Henderson board OKs 4% COLA, sets 10% retirement match and approves audits; budget and ARP spending pass first readings

The Board of Mayor and Aldermen of the City of Henderson on May 11 approved a package of personnel and administrative measures while advancing the 2023–24 budget and a plan for American Rescue Plan (ARP) funds.

Recorder Jim E. Garland presented the final recommended 2023–24 budget format and said the tax rate will remain $0.90 per $100 of assessed value; Alderman Donna Butler moved to approve the budget ordinance on first reading and the board voted unanimously. The public hearing and second reading are scheduled for the June meeting.

The board also approved, on a separate motion, an ordinance on first reading laying out planned ARP-funded expenditures for the coming fiscal year. Recorder Garland listed items including completion of city hall renovations, administrative GIS equipment, bulletproof vests and two police cars for the police department, five SCBA plus turnout gear sets for the fire department, an air compressor for public works and utilities, street paving (noted at $159,000), and a utility vehicle for the parks department. Alderman Keith Smith moved the measure, and the vote was unanimous.

On personnel matters, the board adopted Resolution #2023-005 to enact a 4% cost-of-living increase for all city employees, authorize department heads a discretionary 2% to allocate within their departments, maintain the Christmas bonus and add a special one-time bonus of $25 per year of continuous service, and increase the judge’s salary by $600 annually. The resolution also raised meeting fees for Planning Commission and Board of Zoning Appeals members from $25 to $50 per meeting; changes take effect June 26, 2023.

Recorder Garland asked the board to set the employer retirement match for the defined-benefit group at 10% for 2023–24 (the actuarial minimum shown was 7.01%). Alderman Mark A. Barber moved to set the match at 10% and the motion carried.

The board approved an audit contract with ATA for the fiscal year ending June 30, 2023. Recorder Garland said the state Comptroller’s required chart-of-accounts crosswalk and an expected single audit tied to ARP funds add cost; he cited an additional $4,000 for a likely single-audit requirement and stated the total audit fee is $38,300. Alderman Keith Smith moved to retain ATA and the motion carried.

On land-use administration, Building Official Brent Beshires summarized House Bill 2534 and said the city has for years administratively approved two-lot splits; the General Assembly language allows broader delegation in some jurisdictions, but the board elected to retain the two-lot administrative approval limit locally and adopted Resolution #2023-006 unanimously after a public hearing that drew no comment.

The board also confirmed the appointment of Marty Watson as the city representative to the County Equalization Board and approved several operational items — including authorization for Utility Director Darryl Green to begin the bid process for a TDEC-approved ARP-funded North Avenue pipe replacement when the state contract arrives, and permission for Fire Chief Doug Acred to allow employees to take the secondary fire truck home or use it for training at the chief’s discretion.

Most votes recorded were unanimous; where roll-call tallies were recorded in the minutes the six aldermen (Mark A. Barber, Donna Butler, Buel Maness, Michael Phelps, Jason Rhodes, and Keith Smith) voted aye and noes were none. The board adjourned with no further business.

Next steps include the budget and ARP ordinance second readings and public hearings in June and staff follow-up on approved bids and the various implementation items.