MINUTES
Town of Blowing Rock
Board of Commissioners
May 21, 2007
The
Town of Blowing Rock Board of Commissioners held a special meeting on Monday,
May 21, 2007. Attending were Mayor J.B.
Lawrence, Commissioners Bobby Ball, Keith Tester, Terry Lentz, Rita Wiseman and
Tommy Klutz. Others in attendance were
Town Manager Scott Hildebran, Finance Director Margaret Pierce and Town Clerk
Sharon Greene.
The
purpose of the meeting was to review the Recommended Budget for FY 2007-2008. Mayor Lawrence called the meeting to order at
4:00 p.m.
Discussion Item
Pursuant
to Section 159-11 of the North Carolina General Statutes, Town Manager Scott
Hildebran presented Council with the Recommended Budget for FY 2007-2008 for
their review.
Town
Manager Hildebran reviewed the FY 2007-2008 budget message (Refer to “Exhibit
C”, May 8, 2007 Town Council meeting).
He stated the key principles which the budget is based on were as
follows:
Town
Manager Hildebran gave the following review of revenue sources:
Source of Revenue
Ad
Valorem Tax (Property Tax) for FY 2007-2008 for Blowing Rock would maintain a
rate of $0.280 per $100 of the valuation.
Total Ad Valorem tax revenues (including current and prior years, motor
vehicles, and penalties/interest) are projected to be $2,891,500.
Sales
and Services, revenues come from the services the town sells based on the Town
fee Schedule. Some services which
produce “Sales and Service” revenue are commercial solid waste/recycling fee,
parks and recreation department fees (pool, day camp, program registration, etc.)
cemetery fees, zoning/building fees, water/sewer charges. This source of
revenue will provide approximately $316,400 for the next fiscal year to the
General Fund. Water/sewer charges (and
interest) are estimated at $1,388,200 in FY 2007-2008.
State-Collected
Local Taxes are for statewide revenues received by the Town and estimates depend
on economic forces: Utility Franchise Tax, Telecommunications Sales Tax, Beer
and Wine Tax and the new Video Programming Tax (formally Cablevision TV
Franchise Tax). These funds are
collected by the State and are expected to be $195,300 for FY 2007-2008 and are
strictly General Fund revenues.
Sales
Tax which consist of a one-cent sales tax and three one-half cent sales
taxes. The authority to implement a
third one-cent sales tax was approved by the General Assembly and approved
locally by both the Watauga County and Caldwell County Board of Commissioners
in 2002 and replaced the State reimbursements for repealed local taxes. According to a fiscal analysis with the
General Assembly, retail sales in
Hotel/Motel
Occupancy Tax are levied via the Blowing Rock Tourism Development Authority on
the gross receipts from the rental of transient accommodations in the Town of
Powell
Bill Street Allocation is strictly used to maintaining, repairing,
constructing, reconstructing or widening any public street or thoroughfare within
the Town limits that is not State-maintained.
An estimated $85,000 is anticipated for FY 2007-2008.
ABC
Revenues are contributed from the local ABC Board from the sales of alcoholic
beverages and are estimated to be $122,500 in FY 2007-2008.
Anticipated
Grant money is not included in the Recommended FY 2007-2008 Budget at the
present time, but the Town will seek grant-funding opportunities during the
year. A current grant application for
$500,000 is being reviewed with the NC Park & Recreation Trust Fund for
improvements to the Robbins Swimming Pool.
Other
miscellaneous revenue includes: privilege licenses, interest income, parking
tickets, donations, book sales, park lease, town property rental income, sale
of fixed assets, contribution from the Volunteer Fire Department, snow removal
reimbursement, etc. For FY 2007-2008,
these funds are expected to be $224,750.
On
June 20, 2007, the Undesignated General Fund Balance is expected to be
approximately $1,475,000 or 34.09% of FY 2006-2007 General Fund Budget. There is no fund balance appropriated in the
Recommended Budget.
The
Town of
Commissioner
Tester questioned once the town reached their goal could the surplus be
earmarked toward the Capital Improvement Plan instead of Fund Balance. Town Manager Hildebran stated he would
clarify the policy language to state “once the Town achieves its goal, any
excess funds shall be earmarked for capital reserve purposes” for Council’s
consideration.
General Fund
Water
and Sewer Fund
Capital Reserve Project Funds
Other
Briefly
discussed were sales tax collected in this area and how they were distributed
per capita versus ad valorem levy basis by
Mr.
Hildebran mentioned Parks & Recreation in coordination with the TDA had
hired summer employees to walk along
Mr.
Hildebran stated during the 2007 Retreat, Council discussed the idea of
changing the fee schedule for building fees from a cost of construction fee to
a square footage of new construction fee.
Council
suggested that Planning Director Kevin Rothrock join the meeting to discuss this
change. Mr. Rothrock agreed that
calculating by square footage would be the fairest way without losing income
and it would keep fees in line with those charged by surrounding inspection
departments. Mr. Rothrock advised the proposed change for Conditional Use
Permit would increase from $350.00 to $500.00 and permits to change water
heaters would decrease from $50.00 to $35.00. Town
Manager Hildebran advised no action would be taken during the budget work
session, but the fee schedule change would be included in budget approval at
the next regular meeting.
Town
Manager Hildebran also advised that $18,500 from
Mr.
Hildebran expressed a standard policy regarding vendor parking during Art in
the Park was needed. Commissioner Tester felt that a representative from the Town
should meet with representatives from Art in the Park to discuss the issue. It
was consensus of Council that a meeting be scheduled with the Chamber of
Commerce to discuss Art in the Park. Mr. Hildebran stated the Recreation Department
had previously sent a letter to the Chamber on this issue. Revenue to the Town generated by Art in the
Park was also briefly discussed.
Expenditures
Mr.
Hildebran reviewed department expenditures and highlights. He also discussed a
new general employee benefit that was included for the upcoming fiscal
year. He stated one percent (1%) of the
employee’s annual salary would be matched by the Town and contributed to their
401-K Plan. Council recommended that a one percent increase be given annually
until the 401-K reached five percent (5%) for regular employees to match the 5%
sworn police officers already receive.
Mr.
Hildebran expressed a work session between the Town and McGill Associates would
be needed sometime in July to discuss the Streetscape Plan. He advised BREMCO, Charter Communications,
Bellsouth and N.C.D.O.T. had been consulted regarding the Streetscape
Plan. He stated that Town Engineer Doug
Chapman would be in attendance at the session scheduled for the following day.
Mayor
Lawrence inquired if Hwy. 221 would be paved in the near future. Mr. Hildebran stated he would check with
N.C.D.O.T. and share the information at the Tuesday work session.
Commissioner
Lentz also stated he had noticed a pile of unsightly debris such as pallets,
etc. along
Mr.
Hildebran stated the Town Parks were better maintained with the addition of a
part-time employee in the Parks & Recreation Department this year and funding
for an upgrade to full-time status was included in the Recommended Budget. He also conveyed the water quality in
Mayview/Broyhill Lake had improved due to the addition of the fountain
according to Virginia Jones.
Mr.
Hildebran stated the FY 2007-2008 Recommended Budget had allocated a three
percent (3%) salary adjustment for employees. Department heads would determine
a distribution method for the available funds either across the board to all
employees, as an equal lump sum adjustment or as merit increases. Mr. Hildebran stated this approach would be
used this year and that most other municipalities used the merit increase
instead of across the board raises. He
also conveyed Town employees would be evaluated twice a year and that some
departments head salaries had been reviewed and would need an adjustment to
meet market conditions.
Mr.
Hildebran stated there were several employees in the Emergency Services
Department that were pursuing certifications at the present time and would
receive salary adjustments upon completion.
Mr.
Hildebran completed the review of the General Fund expenditures.
Mr.
Hildebran then discussed lighting of the Historic Trail along
Adjournment
Mayor
Lawrence adjourned the meeting until the following day, May 22, 2007 at 4:00
p.m. at which time they would continue the work session with the Water Fund.
Mayor ____________________________
J.B. Lawrence
Attest:
____________________________
Sharon Greene, Town Clerk