By JIM GENARO

WEAVERVILLE — Residents will pay less in property taxes next year, as the Weaverville Town Council last Monday night unanimously passed a budget ordinance for the 2007-08 fiscal year that will drop taxes from 43 cents per $100 of valuation to 38 cents.

Council members initially were asked to vote for a budget that would have dropped the tax rate to 39 cents, but an amendment proposed by Councilman Al Root dropped the rate by an additional cent, while lowering the amount the town reserves in its unreserved general fund balance.

That amendment passed 3-2, with Harold Payne and Dottie Sherill dissenting.

Debate over the amendment centered around the question of what percentage of its annual budget the town should reserve for unplanned emergencies and other budget shortfalls.

A 2002 resolution passed by council set a minimum reserve of 20 percent and a target goal of 40 percent. Currently, the town has a 51.8 percent reserve.

In proposing the amendment, Root initially suggested that council should aim for dropping the reserve to 40 percent, which, he said, would meet its target goal while allowing a further two-cent decrease in the tax rate.

However, he offered to compromise, proposing the one-cent decrease.

Councilman Don Hallingse summarized the issue by saying, “I think it boils down to what is council’s comfort level with the fund balance.”

Opposing the amendment, Payne expressed concern about lowering the reserve fund balance by too much.

“You never know what emergencies are going to come up and when you’re going to need it,” he said.
Payne also noted that the town intends to purchase a new fire truck this year, which will put additional stresses on the town’s reserve funds.

However, Root pointed to a number of developments in Weaverville, including Northridge Commons, that are likely to increase the town’s tax base substantially.

While he acknowledged that those revenues would not be instantaneous, he added, “We all know that the tax base of the town is going to be going up drastically over the next several years.”

The one-cent reduction will lower the town’s fund balance by about $400,000, Town Manager Mike Morgan said.

In other action, council:
• Voted 4-1 to participate in the Asheville Buncombe Wayfinding Program. Sherill voted against the measure.

Under the program, Weaverville, like several other local municipalities, will pay $5,000 to participate in a collective signage effort that is largely underwritten by the Asheville Tourism Bureau and Buncombe County.

Morgan noted that, according to representatives of the program, Weaverville will receive between $60,000 and $80,000 worth of signs pointing the way to the town and to various attractions.
Participation in the program also gives municipalities a say in the design of the signs and in decisions about placement, he noted.

However, Sherill voiced concerns that Weaverville already has too many signs.

“To me, the town is bogged down in signs,” she said.

Mayor Mary Stroud agreed, saying, “I think we could be contributing to visual clutter” by participating in the program.

She also said that the town may not have the authority needed to remove excess signs once the program is in place.

However, Morgan argued that by contributing to the program, Weaverville would have more of a voice in determining where and how many signs are placed.

• Scheduled a public hearing at 6 p.m. July 11 to discuss proposed changes in the town’s comprehensive land-use plan.

• Unanimously approved a four-lot subdivision located off Dogwood Road.