The Wake Forest Town Board and town department heads whizzed through a hefty agenda for their mid-year retreat Friday, leaving the Renaissance Centre well before 4 p.m.
There were some sticky issues: funding for the fire department, economic development and the Fourth of July Committee, how money raised by the downtown service is spent, possible raises for the mayor and commissioners, and whether to change from at-large representation on the town board to districts.
About the Wake Forest Fire Department, the agenda said: “There is a concern the (fire) impact fee is too high and there are concerns that the town is paying more and Wake County is not paying as much as it should.” The independent fire department contracts with the town and with the county to provide fire protection in the two jurisdictions.
Currently the town, along with assessing the fire impact fee on all new construction with the money to be used for the fire department’s capital needs, pays about 80 percent of the fire department’s operating budget by setting aside 11 cents of the 52-cent property tax for that use. The county pays about percent of the Wake Forest Fire Department’s budget.
There are two different efforts underway. The town has contracted with Raftelis Financial Consultants to examine the fire impact fee and recommend changes if they are deemed necessary. (Raftelis is also studying the town’s electric fees in light of the changed financial situation since Duke Progress Energy bought the town’s power generation assets, substantially lowering the debt load for Wake Forest Power. See the July 15, 2015, issue for the full story.)
Also, Wake County has completed its cost-sharing study about fire protection. “Kip immediately has really taken the lead on this,” Mayor Vivian Jones said. He has contacted the other county towns and the county is trying to push for implementation of the study results.
“He started off meeting with the fire chief and getting information,” Commissioner Anne Reeve said. “Wake County drug their feet for months on that report.” Jones said, “They’re still dragging their feet.”
“It is the hope that adoption of the study will result in a more equitable sharing of cost,” the agenda rather blandly said.
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For years the town has provided $4,000 or $5,000 for the independent, entirely volunteer Wake Forest Fourth of July Committee and paid the salaries of the police officers and other costs for the traffic control and other protection necessary for the events that bring thousands to the stadium and fireworks show and the children’s parade. Then the police department began charging organizations for that protection, and in the 2015-2016 budget former town manager Mark Williams allocated $11,240 to cover the cost of that police protection.
Friday the commissioners were unanimous in wanting to support the Fourth Committee. Town Manager Kip Padgett said he wants to see it remain volunteer. “Tell us what you want and we’ll find the money.” He did suggest that Public Information Officer Bill Crabtree should be on the committee for coordination with the town. “We welcome anyone from the town what wants to be part of the committee,” Commissioner Greg Harrington, one of the event’s Uncle Sams, said.
Commissioner Margaret Stinnett suggested giving the committee “X amount for five years” so committee members know they will be getting support. Since costs can change, she suggested revisiting the amount after five years. The mayor agreed with her and suggested rounding the amount up to $12,000. “I think it’s a very important event in our community.”
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Human Resources Department Director Virginia Jones provided a spreadsheet showing the population and the amount paid to the mayor and governing commission members in Raleigh and the 10 smaller Wake County municipalities.
After studying it, Reeve said, “I think we all need to move to Rolesville.” Rolesville, with a population of 4,649 in 2013 (certainly much more than that now) pays its mayor $10,471 and board members $7,351. The pay in Wake Forest, population 37,046 in 2014, is $8,445 for the mayor and $6,190 for commissioners. They are reimbursed for mileage and other expenses connected with their official duties, and the mayor and some others do submit expense reports.
After Harrington said, “To me this is more of a volunteer position. Something I want to do,” he added he thought the position of the mayor should be paid more. Mayor Jones spends much of her time on official duties.
“I spend a lot of time because I have the time,” Mayor Jones said. “I don’t want you to make the mayor’s higher because of the time I spend. I do turn in expense reports.”
Commissioner Jim Thompson reflected the truth that political positions often do not pay enough to support a person, say nothing of family, despite the reputed prestige. He said he had been thinking about running for the state legislature but the salary is $40,000. “That might limit the type of candidate in the future.”
Joe Durham, a retired Wake County assistant county manager who was the facilitator for the retreat, said it appeared there was no rhyme or reason for the differing compensation amounts paid in the different towns.
The mayor suggested the board turn the matter over to Padgett and Finance Director Aileen Staples to determine how to structure the compensation. “Let them figure it out as part of the budget next year.”
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Planning Director Chip Russell gave a quick history of the Municipal Service District, a special tax district for the downtown area that was created in 1988 after a 1987 study about the parking issues in downtown. Anyone who has seen pictures of downtown through the years knows there have been different solutions – mostly slant-in parking for different parts of White Street.
Fifty percent of the money raised by the tax on district property –10 cents per $100 valuation at first, now 14 cents since 2008 – was to pay for parking and was how the town borrowed $400,000 in bonds to be paid off in 20 years. The money paid for the parking areas behind the east-side White Street buildings from Jones to Wait. The tax was raised in 2008 to help retire the debt for the White Street Streetscape project and the 50 percent provision was removed.
“I think not only should we do away with the 14 percent, but we should issue a rebate to the people paying it,” Commissioner Zachary Donahue said. “It’s an extra cost to them, it makes them less competitive.”
“Is there data?” Thompson asked.
The mayor said she disagreed because businesses outside downtown have to provide parking and landscaping.
Years ago, Stinnett said, when she ran a downtown business, the district paid for an awning program, bought garbage cans and U.S. flags. A few weeks ago she objected to the $27,725 in the MSD budget this year for advertising and she repeated that objection. She also said there should be improvements down the side streets from South White because there are businesses there paying the tax without the benefit of the streetscape.
Donahue repeated his view that the property owners are bearing all the cost. “My issue is where the money is coming from. I think we should spend more downtown, and I think the source should be the general fund.” Again Thompson asked him for the data.
Russell said there was a surety in knowing all the tax money has to be spent in the district and that there would be a yearly uncertainty if the money came from the general fund budget.
Downtown Development Director Lisa Hayes spoke at length about all the activities covered by the MSD funds including site improvement grants and maintenance of the street and structures, including power washing. The debt service is $60,000 a year, and the income in the 2015-2016 budget is estimated at $112,725 with $75,900 from the property taxes and $36,725 from its fund balance, which is $243,525.
There was a show of hands about support for the district, and it was 4 to 2 with Stinnett and Donahue voting no.
With that consensus, the question was how the money should be spent with no real agreement or great discussion. It will probably be part of the budget process in the fall. “I agree with Margaret that we need to redo those (side) streets,” the mayor said.
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Stinnett had raised the question about having voting districts in town during the board compensation discussion, and it was revived at the very end of the retreat and discussed informally during breaks.
“Personally I am not in favor of going with districts at this time,” Mayor Jones said. “I think our citizens are well served by this board. I just don’t think we have district problems.”
Thompson said districts would bring special interests into play. “We’re such a small community.” Harrington said, “This way we represent the whole town.”
“If you think this might be a good idea in five to ten years, should we go ahead and get approval of the General Assembly?” Jones asked. “If you have it doesn’t mean you have to do it?”
Tobias Hampson, one of the town attorneys, said it should be “a purposeful decision,” but Durham shot down the idea of doing anything in this of the next session of this legislature. “Remember what the General Assembly did to Greensboro, the Wake County school board and the Wake County commissioners.”
