SUMMARY MINUTES OF A WORK SESSION

OF THE CHAPEL HILL TOWN COUNCIL

WEDNESDAY, FEBRUARY 13, 2002, AT 4:00 P.M.

 

 

Mayor pro tem Pat Evans called the meeting to order at 4:00 p.m.

 

Council members present were Flicka Bateman, Ed Harrison, Mark Kleinschmidt, Bill Strom, Jim Ward, and Edith Wiggins.

 

Council Member Dorothy Verkerk was absent, excused.

 

Council Member Ed Harrison arrived at 4:18 p.m.

 

Mayor Foy arrived at 4:22 p.m. 

 

Staff members present were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Town Attorney Ralph Karpinos, Assistant to the Manager Bill Stockard, Finance Director Jim Baker, Library Director Kathy Thompson, Assistant Library Director Mark Bayliss, Housing Director Tina Vaughn, Planner Than Austin, Senior Long Range Planning Coordinator Chris Berndt, Principal Community Development Planner Loryn Barnes, Transportation Director Mary Lou Kuschatka, and Town Clerk Joyce Smith.

 

Item 1 - Library Board of Trustees

 

Board Chairman Bob Schreiner introduced other Board members who were present.  He then listed the Library's accomplishments:

 

·        The Chapel Hill Public Library is rated #1 in North Carolina by Hennan's American Public Rating Index. 

·        The Library has the highest checkout rate per capita in the State.

·        The cost to circulate a book in Chapel Hill is $2.38, compared to the state average of $3.35.  This means that the staff is working hard to achieve greater efficiency and high value for citizens.

·        Books and other materials go out an average of 5.25 times per year, compared to the State average of 2.3.  This suggests that the collection is too small and that materials wear out faster.

·        The library building program, written in the late 80s, recommended a building size of 47,000 sq. ft. (64,000 sq. ft. by 2010).  Due to lack of funds, however, the Town dedicated its 27,000 square foot facility in 1994.  This means that the Library is running out of space.

  

Mr. Schreiner listed three primary areas that need addressing in the 2002-2003 budget: books and other materials, children's services, and Internet and technology.  He noted that the library's service population as defined by State law is all of southern Orange County, noting that it is a much larger population than just Chapel Hill. 

 

Mayor pro tem Evans asked if the Board had received any word about State funding to libraries being drastically reduced.  She asked if they had addressed that possibility.  Library Director Kathy Thompson replied that public libraries were anticipating about a 4% decrease in State aid, with more cuts coming before the end of the year.  She pointed out that this is not as drastic for Chapel Hill as it is for other libraries in the State because regional libraries depend far more on State aid than do municipal libraries.  Mr. Schreiner determined from Ms. Thomason that State aid makes up about $35,000 of the library's $1.8 million budget.  He noted that a 4% reduction in that would not amount to much of a cut.

 

Council Member Bateman inquired about the number of residents from northern Chatham County who use the library.  Mr. Schreiner and Ms. Thompson replied that about 3% of library users live outside the County.  They did not know off hand how many of those were from Chatham County rather than Durham County. 

 

Mr. Horton suggested that the Board members comment on the fees that out-of-County residents pay.  Ms. Thompson noted that the out-of-County use was almost entirely Chatham County residents.  She explained that the fee is $35 per year/per card, which usually is a family card, and broke down the users as follows: 4% from northern Orange County, 36% from southern Orange County, 56% from Chapel Hill, and the rest come from outside Orange County. 

 

Council Member Bateman determined from the Board that the Library was no longer using the bookmobile.

 

Council Member Strom inquired about other sources of Library funding.  Ms. Thompson explained that the majority of funding comes from the Town's General Fund.  She said that this is augmented by about $246,000 from Orange County and $95,000 from Library gift funds.  The rest comes from fines and fees, she said.  Council Member Strom asked how large the gift fund was at the moment.  Ms. Thompson replied that it was a little more than $600,000. 

 

Mr. Horton added that those funds are authorized to be spent as part of the Council's budget each year with the understanding that they will be used solely to benefit the library.  He added that there had been a time when that money had accumulated.  But then it dropped down again, he said, because it was used for library expansion.  Mr. Horton noted that the fund is being rebuilt, but pointed out that some of it will have to be used for major refurbishing projects.  He added that the staff expects the fund to be expended as the library is expanded.  In response to a question by Council Member Strom, Mr. Horton explained that some gifts come with restrictions which the Town must honor. 

 

Council Member Strom inquired about the Foundation's history.  Ms. Thompson explained that the Foundation, which was set up to manage the Love Estate, turns over the interest, up to a certain amount, to the Town on an annual basis.  Mr. Horton added that the Foundation had recently completed an audit on its first two years of operation.  He said that the Council should receive a copy of that before the end of the week.

 

Council Member Strom asked if the intent was to leave the endowment and use only the interest.  Mr. Horton replied that the Foundation had provided some funding each year and had also added to the principal so that the fund would grow. Council Member Strom asked if there would be any chance of the Foundation making a capital contribution toward some of the Library's projects.  Mr. Horton replied that there was that possibility.  He pointed out that one Foundation member already had promised a contribution of $100,000 to assist with expansion and had said that other gifts would be forthcoming.

 

Council Member Strom asked for a ballpark figure of how the $1.9 million fund had grown.  Mr. Horton replied that the Foundation had not had a good experience due to problems in the economy, especially during the last year.  He said that the Foundation money probably had not performed as well as the money managed by Town Finance Director Jim Baker, since the Foundation can be more aggressive because it does not have the restrictions that are imposed on the Town.   But over the long haul, Mr. Horton said, the Foundation probably will do at least a point (minimum) and perhaps as much as three points better than the Town will be able to do. 

 

Mayor Kevin Foy arrived at 4:22.

 

Council Member Jim Ward expressed interest in allocating resources toward Internet services, such as satellite programs.  Various Library Board members commented that weekday afternoons and virtually the entire time the Library is open on weekends had the heaviest Internet usage.   Mr. Schreiner stated that the Board would like to offer adult classes via the Internet.  Council Member Ward suggested exploring the potential for extending the Library to other facilities, such as schools and community centers.  He asked if the Library had conducted a user survey.  Mr. Schreiner replied that a needs assessment had been done a few years ago.  

 

Vice Chair Bill Holton pointed out that thousands of books are exchanged at the library each day.  He said that the Library Board had made obtaining more books its #1 priority.  Internet services were second, Mr. Holton said.  Mr. Schreiner pointed out that everything is intertwined and that targeting one need means touching on the others as well.  Ms. Thomson noted that the Library has a very articulate user group and that those users have asked for more books, more children's programming, and adult instruction.  She added that the library consultant was clear that the success of implementing items in her report should be carefully monitored with user surveys.

 

Council Member Ward invited Evelyn Daniel to update the Council on Orange County's position regarding the Chapel Hill Public Library.  Ms. Daniel replied that the County had done a substantial study of library services and had tried to come up with a unit of library service that every member of the County would be entitled to no matter where they lived.  She said that the study and the final report had not met those ambitious expectations but it did compare libraries and noted the advantage of having a university nearby.  Ms. Daniel said that the report had supported placing a "Sci-brary" in the New Century Center in Carrboro, as long as there would be an equivalent facility somewhere in northern Orange County.  However, she explained, the organization for the latter is not far along so the "Sci-brary" will not be put in place soon.  She explained that discussions of Internet library services are ongoing, but noted that many readers still prefer seeing the printed word in book format.

 

Council Member Ed Harrison asked if there were any numerical criteria to demonstrate the level of space constraint at the library compared to other libraries.  Ms. Thompson explained that there were various ways of measuring that.  She said that the consultant had used two of those ways and had estimated that 75,000 square feet of space was needed.  She pointed out that there was some detail on how that number was reached contained in the consultant's report.  Ms. Thompson remarked that librarians tend to keep statistics on everything.

 

Council Member Wiggins commented that the library staff was very talented.  Ms. Thompson agreed, adding that she had been impressed by the staff ever since she first came to Chapel Hill.  Council Member Evans pointed out that the Town Council must decide whether or not the Library Board should go to Orange County for funding.  She recommended that Board members do so even though success was unlikely.  Mayor Foy agreed, adding that the Board's presentation to the County in the past had been compelling.  He described it as "a matter of education," and said that the Board had been doing a good job with that.       

 

Item 2 - Housing and Community Development Advisory Board

 

Chair Tracy Dudley introduced the other Board members.  She explained that the handout given to the Council was an overview of what the Board had decided at its last meeting were the more prominent issues to be considered during this year's budget. 

 

Regarding Grounds Maintenance, Ms. Dudley stressed that the Board did understand about the State budget shortfall and how that had put the Manager in the position of having to making cuts where possible.  Nevertheless, she said, asking the Housing Department to assume financial responsibility for grounds maintenance would mean that something else probably would have to go lacking.  Ms. Dudley remarked that the Public Works Department maintains other grounds and she asked the Town Council not to constrain the Housing Department in this way.

 

Regarding Affordable Housing, Ms. Dudley asked that support be given to the Department's Transitional Housing Program.  She said that the current goal is to raise $100,000 to purchase the first home and begin the program.  She also asked that continued support be given to agencies, such as EmPOWERment, Orange Community Housing, and other non-profit organizations that work toward the goal of homeownership for low- to moderate-income Chapel Hill residents. 

 

Regarding the Parks and Recreation programs, Ms. Dudley said that changes in other areas had caused the Parks and Recreation Department to reevaluate the way it charges for some programs.  This had adversely affected some of the youth who live in Chapel Hill's public housing, Ms. Dudley said.  She asked that the Town help these youth to continue with programs that they've been closed out of due to new fee schedules. 

 

Council Member Bateman asked if the Parks and Recreation Department's fee waiver schedule was applicable to the summer program.  Mr. Horton said that there was a fee waiver, adding that the Town had not, to his knowledge, ever covered 100% of any of the children's programs.  Assistant Town Manager Sonna Loewenthal agreed, adding that summer programs are "very much fee waived," and the Town does not even collect its goal of 75%.    Board member Elizabeth Welsby said that they had learned through the Residents' Council that the sliding fee scale had changed for the summer camp programs.  She said that fee waivers seems to be available only if you know how and when to apply for them.  Ms. Loewenthal agreed, adding that in the past they had either been waived or not waived but now there was a sliding scale that had been adopted two summers ago that requires people to pay a minimum amount (maybe $25) for the summer.  Ms. Welsby explained that some residents had reported that $25 per child would be a burden that they cannot meet.  She added that lack of transportation also keeps many from participating.

 

Council Member Bateman commented that those who had been trying to recruit children into that program had complained that the application process was not working as they wanted it to.  Council Member Wiggins asked if the Resident's Council was helping to get applications out and returned.  Ms. Dudley replied that the Residents' Council does not have a representative on the Board but that members do attend Board meetings.  She said that it seemed as though the information was not being given out in the way that the Parks and Recreation Department had expected.  Nor was it being responded to in as timely a manner as the Department and the Resident's Council had hoped, she said. 

 

Ms. Dudley explained that the first two weeks of applications were done by mail.  She said that information about what's available and how the fee schedule works is not clear to many residents, and many are not sending their applications back in a timely manner.   Ms. Welsby noted that Board members did not feel it was their place to ask for changes in the Parks and Recreation Department's sliding fee schedule.  She said they just wanted the Town Council to be aware of the problem. 

 

Council Member Evans asked if the Board had been successful in getting word out about the free buses.  Ms. Dudley replied that she would attend a Residents' Council meeting later that evening in her capacity as a Transportation Department employee.  She said that she would share information about the fare free service with the Residents' Council.  Ms. Dudley noted, though, that her own community was not on a bus line, adding that this is a major problem for mothers with toddlers.

 

Council Member Kleinschmidt asked Ms. Dudley to explain why transportation difficulties are especially acute in relation to summer camps.  Ms. Dudley replied that the fare free service does not serve the needs of a working mother with several children between the ages of four and twelve, for instance, because they cannot ride the bus alone.  She said that she would like to discuss with the Transportation Department the idea of using the shared ride feeder service for this purpose.   Ms. Dudley added that the Resident's Council does have a van, but noted that serving all the communities would be a big task for one van to undertake.

 

Council Member Strom asked if Transitional Housing had received any funding.  Housing Director Tina Vaughn replied that it had received $100,000 from the HOME Program.  Council Member Strom asked if they would be reapplying for HOME funds this year, and Ms. Vaughn replied that they would.

 

Council Member Ward inquired about the staff's request to have the Housing Department provide maintenance.  Mr. Horton replied that he had challenged Ms. Vaughn to find a way to be self-sustaining in the Housing Department fund rather than relying on General Funds to supplement what is available from the General Housing Fund.  He said that they were still discussing that and that he did not yet know what his final recommendation to the Council would be.  Mr. Horton explained that the combination of the Town's refurbishing programs, contractor's turnaround programs, and the general renovation work in several neighborhoods had improved the general condition of Public Housing over the last few years.  The Town had refurbished about one-third of its units last year, he said, and had built a record of accomplishment.  Mr. Horton pointed out that there was some ability now to make changes and still maintain the five-year cycle.  He noted that Ms. Vaughn was looking at every source possible to help the Town figure out how much of that expense she can cover.

 

Council Member Ward asked if something such as a "Neighborhood Landscaping Days" could be used in these communities.  Ms. Dudley replied that the equipment that the Housing Department once owned had been turned over to the Public Works Department when it assumed responsibility for maintenance of the grounds.   Mr. Horton added that the Town would not be able to lend equipment to volunteers because of the liability costs.

 

Mayor Foy asked if it was unusual for a Department to contribute funds for services.  Mr. Horton replied that the staff tries to back-charge as much as possible to the funds that generate costs and to keep accounting records that allow the Town to track costs to their source.   For example, he said, the Town charges the Police Department for computer usage and replenishment of vehicles.  He said the Housing Department situation was peculiar in that most of the money comes from two sources, rents paid by residents and federal grants.  Mr. Horton noted that spending $120,000 from the Public Works Fund had been justified in order to keep the grounds in good shape.  But if there is a way to charge those to the Housing Fund, he said, it would be more consistent with the way the Town ordinarily does business.

 

Item 3 - Bicycle and Pedestrian Advisory Board

 

Chair Eva Metzger commented that this was a tough year to ask for money, but noted that they can make plans for the next 15 years without having to accomplish it all in the first year.  Ms. Metzger said that one of the Board's primary goals was to make it safe to walk to school.  She asked for an increase in CIP funding for sidewalks from the current $150,000 to $300,000 in the coming fiscal year and escalating from then on.  Ms. Metzger also asked the Town Council to consider a bond in the next year or so for sidewalk construction.  She noted that relatively inexpensive improvements could be made at intersections, such as painting in crosswalks or zebra painting on busy streets.

 

Ms. Metzger pointed out that improving intersections is important, since building sidewalks without having safe intersections is meaningless.  She said that the Board would like to survey all intersections over the next year or two, and recommended that the Council add a line item of $20,000 a year to the CIP for that project.  Ms. Metzger also asked the Council to segregate curb and gutter funds because that makes up one-third of the cost of sidewalks and it means that the funds are paving for one third less sidewalks if it has to pay for curb and gutter.  Finally, she requested that the Town fund the bicycle and pedestrian coordinator staff position. 

 

Council Member Bateman praised the "Walk to School" promotion that the Board had been doing, but asked if they had given thought to a "Take the School Bus to School" promotion as well.  She expressed dismay over the number of cars lined up at schools to drop children off in the morning.   Ms. Metzger replied that she was in favor of getting kids out of cars, period.  If they walk they'll be healthier, she said, adding that perhaps the reasons why they are not taking buses should be investigated.

 

Regarding the curb and gutter request, Council Member Bateman asked if the Board had any response to the sidewalks that were being built in Town without curb and gutter.   Ms. Metzger replied that those sidewalks look acceptable to her, but stated that she had not heard any comments about them.

 

Council Member Ward asked how possible it would be to separate out the source of funding for curb and gutter.  Mr. Horton replied that the costs could be separated, but noted that the Town still would have the full expense.  The real solution, he said, is to get more money.  Mr. Horton noted that there is some curb and gutter money available which the Council had approved for renovation when necessary.  Council Member Ward commented that it might be worth looking into differentiating those costs, even if it's just a matter of bookkeeping, because many on the Board do not see curb and gutter as directly related to sidewalks.  Mr. Horton pointed out that sometimes retaining walls are required and sometimes guardrails are.  The staff thinks about sidewalks holistically, he said, including drainage systems and signs.  Mr. Horton stressed that changing the distribution of costs would not change the amount of available money.

 

Council Member Ward asked if the Board had looked at the deficit of sidewalks relative to Public Housing and the bus stops that would naturally serve those neighborhoods, and what kind of priority had the Board given that issue.  Ms. Metzger replied that one priority is to have bus stops within a quarter of a mile of all neighborhoods.  She added, though, that they had not addressed any neighborhood in particular.  Council Member Ward pointed out that this would have additional value to people who do not have several cars, and Ms. Metzger agreed.

 

Council Member Wiggins wondered if people actually use the sidewalks that the Town had been building.  She said that she observes people all over Town walking in the street beside the sidewalks, including new ones that the Council had to struggle to fund.

 

Council Member Harrison asked how other municipalities segregate curb and gutter funds from sidewalk construction funds, noting that the Town could expect this Board to keep asking for a coordinator because the coordinator in Asheville was producing immense amounts of grants and virtually paying for his own position.  Mr. Horton explained that there is a provision of law that allows the Council to build sidewalks and then assess property owners for the cost of the sidewalk.  He asked if the Board had an opinion about that.  Ms. Metzger replied that it had not been discussed.  She said that she had been aware of this in other communities but had not known that it was a possibility in Chapel Hill.   Mr. Horton said that he would pass any information that the Board obtains on that on to the staff. 

 

Council Member Wiggins asked Mr. Horton if the there were any other similar situations where the Town had assessed property owners.  Mr. Horton replied that traditionally the Town had used assessment for surfacing of Town streets that had been gravel.  OWASA had assessed property owners when sewer has been extended to neighborhoods, he added.

 

Item 4 - Transportation Board

 

Chair Loren Hintz reviewed the Board's history and listed its accomplishments, which include studies on interconnectivity and traffic lights, a review of Chapel Hill Transit, and various public forums.  Mr. Hintz said that the Board's mandate was to look at all aspects of transportation.  He emphasized the need for more sidewalks, bike lanes, crosswalks, signal lights, and publicity about alternative means of transportation.  Mr. Hintz said that the Board hoped its budget, along with UNC's and DOT's budgets, would work toward those ends.  He emphasized the importance of adding at least a half- time employee to focus on marketing.

 

Mr. Hintz reported that surveys and public forums had revealed that people in Town would use buses more if they were more frequent and ran more often in the evenings and on weekends.   He emphasized the importance of incorporating allocations for the new bus facility in budget planning, since the current facility will be losing its lease.  Mr. Hintz suggested that the Town allocate more resources to staff so that it can focus on problems with bus shelters, street signs, and damaged crosswalks, rather than reacting to complaints as they do now.  He noted that in spite of budget problems the region is growing fast. Unless money is allocated for these needs now, he said, it will continue to worsen.

 

Council Member Strom noted all the money that had recently been spent on transit and referred to goals that the Council recently set on communication in general.  He then recommended that the part-time marketing position be given serious consideration. 

 

Mayor Foy asked Mr. Horton to update the Council on moving the transit operation.   Mr. Horton said that the Town was still hoping to purchase land connected to that which it has purchased for the new Public Works site.   He stated that Congressman Price had been made aware of the Town's need for support and the possibility that it might need his help in seeking federal funding.   Mr. Horton estimated that the facility would cost about $15 million.  So, the Town needs help from the federal and State government and also from the University and the Town of Carrboro, he said.

 

Mayor Foy asked when this would come to the forefront of the Council's concerns.  Mr. Horton replied that staff would soon be asking the Council to set aside money to purchase the land and begin the development planning process.  It will be part of this year's planning process, Mr. Horton said.  He explained that it would be in the fifteen-year CIP plan, adding that December 2006 is when the Town must get off the property and demolish all of its structures. 

 

Council Member Evans asked if the Town had addressed the need for more benches in shelters as "fare free" brings greater ridership. Transportation Director Mary Lou Kuschatka explained that the Town does purchase such items on an ongoing basis, using grant money along with local matching funds.  Council Member Evans asked if funds would increase due to the increased ridership.  Ms. Kuschatka replied that part of the federal money was based on miles and passengers, noting it is split between Durham and Chapel Hill, with the Triangle Transit Authority getting a portion.  Ms. Kuschatka added that this year's funding was based on Year 2000 statistics.  It will be a couple of years before the new statistics are used, she said.

 

Council Member Bateman asked if the Committee had been included in decisions regarding connectivity of new developments.  Mr. Hintz replied that they have been, noting that neighbors often do not want the connections.  He said that the Board's goal is to have more interconnectivity, at least with bike paths and sidewalks if not with roads. 

 

Item 5 - Update on Governor's Budget Actions (Mayor Foy)

 

Mayor Foy explained that he and approximately fifteen other mayors had met with Governor Easley, along with representatives from county commissioners and staff from the League of Municipalities. They discussed the State's recent budget actions, he said.

 

Mayor Foy described the meeting as productive, adding that the Governor had given his view of the State's fiscal situation.  He pointed out that Chapel Hill also has a view on the effects of the State's actions, particularly with regard to withholding the utilities franchise revenue sharing.  Mayor Foy explained that some municipalities had been laying people off as a result of that action, pointing out that this had lead to lay-offs of teachers even though the State's goal was to save classrooms.  Mayor Foy noted that municipalities were absorbing the same economic slowdown as the State, but were forced to absorb the State's economic slowdown on top of that.  He said that the Governor had seemed impressed when presented with that  information and had agreed to form a working group with his staff to try and mitigate the cuts and identify other places where the State might find revenues.

 

Mayor Foy explained that a task force had also been established to implement long-term structural changes in the relationship.  He said that cities cannot tolerate this kind of unpredictability and must have guaranteed stability in revenue sources and more authority at the local level to raise revenues other than property taxes. 

 

Historically, Mayor Foy explained, towns had given the utilities franchise tax to the State in exchange for the State giving back the revenues.  He explained the goal of this arrangement was to provide uniformity rather than having each town taxing cable systems and electric systems, for example, for right-of-way through them.  He noted that the towns had agreed to give that collection action to the State in the interest of uniformity.  Those are not State funds, Mayor Foy said, but the towns' funds, which the State is withholding.    Mayor Foy pointed put that the utilities franchise tax is the third highest source of revenue for cities in this State.  So there must be structural changes, he said, adding that the task force would address that.

 

Mayor Foy stated that the Governor had agreed that if, on April 15th, revenues into the State coffers indicate that all or some percentage of the withheld funds are not needed, he will release money to the cities first.  Mayor Foy said that Chapel Hill will not get the March payment that it expected from the State share of revenues, adding that no one will.  He predicted that institutionalizing these changes would be a long-term effort.  He said that the State expects next year's financial situation to be worse, with a $1.8 billion shortfall, compared to $1 billion this year.  This means that the Town will be looking at the same kinds of problems next year, Mayor Foy pointed out. 

 

Council Member Kleinschmidt inquired about the lawfulness of the Governor's actions and asked how the Governor had justified it.  Mayor Foy replied that the Governor's position was that we are all in the same boat, there is no distinction between the people that we serve, and we need to pitch in together.  Council Member Kleinschmidt commented that this does not really address the issue.  Mayor Foy replied that is the Governor’s position.  Regarding the legality of the matter, Mayor Foy explained that once the Governor has invoked emergency powers there is not much that can be done.  In this case, he said, the State's opinion is that anything they get is their money.

 

Council Member Strom asked who was seated on the task force.  Mayor Foy explained that there were two different groups: the working group, which would try to address the immediate problem; and the task force, which is the longer-term structural organization.  He said that the meeting was continuing into the next day and that he would have more information later in the week.  Mr. Horton replied that if it is the task force that he recently read about, then the members have already been appointed from across the State.  He said that he could not remember whether anyone had been appointed from Orange County.

 

Council Member Kleinschmidt asked if these groups had been proposed by the Governor or by those more supportive of the towns' interests.  Mayor Foy replied that the task force was already in progress.  He said that the working group had grown out of the towns' objections to not having been consulted and the Governor's mistaken notion that withholding these types of funds had been done before.   Forming the working group was the agreement on how to have direct input at this stage when a decision has already been made, said Mayor Foy. 

 

Council Member Wiggins asked if the teachers who were being let go had been paid with local or State funds.  Mayor Foy replied that the State was dipping so far into its money that it had a zero balance.  He noted that the towns do have money and the State is looking at those "like the wolf looks at little red riding hood."   Mr. Horton pointed out that the reason that Chapel Hill has money is that it has done more than is required to maintain a fund balance. 

 

Council Member Evans asked what this will do to the State's bond rating.  Mr. Horton replied that it could result in a reconsideration of the bond rating, depending on what the Governor does this year.  That could affect the Town as well, he said.  Mayor Foy agreed that the Town's bond rating would be affected if the State's rating changes.  Council Member Bateman noted that the State probably would not raise taxes, since this is an election year.  Mayor Foy said that towns were agreeing to talk to their legislators and make sure they understand the problem. He noted that the State legislature had cut $9 billion in taxes over the last six years. 

 

Mayor Foy described the meeting as "sobering."  He advised Council members to be prepared for an impact on next year's budget cycle.  Mr. Horton stated that the staff had been trying to figure out the possibilities for next year.  He said that they would have to make some "Draconian" changes if the State does the worst, which is to keep about $2 million of the funding that normally comes to the Town.  Mr. Horton added that bringing back a zero budget will not be feasible, since all the flexibility the Town might have had was taken away by the Governor's actions.

 

Council Member Strom suggested rescheduling the meeting that had recently been canceled with the legislative delegation.  Mayor Foy explained that the delegates probably had recommended canceling because the legislative short session begins at the end of May and it would be more useful for everyone to meet closer to that date, in April.  He wondered if the Town Council had anything to say to its legislative delegation regarding budgetary concerns that it could not communicate in another way.

 

Council Member Evans suggested leaving the April date in place since the Town might have a clearer picture then.

 

Council Member Ward suggested that the Mayor send a letter from the Council asking the delegation to work as hard as they can to get municipal funds for the Town.  Mayor Foy explained that he had sent a letter to the Governor on behalf of the Council, which outlined their concerns about the actions.  Mr. Horton said that the staff had forwarded copies of that letter to its delegates.

 

Mayor Foy stated that he was meeting with Rep. Hackney on Friday and would talk with him about this matter and about the meeting.   Council Member Strom pointed out that some of the structural relationships would require action from the legislature.  The Council should express some of the alternative approaches clearly and its desires and wishes early in the process, he said.  Mayor Foy replied that although there had been some debate about the equity of the sales tax and other similar taxes, he was not sure that the Council as a group was clear on what advice to give.  Mr. Horton suggested giving the legislative delegation an opportunity to report to the Council on their view of the situation and any options that they think, if considered, might offer some hope for solutions.  He said that the Council might also offer suggestions for the delegates to consider, adding that the delegation has asked to know the Council's thoughts on issues.  The more difficult the situation, the more difficult it is for them to hear directly from the Council, Mr. Horton said.

 

Council Member Bateman recommended meeting with the delegation in March.  She suggested bringing up the entertainment tax as a revenue generator.   Mayor Foy suggested requesting a meeting for the sole purpose of discussing the budget within the next couple of weeks.  Mr. Horton recommended asking the delegation to bring ideas of what the Council might do to assist them in addressing the State's problems.  Council Member Strom agreed.

 

Council Member Wiggins asked when the delegates would have some recommendations.  Mayor Foy replied that it all depends on what the State does over the next year and how much incentive there is for the General Assembly to take action.  He noted that that incentive does not appear to be there right now, and the mayors felt that they should all be talking to their legislative delegations.

 

Council Member Wiggins asked if it was unlikely that any legislation would come out of the short session that would give the Council a tool to deal with its next budget.  Mayor Foy replied that there would not be unless there is an incentive for the General Assembly to do that.  The incentive, he said, would have to balance the disincentive, which is their election in November. Council Member Kleinschmidt pointed out that the incentive could also be the election.  Mayor Foy said that the Town's delegation is in the leadership at the general assembly.  They would appreciate any assistance the Council can provide, he said, such as getting people on board to do the right thing.

 

Mr. Horton stated that Mr. Metcalf from the House and Mr. Gray from the Senate had said at a recent managers’ conference that they did not expect to have a special session.  He reported that they had also said, in response to a question, that taxes should not be discussed because all present were aware that the legislature would not raise taxes in an election year.  Mr. Horton stressed that Mayor Foy had been "absolutely right" when he said that councils all across the State would have to create the incentive for people to raise taxes.  Mayor Foy pointed out that the way they created an incentive last year was by threatening to close down facilities such as mental institutions.

 

The meeting adjourned at 6:10 p.m.