LAKE LURE MONTHLY NEWSLETTER

THE LAKE LURE TRIBUTE

LAKE LURE MONTHLY NEWSLETTER

Mayor: Jack Powell

Commissioners: Carolyn Cobb, Beth Rose, Gene Sheffield, Jack Stanier

Town Manager: H. M. "Chuck" Place
July 1999

Published by Town of Lake Lure, P. O. Box 255, Lake Lure, NC 28746

MANAGER'S REPORT

By H. M. "Chuck" Place III, AICP

As is usual, this month's column will be devoted to the fiscal year 1999-2000 budget just adopted by the Town Council on June 22. Included are excerpts from my budget message.

The principle architect of the budget was the Town Finance Director, Sam Karr, who with the assistance and input from the department heads prepared the initial draft of the document for my consideration. After I was appointed Town Manager in February, I held a meeting with the department heads and directed them to request whatever was needed to maintain an adequate level of service to the public. At the same time, I stressed the need to restrain the level of expenditures to the greatest degree possible. Upon completion of this draft and an initial review by Council, I met with each department head and refined their request. This effort was reported to Council in a series of in-depth budget workshops, including additional interviews with the staff, over the next two months and resulted in my original budget recommendation submitted on June 1. Among other issues, this recommendation proposed a six cent tax increase to balance the budget.

After the budget was presented, Council held additional workshops during which the Administration and Town Council reduced expenditures and reviewed revenues with the result that the needed tax increase was reduced to one cent for each $100 of property valuation. The final document details all line items for the general fund, water/sewer fund and electric fund.

The proposed major areas of revenue and expenditure for the fiscal year commencing July 1, 1999 and ending June 30, 2000 are as follows:

FISCAL YEAR 1999-2000 BUDGET ESTIMATES

REVENUES

I. GENERAL FUND

Ad Valorem and Vehicle Taxes	$842,491
State Shared Revenues	592,700
Miscellaneous Revenues	80,220
Land Use Fees	6,115
Golf Course	131,000
Lake	100,650
Beach	25,000
Marina	18,000
Transfer from Electric Fund	23,000
Transfer from Water/Sewer Fund	23,000
Appropriated Fund Balance	79,431

TOTAL GENERAL	$1,921,607

II. WATER/SEWER FUND

Water and Sewer Charges	$480,900
Transfer from General Fund	50,000
TOTAL WATER/SEWER	$530,900

III. ELECTRIC FUND

Electric Receipts	$265,000
Appropriated Fund Balance	102,893
TOTAL ELECTRIC	$367,893

TOTAL REVENUE - ALL FUNDS

$2,820,490

EXPENDITURES

I. GENERAL FUND

Governing Board	$ 30,547
Administration	385,968
Police	438,256
Fire Department	192,054
E.M.S.	500
Public Works	266,538
Sanitation	100,600
Golf Course	147,143
Lake	23,850
Beach	5,000
Community Center	1,260
Marina	3,000
Insurance/Bonds	63,000
Debt Service	163,891
Contingency Reserve	50,000
Transfer to Water/Sewer Fund	50,000

TOTAL GENERAL	$1,921,607

II. WATER/SEWER FUND

Sewer	$128,905
Water	171,026
Transfer to Fund Balance	230,969
TOTAL WATER/SEWER	530,900

III. ELECTRIC FUND

Operations	$267,893
Transfer to Capital Projects (Silt Removal)	100,000
TOTAL ELECTRIC	$367,893

TOTAL EXPENDITURES - ALL FUNDS
$2,820,490

As is often the case in most communities and as occurred last year, there were many hard decisions associated with the formulation of this budget. The costs required to address the various needs, wants and desires of the Town were in excess of the current array of means to pay for them. The result was a lengthy process of establishing priorities among the many competing good and worthy services and projects in need of funding.

This estimated Budget for FY 1999-00 is based upon the following premises:

1. There is an implicit assumption that there will be no annexations or major growth in population served during the subject fiscal year.

2. The ad valorem tax rate on property is proposed to increase by $0.01 from its current level of $0.31 per $100 valuation to $0.32. Total estimated valuation on real, personal and utility property for the 1998-99 tax year is $260,000,000 and motor vehicle valuation is estimated at $9,600,000 according to Rutherford County's Tax Administrator.

3. Capital expenditures have been increased by about $66,695 in comparison to last year with a total of $148,960 allocated for General Fund capital expenditures. $65,000 of that amount is related to street maintenance activities funded directly by Powell Bill receipts. Each year, our small fleet of vehicles get another year older and is prudent to replace older vehicles when the cost of maintenance becomes excessive. No replace-ment vehicles were purchased last year so this year the budget allows for two new police cars and one truck for Public Works at a cost of $73,760. In the Water/Sewer Fund, $34,225 is targeted toward the ongoing program of replacing aging water lines.

4. This budget includes a fair, but modest, 2.0% cost-of-living adjustment (COLA) for town employees. I am proud of the consistent dedication, loyalty and hard work demonstrated by our small work force; however, we must recognize the need to maintain our competitive standing versus the compensation and benefits offered by surrounding localities and the private sector. Failure to be vigilant and equitable in this regard will make it most difficult to continue to attract and retain the talented and dedicated cadre of employees we now have on staff. The current Town Pay Plan was adopted in 1994 and has been adjusted and modified since then only by COLA increases granted by Town Council.
5. Last year, we eliminated a total of four and one quarter positions from our staff. In his budget message, then town manager John Strutner stated that "after a years experience with a reduced work force we will be able to evaluate better the effect of Council’s decisions to eliminate positions in Administration (1), Police (2) and Public Works (1.25)." We have evaluated this effect and find that productivity and public service has been adversely affected with the elimination of the administrative position. Therefore, I have recommended hiring a Clerk/Receptionist to more equitably share the heavy workload of our administrative staff. At Council’s direction, this position is included in this final draft. In addition, our new (this year) Police Chief has stated that it is very difficult to maintain the level of police protection demanded by the town, including resumption of lake patrols, without additional patrolmen. He has applied for and received a grant to fund two new officers in this fiscal year. This budget provides the local match for the grant. Finally, the Chiefs of the three volunteer fire departments and the Lake Lure Fire Coordinator have requested administrative assistance to handle the increasing number of reports required by the State. The budget provides for a part-time position to fill that need. This position will be funded, in part, by contributions from the three departments as well as the Town of Lake Lure.

6. Revenue in the Electric Fund was impacted by the expiration in February, 1999, of the contract between the town and Duke Power. The impact has been estimated by our consultant and is the basis for the reduced revenue figure of $265,000 budgeted in the Electric Fund. This is down from actual collections of $275,000 last year and $431,192 the year before last. The town and our consultants are negotiating with Duke and have filed a complaint before the North Carolina Utilities Commission to improve the operating schedule and increase the amount paid by Duke for power generated by our plant at the dam.

7. For the third consecutive year a transfer of $100,000 from the Electric Fund to a Capital Projects Fund is proposed. This money would be earmarked to fund future lake sediment removal and disposal activities.
8. This past summer, we privatized the beach and marina operations by entering into a contract with a private corporation to manage and operate those facilities. As a consequence, both revenues and expenditures on the town’s part have decreased. Net revenues, however, will increase with the town projecting a 336% "profit" over last year (income over expenses of $8,034 in 1998-99 versus $35,000 in 1999-2000).

In summary, the adopted Town Budget is balanced as required by state law. This budget shows the following changes in the three funds versus the prior fiscal year: General Fund up 5%, Water/Sewer Fund up 42%, and Electric Fund up 34%. Unfortunately, balancing this budget required the levy of an additional ad valorem tax of one cent for each $100 of property valuation.

While this budget does not address every need, project or program, it will provide for the continuation of the basic municipal services currently provided, and continues addressing the goal of attending to some basic infrastructure needs and long-deferred maintenance items.

In looking to the future, Town Council should note that there are still a number of key capital needs that will have to be addressed in the near future. These include an aging inventory of rolling stock in the Public Works Department (e.g. track hoe, dump truck, transport vehicles, etc.) which will need to be replaced, replacement of additional police vehicles, replacement of golf carts, a new water well and reservoir, and major changes in treatment technology at the sewage treatment plant. Of course, other projects and needs are apt to surface during the next year. I will be instituting a six year Capital Improvements Program during this fiscal year to assist in the budget process in the future. This will consist of a one year capital budget and a five year capital plan. In this manner, the administration and council can intelligently plan for such things as the replacement of equipment and construction of new facilities and establish the means to fund them.

The preparation of a document as detailed as this budget requires the input and cooperation of many persons. In particular, with this being my first budget as your manager, I am most grateful to our Finance Director, Sam Karr. Also due recognition are the other Town department heads and staff for their conscientious work in assisting in the preparation of this budget, as well as for their dedicated and professional work throughout the year in providing services and operating in a manner which enables us to keep costs down.

Lastly, I appreciate the important contributions to the budgetary process made by the Town Council of Lake Lure. In the end, it is the elected officials representing all the citizens of the Town of Lake Lure, who must approve and adopt the Town's annual budget, and thereby "set the course" for the Town of Lake Lure's proposed package of operational and capital improvement programs during the ensuing fiscal year. While the budget process requires that I, as budget officer, prepare the draft document for council’s approval, it has been, in fact, a cooperative effort from the beginning. The formal adoption of the Town Budget for Fiscal Year 1999-2000 will ensure the provision of essential services to our constituents at a level you deserve and expect.

COMMUNITY POLICING NEWS

By Police Chief Mike Bustle

It is with great pleasure that I report to you that beginning July 1st, the Lake Lure Police Department will employ two additional officers whose primary responsibility will be to patrol the lake promoting safety and residential security. Approximately 90% of these officers salary and benefits will be paid over the next three years by the U.S. Department of Justice COPS grant. Hopefully, as our area grows these officers will help preserve residents’ and visitors’ safety and security utilizing the proactive spirit of community policing.

I would also like to thank the Kiwanis Club of Hickory Nut Gorge, Jerry Dale Nelon and Harry Hiscock for their generous donations to the Lake Lure Police Department and Children’s Fund.

TOWN COUNCIL ACTIVITIES

RECESSED SPECIAL BUDGET WORKSHOP MEETING: Town Council held a budget workshop meeting on Wednesday, June 2, 1999, 9:00 a.m., at the Lake Lure Municipal Center. The purpose of this meeting was to continue a discussion regarding preliminary budget items for fiscal year 1999-2000. Recessed the meeting until Tuesday, June 15, 1999, at 9:00 a.m.

Activities included:

* Denied a request from Camp Care to allow the use of a 21 ft. ski boat on the town's lake. The vote was 3 to 1 (Commissioners Cobb, Rose, and Sheffield voted to deny the request. Commissioner Stanier voted to allow the request);

* Approved a part-time secretarial position for the Fire Coordinator. The vote of approval was 3 to 1 (Commissioners Cobb, Rose, and Stanier voted in favor. Commissioner Sheffield voted against);

* Denied a request from the Fire Coordinator to purchase a new vehicle; and

* Approved a 10% increase in all boat permits rounded to the nearest dollar amount effective January 1, 2000.

REGULAR MEETING: The regular Town Council meeting was held at 7:00 p.m. on Tuesday, June 8, 1999.

Under the "Consent Agenda", Council approved the minutes of April 13, 1999 (Regular Meeting), May 10, 1999 (Special Budget Workshop Meeting), May 11, 1999 (Regular Meeting), May 20, 1999 (Special Closed Session Meeting); approved as presented by the Finance Director end-of-year budget adjustments (Fiscal Year 1998-1999) for the Police Department, Hydro-Electric Department, and relocation of lift stations/warning system project; and approved a request from Stanley Long to: (1) hold an annual "Run to Rock" truck show on town property on September 11-12, 1999, (2) town provide a Mayor's choice trophy, (3) suspend the town peddling ordinance in order that food, t-shirts, truck parts, and other items may be sold on site during the show, and (4) suspend the town ordinance regarding consumption of alcoholic beverages in order to serve beer during a cookout on September 10, 1999.

In other activities, Town Council:

* Held a second public hearing to receive comments regarding the Strategic Planning Steering Committee report/recommendations presented at the April 13, 1999 regular Town Council meeting;

* Approved not to lower the lake level for the winter Season (1999-2000);

* Heard a report from Dick McCallum, Technical Advisory Committee Chairman regarding Y2K study;

* Approved a request from the Hickory Nut Gorge Chamber of Commerce to: (1) reserve the Town Community Building on October 31, 199 and November 1, 1999 for a haunted house, (2) waive the rental fee for use of the Town Community Center, (3) suspend the town's peddling ordinance in order that vendors may serve food, and other items on town property in the grassy area near the Lake Lure Marina, and (4) provide police/fire protection. The vote of approval was 2 to 1 (Commissioners Rose and Stanier voted in favor. Commissioner Sheffield voted against);

* Approved a request from the Hickory Nut Gorge Chamber of Commerce to: (1) waive the boat permit fees/boat length restrictions for boats participating in an annual Christmas Boat parade, (2) use of town beach to hold a bon fire on December 4, 1999, (3) suspend the town's peddling ordinance in order that vendors may serve food, beverages, and other items at the town beach, (4) use of town property on the "Point Area" to display fireworks, and (5) provide police/fire protection. The vote of approval was 2 to 1 (Commissioners Rose and Stanier voted in favor and Commissioner Sheffield voted against);

* Adopted the vision statement presented in the Strategic Planning Steering Committee report at the April 13, 1999 regular Town Council meeting; and

* Town Attorney announced the town has settled three lawsuits: (1) Town of Lake Lure vs. William Breen, Jr., (2) Town of Lake Lure vs. Margaret Pamer, and (3) Town of Lake Lure vs. Powers/Moore. These consent judments are now available to the public.

RECESSED SPECIAL BUDGET WORKSHOP MEETING: Town Council held a budget workshop meeting on Tuesday, June 15, 1999, 9:00 a.m., at the Lake Lure Municipal Center. The purpose of this meeting was to continue a discussion regarding preliminary budget items for fiscal year 1999-2000.

In other activities, Town Council:

* Approved a 10% increase in town water rates. The vote of approval was 3 to 1 (Commissioners Cobb, Rose, and Commissioner Stanier voted in favor. Commissioner Sheffield voted against);

* Approved a transfer of $100,000 from the Electric Fund to a Capital Projects Fund to be used for lake sediment removal/disposal; and

* Approved the purchase of a used boat for the town to be negotiated by the Town Manager.

SPECIAL TOWN MEETING: Town Council held a special meeting on Tuesday, June 22, 1999, 7:00 p.m., at the Lake Lure Municipal Center. The purpose of this meeting was to hold a public hearing for the Town Budget Fiscal Year 1999-2000.

In other activities, the Town Council:

* Approved a transfer of $25,000 from the General Fund Balance into a Capital Reserve Fund;

* Held a public hearing to receive comments regarding the proposed budget for Fiscal Year 1999-2000;

* Town Manager presented his Budget Message for Fiscal Year 1999-2000; and

* Adopted Budget Ordinance No: 99-06-22 (Fiscal Year 1999-2000). The vote of approval was 2 to 1 (Commissioners Stanier and Sheffield voted in favor. Commissioner Cobb voted against).

SPECIAL TOWN MEETING: Town Council held a special meeting on Wednesday, June 23, 1999, 1:30 p.m., at the Lake Lure Municipal Center. The purpose of this meeting was to discuss a request from Andrew Givens, Cardinal Energy Service, Inc., regarding hydro-electric sales negotiations with Duke Power. Also, to consider a tax refund of $660.10 to Jack Dailey because of a reduction in valuation by the North Carolina Property Tax Commission. Council approved a tax refund of $660.10 to Jack Dailey as recommended by Tax Collector Betty Hinson.

NEWS AROUND LAKE LURE

There will be a AL-ANON meeting held every Monday from 5:00 p.m. until 6:00 p.m. at the Mountains Community Church. For more information, contact at 828-625-1724.

Lake Lure VFW members will hold meetings every third Thursday of the month at 6:30 p.m. in the Lake Lure Community Center.

Hickory Nut Gorge Kiwanians will hold a "New Membership" meeting on July 15, 1999. Contact Marcia Hardy at 828-625-9510 or Bill West at 828-625-4703 for more information.

Lake Lure Lakefront Owners Association will hold their annual meeting on July 7, 1999 at 6:00 p.m. in the Lake Lure Municipal Center Community Hall. Refreshments will include wine and cheese being served. Guest speaker will be Lake Lure Police Chief Mike Bustle.

Lake Lure Newcomers invites those who are a new resident in Lake Lure (18 months or less) to join them in various activities which include potluck, gourmet, out'n about, theater, bridge/poker, book club, and hiking. If you are interested in becoming a member, call Fred Noble or Jeanine Noble at 828-625-8706.

Health Screenings will be held on July 9, 1999, at the Lake Lure Municipal Center Community Hall. There will be various screenings which include: carotid vascular test, abdominal aortic aneurysm test, ankle brachial index test, and osteoporosis test. Pre-registration is required. Call Life Line Screening at 1-800-407-4557 for registration, fees, and/or additional information. Note: At the present time, medicare does not cover the cost of these screening services and Life Line does not file insurance claims nor provide referrals to any physician's group or hospital.

Mountains Community Church will host a Youth Group from Midway Baptist Church, Plant City, Florida on July 18-24, 1999. While in the Lake Lure area this group will be conducting a backyard Bible School at the Mountains Community Church for children from the ages of 3 to 12. Bible School will begin on July 19-23,1999, at 9:00 a.m. until 12:00 noon. All children in the Lake Lure area are invited to attend. Transportation will be provided. For further information on Backyard Bible School, call Jenel or Mike Stoltz at 828-625-0202.

A musical "The Big Picture", sponsored by a Youth Group from Midway Baptist Church, Plant City, Florida, will be held at 7:00 p.m., Sunday, July 18th at the Mountains Community Church; Wednesday, July 21st at the Chimney Rock Baptist Church; and Thursday, July 22nd at Main Street Baptist Church in Spindale. Contact Jenel Stoltz at 828-625-0202 for more information.

Note: The deadline for newsletter articles to be received at Town Hall for the August issue is July 21, 1999.