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HomeMy WebLinkAbout02-03-26 Council PacketAgenda Town Council Meeting Tuesday, February 3, 2026 6:30 p.m. Closed Session Council Chambers 1. Meeting Called to Order- Mayor Collins 2. Roll Call- Clerk of Council 3. Modification to Closed Session- Mayor Collins 4. Enter into Closed Session for the following items: a. VA Code 2.2-3711 (A) 8 (1 item): Consultation with Legal Counsel i. Horner Acre Farm, LLC 7:00 p.m. Public Session Council Chambers 1. Certification of Closed Session- Mayor Collins 2. Pledge of Allegiance- Councilman Clontz 3. Invocation- Councilman Clark 4. Guests and Visitors - Mayor Collins 5. Modification to Public Session- Mayor Collins 6. Voting Items a. Resolution 2026-06 Re-Appointing Kevin Meyer to the Town of Pulaski Architecture Review Board and Town of Pulaski Planning Commission 7. Discussion(s) a. Town of Pulaski PRV Sub-Zones for Needmore and Pleasant Hill Pressure Zones Project (BIL-012S-25) b. Town of Pulaski’s Water Treatment Plant Upgrades for Storm Resiliency Project (HMW-010-25) 8. Public Comment Period (The Town Council welcomes your input. You may address the Council by completing a speaker’s slip available at the door and giving it to the Clerk of Council prior to the meeting. At this time, Reasonable accommodation will be provided for persons with disabilities, if requested. you may address Council on items that are not on the agenda. The limit is three (3) minutes for each speaker.) 9. Consent Agenda (Voting) a. Consideration of January 20, 2026 Town Council Minutes 10. Council Comments & Board Updates 11. Manager’s Report- Manager Day 12. Reminder of Future Council Meeting- Mayor Collins a. February 17, 2026; Budget Work Session 6:00 p.m.; Open Session 7:00 p.m.; Closed Session following Open Session Voting Items RESOLUTION 2026-06 Resolution Re-Appointing Kevin Meyer to the Town of Pulaski Architecture Review Board and Town of Pulaski Planning Commission WHEREAS, the Town Council has determined that it is in the general interest of the residents to the Town of Pulaski to maintain full representation on the various agencies, authorities, and boards of which the town is a member; and, WHEREAS, the Town of Pulaski’s Architecture Review Board and Planning Commission has vacancies and a resident desiring to reappoint and serve; and, NOW, THEREFORE be it RESOLVED, by the Town Council of the Town of Pulaski, Virginia sitting in regular session this 3rd day of February 2026 that the following person is re- appointed to the boards for the terms as indicated below. This resolution is effective upon adoption and is hereby adopted on this 3rd day of February 2026 by the duly recorded vote of the Town Council of Pulaski, Virginia as follows: Jeremy L. Clark- G. Tyler Clontz- Sunshine N. Cope- Steven W. Erickson- Brooks R. Dawson- Joel B. Burchett- Mayor Collins- TOWN OF PULASKI, VIRGINIA ______________________________ W. Shannon Collins Mayor ATTEST ______________________________ Olivia C. Hale Clerk of Council Appointee Entity Start of Term Expiration of Term Kevin Meyer Architecture Review Board 02/06/2026 02/05/2030 Planning Commission 02/06/2026 02/05/2030 Discussion(s) Information COMMONWEALTH of VIRGINIA Department of Health Karen Shelton, MD, FACOG P O BOX 2448 TTY 7-1-1 OR State Health Commissioner RICHMOND, VA 23218 1-800-828-1120 July 23, 2025 Subject: Pulaski County Water – Town of Pulaski PRV Sub-Zones for Needmore and Pleasant Hill Pressure Zones BIL-012S-25 Mr. Todd Day, Town Manager Town of Pulaski 42 First Street, NW Pulaski, Virginia 24301 Re: FY 2025 Bipartisan Infrastructure Law (BIL) BIL Award Dear Mr. Day: The Virginia Department of Health has received your email dated December 12, 2024, accepting our funding offer and conditions as identified in our December 12, 2024 , initial offer letter. Your project is being included in this year’s draft intended funding list. The total BIL fun ding package for your project is $1,289,000. The funding package consists of $1,289,000 as principal forgiveness. The VDH Division of Financial & Construction Assistance Programs (FCAP) administers BIL funds. You must successfully complete or satisfy all our requirements and conditions (including those identified in the initial offer letter) before VDH will authorize finalization of the principal forgiveness agreemen t. In accordance with the Drinking Water State Revolving Fund Program Design Manual, V DH reserves the right to by-pass any project that has not executed the assistance agreements/ initiated construction within 12 months of the original award date. VDH also requires regular updates on the commitments you have made in response to our initi al offer including any adjustments of user rates. Any increase or decrease in BIL funding assistance necessary for the project must be requested in writing. VDH is committing these funds and assistance to help you finalize the project. I encourage you t o proceed in earnest by completing any requirements necessary for the administrative loan closing. Mr. Todd Day, Town Manager July 23, 2025 Page 2 Your priority contact for this project is Jeanean Bustamante Francis, VDH-FCAP Project Manager. The FCAP Project Manager will act as “gatekeeper” and is to receive all project information and requests from you. She may be contacted directly by phone at (804) 292-5681or by email at Jeanean.Bustamante@vdh.virginia.gov. Please include your project name and project number on all correspondence. Your coordinator for other types of VDH assistance related to building technical, managerial, and financial capacity for your waterworks and for training opportunities is Jarrett Talley, VDH-ODW Capacity Development Supervisor, who may be contacted directly by phone at (804) 317-0140 or by email at Jarrett.Talley@vdh.virginia.gov. On behalf of VDH and ODW, I congratulate you and look forward to a successful project. Sincerely, Anthony Hess, Director Financial & Construction Assistance Programs cc: David Dawson, P.E., Field Director, Abingdon Field Office Keith Kornegay, P.E., FCAP Project Team Leader Jeanean Bustamante Francis, FCAP Project Manager Jarrett Talley, ODW Sustainability Coordinator Joe Bergeron, VRA, Director of Financial Services and Investments FCAP Project File @ Richmond Central Office COMMONWEALTH of VIRGINIA Department of Health Karen Shelton, MD P O BOX 2448 TTY 7-1-1 OR State Health Commissioner RICHMOND, VA 23218 1-800-828-1120 R. Christopher Lindsay Chief Operating Officer November 21, 2025 Subject: Pulaski County Water – Town of Pulaski Water Treatment Plant Upgrades For Storm Resiliency (Planning and Design Only) HMW-010-25 Mr. Todd Day, Town Manager Town of Pulaski PO Box 660 Pulaski, VA 24301 Re: Virginia Drinking Water State Revolving Fund FY 2025 SA-HMW Hurricanes Helene and Milton and the Hawai’i Wildfires/Financial Assistance SA-HMW Initial Offer Dear Mr. Day: The Virginia Department of Health (VDH) has completed a preliminary review of your application for drinking water construction funds. The determination of the funding package is shown below; however, this determination and your inclusion in VDH’s Intended Use Plan is contingent on the availability of federal and state funding as well as the conditions below. Based on the information provided, VDH determined the total funding package for your project is estimated to be $660,085 as principal forgiveness (grant). The funding package was determined using information provided in your loan application. This offer requires a commitment to evaluate revenues and adjust rates as necessary to ensure revenue growth that factors in increases (e.g., operational costs, inflation, etc.), other costs (e.g., asset/equipment replacements, technology upgrades, capital improvements, etc.), and takes into account other potential revenue reductions (e.g. future regulations, reductions from water conservation, etc.). VDH urges waterworks owners to establish and fund a capital reserve fund that adequately supports capital improvements and asset replacements. Mr. Todd Day, Town Manager November 21, 2025 Page 2 Furthermore, VDH recommends waterworks owners implement a revenue growth model that includes automatic annual rate adjustments that exceed inflation. VDH recommends waterworks self-evaluate their financial position using the attached Building Financial Sustainability/Financial Health Indicators to ensure they are able to provide for financial sustainability. VDH recommends all waterworks maintain updated Waterworks Business Operation Plans (WBOP), Asset Management Plans (AMP), and/or Capital Improvement Plans. Please coordinate with Capacity Development if you would like additional information regarding these plans. These questions can be directed to Jarrett Talley, Training Capacity Development and Outreach (TCDO) Division Director, by phone at (804) 317-0140 or by email at Jarrett.Talley@vdh.virginia.gov . Mr. Jarrett Talley is also available to answer questions on the Technical, Managerial, and Financial (TMF) review. Currently, the federal Drinking Water State Revolving Fund (DWSRF) appropriation and final requirements have not yet been finalized. However, all recipients should expect to comply with American Iron and Steel (AIS) requirements, Davis Bacon Prevailing Wage, and other provisions as required. The Build America, Buy America (BABA) Act requirements do not apply to SA-HMW funding pursuant to the exception under section 70912(4)(B), which states that BABA does not apply to “expenditures for assistance authorized under section 402, 403, 404, 406, 408, or 502 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 16 5170c, 5172, 5174, or 5192) relating to a major disaster or emergency declared by the President under section 401 or 501, respectively, of such Act (42 U.S.C. 5170, 5191) or pre and post disaster or emergency response expenditures.” Per OMB’s BABA regulations at 2 CFR 184.8(b), “pre and post disaster or emergency response expenditures” consist of expenditures for financial assistance that are: (1) authorized by statutes other than the Stafford Act, 42 U.S.C. §§ 5121 et seq., and (2) made in anticipation of or response to an event or events that qualify as an “emergency” or “major disaster” within the meaning of the Stafford Act § 5122(1),(2). The funding package and loan closing are conditioned on and are subject to change based on (but not limited to) the following: (1) The availability of federal and state match funds to support the DWSRF Program, (2) New restrictions/conditions that the EPA or VDH may require in the use of the SRF funds or for participation in the Program, (3) Changes to the purpose, benefit, or scope of the project from the Preliminary Engineering Report (PER) or the DWSRF Application; or if the VDH -ODW Field Office does not concur with the project purpose, benefit, or scope, (4) Owner complying with the DWSRF Program requirements, and owner’s progress to a timely closing according to a pre-negotiated schedule, or delays/changes in project readiness to proceed, (5) Owner’s history of activities with the ODW/DWSRF Program (i.e., late or non-payments or non- compliance), (6) Owner obtaining user agreements from future water users in the project area, (if applicable), (7) The financial estimates provided in your loan application changing, (8) Owner’s ability to secure the loan (if applicable). All loan offers will require an acceptable credit review by the Virginia Resources Authority, (9) Owner soliciting other lenders for parity on this new debt (if applicable), Mr. Todd Day, Town Manager November 21, 2025 Page 3 (10) Owner being debarred or suspended from applying for state or federal funds, (11) Waterworks maintaining compliance with the Virginia Waterworks Regulations and other applicable state/federal laws, regulations, policies, and procedures, and (12) EPA mandates that all program assistance recipients demonstrate full technical, financial, and managerial capacity in order to receive funds. VDH may place special requirements on recipients in order to ensure capacity requirements are met prior to loan closing. An acceptance of this funding offer reflects a commitment on your part to these requirements. VDH reserves the right to by-pass any project that has not executed financial agreements within 12 months from the date of VDH’s original award letter. Please notify me in writing as soon as possible but no later than December 21, 2025, at the address above of your acceptance of this initial funding package offer or any concerns and additional factors that should be considered. Failure to notify me can be deemed as your withdrawal from this program. Please use the above referenced project number and name on all correspondence. If necessary, I can be contacted by phone at (804) 584-0413 or by email at Anthony.Hess@vdh.virginia.gov . Sincerely, Anthony Hess, Director Division of Financial, Construction & Assistance Programs cc: Dwayne Roadcap, Director, Office of Drinking Water, Richmond Central Office Jarrett Talley, TCDO Division Director, Richmond Central Office Keith Kornegay, P.E., FCAP Project Team Leader, Lexington Field Office Dr. David Dawson, P.E., ODW Field Director, Abingdon Field Office Joe Bergeron, VRA, Director of Financial Services and Investments Chris Sniffin, Analyst, Office of Recovery and Rebuilding, Office of the Governor Garrison Coward, Chief Transformation Officer, Office of the Governor VDH OFFICE OF DRINKING WATER FINANCIAL AND CONSTRUCTION ASSISTANCE PROGRAMS (FCAP) Building Financial Sustainability/Financial Health Indicators Having adequate financial capacity and an acceptable credit review is a Program requirement for revolving fund loan projects. Listed below are some financial indicators that may be evaluated during a review by VDH or by the Virginia Resources Authority (VRA). Reviews are not limited to the factors listed below and may include other factors. Revenue Pledge Factors: (User fees pledged for loan repayment) 1. Debt Service Coverage Ratio: Net Revenue (revenue – O&M) available for debt service divided by applicable debt service. Evaluated using the first two fiscal years after project completion. • Poor Less than 1.15x • Adequate From 1.15x to 1.5x • Strong Greater than 1.5x 2. Days Cash on Hand: Amount of total available unrestricted liquid reserves divided by daily operating expenditure requirements. • Poor Less than 60 days • Adequate From 60 to 120 days • Strong Greater than 120 days 3. Operating Ratio: Total operating income plus operating reserves divided by total operating costs (not including debt) • Poor Less than 1.1 • Adequate From 1.1 to 3.0, Small systems (1.25 to 3.0), Medium and large (1.1 to 2.0) • Strong Greater than 3.0 Small systems (3.0), Medium and large (2.0) General Obligation Factors:1 (Locality pledges its full faith and credit, backed by taxing power) 4. State Aid (if applicable): Available state aid divided by applicable debt service. • Poor Less than 1.0x • Adequate From 1.0x to 1.5x • Strong Greater than 1.5x 5. Debt Service vs. Expenditures: Debt service compared to the total operating budget. • Poor Greater than 15% • Adequate From 10% to 15% • Strong Less than 10% 1 Evaluate the debt, revenues, and expenses of the entire entity and not just the waterworks enterprise fund 6. Unassigned Fund Balance: Unassigned fund balance vs. total revenue. • Poor Less than 5% • Adequate From 5% to 10% • Strong Greater than 10% 7. Debt Payout Ratio: Measurement of how much debt is paid off in ten years. • Poor Less than 50% • Adequate From 50% to 60% • Strong Greater than 60% 8. Total Debt vs. Total Valuation: • Poor Greater than 6% • Adequate From 2% to 6% • Strong Less than 2% Other Factors: 9. Affordability Index Target: Annual residential bill divided by Annual Median Household Income (MHI). • 1% for average gallons per month* • 2% for 5,000 gallons per month * Use the rate structure (in-town, if applicable) for residential customers and apply it to the average monthly residential water usage to derive the average monthly user rate for evaluation under the DWSRF Program. The average monthly residential water usage is to be based on re sidential water meter data. Waterworks are expected to meet or exceed the target rate criteria at the time of project completion. Other considerations: Experience has shown that fairly structured utility rates that implement gradual rate increases annually have been the most acceptable to the ratepayers and most effective in keeping revenue at pace with costs. VDH recommends waterworks implement a revenue growth model that factors in increases (e.g., operational costs, inflation, etc.), other costs (e.g., asset/equipment replacements, technology upgrades, capital improvements, etc.), and takes into account other potential revenue reductions (e.g., future regulations, reductions from water conservation, etc.). VDH recommends waterworks establish and fund a capital reserve fund that adequately supports capital improvements and asset replacements. VDH reserves the right to require an implementation schedule acceptable to VDH for those waterworks that may need additional time for implementation of significant rate increases. Consent Agenda Town Council Meeting Minutes January 20, 2026 1. The Mayor called the meeting to order at 6:00 p.m. and asked for a roll call. Jeremy L. Clark- Aye G. Tyler Clontz- Aye Mayor Collins- Aye Sunshine N. Cope- Aye Steven W. Erickson- Aye Brooks R. Dawson- Absent Joel B. Burchett- Aye 2. Modification to Closed Session- No modifications were made. 3. The Mayor asked for a motion to enter into Closed Session to discuss the following items: a. VA Code 2.2-3711 (A) 1 (1 item)- Personnel i. Appointments to Boards b. VA Code 2.2-3711 (A) 8 (1 item)- Consultation with Legal Counsel i. Horner Acre Farm LLC The motion was made by Councilwoman Cope and seconded by Councilman Clontz. Jeremy L. Clark- Aye G. Tyler Clontz- Aye Mayor Collins- Aye Sunshine N. Cope- Aye Steven W. Erickson- Aye Brooks R. Dawson- Absent Joel B. Burchett- Aye The following councilmembers and staff entered into Closed Session: Councilman Clark, Councilwoman Cope, Councilman Clontz, Councilman Erickson, Councilman Burchett, Mayor Collins, Town Manager, Todd Day, Town Attorneys, Scot Farthing and Andrew McBride, and Clerk of Council, Ms. Hale. Vice-Mayor Dawson joined the Closed Session at 6:11 p.m. 6:30 p.m. Employee Service Awards The following staff members were honored for their 5 years of service with the Town of Pulaski: Detective Sargent B. Terry and Lieutenant J. Williamson from the Pulaski Police Department and Grayson Phillips from the Public Works Department. The following staff members were honored for their 10 years of service with the Town of Pulaski: Captain D. Kesling with the Pulaski Fire Department, Jackie Morris, Finance Director, and John Williams with the Pulaski Filter Plant. The following staff members were honored for their 15 years of service with the Town of Pulaski: John Hunter and Chris Phillips from the Public Works Department. The following staff member was honored for his 25 years of service with the Town of Pulaski: Ron Cole from the Public Works Department. 7:00 p.m. Open Session 4. Certification of Closed Session- The Mayor asked for a motion to certify that only the following items were discussed in Closed Session: a. VA Code 2.2-3711 (A) 1 (1 item)- Personnel i. Appointments to Boards b. VA Code 2.2-3711 (A) 8 (1 item)- Consultation with Legal Counsel i. Horner Acre Farm LLC The motion was made by Councilwoman Cope and seconded by Councilman Clark. Jeremy L. Clark- Aye G. Tyler Clontz- Aye Mayor Collins- Aye Sunshine N. Cope- Aye Steven W. Erickson- Aye Brooks R. Dawson- Abstained Joel B. Burchett- Aye 5. Vice-Mayor Dawson led the audience in the Pledge of Allegiance. 6. Councilwoman Cope gave the invocation. 7. Mayor Collins welcomed all in attendance and those viewing online. 8. Modification to Public Session- No modifications were made. 9. Introduction of PCHS Student Representative, Cheyenne McDougal Although Assistant Principal Scott Peterson had been scheduled to make the introduction, he was not present, so Town Manager Day did so. Cheyenne was identified as a senior at Pulaski County High School who plans to attend Virginia Tech after graduation. Council noted that she would have the flexibility to attend meetings regularly and would be placed on future agendas to speak about student and school-related matters. She was welcomed warmly, with appreciation expressed for young people taking an interest in local government by Mayor Dawson. 10. Presentations a. Water Quality Update- Lisa Crabtree, Deputy Field Office Director, Virginia Department of Health Ms. Crabtree provided a detailed water quality update at the request of town staff, prompted by public concern and misinformation circulating on social media about the Gatewood Reservoir level and the safety of Pulaski’s drinking water. She explained that the Town of Pulaski supplies water to approximately 9,500 residents within the town, as well as to the Mount Olivet and Brookmont areas, serving an additional several hundred people. She outlined the extensive state and federal monitoring requirements. The town samples roughly 80 regulated constituents, including routine monthly bacteriological samples with chlorine residuals, daily and monthly residual checks throughout the distribution system, quarterly disinfection byproduct testing (such as total trihalomethanes and haloacetic acids), and periodic testing for metals, turbidity, pH, nitrates, nitrites, cyanide, and radiological parameters. She explained that these byproducts and contaminants are the types associated with potential long-term health risks, including cancer, and emphasized that Pulaski’s results have consistently been within allowable maximum contaminant levels. She further discussed recent unregulated contaminant monitoring for PFAS/PFOS compounds, which are scheduled to become regulated in 2027. Preliminary results for Pulaski’s entry point samples showed non-detects or levels below regulatory thresholds. Ms. Crabtree stated that since she became the town’s regulator in August 2019, there have been no maximum contaminant level exceedances, and that the water has met all applicable state and federal drinking water standards throughout that period. While minor procedural or operational violations have occurred from time to time, she stressed that these did not involve unsafe water quality. Ms. Crabtree credited operational improvements at the water treatment plant, including filtration upgrades and process changes implemented in cooperation with town staff, particularly the plant superintendent, for enhancing performance. She highlighted that Pulaski’s plant received the Virginia Optimization Gold Award in both 2023 and 2024, an honor given only to top-performing conventional filtration plants, and noted that the town was again a strong candidate for recognition in the current year. She emphasized that such awards are only granted to systems producing exceptionally high-quality water. She concluded that the negative claims circulating publicly were not based on water quality issues but rather on dissatisfaction with unrelated policy decisions, and reaffirmed that Pulaski’s drinking water is safe and in full regulatory compliance. Manager Day echoed her qualifications as a professional engineer and senior state regulator, thanked her for her advocacy for Pulaski, and formally rejected the social media claims as false. b. Town of Pulaski Audit Presentation- Emily Viers, CPA, Robinson, Farm, Cox Associates Ms. Viers introduced herself as the engagement lead and noted that while the format would be similar to prior years, she would walk Council through the key sections of the provided presentation and the audited financial statements, which had been distributed electronically, with hard copies forthcoming. She explained that the presentation would cover the major components of the audit report, including the different auditors’ opinions and reports contained in the financial statements. She invited questions during or after the presentation and provided her contact information for follow-up. She began directing Council to page two of the presentation, which outlines the three types of auditor’s reports, starting with the independent auditor’s report and the basis for the auditor’s opinion, as the formal audit discussion commenced. Ms. Viers explained that the independent auditor’s report resulted in a clean, unmodified opinion, meaning the financial statements are materially correct and presented in accordance with generally accepted accounting principles. She then described the “Yellow Book” report, which addresses internal controls and compliance for governmental entities. This review also produced a clean, unmodified opinion, indicating no material weaknesses or compliance issues. She noted that a few items had appeared in the prior year but had been fully resolved in the 2025 audit. The third report, required under federal Uniform Guidance for programs receiving federal funds, likewise resulted in a clean, unmodified opinion, with no material internal control deficiencies or compliance findings. Ms. Viers emphasized that receiving three unmodified opinions was an excellent audit outcome. Turning to the five-year general fund income statement, she explained that the presentation included compounded annual growth rates to smooth year-to-year anomalies and highlight long-term trends in revenues, expenses, fund balance, and cash and investments. She pointed out that in the most recent year, revenues grew by about 4 percent while expenses grew by about 5 percent, meaning expenses slightly outpaced revenues. She noted that this pattern had appeared in several audits she had presented across other localities and attributed it largely to inflation. She cautioned that inflation tends to affect local government costs with a lag after it affects residents. While Pulaski had experienced solid growth in real estate and local tax revenues since 2021, growth slowed between 2024 and 2025, particularly in other local taxes. She warned that continued inflation could reduce discretionary spending, which in turn could soften revenues from meals taxes and sales taxes. Although she acknowledged the uncertainty of economic forecasts, she advised Council to be mindful that expense growth could continue to exceed revenue growth in the near future. Ms. Viers next reviewed reserve calculations for the General Fund and the Water and Sewer Fund. She explained that the General Fund is reported on a modified accrual basis, while Water and Sewer uses full accrual, requiring adjustments for depreciation and debt service to assess true cash-based reserves. She highlighted that unassigned fund balance relative to expenditures had continued to grow, and that combined Water and Sewer reserves had increased significantly from 2021 to 2025. Referencing guidance from the Government Finance Officers Association, she noted that two months of operating reserves, about 17 percent of annual expenditures, is commonly recommended. Pulaski exceeded that benchmark, and she personally suggested that a higher percentage was prudent, especially for a smaller locality with a narrower revenue base. She commended the Council for building and maintaining strong reserves but cautioned that slower revenue growth compared to rising expenses could erode those balances if not carefully managed. Reviewing the revenue and expenditure pie charts, Ms. Viers observed that the Town’s major revenue sources and spending categories had remained relatively consistent over time. She noted that intergovernmental revenues, largely from the state and grant-funded programs, are not easily controlled locally, whereas taxes and fees offer more opportunity for policy-driven adjustments. The charts were presented as tools to help the Council understand where revenues are generated and where expenditures are concentrated as they prepare future budgets and work to preserve reserve levels. On the summary of long-term obligations, Ms. Viers explained that the figures included both bonded debt and long-term liabilities such as pensions, other post- employment benefits (OPEB), and compensated absences. General government debt decreased through routine scheduled payments. An increase in compensated absences reflected the implementation of a new accounting standard (GASB 101), which changed how accrued leave is calculated and required restatement of prior- year figures. For the Water and Sewer Fund, she reported that approximately $560,000 had been drawn down on a 2023 debt issuance, with the remainder to be accessed as projects continue, and that all other activity consisted of regular debt service. She also presented a per-capita debt comparison using state averages from the most recent available Auditor of Public Accounts report, cautioning that such comparisons should be interpreted carefully, as the composition of debt varies widely among localities. Ms. Viers reviewed the required communication with those charged with governance, noting it was largely a standard letter. It documented the implementation of GASB 101, significant accounting estimates such as asset valuation, allowance for doubtful accounts, pension and OPEB liabilities, and confirmed that there were no difficulties or disagreements with management during the audit. She praised Town staff for their cooperation and professionalism, acknowledging the demands audits place on departments and expressing appreciation for their preparation and responsiveness. She briefly referenced proposed audit adjustments, included for informational purposes, and a management comment letter containing best-practice suggestions for strengthening internal controls. These items did not rise to the level of formal audit findings but were shared with management and the Council for awareness. Finally, she highlighted upcoming accounting standards that would affect future financial statements, noting that new GASB pronouncements are a regular part of annual audits and should be anticipated in planning. During the questions, Councilman Burchett asked about the significant increase in net OPEB (Other Post-Employment Benefits) liability shown on the long-term obligations schedule. Ms. Viers explained that OPEB represents the cost of allowing retirees to remain on the Town’s health insurance after retirement. The liability is calculated by an actuary based on demographic and employment data, such as age, hire date, and retirement eligibility, entered by staff, and it reflects projected future costs for current employees and retirees expected to participate in the program. Vice-Mayor Dawson then commented that the evening’s presentations showed “great water and great financial condition,” but Manager Day raised concern about the Water Fund specifically. He pointed to the scale of the upcoming $25 million water capital improvement project, which includes raw water infrastructure but not the full distribution system, and noted that even with an assumed 30 percent principal forgiveness and a planned three-year rate increase, revenues were still projected to fall short by about $3,000. He emphasized that the deteriorating condition of the water system makes building and maintaining reserves in the Water Fund critical, more so than ever, and stated that relying on fund balance to offset debt service is not sound long-term management. Ms. Viers agreed that the Water Fund’s reserve level, by itself, is below the recommended two-month benchmark, even though the combined Water and Sewer reserves appear strong. She pointed out that a large portion of unrestricted cash sits in the Sewer Fund, and questioned whether some of that could be reallocated, depending on whether it is already committed to planned projects. She explained that, from an accounting standpoint, enterprise fund cash can be allocated by Council based on project needs, though formal restrictions and commitments differ from simple internal earmarking. Manager Day clarified that both the Water and Sewer Funds are enterprise funds and that monthly transfers are already being made into high-interest accounts to prepare for major upcoming projects, including a $6 million sewer interceptor and the $25 million water project. Some remaining ARPA funds also exist, but they are not materially affecting the overall fund balances. With no further questions, the audit presentation concluded, and Ms. Viers was thanked for her work. 11. Voting items a. Resolution 2026-05 Honoring David S. Peyton Upon His Retirement from the Town of Pulaski Mayor Collins read the resolution and presented it to Mr. Peyton. The motion was made by Councilman Clark and seconded by Councilwoman Cope to adopt Resolution 2026-05. Jeremy L. Clark- Aye G. Tyler Clontz- Aye Mayor Collins- Aye Sunshine N. Cope- Aye Steven W. Erickson- Aye Brooks R. Dawson- Aye Joel B. Burchett- Aye 12. Discussions a. Entrepreneurial Business Attraction Program- Manager Day Manager Day briefed the Council on efforts to review and possibly restructure the Town’s various business incentives and grant programs, including Enterprise Zones, Marketing Zones, and the Meals Tax, noting that many incentives overlap and cannot be “double dipped.” He stated that Economic Development Director, Shannon Ainsley would work with the Economic Development Authority over the coming months to evaluate existing programs, compare them with what surrounding localities are doing, and develop recommendations tailored to Pulaski’s current needs. The EDA will not implement policy but will bring formal recommendations back to Council after this review. 13. Public Comment Period a. Melinda Musick of Highland Terrace addressed the Council about homelessness in Pulaski. She described the number of people living on the streets as excessive and criticized ordinances that make sleeping in cars or being homeless a misdemeanor, noting that such laws could discourage individuals from seeking help from police for fear of arrest. While acknowledging recent funding directed to the police, she argued that homelessness should not be primarily a law- enforcement responsibility and urged Council to find a more compassionate and effective approach to the issue. She continued her remarks by emphasizing that residents are largely living paycheck to paycheck and should not be burdened with the costs associated with policing homelessness. She questioned the fairness of allocating $72,000 to the police department for dealing with homeless individuals, arguing that officers already face heavy workloads and should not be tasked with social service responsibilities or expected to personally assist financially. She reiterated her opposition to the ordinance that makes sleeping in a vehicle a Class 4 misdemeanor, calling it unreasonable and inhumane, especially given the daily struggles homeless individuals face to find shelter, food, and warmth. She offered examples to illustrate how the law could affect anyone, such as someone sleeping in a car after a domestic dispute, and stated that criminalizing such behavior was wrong. While acknowledging concerns about disorder in the community, she stressed that homeless individuals are still people who deserve compassion and that anyone could find themselves in similar circumstances. Drawing from her own experience of having been homeless, she urged the Council to repeal the ordinance and consider more humane solutions, concluding with a hope that the policy would be changed. b. Marty Dowdy of South Madison Ave addressed the Council to express gratitude rather than raise concerns. He recounted prior neighborhood issues that had prompted him to seek help from town officials and law enforcement. He described contacting the acting police chief at the time, being referred through staff including, Investigator Hudson and Dan Grimm, and ultimately interacting with the newly appointed police chief. Mr. Dowdy praised the Pulaski Police Department and the Claytor Lake Drug Task Force for effectively addressing serious problems in his neighborhood, stating that their actions prevented him from taking matters into his own hands. He characterized the outcome as significant and successful, called the new chief an excellent choice, and urged the Council to do everything possible to retain and support the department’s personnel. 14. Consent Agenda a. Consideration of January 6, 2026 Town Council Minutes The motion was made by Councilman Clark and seconded by Vice-Mayor Dawson to adopt the minutes as written. Jeremy L. Clark- Aye G. Tyler Clontz- Aye Mayor Collins- Abstained Sunshine N. Cope- Aye Steven W. Erickson- Aye Brooks R. Dawson- Aye Joel B. Burchett- Aye 15. Council Comments & Board Updates Ms. Cope congratulated the newly appointed police chief and expressed anticipation of working with him. Vice-Mayor Dawson thanked Mr. Dowdy for taking the time to share positive feedback, noting that commendations are less frequently voiced than complaints and are important to hear. Councilman Erickson referenced a recent social media post thanking officers who assisted someone in distress near the railroad tracks, emphasizing that the gratitude expressed was sincere and deserved. Councilman Burchett observed that attendance at council meetings had increased significantly over the past year and thanked residents for their participation, regardless of the issues they came to address. Mayor Collins echoed these sentiments, saying that community involvement helps guide the Council’s decisions even when opinions differ. He commented on positive developments in the town, including the prospect of new businesses and restaurants opening, while encouraging continued support for existing businesses. He praised the police department and public works staff for their service and sacrifices, noting that their efforts often go unrecognized. He emphasized the importance of acknowledging positive contributions, not just problems. 16. Manager’s Report Manager Day formally introduced the Town’s new police chief, William “Bill” Kelly, highlighting his more than two decades of law enforcement experience, prior service in Pulaski, and strong professional qualifications. He welcomed Chief Kelly, thanked him for accepting the position, and invited him to speak. Chief Kelly briefly addressed the Council and the audience, stating that he was humbled by the appointment and grateful for the opportunity. He acknowledged inheriting a well- led and well-staffed department and expressed his commitment to serving all stakeholders in the community to the best of his ability. 17. Reminder of Future Council Meeting a. February 3, 2026; Closed Session 6:00 p.m./ Open Session 7:00 p.m. 18. With no further business, the Mayor adjourned the meeting at 7:47 p.m. General Info Town of Pulaski Town Manager’s Office P.O. Box 660 42 1st Street NW Pulaski, VA 24301 540-994-8602 January 30, 2026 To: Mayor Shannon Collins, Town of Pulaski Town Council Members From: Olivia Hale, Clerk of Council RE: January 2026 Department Head Monthly Summary Clerk of Council- Olivia Hale • Website/Facebook/Newspaper ads, updates & correspondence • IIMC Trainings/Webinar (1) • Misc. Research for Departments • 01/06 EDA packets/meeting/minutes • 01/06 Town Council packets/meeting/minutes • 01/07 BZA packets/meeting/minutes • Facebook Friday videos • 01/12 Planning Commission packets/meeting/minutes • 01/20 Town Council packets/meeting/minutes • Statement of Economic Interest/ Disclosure of Real Estate Holdings forms • FOIA Requests (2) Finance Department- Jackie Morris, Finance Director • Completed year end reports for Federal, State & VEC • Processed w2’s for employees and submitted reports to SSA • Finalized the audit for FY25 • Mailed out letters to local organizations for budget contribution requests for FY27 • Met with Chief Kelly and Sonia Ramsey to review Police Dept. budget • Completed surveys for the state • Started working on budget worksheets for the Town manager and staff • Fulfilling responsibilities of the Assistant Finance Director due to vacancy • Working on list of replacements and funding for water meters • Working with Town manager on funding for Public Works vehicles • Processing abatements/supplements for personal property from the County • Attended management team meeting with Calfee Cultural Center • Submitted documents to attorney for Certificate of Satisfactions on Housing projects • Processed utility bills – 4294 • Customers participating with E-bills – 512 • Customers participating with ACH - 699 • Non-payment cutoffs for the month – 50 Fire Department- Chief J. Conner Reporting – 1/1/2026 to 1/29/2029 Storm prep and up-staffing Hose testing • Ran 60 calls o 2 Structure fires o 2 Misc. fires (cooking, trash, etc.) o 30 EMS calls o 2 Hazardous Materials releases o 12 Motor Vehicle Accidents o 3 Electrical lines/arcing o 4 General Alarms (Cancelled en route, false alarms, etc.) o 3 Public service calls o 1 Control burn o 2 Smoke investigations • Training o Monthly Department Training o 4 Volunteers started Firefighter 1 o 2 Career staff complete fire protection systems training Property Maintenance/Code Enforcement/Zoning- Carla Hodge, Code Enforcement Officer • 15 new property maintenance cases • 28 complaints received/investigated • 30 follow up inspections for compliance • 12 inoperable vehicle violations • 7 trash/debris violations • 1 case continued in General District Court • Assist Animal Control with 1 case • 2 zoning violations for outbuilding dwelling • 21 liens released • 1 VAZO virtual meeting • Legal Notice published for request for proposal of demolition services at 3 vacant structures Outdoor Facilities Coordinator- Nathan Repass • Represented the Town at monthly board meeting for Friends of Peak Creek non-profit • Participated in annual board workshops for Friends of Peak Creek and Pulaski on Main • Performed trail maintenance on Draper Mountain Trails including removal of several fallen trees • Conducted two drone missions at Gatewood Reservoir to inspect Millers Creek and the lake • Posted signage and performed trail work to prevent vehicle access to the dry areas of Gatewood Reservoir • Coordinated with grant-writer for VDOF trees grant in Town Parks; currently reviewing planting proposals • Received one special event permit application Police Department- Chief W. Kelly Reporting Period: 12/28/25 – 01/28/26 Total Calls for Service 4511 Business Patrols 3249 Foot Patrols 255 Disorderly Conduct Calls 7 Trespassing Calls 29 Trespassing Notices Issued 20 Trespassing Arrests 14 Narcotics Arrests 6 Total Arrests 61 Total Number of Warrants Served 101 • Officer Bettinger and Officer Dalton were sworn in, becoming the newest members of the Pulaski Police Department. Their academy graduation will be in June at which time they will begin their field training with another officer. • Officer Ratcliff was released from field training and is working independently. • Lieutenant Williamson and Detective Sergeant Terry received their five year service awards. • The PPD continued to provide emergency services to every call that was placed during the recent winter weather emergency. Economic Development- Shannon Ainsley New Businesses License: • HDJ Pacific Masonry & Restoration - contractor • Creekboy Multimedia LLC – home based business • Leaven Bakery – Production facility on Main Street, very limited time open to public. Sells at farmers markets. Economic Development Activities EPA Brownfields Grant: • Held a kick off meeting with the TRC. Will work with them to narrow down list of properties to be assessed. Project Revitalize: • Property owner of a blighted home on Lee Hwy has deeded property to the Town of Pulaski to redevelop. • Evaluating town owned properties and making plans for redevelopment. • Creating promotion highlighting the Town’s economic growth: Unique social media content, new billboard design on 99 (Rediscover the Town of Pulaski”) • Update from last report: Received 6 responses to the yearend survey of businesses conducted to gauge business health and needs. Results from this survey will help us learn how to support our valuable small businesses – Survey results: Are there businesses that you believe would complement your business or help increase foot traffic in your area? 5 responses o Children’s Boutique, Gift Shop, Bakery, Açaí Bowls o National chains o None o Other retail and restaurants o I didn’t believe so. Is there anything else you would like to share about your business needs, challenges, or opportunities that would help the Town better support your business? 4 responses o N/A o Would like to see more marketing and downtown signage to promote tom’s drive in o Finding ways to increase downtown foot traffic would be great. o Our line of work comes with a lot of overhead with insurances, fuel, taxes etc. some relief would be a great support for our line of work. Public Works- Kim Caudill • Street DepartmentSnow Removal • Christmas tree pick up • Patched water break repair areas • Operate Convenience Center each Saturday (part time attendant M-F 1:00 – 5:00) • Cleaned catch basins town wide as needed. • Packed dumpsters at the convenience center 3-4 times weekly • Empty town trash cans and pick up trash/debris from roadside at least once weekly • Assisted water department with water line repairs General Properties Department • Took down Christmas decorations from Jackson Park. Removed wreaths and banners from posts • Replacing flooring in Fire Department • Began street sign replacement of faded/damaged signs • Poured concrete curbing on S. Washington • Cleaned sidewalks from snow on Town facilities Vehicle Maintenance Department • Performed routine maintenance and daily checks to patrol units • Performed maintenance to snow removal equipment Water/Sewer Department • Continued to check pump stations daily. Perform house keeping in both 4A and 4B • Pump replacement at 4B • Worked on pumps at raw water pump station • Repaired 7 water main breaks • Responded to 4 sewer blockages • Responded to over 300 Miss Utility locates • Non payment disconnects