Looking to increase resident awareness, interest and participation in the municipal budget process, on Thursday, May 5, Foxfire Village Finance Director Leslie Frusco and Mayor George Erickson led a second budget workshop meeting in as many weeks before a packed room of residents. [A full report on the first budget input session is available at sevenlakes times.com.]
With the second-lowest tax rate in Moore County — currently set at thity-two centers per hundred dollars of valuation — Foxfire has retained its small town feel despite significant growth over the past decade through several voluntary annexations and a multi-year spurt of new residential development.
With net projected valuations for 2011-2012 at $141,694,500, a one cent tax increase would generate $14,169 annually and a five cent tax increase — or approximately $150 in additional annual property taxes on a $300K home — would generate $70,847.
With an agenda that includes future capital projects, the potential need for a tax increase, concern over the aging pool and tennis facilities, and ongoing debt service, the Council is actively seeking input and direction from the community.
However, one major factor over which the Council has no control is the ongoing bankruptcy proceedings at Foxfire Golf & Country Club. Currently the Club owes $80,000 in delinquent taxes, and the Village’s projected budget anticipates no tax revenue from the Club. The property is listed to be auctioned on Tuesday, May 10.
Frusco said her understanding of the situation is that the bank that is the primary creditor in the bankruptcy proceedings is not interested in selling the Club for pennies on the dollar. Instead, she suggested the bank may be inclined to make a competitive bid themselves and then hold onto the property until the economy improves.
Budget summary
Using last year’s budget figures, Frusco offered a brief overview of projected revenue and expenses for the coming fiscal year.
With a $798,000 annual budget, property and motor vehicle taxes are the primary source of revenue for Foxfire Village at 58%, followed by assessments (17%), sales tax (13%), other taxes (8%), and Powell Bill funds (4%). Public safety carries the highest price tag for expenses at 24% of budgeted funds, followed by administration (21%), debt service (21%), fire contract (12%), streets (9%), pool (8%), capital reserve fund (3%) and park maintenance (2%).
“Foxfire has a number of things to offer,” said Frusco. “First, we are an extremely safe community. We have a very effective police force, and we have a safe community because we have an effective police force.”
Responding to a resident’s complaint that speeding continues to be a problem, particularly along Hoffman and Richmond Roads, Frusco agreed, but said totally eliminating speeding would require at least twelve hours a day of police coverage.
“The police force is working on the problem,” she said. “I know they’re stopping people. I’ve seen them.” She added that the state had declined the Village’s request to reduce the speed limit to 35 mph.
Current expenses for public safety include salaries and equipment for two full time police officers, a K9 officer, and one part-time officer.
The fire department contract fee with West End Fire & Rescue remains unchanged, despite an increased presence this year due to facility improvements that now allow for 24/7 coverage at the Foxfire Fire Department building.
A town manager?
While one resident expressed concern that administrative expenses are already too high, another resident argued in favor of growing the Village staff to include a professional town manager.
Currently, administration costs are shared with the Water Department and cover salaries and benefits for a Village Clerk and a Deputy Village Clerk/Tax Collector, in addition to other related administrative expenses such as postage; internet; computers and copiers; professional legal fees; annual audit fee; office supplies, rent, and utilities; dues and subscriptions; and travel expenses, among others.
Frusco said the topic of hiring a town manager has come up frequently over the years, and she recommended that any exploration of the issue must include a detailed study of both costs and also potential cost benefits.
“There is a lot of interest. Some are dead set against it, and others are adamant about the benefits,” she noted. “The question facing the Council is how much do we know? How much do we do before we have final results from the Long Range Planning committee survey and recommendations? And what needs to be done first?”
While a town manager could provide critical advice and guidance for planning and operations, Frusco reminded the room that the Council would still be ultimately responsible for making final decisions about when, where, and what funds were spent.
With no money in the current budget — or even the projected budget — to cover such a position, Mayor Erickson said the Council has anticipated that hiring a Town Manager would most likely coincide with the start of development of the Stonehill Pines project.
Tennis courts, pool & park
Again this year, Foxfire Village submitted a $375,000 grant application to the North Carolina Parks and Recreation Trust Foundation (PARTF). Awards will be announced in mid-May and, if approved and accepted, the Village would be required to provide matching funds.
Within the PARTF request is a capital improvement plan that includes a total renovation of the central pool/tennis facility, including construction of a new pool house with a community center room, improvements to the pool, a walking path and small playground, and refurbishing the tennis courts.
“If we felt that it was not appropriate for the Village to incur additional debt, we could decline the grant,” Frusco said. “The other option is to come up with the money from somewhere else, but I don’t see borrowing more in the cards.”
Regardless whether or not the Village receives the grant, dealing with the decrepit tennis courts and aging pool are two issues that must be addressed.
“Do we need a Village Green Park? No. Do we need tennis courts and a pool? No,” Frusco said. “But, if we are going to maintain Foxfire in a positive light and as a place that people will want to come to, then we must provide things that attract them.”
She noted that funds were pulled from various line items and departments in the current budget to satisfy necessary repairs to the pool so the facility could open this year, including fencing that complies with new state regulations.
“Do we have to have a pool? No. But since we have it — we have to maintain it,” said Frusco. “If we were to eliminate it, there would be a cost associated with that as well.”
Turning attention to the tennis facility, Erickson reported that estimates to refurbish both courts had come in between $60,000 to $70,000.
Currently, the capital reserve fund has a balance of $50,000, with an additional $25,000 anticipated for next year. Responding to a question, Frusco confirmed that the reserve can only be used for new construction projects, not repairs.
One resident suggested that, if the Village fails to win a PARTF grant again this year, perhaps the plan should be reworked to eliminate the current tennis and pool facility in favor of new construction at the Village Green Park. Erickson said that idea has been considered, but that the central location of the current pool facility was a key factor.
Echoing discussion from the previous budget workshop, many recommended that fees could help off-set costs for the tennis courts and also pool maintenance. Frusco explained that non-resident pool fees were significantly increased last year and revenue had increased, but that pool fees alone would never provide enough funds to operate the facility.
Looking to potential usage fees for the tennis courts, Frusco said she envisioned a coded gate lock that would restrict access.
“If we decide to refurbish the tennis courts, the people who use it should help to foot some of the costs associated with it,” she said.
“Our task is to find ways to make Foxfire more attractive and maintain this community for new and existing residents,” she continued. “People came here because they wanted a community that is not in middle of hustle and bustle and didn’t want to be in a gated community. We wanted amenities and a neighborhood feel. It is safe place; and, because of that, people want to be here.”
Another resident said he favored an even more aggressive plan to improve the Village — looking towards not only refurbishing the tennis and pool facilities, but also to installing street lights, improving roads, and enhancing other areas.
“I’m not put off by a tax increase,” he said. “The amount I pay for my taxes is less than a three-month golf club membership and a small fraction of what I paid before I came here. I would like to see a really attractive community.”
With humor, he noted that, while he did not necessarily trust leaders at the state and national levels to make rational decisions, he did trust his neighbors sitting on the Foxfire Village Council to make good decisions.
Another resident suggested that potential capital projects should involve a referendum and include clear explanations of costs associated with each choice.
Frusco responded that the most recent municipal election cost the Village $5,000; therefore, a referendum is not feasible and information would have to be gathered on an informal basis.
Long Range Planning Chair Mick McCue noted that a detailed community survey would be distributed soon and would provide an excellent opportunity to collect feedback and input on potential project interest.
Appearance
Speaking in favor of a tax increase, another villager recommended that any additional revenue should be directed towards beautification and appearance projects.
“I am completely satisfied with services, but the appearance of our Village has gone downhill in the last four years,” he said. “We also need to get someone to enforce the ordinances we have on properties. We are letting it get out of hand.”
Frusco responded that enforcement is based on complaints; however, several said they have lodged complaints and the issues have not been resolved.
Frusco suggested that several days each year should be organized as volunteer beautification events.
“With volunteer labor and the Village covering the materials expense, there are curb appeal things that could be done which would not cost a lot,” she said. “If we have someone go out and do it, that will cost more.”
Without a maintenance department, she noted, many minor tasks were historically done by resident volunteers, such as carrying water buckets on their golf carts to irrigate crepe myrtles and plantings along the road.
“For the most part this is how the Village has run: by volunteer residents putting forth the effort. I believe we can do curb appeal — but when we start talking about tennis courts and roads, that is a different matter,” said Frusco.
Debt Service
Foxfire Village owes approximately $200,000 with an annual payment of $27,740 on a loan incurred with the original PARTF grant award that funded construction of the Village Green Park. In addition the Village owes $413,673 from the Water Fund for new wells with an annual loan payment of $41,145.
The Woodland Circle road extension project is the most costly project to date, with approximately $1.9 million owed from the General Fund and $135,000 from the Water Fund. Annual loan payments total $75,810 and $5,358 respectively.
Frusco explained that the Village is in the process of taking title of an expansive property recently donated in lieu of the assessment due for the project. At $1.4 million, the tract garnered the lion’s share of costs for the 1.5 mile road.
“It is not nice. It is not pretty. But it is what it is, and we have to move forward,” she said of the process.
Moving forward has been a two-step process: first the loan was renegotiated for two years of interest-only payments; and, secondly, the 156-acre property will be marketed for sale.
The Council is anticipating an appraisal on the property from the donor, and Frusco reported that the county assesses the land value at $1.1 million.
A resident recommended that not one, but perhaps three independent appraisals, should be determined prior to listing the tract; however, Frusco said the appraisal that is anticipated will be reviewed by Realtors and also legal council to determine if the figure is appropriate.
“Woodland Circle is in an issue, no question,” she said. “But it does not change the fact that we have a Village to maintain and assets to take care of.”
Streets
Mayor Erickson reported that an error in calculations has been corrected for Powell Bill funding in North Carolina and that Foxfire Village will receive approximately $1,000 in additional revenue.
Typically the Village receives $30,000 each year in Powell Bill funds, which are used to repave interior roads and pay the mowing contract for easements along the state roads crisscrossing the Village.
On a positive note, Erickson said it now appears that the General Assembly will not attempt to turn over responsibility of state roads within city limits to municipalities.
However, another factor that may affect Foxfire is the potential of a cap on the gas tax at 32.5 cents. If approved by the General Assembly, such action would necessitate a $250 million scale back of plans by NC Department of Transportation.
Last year, the Village repaved a road and several adjacent cul-de-sacs using accumulated Powell Bill funds which, altogether, totaled not quite a mile of pavement at a cost of $39,000.
“The less paving you do, the more it costs per square foot,” explained Frusco. “If the Council purposely accumulates funds, say from a five cent tax increase, you can have four or five streets repaved rather than one cul-de-sac or small section of road.”
