OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Winston-Salem Finance Committee Meeting Summary - September 9, 2025

Meeting Portal — Tuesday, September 9, 2025
BodyWinston Salem, North Carolina
SessionMeeting Portal
DateTuesday, September 9, 2025
StatusFILED
Video Record
0:00 / 35:11

Transcript — Verbatim
0:03

Call to order the what month are we in now?

0:06

September.

0:06

Yeah.

0:08

Next committee.

0:09

If this city clerk will please uh hold the members.

0:15

All the roll, whatever.

0:17

Chair person, council member Clark.

0:20

Vice Chair, Mayor Per Tim Adams.

0:23

Councilmember Scipio present.

0:25

And Councilmember Taylor.

0:26

Present.

0:29

Folks, we have a we have a very full agenda, so we will get going on it.

0:38

We will start with a consent agenda.

0:40

Are there any items anyone would want hold?

0:45

I'll move for approval of the consent agenda.

0:47

Second.

0:48

We have a motion and a second to approve the consent agenda.

0:51

If I think we have to vote by voice.

0:53

Yeah.

0:54

All in favor, please say aye.

0:56

Aye.

0:56

Any opposed.

0:58

Those are approved.

0:59

We will now go to the general agenda.

1:04

Item G1, budget and financial update.

1:09

Mr.

1:09

Tesh.

1:11

I'm going to make an opening comment.

1:16

Get my time.

1:17

Yeah.

1:18

Now there's been a lot in the news locally about financial responsibilities of local government organizations and what we should and should not do or should have done.

1:34

Today we're going to do a number of items that I think fall under the category of our responsibilities to steward and to control what happens within within our purview.

1:49

So we're going to start Mr.

1:50

Tesh is actually going to give us a year-in budget review.

1:54

And it's also going to go over some of the controls that are in place to be sure that we know what's going on and ask the right questions.

2:04

So Mr.

2:05

Tesh, with that, if you please do your thing.

2:08

Thank you, Chairman, Mayor, Mayor Putzem, members of the committee.

2:11

You are exactly right, Councilmember Clark.

2:13

This presentation has a few different aspects to it.

2:15

We do have an FY25 year-end projection for where we may end, but at a higher level, we're going to talk a little bit just about the controls that are in place, budget and financial reviews that take place, both internal and external.

2:27

And under the new strategic plan that you adopted, one of the areas is good government.

2:31

And a part of that is our financial stewardship.

2:34

And so the city manager has asked that in the future that we be uh begin bringing uh more regular quarterly updates on budget and financials.

2:40

And so this is intended to set the stage and provide some public information for those that will continue to come in the future.

2:48

So at a high level, a lot of what we do in budget and in finance that our chief uh uh financial officer oversees is prescribed in the local government budget and fiscal control act, and you can see the statutory references there.

3:00

It is a very long, nearly 40 subsection series of of state law that talks about everything that we have to do with respect to budgeting, uh, investment of idle funds, disbursement, everything basically in budget and finance.

3:12

I'm gonna pull out a few of those things uh and just excerpt them, and probably one that's that's most important as to Councilmember Clark you were speaking to.

3:19

Uh we talk a lot about the the expenditure reviews that take place, and a lot of times you'll hear the term pre-audit uh when staff talks about it.

3:26

The fiscal control act requires two pre-audits for every disbursement that goes out.

3:31

One is when we obligate the funds.

3:33

So if we come to you with a contract, uh you approve the contract, we make sure that the funding is there before the contract gets encumbered, and then we have to pre-audit it again before the check is written to make sure that uh the budget is still available there.

3:47

So outside of that piece, there are lots of other controls, lots of other practices and processes.

3:53

And again, I've got a bullet point, uh, a couple of bullet points here that are just excerpts of what we do.

3:58

We have a significant amount of purchasing review to make sure that we are complying with state law in purchasing.

4:04

Purchasing department also does a great job of catching uh whether budget is available for certain items early in the process.

4:10

The financial system itself has controls built into it that we often call funds check, but we are making sure that departments do not overspend their allotments.

4:18

There are system procedures in place outside of uh regular manual processes.

4:24

Position control is probably the most important of these.

4:27

Uh given in the general fund that 60 to 70 percent of your uh expenses are salaries and wages.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability████████████████████████████████32%
Intergovernmental Relations██████████████████18%
Economic Development██████████████14%
Water And Wastewater Management██████████████14%
Solid Waste Management████████8%
Procedural███████7%
Public Engagement███████7%
Summary of Proceedings

Winston-Salem Finance Committee Meeting - September 9, 2025

The Finance Committee of the City of Winston-Salem met on Tuesday, September 9, 2025, at 4:00 PM. All four committee members were present: Chair Robert C. Clark, Vice Chair Denise D. Adams, and members Annette Scippio and James Taylor Jr. Mayor Allen Joines also attended. The committee unanimously approved a consent agenda for routine purchases and budget amendments, and discussed and recommended approval of six general agenda items, including a budget and financial update, economic development incentives for Project Touchdown, a lease renewal, and several bond issuances for water, sewer, and solid waste projects, as well as a financing for a Wake Forest University building. The meeting adjourned at 4:36 PM.

Consent Calendar

  • C-1: Resolution awarding purchase order for rear-loading refuse trucks to Carolina Environmental Systems for $534,673.
  • C-2: Resolution awarding purchase order for automated side-loading refuse trucks to Velocity Truck Center for $852,046.76.
  • C-3: Resolution awarding contract for purchase and installation of guardrail to Nickelston Industries, Inc. for $80,000 under waiver of competitive bidding.
  • C-4: Consideration of items related to the Fiscal Year 2025-2026 Budget Ordinances (amending the annual appropriation and tax levy ordinance and project budget ordinance).

All items approved unanimously (4-0) and forwarded to the City Council on October 6, 2025.

Discussion Items

G-1: Budget and Financial Update Scott Tesh, Director of Budget and Performance Management, presented an overview of the city's financial controls, internal and external audit processes, and the FY2025 year-end projection. He explained statutory requirements under the Local Government Budget and Fiscal Control Act, including pre‑audits, position control, and restrictions on using one‑time funds for recurring expenses. He noted that revenues exceeded budget by 1.3%, expenditures were below the amended budget due to delayed deliveries, and there is a potential addition of $6.5 million to unassigned fund balance (2% of the $300+ million budget). The presentation was informational, setting the stage for future quarterly updates. No vote was taken.

G-2: Economic Development Assistance for Project Touchdown Ken Millett, Director of Economic Development, presented a proposal for performance‑based incentives for a 50‑year‑old UK‑based specialty chemicals company (Project Touchdown) to locate in Winston‑Salem. The project would create 30 jobs with an average salary of $59,217 and invest $5.6 million. Staff recommended up to $57,016 in incentives (50% of net new property taxes). Staff from Greater Winston‑Salem, Inc. spoke in favor. The committee approved the item (4-0) and scheduled a public hearing for September 15, 2025.

G-3: Lease Renewal with State of North Carolina Ben Rowe, Assistant City Manager, presented a request to renew a three‑year lease at $25,000 annually for the State Highway Patrol’s use of space at 226 South Liberty Street. The committee approved the item (4-0) with forwarding to the City Council on October 6, 2025.

G-4: Bond Issuance for The Grounds / Wake Forest University Kelly Latham, CFO, along with bond counsel Scott Leo and PRG General Counsel Jamie Boyd, presented a request for a public hearing and approval of tax‑exempt bonds up to $80 million to finance a building used by Wake Forest University. The bonds would be issued by the Public Finance Authority with no financial obligation to the city. Mayor Joines emphasized the city has no liability. Councilmember Scippio requested examples of similar prior bonds; staff cited Salem College (2023) and the Housing Authority of Winston‑Salem. The committee approved forwarding to the September 15, 2025 council meeting for public hearing.

G-5: Water and Sewer System Revenue Bonds Kelly Latham presented the initial resolution for $70 million in revenue bonds for water and sewer capital projects. The bonds require Local Government Commission approval and a feasibility study. The project list (Exhibit B) includes the Hart Collection System Improvement Program, Peters Creek Outfall, Tanglewood Force Main replacement, water distribution improvements, 15th Street Pump Station upgrade, repairs to Elledge Wastewater Treatment Plant lagoons, repairs to the biosolids drying facility (damaged by fire), the Nielsen Water Treatment Plant modernization, and the AMR automated meter project. Councilmember Scippio requested and received the project list. The committee approved the initial resolution (4-0), with a public hearing on September 15, 2025 and formal bond order on October 6, 2025.

G-6: Solid Waste Limited Obligation Bonds Kelly Latham presented the initial resolution for $26.55 million in limited obligation bonds for solid waste improvements. Courtney Driver, Utilities Director, answered questions. The funds will cover the Burm project, gas system expansion, and cell six expansion at the Haynes Mill Road Landfill. A public hearing will be held on October 6, 2025. The committee approved the initial resolution (4-0).

Key Outcomes

  • Consent Agenda (C-1 through C-4): Approved 4-0; forwarded to City Council on October 6, 2025.
  • G-2 (Project Touchdown): Approved 4-0; public hearing on September 15, 2025.
  • G-3 (Lease Renewal): Approved 4-0; forwarded to City Council on October 6, 2025.
  • G-4 (The Grounds/WFU Bonds): Approved 4-0; public hearing on September 15, 2025.
  • G-5 (Water and Sewer Revenue Bonds): Initial resolution approved 4-0; public hearing on September 15, 2025; formal bond order on October 6, 2025.
  • G-6 (Solid Waste LOBs): Initial resolution approved 4-0; public hearing on October 6, 2025; final approval then.
  • The meeting adjourned at 4:36 PM.

Meeting Transcript

Call to order the what month are we in now? September. Yeah. Next committee. If this city clerk will please uh hold the members. All the roll, whatever. Chair person, council member Clark. Vice Chair, Mayor Per Tim Adams. Councilmember Scipio present. And Councilmember Taylor. Present. Folks, we have a we have a very full agenda, so we will get going on it. We will start with a consent agenda. Are there any items anyone would want hold? I'll move for approval of the consent agenda. Second. We have a motion and a second to approve the consent agenda. If I think we have to vote by voice. Yeah. All in favor, please say aye. Aye. Any opposed. Those are approved. We will now go to the general agenda. Item G1, budget and financial update. Mr. Tesh. I'm going to make an opening comment. Get my time. Yeah. Now there's been a lot in the news locally about financial responsibilities of local government organizations and what we should and should not do or should have done. Today we're going to do a number of items that I think fall under the category of our responsibilities to steward and to control what happens within within our purview. So we're going to start Mr. Tesh is actually going to give us a year-in budget review. And it's also going to go over some of the controls that are in place to be sure that we know what's going on and ask the right questions. So Mr. Tesh, with that, if you please do your thing. Thank you, Chairman, Mayor, Mayor Putzem, members of the committee. You are exactly right, Councilmember Clark. This presentation has a few different aspects to it. We do have an FY25 year-end projection for where we may end, but at a higher level, we're going to talk a little bit just about the controls that are in place, budget and financial reviews that take place, both internal and external. And under the new strategic plan that you adopted, one of the areas is good government. And a part of that is our financial stewardship. And so the city manager has asked that in the future that we be uh begin bringing uh more regular quarterly updates on budget and financials. And so this is intended to set the stage and provide some public information for those that will continue to come in the future. So at a high level, a lot of what we do in budget and in finance that our chief uh uh financial officer oversees is prescribed in the local government budget and fiscal control act, and you can see the statutory references there. It is a very long, nearly 40 subsection series of of state law that talks about everything that we have to do with respect to budgeting, uh, investment of idle funds, disbursement, everything basically in budget and finance. I'm gonna pull out a few of those things uh and just excerpt them, and probably one that's that's most important as to Councilmember Clark you were speaking to. Uh we talk a lot about the the expenditure reviews that take place, and a lot of times you'll hear the term pre-audit uh when staff talks about it. The fiscal control act requires two pre-audits for every disbursement that goes out.

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