Work Session

Welcome to the April 28th work session of the Kerry Town Council. This time I'll turn it over to our interim town manager. Uh thank you, mayor, and good evening, council. Uh in tonight's agenda, we're going to briefly review um upcoming meeting schedules and then we're going to roll into act 37 and 38 updates that will be presented by Cassie Schumacher Georgopoulos as well as Paul Um and really what that's code for is the uh park system plan and bike plan updates that will ultimately um go into our LDO and uh imagine carry. And so I would encourage you all, there's a lot of information in there, um, is to ask them and uh, plenty of questions tonight because you will also be seeing this on your agenda for Thursday night, which will be the initial public hearing or the public hearing for those changes. Um, the parks plan was, I believe, they'll tell you, uh, the park system plan was updated in 2024 and adopted. This kind of then takes it into adopting it into imagine carry as well as the, um, LDO. And then for the bike plan, uh lots, you know, lots of updates and changes on that and uh you'll hear how many changes have probably had through the years. So just again that is the main two topics um on the agenda tonight. So I just again encourage uh asking questions and then I hope we get to this because we didn't last time, but give you some updates on our sales tax and property tax updates in the uh town manager update and there is a close session uh following. Okay.

Okay. So this is just the overview of the calendar. So tonight followed by this Thursday and then we go into the May quarterly um work session regular meetings May 28th and then we'll head into June.

All right.

Did we change the dates?

Um not yet. We discussed it last words um we discussed it last board session and staff is still working on options

but none of those dates

yeah none of these dates

were to be changed.

Okay.

That was for the November quarterly and the August quarterly were the two that they were

Yes. For the staff that was working on it. I checked and the August one I wasn't sure about. I I'm fine with the new date.

Oh, okay.

I don't remember what it was but

what is the new Britney had a problem? You had a problem with the Yes,

I I was free the original date. Yes. Not the new proposed date.

Correct.

It's still a distance away. And

we're still working through it.

What is the new date? Sorry.

Um we have nothing proposed now.

But which date work? Like

it didn't work for

it. It didn't work out. So it's best just to start fresh at a different time. And we weren't going to do that tonight if that's okay.

And Lory's not here so do it without her.

All right. All right. Good evening, uh, council and mayor. I am Paul I have worked for Kerry for 20ome years, uh, doing park planning, greenway planning, all those fun things that, uh, get to do here in Kerry. And so tonight wanted to give an overview of the act 37 and 38 because of it including both the PRCR system plan and the bike plan. I'm going to start with kind of an overview and then we're going to turn it over to Cassie to talk a little bit more about the bike plan and that section of it. So the key takeaways is we've really had a tradition of planning in carry and we won't continue that with the PRCR system plan and the bike plan and amending the engage and move chapter is really what we're after uh with this next step in the process. And that's so that we can put it into the development ordinance and be able to implement these plans. So we we have the pretty plans with all the pictures and everything. Well, now we'll be able to have the regulatory authority. So, that's the the big takeaway. And so, our agenda tonight is,

like I said, Cassie and I will talk. We we think we'll take about 15 minutes here to give an overview of it, but we really want to open it up to discussion to see do you have questions on the system plan, do you have questions on the bike plan or the engage and move chapter, and then ultimately uh the land development ordinance. And we will also be at the public hearing uh this Thursday uh giving more information at that point. All right. So why do we plan uh the 2040 imagine carry plan? Uh you all are familiar with and that's what we're working for is trying to incorporate all this. We want to articulate what the community is after. uh again providing the regulatory authority uh that we're needing to work with developers and then planning for those future services and needs that are out there. And many times when we go after um a grant, it requires that we have these plans in place and that council has adopted approved them in order for us to go after that those matching funds and grants. So another very important reason why we have these plans. So within the imagine carry plan, we have uh the two chapters that we're talking about tonight. Chapter five is the engage which will have the PRCR system plan updated underneath it and then the move chapter which is chapter 7 uh which includes the carry bike plan. when we were working on the bike plan and the uh system plan, we went through a robust community engagement process. So, we just highlighting um some of the major elements that we did over the last few years on these plans. It started with uh community surveys um that we reached out had people take the we had focus groups we did popup sessions at spring days lazy days um we worked with the advisory boards and the committees under them to weigh in on all these plans. So there was a lot of opportunities. We even had public

meetings including a joint public meeting with the bike plan um last March so that people could see the overlap with the greenway system and the bike plan. And so we're trying to really coordinate a lot of those elements. And then that leads to our continuing on with more um public feedback, a public hearing this Thursday where again get more uh weigh in on that process and then that hopefully will lead us to the planning zoning board which we'll need to review it and then ultimately coming back to council for the final adoption. So we still have several more steps here to go through in order to uh make this all happen. We wanted to highlight the preamble. So both in the uh bike plan and the PRCR system plan, we have this language uh right at the very beginning of it. And a couple things want to highlight is these are both aspirational road maps. Um, so they're intended to kind of what's that long-term vision, but it's also based on what is the budget um that we have available at that time. So, we're not uh approving any budget items with these plans. That all is through a separate process that you are currently working through or will be in in the next month or so. But we need these plans in order to be able to uh kind of what are the requests that we want to make um as staff. Let me chime in there as well because that's an important part. Preamles are new to plans. Um, and I may ask Stacy to jump in as well, but you you get to build your plan um probably one of two ways. Either by the development community that ultimately builds and has to do something that was on the plan or through capital projects. So, in years past um folks would see a plan and they get very excited about when is that project going to happen? um that project is only going to happen as a result of um budgeting um and approvals of budgets. Um so and Stacy, just to make sure I said that right, Stacy's been our capital planning guru

for some time.

So, anything else to add?

No, I mean that's exactly it. The the plan is exactly what it is. It's a vision and then every year throughout your budget process and the input that you all receive from the public and other venues, you then take this vision combined with that input and then enter into these budget discussions that lead to more planning and ultimately funding for some things but not all. So,

all righty. So, diving now into the uh PRCR system plan. We just want to do a quick recap. I think I have three slides here. Um, based on what was approved in 2024, uh, since that time, we have updated just a little coordination with the bike plan. There was some greenway coordination, uh, some minor uh, items like that. But this is actually our fifth uh, master plan or we changed our name to system plan to kind of incorporate everything. The first one was in 1978. So since 1978, we've updated this several times uh along that process. So it's exciting that we're on on number five and they able to kind of continue uh that planning and the system plan really incorporates everything that the PRCR uh department does, the programming, the facilities, trying to understand what those needs and and expectation. So, just using some examples from this past month, we had the uh playground uh celebration at Davis Drive. That's an example of we had a 25-year-old playground that needed to be replaced. It had aged out, but we were able to actually upgrade it and make some improvements that would serve additional uh members of the community. So, those are things that happened. We had the ACC tennis tournament, example of our sports venues hosting uh different venues out there. And of course, spring days this past weekend of the arts and culture that are happening and even them inviting people to use the

greenway, ride your bike to uh spring days. Uh use that as a connectivity. Another overlap with the bike plan. How can our greenways connect with uh destinations along those lines? So all part of it uh the system plan really sets the vision. Um as we said here it's our guidance document but it does not include funding commitments at this point. So we're just trying to how do we really u know where we want to go in the future and that was done by really doing an assessment. all the public feedback we gathered through the survey, staff were able to weigh in and really uh analyze what that is to come up with the recommendations. And out of the recommendations, these are the six guiding uh key principles that that we came up with that are in the plan. And really, I'll just go through these really quickly just to highlight that Carrie invested and grows is talking about new stuff. What what should we add? What should we be doing along that line? Where the next one Carrie reinvest and evolves is about our existing facilities. How do we take care of maintain what we have already? And then also when you think about programming events, how do they evolve as demographics and things are changing? How do we change our programming to match our current community? Uh Kerry Connects is all about the greenway system and that network. The Carrie steward is the environmental experience. Not only how we take care of our parks and everything, but what kind of education programs are we offering to the community. And then you get to Carrie Creates, which is about the arts and cultural programs that is being offered. And finally, Kerry Innovates is about our venues. Um the entertainment sports venues that we have out there that we have these worldclass uh facilities in Kerry that we're very fortunate about. And that really takes us now to the carry bike plan where Cassie is going to jump in.

Thanks, Paul.

Thank you, mayor and council members. Before I begin, I want to introduce two folks who are sitting in the back um who are really the reason why we have a completed plan in front of you tonight. And that's Todd Milm, who is a planner within our transportation department. And then Jared Draper, who's with tool design, who was our lead consultant on the project. So, just want to acknowledge them for in all their hard work. I get the benefit of standing up here in front of you to present it to you, but it's really they're the the guys who put who help bring the plan together. So,

well, and you should say something about yourself because Cassie was leading these planning efforts before she became the transportation director, by the way.

Oh, yes. Thank you. Now she gets to enact the plan as the transportation.

Yeah. I'm a little jealous that Paul got to do the overview of Imagine Carry and all that other stuff beforehand because that was what I was doing before I'm in this role but

and still doing

but also got to shepherd along the carry bike plan um in this role. So the carry bike plan this is not a new type of plan for Carrie. Carrie has always had a bike plan. We are typically updating the bike plan when we update the transportation plan. And so the last time this was updated was in 2017 and incorporated into the imagine carry plan and into the move chapter. What this why this update is needed now is really based on citizen feedback and and a desire for separated bike facilities and that has also ch that has also been updated based on the national best practices and design guidance. So moving from wider outside lanes or bike just as a designated bike lane to more separated facilities for a more comfortable ride on on a busy road network. Um also looking at amending our development regulations and working with our development community because it's not necessarily about widening the amount of rideaway they have to give us, but it's about working with them on using that rideway differently. And I'll explain what I mean by that later on. We have an example of what that looks like today or will look like if the plans are adopted. We have continued to um receive requests for um increased safer connect connected

bike and pedestrian infrastructure throughout the community. I'm sure you all you all get these emails every day. I see them. You send them to me. So, thank you. And you we and so this is a way for us to continue to work on that to understand what what's that how that's showing up in the community and through community requests and seeing how we can can look to the possibility of implementing that in the future. It aligns with our vision zero resolution that council adopted last April and also builds on our existing green greenway network. Staff has already been working with the development community on implementation of this plan. So this is a continuation of how do we update our development guidance in order to meet the needs of the citizens as well as not overburden developers with with requests for changing facilities within the roadway network. We'll continue to integrate the plan into our development regulations and also we include this in our capital projects. So it's not necessarily that it's an it's a new type of capital program. We're implementing this this year with our um with our street improvement program. So in areas where we have bike lanes, we'll be updating those bike lane stripings, likely making that bike bike lane wider where we where we have the ride ofway. Um also improve in inroving pedestrian crossings at intersections, which which was another um item that was identified by the community just you know through better connectivity to the system. Um also focusing on education, events and awareness. So, it's not all about capital projects. It's also about how do we talk about bike culture in the community and educating bike culture. I'm not going to deep dive into ebikes tonight, but ebikes um ebike culture and ebike safety is actually part of the plan. It's an action item of the plan. So, you guys are already moving forward with implementation of this plan um as we continue those conversations on eBike and ebike safety. Hey Cassie, could you add since you've got NC DOT on this slide and granted they're a partner, um some of this planning document overlaps

on their streets and we're seeing a lot of requests with regards to what DOT will or won't allow. Could you speak to um how this plan can be implemented on a DOT street or not?

So part of this is you continue to work with NC DOT. We do acknowledge that we don't own all the roadway networks and a lot of that network where you're seeing the higher like we call them higher stress networks where you're seeing faster speeds and more volume on those streets. We'll really be working with NC DOT. We do have proposed in our capital budget this year um a road diet for Harrison Avenue and that's actually working with NC DOT to go from Maynard all the way to Chattam Street with a road diet and they they're supportive of that and also have um are willing to pay for their the portion on the part of the part of Harrison that they own. So they also see a need for mobility um giving citizens mobility choices as well as adapting their roadway network for these you but but it's not probably every case where we can do this and some some networks are going to be harder to change than others just based on the way that the street was designed for for higher rates of speed and higher volumes and also understanding where citizens will actually use that integrated network and where they won't. So what we've learned through this process, so again Paul kind of gave an overview of what our engagement process was. What we learned from the community is that our greenways are great, but they don't fully meet their daily travel needs. So not necessarily connecting to their place of work or to the store, similar to what we see we saw as greenway feedback in the in the in the parks plan. the high gaps and the high or the gaps in the high stress road networks limits citizens desires to walk and bike. And so looking at how do you provide more comfortable situations for citizens on on those networks. You most people are riding for recreation today and not transportation, but that that trend is changing and and

that's part of the reason why we're updating the plan. And then a a stronger desire for separated and safer facilities. What the plan provides is that it does move away from the recreation focus. The bike the parks plan is really focused on the recreation component of this and this looks at everyday transportation options. It emphasizes connected networks to daily definitions or destinations. Sorry. Um not not just you that recreational network. So getting to where you want to go. My husband and I used to race our cruiser bikes to Dairy Queen because that's where we wanted to go. So, you know, we can look at similar options here. Um, and we still do that sometimes. Um, we haven't outgrown that. Um, also prioritizing low stress and more comfortable facilities for all ages and abilities. So, it's not about me getting dressed up in my in my bike gear and going out and riding 40 miles on our road network. It's about your eight-year-old. It's about your 80-year-old getting on your bike and going getting to places that you want to go and choosing not to get into the car, but but instead having an opportunity to choose a different mode of travel. It also focuses on implementation um through programs and partnerships. So, not just Carrie funding more and more capital projects. So really looking at changing culture, increasing awareness and and also working with our partner agencies to help to assist us with that. And again, it does not commit to capital funding or projects. So that will be done on an annual basis. You so there's no dollar amount listed at the end of this plan. Previous plans have had that. The previous parks plan had a capital layout of of different projects and what their cost would be. These plans do not include that because it's going to be continued conversations with council as we um adopt updated capital budgets every year. And so the vision for the plan is to and it's a continuation of the previous

vision to create a network of safe, comfortable, and convenient bikeways that allow residents, employees, and visitors of all ages and abilities to take daily trips. So again focusing on that everyday user not just on the expert competent bike rider and the plan is based on a network approach. So you'll see a comprehensive bikeway network that is to be implemented over time. So we don't expect you to do this next year. That's if if you leave with anything today it's and we're not committing to implement this next year. Um it is something that we look at for implementation over time through development through private development as well as through our our own improvements and maintenance of the system. It's focused on those separated bikeways. So again um vertically separated from traffic um on those those high stress networks. The neighborhood bikeways are really the connectors to get from rear residential neighborhood to to those separated bike facilities into the the larger connected system. Often some could even be done through traffic calming systems. So really where those low rate of speed and low stress opportunities are with the overall focus to connect to what we heard was to destinations to our greenway system as well as to transit. And so what this shows up as in the plan today and and what we're evolving from is you can see the existing cross-section at the top is adopted into Imagine Carry and it's very specific on the roadway network. I'm sorry. I'm going to grab some water. It's very specific on the dimensions of how the roadway and how that rideway is going to be going to be used. So you're seeing it's very tiny but so today it prescribes a 12oot travel lane and a 14oot travel lane on on operating in both directions. What we're looking at today is within that same rideway

network. How can you narrow that lane width and bring more of that space over to the the bike and pedestrian network? So really we only need an 11t travel lane. Our engineers are working with the development community today to reduce the width of the lay of the vehicle or travel lane and use that space instead to provide a a more comfortable bike and pedestrian network without requiring more land dedication or getting into more of their developable area but really focus on what's required today.

Does reducing the width of a travel lane reduce speed? Typically, is that a traffic caling measure?

Yes. Yeah, in theory.

Yes. So, yeah, an additional benefit, but yeah, it depends on how fast you want to go in that lane.

Studies have shown that that's the result. But

yeah. Yeah.

Can you can you stop on that a second too? I thought Heather might chime in because this is just something to think about and maybe had a little discussion on it today. Um because as as Cassie's mentioned, you don't you do this over time. So anywhere that this uh proposed lane change is mentioned, um whether we do a project or it's implemented over time as development occurs, you're going to get these spots of halves and have nots or different cross-sections of things. So you just should think about and I know you all get a lot because I see them from y'all, but citizens will ask when when are you going to widen this gap or when is this gap going to match what's next to it? Um so doing this there's nothing wrong with this um this approach but you're going to introduce yet another um standard um so as the right-of-way changes in front of de development um and I know it's Cassy's team too but Heather's team is a result of reszonings or public hearings and other things you may start seeing uh comments regarding what these changes are and then how they transition to what the old thing is. So I don't know if there's anything to add on that Heather.

Yeah. No, I mean I think you you summed it up other than just to you know highlight that yes it would be another standard and so even if it we would you

know consider it the preferred standard there would be those you know inconsistencies as develop new development comes online. So we would have to work with developers to marry those standards together and feather them together as best as possible

and then may put pressure on a a capital system to do our own improvements to connect the dots of these spaces where you have different standards and um we we have plenty of different standards through the year but I think it just bears highlighting for those that are watching or listening um that you won't get a um separated um you know bikeway or or sidewalk walk um for complete stretches unless we do a capital project and you'll get it in in effect peacemeal to some degree as development comes in and meets these standards along the way. So just something to think about

and our team through the development review process and working with private development has looked at how do these relate to the context that they're associated or they're sitting in. And so another example of how this has been applied would be the Weston PDD which was recently approved and working with the consultant or with the developer to dedicate not a separated bike facility but a wider streetside trail that would connect to the larger system. So instead of doing a sidewalk and then requiring them in today's today's standards to add that extra that wider outside lane using that extra width to add it to a streetside trail to have a larger bike and pet accommodation in that area versus adding versus even the cost of changing the curb line you dedicating more land to the street that then we would have to go back and retrofit if we wanted to upgrade that area.

One more question. How how wide is our typical what right of way today? 12 million

12

the whole right ofway or or lane sorry

not the lane the right way

I that's probably pretty accurate um the roadway section being 90 ft but you have

different size that's a 30 foot median so it could it could shrink based on the median

and so we have I think there's eight different crosssections in the imagine carry community plan that are our standards for um it it depends on the road um so we have some that go down to 70 ft of rideway and some that go all the way up I think to 125 ft of rideway or more.

Okay.

Um so this you'll see um on on large stretches of you NC dot roads we do require that the it's four lanes and then having that median divided. Um, you'll see a lot more on on the larger on the street networks that have higher volumes and higher higher rates of speed. Is it safe for me to assume that we're more likely to have 115 ft of roadway right of way in West Kerry or new newer development areas than we are in the remainder of Kerry. It's I might would say it maybe and um I'd say it differently where you have median divided roads like Kerry Parkway, Horsesville Parkways and anything that has a wide median.

Um so it's possible because the standard went to this over time but Kerry Kerry Parkway is probably the

poster child of that loop road that has that type of rightway.

Okay. Thank you.

Thank you.

And so then just to highlight some examples that we have in the community already of these facilities. So the Fenton development included, you know, kind of the premier when you think about these separated facilities and and and images that you see from other communities. Fenton really has the premier facility out here. So this has the the separated bike lane as what with landscaping in that in that separation and then it also has a separated pedestrian facility along with that. Um other ways that we've applied this though um since and Fenton was done in um the 20 2020

um but and and opened in 2020. So the noral road diet was done in 2022 and this took we didn't move curbs. We actually took extra wide lanes and reduced them to add in buffered bike lanes or separated bike lanes on Norwell Road. So, this is right outside of North Kerry Park. This allowed for connectivity to the greenway as well as to the neighborhoods. Um, and again, using just the extra road space that we have today, we were able to incorporate these facilities. And the cost for this was around $200,000. And then the Walnut Street Road Diet, which was our most recent one, completed in um 2024. The cost of this for the length um was uh 500 $500,000. So this instead of you just taking extra outside lanes, we actually took a whole lane and and converted that into buffered bike lanes along Walnut Street, which I think staff has studied this post opening and has been a really successful integration of and use of that road system, reducing speeds and also offering, you know, safer, more more comfortable facility for residents to really connect into downtown Kerry as well as other other connections to to retail in commercial areas. All right. Any question before I dive into what we're going to wrap up with? Um any questions on the bike plan? Any other questions on the bike plan? Okay. Right. So, the second act of this grand act is act 38 um which is land development land development ordinance amendments. So this is integrating the carry bike plan and the PRCR system plan into our development regulations. There are three um kind of three focus areas of this update focusing on you know updating the names and references in in in the land development ordinance.

Um, also how are we going to updating plan guidance? So updates to the easement widths as well as allowing greenways and and bikeways and buffers similar to how we allow sidewalks. So again, not taking more space away or more developable area away from developers, but really working within the confines of the rideway and in those those designated spaces. We're also updating our biking our bike parking schedule and our standards. We're looking we're also updating the bike facility design standards as some of what I've shown you tonight and removing outdated requirements. And then finally, we're we're updating some of the processes. So clarifications to parkland and greenway dedication and then updating definitions. So we're updating we're adding bikeways and and things that weren't included in in the bike plan. Um as well as updating the definition for greenways and streetside trails in in the LDO in the land development ordinance. And so, uh, bike parking schedule meaning, um, bike racks, bike racks, things of that nature, which has been a, um, concern of council over the years, um, it is new and increased standards at the same time.

And when you think of bike racks, in my mind, I was thinking of the ladder rack, like the schoolyard rack where you can put multiple bikes, but really it's just that U is is one bike rack. So, that you can get one to two bikes on. So, as you're looking through the amendments, it's it's just one U versus the full ladder rack. Cuz I had a moment of like, hold on, how many how many bike racks are we planning to park here? So, if you're like me and thinking old schoolyard, bike racks, it's not that. It's things you see on town hall campus and around the community. All right. So, again, our next steps, we'll see you at the public hearing on Thursday. Well, we we'll dive more into the amendments that are happening with the engage and move chapters as well as the land development ordinance. So, we'll provide more detail then. Um, and then if you choose to, you can recommend it to the planning and zoning board, which we hope to take it

to the summer if you are willing to do that and then bring it back to you if they approve it or if they recommend it back to you. Um, hopefully having this completed this summer. We have been working on them since 2023 and are excited to get it to this point to bring it before you.

And you've had some input with developers.

Yes.

As well, just to highlight that.

Yep. Working with the development community, I think, on a weekly basis now when they come to DRC meetings and we haven't had push back from from them. It's really, you know, Todd telling them the story of why we're doing it and also what you how we're working with them within the current requirements of of our LDO and of the Kerry community plan to achieve that vision and then achieve uh more comfortable um and options for mode of choice for our for our citizens and our residents. And last slide is the discussion slide.

I interrupted with all my questions. You guys did a great job explaining. I don't have a lot to say. So,

all right. Thank you.

Thank you.

I'll be here all meeting. So, come on.

Cassie's getting out of here.

And you'll dance

see her on Thursday night with the a bridged version of this um presentation. We hope. All right. I'm going to do a few updates. Um, well, actually, I'm going to call on Stacy to do a few updates. Um, which are I'm stealing her slides. We didn't get to these last time. Uh, Council Member Bush had some questions on this regarding u property taxes and um something you're hearing about maybe a loophole and some uh legislative items to to close that where we're seeing some um threats to our tax value. So, Stacy, I'll just give it to her and we'll bury the lead and let her go into that.

There you go. All right. Well, we'll do just a few slides here. Let me see if I can get this to go. There we go. Um, we'll start with the monthly sales tax revenue slide that I think you're used to seeing. This is really just looking

for trends on this slide. That's what I appreciate about this viewpoint. We do have three lines of data. I want to very quickly acclimate you to those. Green was activity from fiscal year 24, blue fiscal year 25. And then when you get to the orange, that's fiscal year 26, our current year. In this case, because it's sales tax, you can see that we have made it to January sales. So, there is a lag between when we all shop, when the state collects it, and then when we receive our distribution. So, this information is showing us through January sales. And you do see, you know, you hit your peak up here in December. Everybody's shopping in the holidays, and it does drop down. That's not uncommon at all. So, right now, the good news here really is seen on this slide. And so the orange bar to the left notes where we were at this point last year through January sales of last year. Bar on the right through January sales of this year. So we're tracking a little ahead of schedule. Um exactly 8% over over last year to be precise. Um and overall about 5.6% more than last year. So again that January distribution or sales were was the lowest point but that is not uncommon. that happens every year. And really, we are feeling pretty good. I don't want to jinx anything. Find some wood. Um, we're feeling pretty good about sales tax revenue this year. We uh budgeted 59 million for fiscal year 26. We've already gotten to 362 almost. So, um, this one this one is tracking right along in a in a good manner. So, that is sales tax. If you have any questions on that, we'll jump to property tax where there's a little bit more to talk about. Can you tell me what percentage year-over-year increase that is? Just so I you the way we we we look at it for

Yes. I mean, um, like I was saying earlier, if you're comparing where we are this year to last year, we're at about 5.6 over and right now about five and a half in general year-over-year.

So that would be the equivalent of when we did our our budgeting model, our

exercise. Yeah.

If we had put in a five and a half% increase sales tax.

That's exactly right. So things are trending up. And if you think about it, good or bad, inflation is high right now. So whether we're shopping less, we're potentially still spending more. Um, so that does a little bit to bolster this. So there there's a lot going on there.

That's literally my my next question. And when prices go up, sales tax revenue go up when things get more

tends to not dip because you've got that inflation factor bolstering things a bit. um looking, you know, thinking about uh what we are talking about for potential revenue next year as we enter the budget. Um we like to look at the League of Municipalities. I've mentioned that before and what they recommend. Um they're suggesting that in the next year the state as a whole due to population growth and other factors may see about a 3% increase in sales tax revenue. Um K's always been knock on wood again a little bit higher than that. So this 5 and a half% um trend that we're seeing is not uncommon and and is not um is probably not too um in jeopardy of change. Has that

of course it does highlight as you mentioned that with the um the league it's become a little more unpredictable.

It has

because I we were having this conversation probably a year ago about they were predicting high higher and we went lower and now it's trending higher. Sales tax is definitely art not science I think is really how I think about it. Um but we are seeing I mean inflation does have it does have an impact good or bad

but it's let's just celebrate the moment.

Yeah.

Yes. I I just like to be happy with that for a little bit. Makes me feel good. Okay. So we're going to talk about property tax collections now. Same thing with the colors. Green is 24, blue 25, orange is this year in 26. Um you can see we've made it to collections through March in this case. This is all property tax, all counties, all of Kerry. Um and that is also trending generally uh in a similar fashion. Uh what is a little

more unique about this point of the year from April to June is the fact that really the property tax we're collecting now is vehicle property tax because everyone's paid for the most part their um real property tax on their land and buildings. That typically happens at this peak back here. Um, as those bills are generally due in January. You see that happening somewhere between November and January. What I want to talk about though is what we think could happen in the next few months potentially. Um, if we look at year to date where we are 25 to 26, we're we're looking good. We've collected 163.9 last year, 174 this year. where the questions are starting to come into place are toward the end of this year in these next few months and going into next year. Um we have been getting some guidance from Wake County, which is where most of Kerry is located. Um that they're seeing higher rates of upheld property value appeals and we're going to talk about this a little bit more on the next two slides. And they are seeing indications of some non-payment or a little uptick in non-payment of vehicle taxes. And on this slide previously, what I just indicated was while this has been pretty typical, these next few months are where we really see the revenue coming from those remaining vehicle payments, right? Um so they have asked us to I think the words that our uh Wake County tax administrator used was to sharpen our pencils. Um and just pay attention to that. Um so we are being mindful of that. We're closely watching it and we will continue to bring you updates this fiscal year and we will definitely talk more about it as we're planning for 27. But I want to give you a little bit of context um on not just the vehicle side of the fence, but when we talk more about the real property, the land and buildings, um there's been some talk that you all may have heard about appeals on property values and then also a charitable tax exemption. I'd like to spend just a couple of minutes on those if that's okay with you all. Um again, we are closely following Wake County. We're watching Chadam Durham as well, but most

of Carrie is in Wake. Um, and so the latest update that we have received on appeals at the Wake County side of the fence, the filing deadline was April 22nd. So just I believe that was last week. And the information that we've received from them is that there are still four residential properties under review in that appeal process. In total, their assessed value is 1.8 million. So, um, while if those values are reduced in some way, we would see a loss of property tax revenue, it would probably be fairly minimal. Um, where it's a little more impactful is when you're looking at the 56 commercial properties that are in process. Those have a total current assessed value of 946 million. um it there is potential that if those value reductions are upheld, we could see property tax revenue loss more like in the hundreds of thousands, like 100 to 300,000. Um so that that one is the one that we're really keeping our eye on right now. Questions about appeals.

So the appeals are property taxes that have not been paid because they're under appeal

because the values are being reass or they're being the assessed values are being reevaluated. Yes, they filed that appeal and there is a board uh it has an acronym I can't remember. Um but that board reviews those and then makes the determination and provides that information to uh the county tax administration group.

Yeah, that that was partly my question too. Forgive my complete ignorance about this process. Uh this is brand new to me, the appeals process. So it's a county board.

Yes.

Of and that board is appointed. I'm honestly I don't know. I can look into that for you. I actually don't. I'm just curious. Um,

and how do those appeals work in terms of if they're upheld, it reverts back to a previous valuation. It's given a brand new,

it's assigned a new value that comes

through that process. And if that person has already paid their property taxes, we then need to uh refund them.

Okay. the to the new value if that makes sense.

Yeah.

Okay.

So, we may think we have more money than we actually do.

Potentially and this but and and this will happen. Um when the county provided this information to us, they kind of made some guesstimates as to if this much is upheld, maybe this much would affect you in fiscal year 26. Their process, I think, is fairly lengthy when you've got 56 commercial properties just in carry to review. So then they kind of said and if this many actually pro uh are processed by fiscal year 27 then maybe you'd have an impact like this. So I wouldn't say that it's an immediate impact. It's something though that we just need to be mindful of and have in the back of our mind when we're talking about

and and keep watching the trends if this is going to increase, flatten off, stay the same, whatever it might be.

Is this a significant number of commercial properties asking for a revision of their their valuation? the county for countywide they said yes.

Yes, it it is higher than they have seen in quite some time countywide.

So why are we seeing that this year? Why would why did it not happen after rebal?

I think they've been working through this process for some time. Okay.

Um but um I don't have specifics as to if there was a particular change in this last 12-month period

and we think it's trending upward.

Yes, that is the guidance they're giving us is just be thoughtful. Um, uh, I'm I'm curious about 56 commercial properties. Are they like office buildings or, uh, like shopping plazas or apartments? Um,

I don't have that information. I'm sure if I reach out to Wake County, we could we could get more detail on that. I just have the classification by residential versus commercial right now.

Just the fact that it's almost an assessed value of a billion dollars countywide is a is an impact, especially to the county.

Yeah. Mhm.

Any other appeals questions?

So those numbers are for the county.

It's it's it's carry property within Wake County. Yes.

My question is not related to appeal per se, but that would most likely impact the property tax. So might as well I'll ask this question now. I know that there are some um vouchers for um senior citizens. um is does that impact the property tax as well that we get?

They do. There are various exemptions. There is a senior exemption. Um it it has a pretty um uh defined uh income level associated with that which which makes it at least for Carrie I think more people don't fall in that category than do. Um so there is impact there but it's not been in the past a a level that would um

not as significant.

Correct. Correct. to cause us to want to make sure we're we're reviewing this as closely.

I bet that would be a different answer if it's Shadam County because most of the residents in Chadam are active adults or you know these active adult community and I think Chadam also started giving vouchers two years ago

but it we might not fall into the category

depending on if it's income based.

Yeah, the state set some income based requirements. It's a state it's at the state and it's pretty low. I thought it was countywise.

Cannot You can't do tax relief county to county. Tax relief has to be applied universally the same to all 100 counties.

I think Chadam County two years ago started the voucher program for income based.

We can look more into that and learn more specifically about it, but I do believe that the state sets that threshold at what defines an exemption for seniors and then the counties um can then carry that out.

Yes. Got it. Okay, that makes sense.

Yeah. And the income cap is Yeah,

it's pretty low. I I don't want to quote it, but I I I have looked it up and it's it's quite low. So, a lot of our population would probably not

even fall into that. Yeah.

Thousand or something like that.

So, another question about the property

value if they appealed this year and they give uh give them a new value. So, next year there's no revaluation. So, are we going to expecting more appeals or it'll be as is?

Once it's appealed, it should stay at that rate until the next revaluation. So next year is not the revaluation.

Correct. The next one is um effective January 1st, 2027, which would influence the 2028 budget document. Yes. Yes. All right. Um I do want to spend a couple of minutes on this charitable housing exempt uh topic because this is the one that there is uh there's some things going on in the legislature that you're likely hearing about and I know I've seen it on the news. So, we want to make sure we cover this a little bit with you all. Um, but there is a statute and I'm going to have my attorney friend help me make sure I am telling you all good and appropriate things. Um, it is NCGS 105.278.6. Uh, and it is called real and personal property used for charitable purposes. that uh statute uh had a court of appeals case in 2013 uh called the Blue Ridge Housing case which um established what everyone commonly refers to as a taxexempt loophole. Um, and that is what is being talked about right now in the legislature is do we and how do we close that loophole? And what it effectively boils down to is it would allow for a small percentage, say you have a number of people that have invested in an apartment complex and you have four LLC's and one nonprofit and say that nonprofit only owns 0.1% of that complex. So just the teensiest little bit. the majority of that complex would now technically be eligible for property tax exemption. So Wake County um has an annual filing period between January 1st and 31st

every year um where where uh these groups or these owners can file for this charitable housing exemption. Um this information is current through today from Wake County. There were six that were filed uh in Kerry. six multif family units submitted applications and all six have been processed and granted. So the numbers that we're seeing it's it's been decided and it's done. So those six properties had a total assessed value of $97.2 million. They were exempted out of $79.5 million and our taxable portion is now only 17.7 million which means that is about at a current at our current tax rate a $270,000 loss in property tax revenue. So, House Bill 1042 was submitted on April 23rd, 2026 to update and modify this property tax exemption. Um, so that is still ongoing. You all can keep track of that just like I am. Um, but that is the latest latest information that we wanted to make sure we shared with you all and that uh everyone is clear on.

And so what's the legislature think about that?

Well, that's also the same bill that has in it the potential constitutional amendment to um require the general assembly to set a limit on property tax increases per year. So, it's rolled into the same legislation. Mhm.

Um and they've also filed um legislation today to put a moratorum on reappra on re-evaluation of property. Um I think it would only be for I think they've said for a year. I need to fully read the bill. Um I don't know that that would impact Wake County schedule, but it would impact um counties who were trying to reval properties

which was time to allow them to figure these other bills out. Yeah. Should they pass?

Stacy, just so that I'm clear.

Yes.

Um the six multif family units that have submitted applications, not all six are in Kerry.

All six are in Kerry.

Oh,

they are carry. And they were all approved um under this legislation for this exemption. And I verified with Marcus Ken, Wake County's tax administrator today. So I made sure that I was giving you the best information. And his words, all processed, all granted. So it is complete. So, it seems like based on what I heard you say, it's a good strategy when you're doing these units to go find the nonprofit. Just buy a little bit into this.

Just the tiniest little bit.

Wow. Okay.

Do you have any notion? I mean, 2013 is is, you know, fairly uh long period of time, how much we've lost over that duration.

Well, we were talking about that today. Um, and I don't have that number in front of me, but um, what we went back to was um, information that, um, again, Marcus Canrade, who is Wake Countyy's tax administrator, um, he presented to this, uh, topic early on to the county board of administrators, I believe February 16th, because I I watched that whole thing, and he informed them at that time that this is the greatest threat and greatest loss to assessed value in Wake County since 2009 in the Great Recession.

Wow. And I do think there's momentum to fix this loophole with the legislature. I think the issue is going to be does it get tied up with other pieces of legislation that aren't as popular

and and are is there any interest I'm just curious rather than deleted entirely say hey if you have 75% of nonprofits then blah blah blah. the legislation, the first draft of it, um, would essentially say you have to have a majority of units that are actually affordable at 80% AMI for 30 years, things like that. So, making it really apply only to actual apartment buildings that have affordable housing units in them that are required to stay affordable. H

and at some point I'm guess if that were to pass if you go down that rabbit hole they'd be reinstated at some point to some

yeah they would they would um put a time

on you know when does this become effective

and so then they would start having to pay it it wouldn't go backwards they wouldn't have to probably pay us this tax that they just got out of but it would be for future tax years where they would then be fully taxable again or whatever.

Let me make sure I understand what I think you just said. So, I've got away with it all these years, but now I've got to start paying for because they've been following the current law.

Yes.

Okay.

They haven't gotten away with anything because it's legal.

Yeah.

Or the other case could be that people could actually like what you were saying, you know, have a nonprofit part in it and not pay.

It's a pretty significant amount.

As long as the that law exists, you could expect to see more of that.

Yeah. Right. the existing law

and there are legitimate complexes that that that would still be a tax exemption for properties that really that are more legitimately being used for charitable purposes, affordable housing purposes.

I'm a little confused, but the it's this is showing that it's mostly not taxable, but a small amount is.

Yes.

How is that determined? Is I mean each property is different and that's the way that law was. they should just go read this law.

It's yeah, there is a review process. There is an entire

calculation behind that. Um but it could be up to 94%.

Okay.

Um in this case it's not this is closer to 8020. I did the math roughly earlier. Um but it could be as much say as 94%. It just it depends and I'm not as fluent in that calculation.

So I think that's you know we started with the good news. Maybe we should have started with the sales tax, right? And maybe I started too uh too high and ended too low, but we'll watch it. We'll keep an eye.

All right. And then this was my slide just on some an update with regards to Mcrimman Parkway pedestrian improvements open house next week on Tuesday. Um this is for an existing capital project uh

for the traffic signal and pedestrian crosswalks along Mcrimman Parkway at Panther Creek High School. It had a lot of attention over the last year. Um and that is a existing project with a budget of $1.25 million. So already funded, already being worked on with a plan to install u with D's permission traffic signals and pedestrian devices. And uh just wanted to highlight that for everyone. And that is all from a number of things. Um and then the only thing that I probably wanted to add since there's a little bit of time is just since there's been a lot in the news and talking with other uh municipalities about it is um ebikes and it was uh what you all did as a council initiated item. So, we've uh got a team that Chief Salt specifically will be a part of to determine um what we are andor can doing regarding ebikes, which is really more, as I was talking to the mayor a little bit before the meeting, probably a motorcycle issue to some degree as possibly defined by the law, not really an ebike issue. Um as you've seen from Chief Salt, um those that have video or pictures is please send it to the P police department and they've been doing some investigations and obviously made some charges um even of this week. So, since this is televised and um and this has been something that's been top of mind to you, I thought it uh beared a discussion that that's certainly a safety consideration and uh parents and children should certainly be mindful of those types of bikes that they may be buying uh that are described as ebikes but probably really are not. Um, and it'd be beneficial to check what the laws are actually of those bikes that they're buying with regards to safety requirements, licensing requirements, insurance requirements, and otherwise. Um, so just let you know, we'll be bringing more back to you. Uh, but um, since those that may be watching our way to at least to publicize this a little bit is to say that, um, um, lots of communities are dealing with this, we're not alone. And, uh, more to come on that topic shortly,

but it's on our radar.

Yes, absolutely. and thanks for chief and his staff for um obviously doing what they can uh within the spirit of the law right now and uh we'll bring something back to you soon. That's all we had on the formal agenda tonight. Ready for close session? If you are

somebody sure

pursuant to GS 143 318 111A13 and six I move that we hold a close session to consult with an attorney with attorneys employed by and or retained by the town in order to preserve the attorney client privilege between the attorneys and the town. prevent the disclosure of information that is made privileged or confidential pursuant to the laws of the state or not considered a public record within the meaning of chapter 132 of the general statutes. Consider the qualifications, competence, performance, character, fitness, conditions of appointment or conditions of initial employment of one or more individual public officers or employees.

There's a motion. Is there a second?

Second.

Second. Discussion. All in favor, please say I. I.

Any oppose? This motion carries unanimously and the council will stay here and go into close session.

We'll reconvene our work session. We've concluded all our business for the evening, so we are ajourned. Thank you.

Thank you.

Don't need a motion to get rid of a work.