MAYOR’S COMMENTS

by Jim Proctor

 Street Dances Are Here!

 On June 17, Lake Lure had its first street dance in over a decade.  More than 200 happy folks were in attendance.  It was a great evening with lots of smiling faces.  The street dances started in 1946 and were first held at the entrance to Chimney Rock Park.  Soon there were so many folks at the dances they were moved to the Lake Lure Beach and then to the present location next to the visitor’s center.  The 75^th Anniversary Committee will host two more street dances.  They will be July 15th and August 17th.  Both will start at 8 p.m. and end at 11 p.m.  The cost is only $5.00 for adults over the age of twelve (twelve and under are free).  The Jeff Robbins Band will play a variety of music for this event.  The Local fire departments will assist us at the entrance and will share in the proceeds.  I hope to see you there!

 Town Budget

 The budget has been completed and has been adopted by the town council.  Our manager, Chuck Place, will have a complete update in his report that follows.  I would like to say that it has been a long and well thought out process that brings us to our adopted budget.  With increases in cost, unknown state revenues and a drought that has eroded our electric income we had some very tough decisions to make.  I congratulate our town employees, especially our department heads for their hard work and help with this procedure.  The town is very fortunate to have such a dedicated staff.

 TOWN MANAGER’S REPORT

by H. M. AChuck@ Place III, AICP

 2002-2003 Budget

 I am very pleased to report that the Town Council has adopted a budget for the coming fiscal year that meets the majority of our needs and does so with a reduction in the tax rate from $0.32 to $0.27 per $100 of assessed value.  As always, there were many hard decisions associated with the formulation of this budget.  The costs submitted by the staff 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.   Copies of the new budget are available for review at Town Hall, but the following is a synopsis taken from the adopted budget ordinance:                                         

REVENUES

Ad Valorem and Vehicle Taxes                         $1,171,095

State Shared Revenues                                        669,450

Miscellaneous Revenues                                        75,605

Land Use Fees                                                     16,800

Golf Course                                                        234,000

Lake                                                                  151,000

Beach                                                                  37,000

Marina                                                                25,730

Admin. charge from Water/Sewer Fund 25,000

Appropriated Fund Balance                                    53,322

TOTAL GENERAL FUND                              $2,459,002

EXPENDITURES

Governing Body                                                  $38,867

Administration                                                    492,236

Police                                                                544,661

Fire Department                                                  236,792

E.M.S.                                                                     500

Public Works                                                     335,341

Sanitation                                                           112,800

Golf Course                                                       234,076

Lake                                                                    65,687

Beach                                                                    4,500

Community Center                                                25,231

Marina                                                                  3,000

Insurance/Bonds                                                  78,020

Debt Service                                                      163,891

Contingency Reserve                                           123,400

TOTAL GENERAL FUND                              $2,459,002

Revenues and expenditures in the Water/Sewer Fund are as follows:

REVENUES                                       

Water and Sewer Charges                                  $745,985

Appropriated Fund Balance                                  289,073

TOTAL WATER/SEWER FUND                    $1,035,058

EXPENDITURES    

Sewer                                                              $679,837

Water                                                                355,221

TOTAL WATER/SEWER FUND                    $1,035,058

Revenues and expenditures in the Hydro-Electric Fund are as follows:

                                 REVENUES

Electric Receipts                                               $140,000

TOTAL HYDRO-ELECTRIC FUND   $140,000

EXPENDITURES

Operations                                                        $123,793

Transfer to Fund Balance                                      16,207

TOTAL  HYDRO-ELECTRIC FUND  $140,000

REVENUES AND EXPENDITURES FOR ALL FUNDS

General Fund                                                $2,459,002

Water/sewer Fund                                            1,035,058

Hydro-electric                                                    140,000

TOTAL ALL FUNDS                                    $3,634,060

This budget for FY2002-03 is based upon the following:

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

     2.   A reduction of the ad valorem tax rate on property from $0.32 to $0.27 is proposed this year.  Total estimated valuation on real, personal and utility property for the 2002-2003 tax year is $428,443,500 and motor vehicle valuation is estimated at $12,000,000, according to Rutherford County's Tax Administrator.  This should generate about $1,122,095 in tax revenue, assuming a 97% collection rate.  A transfer of $53,322 from the General Fund Balance is included to balance the budget at this tax rate.

     3.   This is the third year that the Town Council has adopted a 6 year Capital Improvements Program (CIP).  The first year of the CIP constitutes the Capital Budget and the expenditures listed for the coming year have been incorporated in this FY 2002-03 annual budget.  While the approved list of general fund projects for FY02-03 totaled $427,434, that amount  has been reduced to $129,704 to help balance the budget.  Several of the projects that were deleted were moved to the following year.

 Capital expenditures (CIP plus other capital items) in the General Fund have been decreased from $233,696 last year to $199,414.  Of that amount, $68,210 is related to street construction and maintenance activities funded directly by APowell Bill@ receipts.  Replacement vehicles for the police department, public works and administration; computer upgrades; cart path resurfacing at the golf course and the golf cart lease program are also included in this fund. We will be seeking grant funding where available to offset the costs of these additional capital improvements, thereby reducing the burden on the local taxpayers.  

 The Fire Department originally requested capital funding in this budget of $126,759 for a new fire boat and $100,000 for a fire training building.  This has been deleted from the list of capital projects, but $30,000 has been added to the contingency account.  It is our intent to explore financing both of these very needed items and if we are successful in financing at a fair rate, the first year annual payment will be transferred from contingency to the capital account.

 A total of $674,300 for utilities projects will be funded under the Water/Sewer Fund.  Included are both water and sewer line repairs, new water mains and  pump for the water system, major equipment replacement at the sewer plant, and a sewer line extension. The equipment replacement will be funded through a federal grant.  Several other projects were planned to be funded through grant monies, however we were unsuccessful in obtaining those grants.  The most essential of those projects are included in this budget and we continue to seek additional funding.  

 Capital projects at the hydro-electric plant including new control equipment and a new roof for the powerhouse will amount to $55,000.

         4.   This budget includes a fair, but modest, 2.0% cost-of-living adjustment (COLA) for town employees.  It also includes a 401K contribution of 2.5% for all non-law enforcement personnel as a first step in establishing equity in benefits for all employees (law enforcement officers receive a 5% contribution by state law).  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.

 5.   No new employees are contemplated.

 6.   Revenue in the Electric Fund was impacted by the lack of rainfall this past year plus major repairs to the plant and continuing construction in the river for a new sewer lift station.  As a consequence, income from the hydro-electric plant was only about one half of that budgeted.  The construction projects and repairs are now completed and we foresee a slight increase in rainfall, but we are budgeting a more conservative revenue estimate for the coming year of $140,000.

 7.      No funds have been budgeted for silt removal in the 2002-03 budget.  Instead, $100,000 of monies derived from sale of surplus property in 01-02 has been earmarked for this project.

 8.   An amount equal to about 54% of the reimbursement revenues and state collected local taxes has been budgeted in the contingency account in the event those revenues are not forthcoming from the State of North Carolina.

       In summary, the town budget is balanced as required by state law.  In comparison to last year, the General Fund is increased by 8.38%, the Water/Sewer Fund is increased by 94% (principally due to the grant funded projects), and the Electric Fund is decreased by 40%.  The total budget is about 19.7% greater than last year.

 There has perhaps been no other year in which accurately estimating revenues has been so difficult.  The economy remains in recession, and recovery, when it begins, may be slow.  We will not know until later this month, if then, whether Governor Michael Easley will release any of the Town=s revenues now held in escrow.  How the State balances its budget will likely affect the Town=s budget, both directly and indirectly.  State programs may be cut that will affect municipal programs; municipal revenue sources may be affected; or fees and charges for permits and State required inspections may rise. 

 The Town of Lake Lure receives $88,400 annually in State reimbursements, an amount equivalent to 2.2 cents on the property tax rate.  This revenue source will end June 30, 2003.  Whether there is a long-term alternative revenue source to replace these reimbursements will depend on the action of the Rutherford County Board of Commissioners to adopt the additional one-half cent local option sales tax.

This was the year for property revaluation in Rutherford County.  For the past several years, council has delayed increasing the tax rate in anticipation of a major increase in the value of real property in the town - even though costs have risen every year.  The assumption was that property values would  go up enough this year to allow us to roll the tax rate back to a near neutral level while still providing enough additional income to offset the cost increases.  Unfortunately, we did not foresee the loss in revenue from state shared programs and the level of increased costs, including a 33% increase in health insurance.

 While this budget does not address every need, want,  preference, desire, project or program, it will provide for the continuation of the basic municipal services currently provided and at the level expected by our residents, and continues addressing the goal of attending to some basic infrastructure needs and long-deferred maintenance items, although to a lesser extent than desired.

TOWN COUNCIL ACTIVITIES

by Town Clerk Mary Flack, MMC, CTC

 REGULAR MEETING: The regular town council meeting was held on Tuesday, June 11, 2002, 7:00 p.m., at the Lake Lure Municipal Center.

   Under the consent agenda, Council:

 * approved the minutes of May 14, 2002 (regular meeting and closed session), May 21, 2002 (workshop meeting) and May 29, 2002 (recessed workshop meeting); and

 * adopted Ordinance No. 02-06-11A (correcting a scrivener=s error in Ordinance No. 01-05-08B).

  In other activities, Town Council:

 * held a public hearing regarding the town budget for fiscal year 2002-2003;

 * adopted Ordinance No. 02-06-11 Town Budget for fiscal year 2002-2003;

 * approved waiving the requirement to hook up to the town water for Arthur Killian for a period of two years or until the water pressure is brought up to minimum standards, whichever comes later;

 * approved budget amendments for fiscal year ending June 30, 2002 as presented by the Finance Director Sam Karr; increased expenditures by $35,000 and increased revenues by $35,000 to cover the short fall in the golf course budget; transferred $100,000 from the sale of assets and transferred it to the capital reserve fund earmarked for silt removal;

* approved fee increases for marina boat slip rentals as presented by Deputy Town Clerk Anita Taylor;

 * tabled the adoption of the proposed fee schedule for the town gazebo rental and rental of the municipal hall facility for further revisions and place it on the July 9, 2002 town council meeting agenda for consideration;

 * approved request from Camp Care (non-profit) organization to waive the boat permit fees June 7-16, 2002 during the week at Camp Lurecrest for children with cancer; and

 * waived the town peddling ordinance to allow vending during upcoming street dances, sponsored by the Lake Lure Diamond Jubilee Committee, held on Monday nights June 17, 2002, July 15, 2002, and August 19, 2002, from 8:00 p.m. until 11:00 p.m. at the Lake Lure community center.