org but noted they may be
outdated due to a federal budget reconciliation bill passed that morning. She asked if
Council had further questions. Council thanked her and Mr. Miller and agreed to
reconvene in June to finalize the budget before adoption. Department heads were
invited to present next.

Fire Department:
Chief Isaacs explained that the proposed budget was pretty self-explanatory, with the
only different thing for Council's consideration was the purchasing of a new fire truck.
He explained that while it is not currently in the budget, Council would need to begin
planning to purchase a new fire truck that, due to supply chain issues, they may not
see for three years. Councilmember Carter asked Chief Isaacs if Council should begin
planning for new vehicles at Fire Station 4, and Chief Isaacs explained that this fire
truck would be used to replace one that has reached its prime. Mayor Futrelle asked if
the lobbyists in Raleigh and Washington, D.C. knew of the needs of our community,
including the supply chain issues facing the departments, and Ms. Davis said that they
do and that Boone is not the only town experiencing this. Chief Isaacs explained that
as the purchase of a fire truck is a large undertaking, he could not begin the process of
soliciting bids until Council approves. Councilmember Tugman asked Chief Isaacs if
the Town would need to put funds down for a fire truck now, and Chief Isaacs
explained that he would not purchase anything until the product has been delivered.
Chief Isaacs noted that while Station 4 is not listed within the Fire Department budget,
the funds are available in the Rural Fire District budget. Hearing no other questions,
Mayor Futrelle moved to the next department.

Police Department:
Interim Chief Duckworth explained that the Police's budget is very similar to Fire's, and
has remained relatively flat. The only increases are for the hybrid vehicles and new
truck. A canine was removed from the narcotics budget as the canine was moved to a
different unit. Four new officer positions have been added, with funding coming from
the COPS Hiring Grant from the Department of Justice. Mayor Futrelle asked if there
were any questions. Hearing none, he moved to the next department.

Cultural Resources Department:
Mr. Freed noted that no big changes have been made to the Cultural Resources
budget, however, he noted that they have received a quote to repair the roof at the
Jones House which totals $20,450. Councilmember Roseman asked if Mr. Freed had
enough part-time staff budgeted for Boonerang. Mr. Freed explained that they have
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good volunteers and contractors that have already been built into the budget. A brief
discussion was held regarding Boonerang and how the Howard Street Revitalization
Project may affect the festival. Mr. Freed did note that he did not add the roof repair
was not in the budget, and Ms. Davis made a note that Mr. Miller would add it in.
Mayor Futrelle asked if there were any further questions. Hearing none, he moved to
the next department.

Public Works Department:
Mr. Moody explained that in the budget, it shows an increased lease amount for the
Brown Building. Furthermore, a need for a new truck for the Streets Department was
added to the budget. He explained that increases in maintenance in the water and
sewer enterprise fund were budgeted, with repairs to the wastewater treatment plant
alone costing approximately $1 million dollars. Mayor Futrelle asked if there were any
further questions. Hearing none, he moved to the next department.

Planning and Inspections Department:
Ms. Shook began by explaining that she tried to keep her budget as flat as possible.
She noted that within the budget, the salary for the Environmental Specialist was
added so that Mr. Wise could begin assisting Ms. Shook more with advanced planning
measures. She explained that until further notice, she would make housing in Boone a
priority of hers until the Housing Specialist position is fleshed out more.
Councilmember Plaag asked if assistance for Digital Watauga for the work that is done
for the department is included within the Planning and Inspections budget, and Ms.
shook said that it is and that she has earmarked $6,000. Councilmember Plaag went
on to say that the list of tasks for the Historic Preservation Commission is growing, and
would like to discuss the potential for a line item for internships with graduate students
from Appalachian State University's history department for report writing. Ms. Shook
explained that currently, Ms. Mitchell is in the process of obtaining her graduate degree
in historic preservation to aid in the report writing. Furthermore, Ms. Mitchell is working
with Dr. Deathridge to begin creating partnerships with the University's history
department. Mayor Pro-Tem George noted that he would also like to see the Town of
Boone begin working with the University for internships and utilizing interns for help
with projects. A brief discussion was held regarding internships. Mayor Futrelle asked if
the internship conversation could be postponed until a later date to streamline the
budget conversation, in which Council agreed. Mayor Futrelle asked if there were any
further questions. Hearing none, he moved to the next department.

Finance Department:
Mr. Miller explained that the proposed budget for the Finance Department is similar to
that of the other departments, where the budget remains as flat as possible. However,
Mr. Miller did note that the line item for contracted fees was increased as the Town of
Boone would be contracting with a different auditing service. Mr. Miller explained that
the previous auditing firm had some internal staffing turnover and elected not to take
the Town of Boone on as a client for the upcoming fiscal year. A brief discussion was
held regarding bids from other auditing services, and Mr. Miller explained that the firm
recommended by staff would be brought to Council to review on May 28th. Mayor
Futrelle asked if there were any further questions. Hearing none, he moved to the next
department.

Administration Department:
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 Ms. Davis began by explaining that Administration is the department in which Human
 Resources and Sustainability is housed, so that she would let Mr. Santucci and Mr.
 Presnell go over their department's budgets. Ms. Davis then noted that a $50,000 fuel
 contingency was added to Administration's budget for fuel contingency for other
 departments. She then explained that the Town would be updating its telephone
 network to an IP service. Furthermore, the lease for the Brown Building is up for
 renewal and that the property owners are willing to negotiate another 3 year term with
 the Town, with increased rates which is shown in the budget. Finally, Ms. Davis
 explained that the cleaning fees for Town buildings has also increased as another
 cleaning company has been chosen. Ms. Davis then asked Mr. Santucci to give an
 overview of Sustainability. Mr. Santucci noted that since 2022, $200,000 from the
 Sustainability and Special Projects line item have been utilized as match for grants
 totally over $4 million dollars, including multiple streambank restorations. He also noted
 that Ms. Wise has been an excellent asset for grants, and Ms. Davis agreed. Mr.
 Presnell then gave a brief overview regarding the Human Resources Department, and
 explained that the main expenses within the budget are insurance and benefits. He
 noted that based upon the competitive salaries Council has agreed to, the applicants
 for posted positions are of a much higher quality and that retention rates are currently
 at a high. Mayor Futrelle asked if there were any further questions. Hearing none, he
 called for a break at 11:45 a.m..

VII. Discussion and Possible Action Regarding Outside Agency Funding Allocations

 Mayor Futrelle opened the floor for comments from Councilmembers. A discussion
 ensued, during which Councilmembers expressed confusion about the Outside Agency
 Funding application. Councilmember Plaag suggested that Council revisit the intent
 behind the 60% allocation for health and human services and 40% for arts and
 humanities. He noted that he would feel more comfortable with a 60/40 split if there
 were a relatively even distribution of applications between the two categories.
 However, if 20 applications were received, 18 for health and human services and only
 2 for arts and humanities, he would be uncomfortable allocating 40% to arts and
 humanities. Councilmember Carter asked Ms. Davis where funds from the Community
 Assistance Program, administered through the Town's water and sewer billing system,
 are allocated. Ms. Davis explained that funds collected through the program are
 distributed to the organizations listed on the Town’s website. However, she added that
 contributions have been minimal, totaling just over $300 since the program’s inception.
 Councilmember Carter recommended that staff promote the program more actively.

 Councilmember Plaag suggested revising the language on the Outside Agency
 Funding application to state: “The Town of Boone’s target for distribution of Outside
 Agency Funding is 60% for health and human services nonprofits and 40% for arts
 and humanities nonprofits. However, if the applications are not sufficient, these
 percentages are subject to change.” Mayor Pro-Tem George expressed
 disappointment in agencies that have campaigned against the Town in response to
 Outside Agency Funding decisions. He stated that some organizations have begun
 treating these funds as a right rather than a privilege. All Councilmember shared
 similar sentiments. Councilmember Tugman shared her preference for eliminating
 percentage targets altogether and instead evaluating all applications on their individual
 merits, rather than by category. Councilmember Carter recommended changing the
 statement in the application from “Outside Agency Funds will be designated 60% for
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health and human services and 40% for arts and humanities” to “Outside Agency
Funds will be allocated to qualified applicants.”

Councilmember Roseman supported maintaining the current language and allocation
approach outlined in the application. In response, Mayor Pro-Tem George argued that,
despite last year’s vote to adopt a 60/40 split, the actual allocations did not reflect that
breakdown, establishing a precedent for Council to use discretion in fund distribution.
Council reviewed the previous year’s Outside Agency Funding allocations.
Councilmember Plaag suggested that each nonprofit applicant be designated as either
a health and human services organization or an arts and humanities organization, so
Council can establish a baseline understanding of how each organization is
categorized moving forward. He felt this would help inform potential changes to the
application in future years.
Following the discussion, Council allocated the following amounts to nonprofit
applicants:

 Appalachian Theatre of the High Country: $8,000, with an additional $1,200 from
 the Town of Boone's marketing line item to fund two films
 Blue Ridge Women in Agriculture: $13,000
 The Children's Playhouse: $5,500
 Daniel Boone Native Gardens: $0
 F.A.R.M. Cafe: $19,500
 Friends of the Watauga County Library: $0
 Full Moon Farm: $0
 Hospitality House of North Carolina: $25,000 (Councilmember Carter excused
 himself from the conversation)
 The Hunger and Health Coalition: $6,000
 Mountain Alliance: $7,500
 OASIS: $15,000 (Mayor Futrelle and Councilmember Carter excused themselves
 from the conversation)
 Project DANCE: $0
 Southern Appalachian Historical Association: $0 (Councilmember Roseman
 excused herself from the conversation)
 Transition Blue Ridge: $0
 W.A.M.Y. Community Action: $10,000
 Watauga County Humane Society: $4,500
 Watauga Arts Council: $4,500
 Watauga County's Project on Aging: $0
 Western Youth Network: $10,000

A discussion followed regarding OASIS's eligibility. Although the organization did not
submit a formal application, it did provide the required attachments before the
deadline. Council agreed that OASIS would remain eligible for funding this year but
emphasized that a complete application would be required in future years.
Council also discussed establishing a policy whereby organizations housed in Town-
owned property or those affiliated with Watauga County would not be eligible for
Outside Agency Funding. The rationale was that these organizations already receive
in-kind support, such as free property maintenance, or, in the case of County-affiliated
groups, additional funding could lead to double taxation for Town residents. Mayor Pro-
Tem George expressed frustration over the time and energy spent on the Outside
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 Agency Funding process, particularly given the backlash received from some arts
 nonprofits. Mayor Futrelle agreed, stating that the process should not be as difficult or
 contentious as it had become.

VIII. Adjournment

 Mayor Pro Tem George made a motion, which was seconded by Council
 Member Roseman, to Adjourn the May 22nd, 2025 Special Meeting of the Boone Town
 Council .

 VOTE: Aye: Dalton George, Todd Carter, Edie Tugman, Virginia
 Roseman, Eric Plaag
 Nay: None
 Absent: None



_______________________________ ________________________________
Nicole Harmon, Town Clerk Tim Futrelle, Mayor




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