Village of Forest Hills Work Session Minutes

May 5, 2026

7:00 PM

 

 

1.    WCU Electric Update: Mr. Reid Conway, Director of Energy and Utilities.  Mr. Conway spoke to the Council and residents about WCU Electric and the recent increases implemented in electrical bills.  Residents had raised concerns about a letter mailed indicating a potential 44.5% rate increase for users averaging 1,000 kWh/month or more; residents were concerned over transparency and the lack of a public hearing.

Mr. Reid shared that Western Carolina Power has approximately 3900 customers, which is only about 15% of the business in the area.  They have a power purchase agreement; they solicit a request for proposals for power and resales.  Purchase power adjustment goes through the utility commission. Mr. Reid noted that there is no profit for the University; they try to break even.

Discussion: Western purchases power and passes through costs; in the past, there was a 26% rate decrease when wholesale costs fell; historically, ~5% lower than Duke due to wholesale purchasing.

Council and residents recognized Western’s good service and fast outage response; desire for clearer website communication and rate details.

2.    Summer Social date selection: Council discussed potential dates in July and agreed to hold the event on July 25^th.  Councilmember Ingersoll agreed to take the lead in speaking with Catamount Jax about using their facility for the social.  Council will discuss catering at the June meeting, and Stephanie will send invitations to residents and post a notice on the website.  Council agreed that invitations should be mailed about four weeks in advance.

3.    Planning Consultant: Mayor Mau discussed the budget impact (the total would be around $50,000 with the first phase at approximately $15,000), why an update to the Future Land map is needed, and noted that the Council will all need to be assisting and will need to recruit volunteers to assist. Mayor Mau noted that he submitted an application for a grant to assist with the Land Use Plan review.  The Land Use Plan needs to be consistent with the Zoning Plan.  He noted that the board needs to think about what they would like to see in the Village.  Council noted that it is no longer legal to “downzone.”

Council discussed whether to have the Village Attorney at each meeting or to ask him to attend when agenda items might require a legal opinion.  Council agreed that it would be a good idea to send the agenda to Attorney Coward in advance to determine if there are issues that might require a legal opinion.

WATR Study:  Councilmember Shields mentioned that the Tuckasegee Watershed is a non-profit and might be able to assist with a study.  A representative will be asked to attend the June meeting for further information.

4.    Planning Board Vacancy: Mayor Mau noted that Robbie Hess was sworn in as a new member of the Planning Board. 

5.    Board member replacement: Councilmember Bollinger is going to be moving soon, and the board will need to consider appointing a replacement.

6.    Website update:  The Village website is live now, and Mayor Mau has updated information on the new site and asked the board for any updates.  Councilmember Couture asked that we check to see if people might have photos portraying the village or photos from previous events that they would like to share to add to the site. 

7.    Fund Balance Policy: Mayor Mau noted that there was no update to the policy, but there is a long-range need to do a formal review of the policy.

8.    Calendar:  Mayor Mau asked the board to think about what Village boards should track on an internal calendar.  He asked that any ideas be sent to Stephanie.

9.    Yard Waste: Council discussed Village properties that had debris and waste, and discussed updating the ordinance. 

Adjourn: Councilmember Shields moved to adjourn the work session at 8:15

 

 

Work Session began on May 5, 2026, at 7:00 pm.

• Agenda reviewed.
• Topic: Revised Rules of Procedure
• Booklets were ordered and are available for members who need a copy.
• Council will review and decide which rules to remove or keep, and follow the booklet at the May meeting.
• Topic: Internal Controls and Purchasing Policy Updates
• Ongoing updates are being reviewed based in part on the auditor’s recent feedback.
• Goal: Policies should be usable yet flexible, avoiding overly restrictive language.
• Include clearer definitions: two signatures; dollar thresholds for approvals.
• Examples from other towns, such as Sylva) Suggest flexibility to prevent violations.
• Next steps: Incorporate auditor comments and finalize.
• Topic: Attorney Attendance and Billing
• Discussion on whether an attorney is needed at every meeting; hourly rate ~ $300.
• Council proposed inviting the attorney as needed when legal issues are on the agenda. It was recommended to consult the attorney in advance to avoid higher in-person costs.
• Historical practice: The Mayor consulted the attorney ahead of meetings to decide presence and prep.
• Conclusion: Attorney will attend selectively; agendas will be prepared earlier and sent for review.
• Topic: Fund Balance Policy Review
• Existing policy requires maintaining at least $100,000 in the bank.
• Best practices discussed: some entities target 28–30% of annual budget; small entities may target ~100% due to legal risk exposure.
• Consider whether to increase the minimum; budget impact acknowledged.
• Legal insurance coverage details unknown; follow-up needed.
• Council had mixed views on raising the threshold (hypothetical $150k–$200k); the current policy has worked for years.
• Conclusion: Keep the topic on the agenda; gather insurance coverage info before considering changes.
• Topic: Budget Process and Draft FY Revenue/Expenditures
• Finance subcommittee (Larry, Stephanie, and chair) met; a draft budget was prepared.
• Projected revenues were nearly $120,000; modest increases in ad valorem and sales tax were noted due to revaluation.
• Property tax valuation adjustments yielded +$3,000; tax rate is 0.0013.
• Year-to-date ad valorem collections are running ahead; consider updating the estimate (e.g., 72,500) using a higher collection rate (~99% vs. 97.5%).
• Reviewed the interest earnings estimate.
• Conclusion: Continue refining revenue estimates; the draft does not yet balance.
• Topic: Council/Mayor Compensation and 1099 Threshold
• Current annual compensation around $630–$660 triggers 1099 reporting and tax filing.
• Daniel mentioned the compensation; he suggested reducing the council compensation pay by ~$51–$61 to stay under $600 and avoid a 1099; legal/process implications undetermined, to be determined.
• Alternatives discussed: mileage reimbursement and a travel/workshop budget line; possibly a flat monthly travel stipend.
• Conclusion: Members to consider personal adjustments; seek guidance on legality/process for pay changes.
• Topic: Fire Protection Funding
• Clarified that county fire tax reclassification does not increase total funds to volunteer departments.
• The Village’s $10,000 support is considered status quo; discussion supports continued funding due to service value.
• Sylva has unique budget needs because it has its own fire department.
• Conclusion: Tentative support to maintain the current contribution; no change for the time being.
• Topic: Capital Improvement Plan (Roads)
• Initiated a plan to schedule road repaving (South/North Country Club, Cave Springs) and shoulder repairs.
• Actions:
• Reinforce contractor billing compliance; note auditor guidance; complete contract signatures.
• Request an estimate from Aaron Jones Paving; target before the May council meeting.
• NCDOT contact (Garrett Higdon) is exploring entrance striping and widening the turn radius on South Country Club; assess rights-of-way and costs.
• Update the Powell Bill map; messages left for Victor; need the current map before filing.
• Banking paperwork completed at Community Bank.
• Financial context: ~ $200,000 in the bank; $100,000 above the fund balance floor; plan to allocate for future paving and saving annually.
• Conclusion: Proceed with estimates, DOT inquiries, and map updates; use CIP to guide saving/spending.
• Topic: Budget Timeline and Approvals
• Aim to present the operational budget at the May meeting; CIP details may extend beyond May.
• Target final budget approval in June without special meetings.
• Stephanie is gathering invoices (including snow costs) to finalize figures.
• Conclusion: Maintain schedule for June approval.
• Topic: Summer Social Planning
• Place the event on the internal calendar; choose a date at the May meeting.
• Historical timing: around early July, after the Fourth of July.
• Venue: Catamount Jack’s (typically closed Sundays; has previously donated space); summer flexibility may allow Friday/Saturday use.
• Communication: Website and mailers after date selection.
• Conclusion: Plan for July; confirm venue availability; select a date in May.