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HomeMy WebLinkAbout01-20-261 Town Council Meeting Minutes January 20, 2026 I. The Mayor called the meeting to order at 6:00 p.m. and asked for a roll call. Jeremy L. Clark- Aye Sunshine N. Cope- Aye Brooks R. Dawson- Absent G. Tyler Clontz- Aye Steven W. Erickson- Aye Joel B. Burchett- Aye Mayor Collins- 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. Page 1 of 9/ January 20, 2026 1 1 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 Page 2 of 9/ January 20, 2026 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. Page 3 of 9/ January 20, 2026 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 Page 4 of 9/ January 20, 2026 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 Page 5 of 9/ January 20, 2026 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 Page 6 of 9/ January 20, 2026 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 Page 7 of 9/ January 20, 2026 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 Sunshine N. Cope- Aye Brooks R. Dawson- Aye 15. Council Comments & Board Updates G. Tyler Clontz- Aye Mayor Collins- Abstained Steven W. Erickson- Aye Joel B. Burchett- Aye 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. Page 8 of 9/ January 20, 2026 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. AT EST O ivia C. Hale Clerk of Council TOWN of PULASKI ,RGINIA 'Y W. Shannon Collins Mayor Page 9 of 9/ January 20, 2026