By JOHN NORTH

The local economy is relatively rough, but through cost cuts and efficiency improvements, the City of Asheville and Buncombe County have managed to not only stay afloat, but to progress, two leading municipal officials said during a Dec. 9 “issues meeting” of the Council of Independent Business Owners.

City Manager Gary Jackson and County Manager Wanda Greene addressed, respectively, “the states of” the City of Asheville and Buncombe County, during an early-morning session in the food court at Biltmore Square Mall in southwest Asheville. The program drew about 80 people.

Jackson was invited by CIBO to address questions that included: “What are the emerging issues that the city is facing?” and “How are revenues/expenditures stacking up?”

Questions Greene was asked to address included: “How is the economy affecting the county?” “Are revenues meeting expectations?” and “What is the status of the courthouse addition?”

Speaking first, Jackson said, “I’m  really thankful for the opportunity” to serve the city. With a note of pride, he added, “We’ve had over 100 applicants for police chief. We’ve created a place where professionals want to live.”

Jackson then noted that “we’re all in this together ... Since the economy turned (down) in 2008, we’ve done everything we could to reduce costs ... When someone retires, we don’t replace them.”

He acknowledged, however, that “there are tradeoffs ... Cost cutting can only go so far. Gaining market share ultimately is important.”

Referring to Asheville’s high numbers in national accreditation on various city functions, Jackson noted that “we’ve been really successful in marketing” them. “Our costs for garbage pickup” and many other services, he said, “are very competitive.”

He added, “Weve gone to a one-stop shop for permitting. We’ve gone from 73 employees to 54 ... Some of that comes from investment in technology. Automated meter-reading ... is the most recent change.”

As a result of the investment, city workers can read meters from their trucks on “drive-bys,” saving on time, Jackson said.

What’s more, the city manager said that, despite the ailing economy, “We also have gone ahead with a significant number of capital improvements,” totalling $8 million to $14 million. “We’re actually doing more in capital improvements now than at any time in the past five years.”

Among the capital projects he noted were the 51 Biltmore Avenue Parking Garage, which he said, is “80 percent complete — and it’s got a roof on it.” He also cited the recreation center in the south area, the greenway system — for which work is being done to complete the connection between UNC Asheville and downtown, adjoining Broadway Street —  and sidewalk improvements.

The city has received about $10 million stimulus money in the last few years, Jackson said, noting that it was spent on the installation of LED bulbs in streetlights and further reducing energy consumption by “getting the dogs out of the (city vehicle) fleet.”

As for Asheville’s economy, Jackson said the city, like other American municipalities, saw a significant increase in housing activity with “the low-interest mortgage money” through the First-Time Homebuyer program, “but it’s bottoming out,” now that the federal plan has ceased.

“Based on permits, we’re seeing a significant interest in apartments — or modifying current buildings,” Jackson said. “In terms of city revenues, the ‘new normal’ that we’re expecting” is a continuation of the poor economy, and “we’re not counting on tax revenue growing” from year to year, as in the past.

“We’ve done what we could. We sort of took it on the chin ... to encourage Occupy Asheville to locate in front of City Hall ... You can (legally) be on the sidewalk there anytime.” However, Jackson said there have been problems with the Occupiers and that he has proposed an ordinance to City Council, prohibiting two-sided structures, such as tents, from being erected on the city’s property.

In a brief question-and-answer period afterward, a CIBO official asked, “How much overtime have we (taxpayers) had  to spend for Occupy Asheville?”

“The principal cost to taxpayers is overtime” for police officers, Jackson noted. He said the Occupy movement has required regular patroling of OA sites. “What we’re primarily trying to avoid is a violent confrontation.”

CIBO member Mac Swicegood complained that Asheville City Council “seems to have more ‘sensitivity’ to them (OA protesters) than to the bigger community” of hard-working, taxpaying citizens.

Jackson responded that “their (OA’s) activities at various events” require police surveillance and, as for OA’s encampments, “they’ve been a haven for drugs, prostitution and have drawn the homeless.”

In her talk, County Manager Wanda Greene said that Buncombe’s budget had dropped from $330 million to $303 million because of the bad economy.

She noted that 86 percent of the county’s revenue comes from three sources: property taxes, sales taxes and intergovernmental revenue.

She added that “we’re seeing the greatest growth in” intergovernmental revenue — “unfortunately.”

Further, Greene said, “We’re right on par with collections as last year.” She noted that county officials have “worked out a lot of agreements with people in a jam” (financially).”

With a note of sadness, she pointed out that Buncombe is paying $70 million per year in food stamps,” the growth in demand for which she described as “tremendous.”

On the bright side for the county, Greene said, “We’ve got a really good bond rating. We have absolutely no findings in our audit report.” She added that she was “very proud” of the county staff.

“We have a lot of construction going on, mainly to get out of leased spaces, including the Life Safety Tower in the back of the county courthouse. “Next week, we get the bids back on the new courthouse. There’s a lot of construction going on that you don’t see,” such as at the Social Services building. “We expect to save $300,000 per year from all of this work.”

She also said the county has “sustainability plans going on” and two parks and recreation plans are complete.

Greene concluded by noting that “we do plan a retreat with our board (of commissioners) to re-address our (comprehensive) plan, especially since the board is expanding from five to seven members.”

In questioning after her talk, Swicegood asked about the “revaluation.”

“We have to do a revaluation no less than every eight years,” Greene replied. “For us, that’d be at least 2014. Many properties have dropped in housing values.”

CIBO member Carl Koon asked, “Could you comment on more aggressive efforts on tax collection?”

“If we know a business is closing, we let them know their responsibilies,” Greene answered. “Now, we are fairly aggressive.”

Commissioner Bill Stanley quipped, “Compassionate tax collection — that means the deputy doesn’t bring a shotgun when he shows up.”

Some CIBO members asked Greene about the compensation study, which Commissioner Holly Jones has criticized.

“All of that came forward in the budget process,” Greene replied. “It’s a complex process because we’re looking at compensation” as well as “ways to bring the costs down. While the economy is maybe” bottoming out, “it’s not turned up” yet.

When an unidentified CIBO member asked about Jones’ questioning of the county’s generous longevity pay policy, Greene answered, “I’m going to defend longevity. We don’t do merit pay” or other such incentives. “Longevity helps. Otherwise, they (county employees) move out the door.”

Swicegood asked Greene and Jackson, “A lot of people are paying all they can pay right now. Any provisions to help further because I know you’re squeezing your budgets.”

“There will be no tax rate adjustment,” Greene replied. “Sometimes, you can’t lose the advantage of a downturn in the economy. We’ve been able to turn things over to contractors” to save money.

Jackson said, “Our strategy has been to streamline to be frugal ... In terms of capital, we’ve avoided bond offerings ... Our capital program has largely been pay-as-you-go, or reserve-based. We’re looking at partnerships in a business-like and entrepreneurial way, even with naming rights.” (His reference was to the city’s plan to sell the naming rights for the Asheville Civic Center to U.S. Cellular.)

Greene smiled when Jackson added, “I can’t believe how the relationship between the city and county has improved in the last five years.”