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Votes at a glance: Morganton council approves CDBG action plan, budget amendments, utility policy and purchasing changes
Summary
Council approved the FY2026 CDBG action plan and project budget, an agreement with the Western Piedmont COG to administer the program, four year‑end budget amendments totaling roughly $930,300 across funds, an electric line‑extension policy, and raised the purchase order limit to $2,500.
The Morganton City Council on June 22 approved a slate of routine but consequential measures in addition to adopting the annual budget.
Community Development Block Grant (CDBG): Jennifer Canada presented the FY2026 action plan and said HUD entitlement funding is $225,896 with approximately $30,000 expected in program income, bringing the total to $255,896. The action plan allocates $90,000 for small business loans, $90,698.80 for public infrastructure and facilities, and $30,000 for nonprofit loans. Council approved the action plan, adopted the project budget ordinance, and approved a contract with the Western Piedmont Council of Governments to administer the entitlement program.
Year‑end budget amendments: Council approved four amendments described by Sally: General Fund $487,800 (maintenance/repairs, storm drain repairs, elections, insurance and wages); Cable Fund $50,000 (professional services, funded by reimbursements); Wastewater Fund $92,500 (insurance, maintenance, wages); and Electric Fund $300,000 (street lighting and maintenance). Sally said the amendments are funded by insurance reimbursements, interest, utility penalties and septage revenue rather than retained earnings.
Electric policy: Tom McGee presented a formal contribution‑in‑aid‑of‑construction and line extension policy that shifts the upfront cost of new or upgraded electrical facilities to the requesting customer rather than embedding those costs in the utility rate base. Council adopted the policy and authorized the city manager to administer it.
Purchasing policy: Jesse, the finance director, recommended increasing the purchase order threshold that requires a PO from $1,000 to $2,500, effective July 1, to reduce administrative burden on routine purchases. Council approved the amendment.
Rail station planning resolution: Council approved a resolution to be included in the NCDOT application for a transit‑oriented development (TOD) study related to passenger rail service readiness. Sally said the DOT expects the study to cost about $200,000 per community with an 80% federal / 20% local match (roughly a $40,000 local share) and that the local match would not be required until a later budget year.
All listed motions were approved by voice vote as recorded in the meeting transcript; individual roll‑call tallies were not recorded.
