After presenting a brief primer on the budget process and overview of anticipated revenue and expenditures next year, Foxfire Village Finance Director Leslie Frusco invited questions and feedback from residents on Tuesday, April 26, during the first of two budget workshops scheduled specifically for the purpose of gathering public comment.
The second citizens workshop will be held Thursday, May 5 at 6:30 pm at Foxfire Village Town Hall.
“We are here to hear your concerns,” Frusco said. “We want to hear what you think should be the plans for the village. We’re looking for your input.”
Budget review
The Foxfire Village tax rate, currently set at 32 cents per $100, is the second lowest of any municipality in Moore County. Only the Village of Pinehurst is lower.
Last year’s revenue totaled $798,000, which included 58 percent drawn from property and motor vehicle taxes, 13 percent from local option sales tax, and 17 percent from assessments. Other revenue sources include Powell Bill funding and other taxes, such as the utility tax.
However, Frusco noted that, at any given time, the State of North Carolina could adjust the amount of sales tax municipalities receive — but, at this point, she is not expecting any significant decrease.
Unlike the General Fund, no tax dollars support the Water Fund. As a proprietary enterprise fund, the Foxfire Water Department is a self-sustaining entity. All Water Fund revenue comes from water bills and assessments.
The Village has a capital reserve fund of approximately $50,000 with an additional $25,000 proposed to be set aside each year for future projects.
Turning towards expenditures, Frusco said Public Safety garners the largest portion of expenses at 24 percent, followed by administration and debt service, both at 21 percent, fire department at 12 percent, streets at 9 percent, and the pool and park at 8 percent and 2 percent respectively.
Debt service includes annual payments on loans for the matching portion of funds needed to develop the Village Green Park and also to construct the Woodland Circle road extension project.
Frusco explained that the budget is created in a four month long process, with each council member responsible for a particular area of focus. An emphasis this year is on gathering input from the community, after which a final proposed budget will be developed and approved by a majority vote of the Council.
“When building the budget, we first fund our existing programs — police protection, streets, and state-mandated work such as mowing easements on the sides of state roads,” said Frusco. “By the time we get through with simply maintaining existing programs, there is not a lot left over.”
The current total property valuation for Foxfire Village is $141 million, with a standard new construction home valued at $300,000, bringing in approximately $960 in taxes.
“Our revenue base without a tax increase is pretty stagnant and pretty small,” said Frusco.
She noted that a one cent tax increase would raise an additional $14,000 in revenue: a paltry figure when high priority projects, such as refurbishing the tennis courts, are estimated to cost $70,000.
“To do something like that [tennis courts] would necessitate a five cent tax increase,” she said. “If we increase tax five cents, that would raise annual taxes about $150 a year on a $300,000 home.”
Woodland Circle
With a $2 million price tag, the recently completed Woodland Circle road extension project had many questioning the impact on taxes.
As originally envisioned, the full cost of the project would be assessed to the fourteen property owners along the 1.5 miles of new roadway. Earlier this year, the property that garnered the highest assessment, at $1.4 million, was donated to the Village in lieu of payment. Currently, the Village is in the process of securing the deed on that land and, once completed, the 157 acre property will be placed on the market for sale.
“At this point, we are not looking for a tax increase to cover debt service on Woodland Circle,” Frusco said. “That is not in the cards.”
Recreational Amenities
With an aging pool and unusable tennis courts, Frusco said there are many tough decisions facing the Council.
“We have a swimming pool that some say we need to bulldoze and fill it in; others say we need it to attract younger families. It is difficult to attract new residents without amenities,” said Frusco.
“We have a structure called a tennis court, but no one can play on it. Do we need to do something now? We want Realtors© to be able to take potential new residents to see the park, the pool, the tennis courts. Whether or not you and I utilize it doesn’t matter. Having those amenities draws interest.”
A resident suggested revenue for amenities should come from those who use the facilities, a charge to play basis with a membership fee.
Frusco said 400 resident pool passes were sold last year. In addition, non-resident pool pass fees were raised significantly.
“As a municipal pool we cannot close it to residents only — we legally cannot — but we can charge higher rates for non-residents,” she explained.
However, she said that fees alone could not cover the full cost of operating the pool.
Currently, the Village is awaiting word on whether a $375,000 grant request to the North Carolina Parks and Recreation Trust Fund [PARTF] will be accepted for a major capital improvement project at the pool and tennis courts. The decision will be announced in mid-May.
This is the fifth year the grant request has been submitted. If the effort is still unsuccessful, a resident suggested, it could be advantageous to draft a new plan with a relocated new pool and tennis facility at the Village Green Park, while closing the current facilities.
Commercial development
Potential commercial development within the Village limits, in particular basic services such as a grocery store, drugstore, and barber shop, had many asking questions.
Frusco explained that Foxfire is encumbered by a ‘chicken and egg scenario,’ brought on by the bankruptcy proceedings over the golf course.
“The bankruptcy puts the entire Village at risk,” she said. “Whether you play or not, the course is a huge draw to the community. Without it — or without it well run — we won’t see real estate offices looking to market homes here.”
“In order for us to have commercial development, either Foxfire or the surrounding area needs to increase in population.”
Mayor George Erickson said the Stonehill Pines development would increase population and commercial interests, but noted that the project has stalled with the downturn in the economy.
He said the golf course had been quite profitable in the past, adding that, if well-marketed, there was still great potential for success.
Responding to a citizen’s question about the Village purchasing the course, Frusco said the town does not have the finances or resources to buy and operate the club.
Frusco said that any future commercial development must also be tempered by what residents feel is desirable.
“Commercial development gives you a much higher tax base, but if you look at neighboring towns that have considerable commercial districts, they still have high tax rates,” she said.
“People come to Foxfire because it has a small town feel. When we are in a position to try to get commercial development, we need to be cognizant of what type rather than just tax value. Improper commercial development will not help us in the long run.”
