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Tuesday, 22 August 2006 18:38 |
By DAVID FORBES
WEAVERVILLE ÇƒÓ The townës recent tax increase came under fire from residents last Monday evening, who asserted that Weaverville officials had underestimated revenues and overestimated costs when making their annual budget.
"The tax rate this year is absolutely unbelievable," Gene Noble, a member of the planning and zoning board and town resident, said. "For retirees like myself living on a fixed income, these property tax increases are not an insignificant sum. By not advising residents of your intent, you certainly did not meet your moral obligations."
Nobleës
remarks drew applause from the crowd of approximately 100 that filled
the town hall ÇƒÓ and who repeatedly applauded the speakers opposing the
tax boost, despite Mayor Mary "Bett" Stroudës calls for quite.
In June,
Weaverville Town Council voted to keep the town property tax rate the
same ÇƒÓ at 43 cents per $100 of property tax evaluation. With the recent
reassessment, this has meant a roughly 30 percent rise in taxes for
many residents.
By comparison,
Buncombe County lowered its tax rate, though it ended up taking in more
funds due to rising property values. The City of Asheville lowered its
rate with the stated intent of being "revenue neutral" ÇƒÓ to only take
in as much money as it did in the previous year, plus growth. However,
last Friday the city acknowledged that it had erred in its calculations
ÇƒÓ and that its tax rate would bring in $1 million more than a
revenue-neutral spending plan.
At Mondayës
meeting, Noble also asserted that the townës budget needs were not
sufficient to justify such a tax increase ÇƒÓ and has swelled its
monetary reserves by more than a reasonable amount.
"We met with
(Town Manager Michael) Morgan and reviewed this budget ÇƒÓ and we looked
at data that showed that last year, the town underestimated revenues
and severely overestimated expenditures," Noble said. "Already the
reserves are overinflated, standing at $3 million. Those reserves are
now 60 percent of the budget. The townës own stated policy regards the
maximum reserves as 40 percent. The town is in violation of its own
policy."
He also cautioned council that "rest assured ÇƒÓ next year we will be watching."
In separate remarks, resident Jim Boyette noted that retirees in his community had similar grievances about the tax rate.
"Since Buncombe
Countyës tax rate went up so much, we wonder ÇƒÓ why canët Weaverville
reduce their rate like these other governments have?" Boyette asked.
Meanwhile,
resident Jerry Lemmons, who praised the town for its "generally
well-run administration and efforts by council and a very professional
staff," also opposed the tax increase.
"We all expected
the property evaluation to go up substantially," Lemmons said. "But the
magnitude of the increase, coupled with the decision to keep the tax
rate the same, is a stunning development."
He criticized
council for "failing to look at alternatives" to the tax increase and
"an overly conservative estimation of revenue" and also what he termed
"a less-than-optimal method of financing the new fire house.
"These increases
will average into the 30 to 50 percent range ÇƒÓ and my understanding is
that certain businesses will see increases of up to 100 and 200
percent," Lemmons said. "I suggest we proceed into the next fiscal year
with a close examination and see how we can reduce this large tax
burden for the next fiscal year."
Assertions that
the town overestimated costs and failed to find a better way to finance
the multimillion-dollar construction of the new fire station also came
from Jim Savage, a resident with a background managing hedge funds,
real estate and portfolios.
"Personally,
Iëve dealt in real estate for about 30 years and Iëve been through 10
or 12 evaluations and tax adjustments," Savage said. "This budget is
the first time my property has received a significant increase in
valuation and a local governing body has not adjusted the tax rate
downward to mitigate the burden on the lives of its residents. To me,
that would suggest there are problems with the townës finances. Yet the
townës reserves have been growing, even past the suggested amount.
Something really doesnët sit well with me about that."
He added that
the town "only considered one method for financing the new fire station
and did not look at any alternatives, much less any that would have
reduced the debt service and, therefore, reduced the amount of revenues
that have to be generated to pay to service the debt.
"The option you
chose may have been the easiest, but not the best," Savage continued.
"Weëve seen some good administration in this town. But close analysis
of the current situation unfortunately leads me to believe that the
town council or the administration has failed to meet their moral and
fiduciary responsibilities to its citizens."
In other action, council:
ï Unanimously
requested that the General Assembly approve the de-annexation of a
1.3-acre parcel in the Reems Creek community. This parcel is not
reachable by any town roads and thus is hard to provide services to,
Morgan said.
"Itës just not easy to get trash service or police out there," Morgan noted.
Towns in North Carolina cannot de-annex an area unless specifically allowed by the General Assembly.
ï Approved a resolution sending guidelines for conditional zoning to the townës planning and zoning board for review.
Conditional
zoning allows a town or city to set additional guidelines on how an
area may be used, or modify those guidelines for a specific project.
Councilman Al
Root endorsed the measure as "a good tool, especially for the townës
commercial area. Right now, a developer can come in there and build
almost anything they want. This will allow us to more tightly set
guidelines and prevent some confusion."
However, Stroud
objected, asserting that conditional zoning "only offers the illusion
of control" and would make it easier for developers, especially in
residential areas "to put things up willy-nilly"and that "we have not
had time to truly consider the implications of conditional zoning.:"
But Councilman
Don Hallings agreed with Root, noting that "the (planning and zoning)
board will have plenty of time to look over this ÇƒÓ this is just getting
the ball rolling ¨?ÇƒÓ and it could be a good tool."
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