Setser
Following a closed session on May 18, the Franklin Town Council appointed Justin Setser as interim town manager.
“I feel honored that the Town Council trusts me with the position of interim town manager,” Setser said. “I will continue to work very hard and do my best for the residents, citizens, mayor, town council and the valuable employees of the Town of Franklin.”
Setser is currently employed as the town planner/land use administrator. He is a native of Franklin and a FHS graduate. He received an associate’s degree in GIS/GPS from Haywood Community College in 2006 and previously worked as the GIS analyst for Macon County. Setser is a captain with the Franklin Fire Department and served on the town Planning Board and Board of Adjustment prior to being appointed town planner in January 2014.
The current town manager, Summer Woodard, has accepted a job as city manager for the City of Reidsville (N.C.) and her last day will be June 7.
Setser’s mother, Dinah Mashburn, serves on the Town Council. Town attorney John Henning said Mashburn’s vote in favor of appointing Setser did not pose a conflict of interest as defined by North Carolina law, and that as a council member she was obligated to vote on the motion.
Coming out of the closed session, the council members also voted to hold a public hearing on an economic development project at the regular town meeting scheduled for June 7.
2020-2021 Budget Update
Woodard began the budget portion of the meeting with an update on the town’s 2020-2021 budget.
As of May 18, the town has collected $3,529,976.53 in general fund revenue and incurred expenses of $3,416.599.44, leaving a surplus balance of $123,377.09
“If we closed the books today, you would need no fund balance to balance,” Woodard said. “That is a really good place to be considering we didn’t know where we were going to be when we started this budget.”
The 2020-2021 budget included $272,408 from the fund balance to balance the 2020-2021 budget, however that will not be needed if revenue and expenses stay on the current track until the close of the fiscal year on June 30.
“That’s really good,” Woodard said. “That’s why we always try to take a more conservative approach when going into budget, and we really took one this past year not knowing what the pandemic had in store for us.”
2021-2022 Budget
The proposed 2021-2022 budget includes an appropriation of $418,736 from the fund balance to balance the general fund. Woodard said that full amount may not be needed when it comes time to balance the budget and close the books this time next year.
Town employees will receive a 2% cost of living adjustment, the first in nearly three years. Council member David Culpepper could not attend the first part of the meeting, but submitted the following statement to Woodard via email: “Inflation is running rampant. We have a young staff that I would like to keep. This 2% COLA is necessary. Another factor to think about – investing in livability of our town as a reason (recruitment and retention) for talented staff to stay here, or come here. I believe if you ask them, they would welcome and support more in-town rec [recreation] opportunities for themselves and their children.”
Expenses in the water and sewer fund include two large projects: the Crane Circle/Lakeside Drive sewer line ($515,000) and the Clyde Street water line ($552,000). “These are two projects that are desperately needed for that end of town,” Woodard said.
Woodard outlined three ways the town could pay for water and sewer line projects: 1) fully pay for projects out of retained earnings, 2) secure debt service, or 3) use part of the Recovery Act funds. Woodard said she did not recommend paying for the projects out of retained earnings and did not recommend allocating the full cost of the projects from the American Rescue Plan money. The town will receive about $1.2 million, part of which is allocated for infrastructure improvements. Woodard said with the current low interest rates, there are financing programs the town could consider.
The budget also includes a 3% increase in water and sewer rates, which is based on the needs outlined in the town’s Comprehensive Improvements Plan.
On the revenue side, Woodard estimated sales tax collections would increase $100,000.
There will be no property tax increase; property taxes will remain at 32 cents per $100 of valuation.
The budget includes $4,371,043 for the general fund; $939,647 for the fire department fund; and $5,211,972 for the water and sewer fund. The total budget is $10,522,662 compared to this year’s budget of $9,211,635.
The council will vote on the 2021-2022 town budget at the next regular meeting, set for 6 p.m. June 7 at Town Hall.