The Town Board on Tuesday approved the $8.7 million budget for the 2008-2009 fiscal year, which begins July 1. The new spending plan raises taxes by 2 cents per $100 of valuation and boosts the town’s vehicle privilege tax to $20 annually. It leaves out many projects on the town’s wish list, but funds essential needs, including a new fire station for the east side of town, street repairs, and two key new positions in Town Hall.

Commissioners also authorized Town Manager Leamon Brice to seek a 90-day delay from Charlotte-Mecklenburg Schools in deciding whether to go ahead with a joint town-CMS expansion of the Davidson IB Middle School on South Street. The town and CMS are studying whether to proceed with a proposed $7.6 million project that would include badly needed repairs and expand the school to include Park & Rec department offices, a gymnasium and other shared spaces.

AFTER MONTHS, A BUDGET

The budget vote came with little discussion Tuesday, but followed months of work that included presentations from department heads, citizen input and wide-ranging discussions among the commissioners. In the end, commissioners and Mr. Brice reached a compromise that allowed funding of the town’s most pressing needs without significant additional borrowing. (See the full budget as a PDF, CLICK HERE>)

The budget approved Tuesday included only two minor changes from what Mr. Brice presented previously: a $9,600 reduction in the expense for trash removal, which was the result of Mr. Brice’s negotiations with contractor Allied Waste; and using that savings for anticipated increases in gasoline costs for town vehicles, in light of rising oil prices.

The new budget anticipates the town borrowing to buy land and build a new fire station somewhere east of the traditional town center. The town needs the new station so it can maintain adequate response times in neighborhoods east of town, including the new Summer’s Walk subdivision off N.C. 73. Without the commitment to build a new station, the town’s ratings by the state Insurance Services Office likely would have declined, resulting in higher fire insurance rates for many property owners, town officials have said.

The budget keeps most departments’ spending fairly flat compared with the current fiscal year. It also pays for badly needed road repairs. And it includes money for two key new staff members: A town finance director, to help town staff manage an increasingly complex budgeting process; and a new supervisory position in public works.

The 2-cent tax increase boosts Davidson’s tax rate to 36.5 cents per $100 of valuation. The increase is the equivalent of $50 for a $250,000 home, or $100 for a $500,000 home. The board also approved an increase the motor vehicle privilege tax for the coming year to $20, from the current $5.

The budget also includes a line item for restoring the fund balance, or cash reserve, to a level in line with other area towns and standards for a community of Davidson’s size. The town has been dipping into the reserve to fund budget items in the past few years.
Additional street repairs, new sidewalks, and other town needs were left out of the budget. The town is considering a bond referendum for next fall that would raise money for those and possibly other projects.

One thing the current budget does not include is any expenditures for last December’s joint purchase – along with Mooresville – of the local cable television system. “There’s nothing there” in the budget, Mr. Brice told DavidsonNews.net week. So far, the system is continuing to pay for itself, and town officials say it should continue to do so, even after the two towns borrow an additional $12.5 million to pay for a planned network upgrade.

Mr. Brice said last week the town actually has a bit of cable-related revenue in the current fiscal year: It recently received a $263,000 reimbursement for legal and other expenses incurred as it studied the cable purchase in 2006 and 2007. (See our June 4 article, “Towns discuss extra borrowing for cable.”)

REC CENTER PROPOSAL

Following a brief discussion Tuesday, Town Board members authorized Mr. Brice to ask CMS for an extra 90 days to study whether and how to proceed with the proposed IB school/community center project. They also gave Mr. Brice the go ahead to offer $10,000 to help pay for an architect to develop alternate plans for the facility, either by scaling it back or by looking at building the project in phases.

Town officials said CMS has been pressing for a quick decision on the deal, because they would like to stick to their plans to close the school for construction during the 2009-2010 school year.

The town is considering whether to sign an interlocal agreement with the school system to join the $7.6 million project. But among the many questions is where the town might get the estimated $4 million it will need to pay for its share.

If the town joins the project, Davidson would pay for expanding the school to include recreation department offices, a gymnasium and other public recreation facilities. A delay would allow the town time to sort out funding options, scout for potential grants or partners, work with an architect to adjust the scope of the project and answer other questions.

At a meeting last month, citizens and the board discussed the idea. Some called the project a “historic opportunity” for the town to build a recreation center in a central location. Others wondered if the town can afford the plan. (For more on the proposal and debate, see our May 28 story, “Board studies rec center plan, but hurdles remain.”)

ALSO TUESDAY

Planning director Kris Krider points to a map of proposed planning for the N.C. 73 / Davidson-Concord Road area at Tuesday’s Town Board meeting.

Tuesday’s meeting also included a presentation by Project and Public Works Director Doug Wright proposing the town’s traffic calming policy. The Town Board could vote next month on changes to the policy, which would clarify when the town might add stop signs, speed humps or other traffic calming.

And the board listened to citizen comments about possible zoning changes in the N.C. 73 – Davidson-Concord Road area. The Planning Board last week endorsed in principle the proposed N.C. 73 area plan, which the towns of Davidson, Cornelius and Huntersville have developed over the past year with the help of a consultant and citizen input at public workshops. But the Planning Board stopped short of backing development proposals or rezoning for specific parcels in the area east of downtown.

The Town Board will vote next month on proposed changes to the planning ordinance that would implement recommendations in the plan.

Also Tuesday, the board:

• Approved an interlocal agreement with Mecklenburg County for operation of Bradford Park, a new public park off N.C. 73;
• Approved a revised solid waste contract with Allied Waste
• Approved a bond indemnity for the MI-Connection cable system that insures the system for the use of utility poles owned by area electric utilities;
• Amended the town ordinance to allow for an increase in the motor vehicle privilege tax.

LINKS

A copy of the draft plan and other information are available for download on the town website.

For a copy of the 2008-2009 budget, (requires Adobe Reader software), CLICK HERE>