Council adopts budget, hears a clean audit, and approves wastewater upgrades and property purchases

City officials closed the 2021 cycle by adopting the Fiscal Year 2021–22 Budget, reviewing a clean audit and moving forward on major wastewater facilities planning and public-safety property purchases.

Auditors from Stout, Stuart, McGowen & King presented the FY2019–20 audit early in the year and reported an unmodified (clean) opinion with no findings, noting operating fund surpluses and no audit disagreements with management. The City repeatedly referenced the audit during budget deliberations.

Council considered and ultimately adopted the FY2021–22 Budget in June 2021. The adopted budget kept the tax rate stable (section 8 of the adopted ordinance showed a rate of $0.455 per $100 valuation) and appropriated resources across general, water & sewer and special funds. As part of the June adoption, Council approved updates to fee schedules (including cemetery, recreation and refuse fees), several capital project budgets and the Capital Improvement Plan with a $5,000 capital threshold. Council removed a proposed 1.4% cost-of-living allowance for Council members from the final motion and added new fees, such as a fire re-inspection fee structure.

On wastewater, staff and consultants presented an ongoing expansion project for the Graham Wastewater Treatment Plant (WWTP). Hazen & Sawyer advised that NCDEQ grant and loan funding would support a sizable expansion; because of rising construction costs the project and grant requests were revised upward. Council authorized engineering contracts (for example the Boyd Creek pump station) and approved grant/loan application resolutions for multiple priority water/wastewater projects, including WWTP improvements and Cooper Road pump station upgrades. The minutes record an engineering estimate of “north of $3 million” to expand the Cooper Road pump station capacity to support several hundred additional apartment units — a central constraint in rezoning debates.

Council also authorized purchase of Moore Street parcels and an East Harden property to site public safety assets: in May 2021 the Council authorized payment of $1,500 earnest money and, in October/June sessions, agreed to pursue closing on identified parcels for a fire substation. The council said the expenditures were included in the FY2020–21 budget and staff would complete required due diligence prior to closing.

Finally, in a June 8 closed session the Council approved a settlement in Allen, et al. v. City of Graham (M.D.N.C. 20 Civ. 997), which the mayor described as a settlement reached to avoid further litigation costs; the settlement was approved unanimously and described in the minutes as not an admission of wrongdoing by the defendants.

Taken together, these votes and authorizations closed several policy loops: financial housekeeping (audit and budget adoption), capital project planning (WWTP and pump station engineering and grant applications), and near-term public-safety site acquisitions. Council documents note that large wastewater projects will require multiple grant/loan steps and subsequent Council review prior to expenditure.