Newsletter about the City Council Meeting of December 16, 2008

This newsletter is about the Hickory City Council meeting that I attended this past week. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.

At the bottom right of this page under main information links is a Hickory's Local Government link. If you click on that link, it takes you to our city’s website, at the bottom of the page you will see the future dates for meetings scheduled for this year.

At the top of the page, if you click on the “Documents” link, you will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.

Here is a summary of the agenda of the 12/16/2008 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below.

Invocation by Rev. Robert Shoffner of Holy Trinity Lutheran Church

Consent Agenda:
Social Items - Proclamation Declaring December 11, 2008 as “National Active and Retired FederalEmployees Association Day” in the City of Hickory.

Approval of Citizens’ Advisory Committee Recommendations for Assistance Through the City of Hickory’s Housing Programs. Timothy Bolick 36 20th Avenue, NW (Approved for up to $10,000). Joshua & Jennifer Gonzales 1427 5th Street, NE (Approved for up to $10,000). Mrs. Patto recused herself from voting on this issue, because her daughter is a party to the project (is assume Mrs. Gonzalez).


Informational Items:
A. Mayor Wright’s Travel to Raleigh, NC from 10/10-11/2008 to attend the NAACP State Conference, and invite the conference to Hickory in 2009 for the 100th Anniversary Event – hotel - $99.22; per diem - $25.50; mileage - $203.58.

B. City Manager Berry’s Travel to Charlotte, NC from 10/12-14/2008 to attend the 2008 NCLM Annual Conference – registration - $250.00; parking - $10.00.

C. City Manger Berry’s Travel to Raleigh, NC on 11/6/2008 to attend the NCLM Annexation Meeting – registration - $20.00; mileage - $207.09.

New Business - Public Hearings:
1. Amend the Final Statement of Community Development Objectives and Projected Use of Funds for Fiscal Year 2008 - This amendment is for funds to be loaned to Habitat for Humanity of Catawba Valley in the amount of $40,000.00 to be used for building materials for new Habitat homes in the Blue Sky Court Subdivision. Funds are budgeted for these items through the City of Hickory’s Community Development Block Grant funding received in FY 2008. Unanimously Approved.

2. Resolution and Order Closing a Portion of 2nd Street Drive, NW as Requested by Drendel Investments, LLC - On November 5, 2008, Attorney, Warren A. Hutton submitted a petition on behalf of property owner, Drendel Investments, LLC, to abandon a portion of this right of-way, which is no longer necessary for public use. The Agreement for Easement and Consent to Road Closing is signed by the affected property owners that spoke in opposition to the closing in 2006. Unanimously Approved

3. Adopt Ordinance Amending Article 2, Section 2.6.6; Article 5, Section 5.4; Article 7, Section 7.1 and Article 16, Section 16.1 of the Hickory Land Development - City Council on October 7, 2008 adopted a development moratorium on the establishment or expansion of drinking establishments in the zoning jurisdictionof the City of Hickory not to exceed 120 days. Proposed amendments will require special use approval for the location of drinking establishments in each of the districts where they are currently permitted by right and will eliminate the term “discotheque” from the Use Table. Additionally, it will modify the standard by which a parking space reduction is permitted in the City Center Pedestrian Overlay District and clarify the definition of drinking establishments along with adding clarification to the conditions that the Hickory Regional Planning Commission can place on a Special Use Permit. Staff finds the proposed changes are consistent with Hickory by Choice and recommend approval.

Hounds Comment : We have been over and over this issue. It is more than obvious that this issue was never about safety. It has been about the control of land-use all along. The Moratorium was issued under the guise of safety. Where in the above ordinance is the issue of safety addressed?

Mr. Frazier admitted that the Planning Commission voted down the ammendment changes in their October meeting. Newsletter about the Planning/Zoning Meeting of October 22, 2008 . I have a recording of that meeting. Mr. Frazier obfuscated the issue by saying that text ammendments made to the Ordinance would probably be more acceptable to the Planning commission. The truth is that they laughed at the Council for bringing this issue to them and said that Council was going about this the wrong way.

Mrs. Fox jumped all over the adoption of this Ordinance and the Mayor seconded it. Unanimously Approved.

Departmental Reports:
1. Adopt Ordinance to Demolish Abandoned Dwelling Located at 169 14th Street,SE Owned by the Heirs of Kenneth E. Brown - This structure is unoccupied and is creating blight within the neighborhood along with evidence of vagrant use of the structure for shelter.

2. Approve Increased Funding to Western Piedmont Council of Government for an Additional Staff Member to Provide Mortgage Default Counseling in the amount up to $15,523.61 - With the dramatic rise in unemployment, there has been an increased need for mortgage default counseling. Foreclosures in the region have grown from 473 in 1998 to 1,952 in 2007. Data provided by the Federal Reserve Bank of Richmond further documents the growing need for assistance in foreclosure prevention counseling in the sub-prime loan market. Most of the four counties in the WPCOG region have 7.1 to 10 percent of their subprime mortgages more than 90 days past due.

Alexander, Burke, Caldwell and Catawba Counties have a larger share of the subprime mortgages in danger of foreclosure than many other areas of the State. The WPCOG is attempting to reach out and assist residents with a variety of needs surrounding their foreclosure situations. In 2003, the WPCOG began implementing the Home protection Pilot Program offered by the NC Housing Finance Agency. Over 50 homeowners have benefitted from this program, receiving assistance with mortgage payments while they return to school to learn new job skills. The WPCOG is also a HUD Certified Counseling Agency. Since January 1, 2008, 136 families have received foreclosure prevention counseling from WPCOG staff. City and County Managers within Caldwell, Catawba, Alexander and Burke Counties requested WPCOG to provide a formal request including budget data showing current staff costs, grant funding they receive and a cost proposal for hiring one additional staff for foreclosure counseling activities.

WPCOG estimates that to add an additional full time staff member to aid with the increased workload would cost $64,750.00 annually. Based upon population of the four (4) counties, the City of Hickory would contribute $15,523.61 in additional funds to the WPCOG for the entire two years. Actual costs are expected to be a little over $4,000. Unanimously Approved.

The Hounds View: This is a noble attempt to try and help people and it is morally the right thing to do. I do, however, think it is time to wake up and face the truth. No matter what is done, a good many of these people are going to end up right back in a pickle, because of current economic circumstances.

True Predatory Lending is not the problem. If people were lied to or defrauded, then those individuals and companies that are guilty must be prosecuted; but that is a miniscule part of this issue. Loan Officers and Banks are paid a commission to make loans. From top to bottom, finance people are paid to sell the products they represent. Whether you sell signs, mats, socks, appraisal services, or hotel rooms; you are going to do your darndest to sell the products or sevices you represent. Your income relies on your ability to sell and service your clients.

The major issue is that the vast majority of the people that took out these loans don't understand money, economics, and don't care. Is it your job to be a fortune teller and look into your crystal ball and determine whether someone will be able to afford long term, what you are selling them in present circumstances?

Very few of these people are true victims of current economic circumstances. They are in trouble, because housing values were overinflated during the bubble, they took out Adjustable Rate Mortgages when interest rates were at historic lows, and the government gave them the ability to buy houses with little or no downpayments. These people don't have much skin in the game.

Some people got in over their heads, because it is inherent in their nature. Some could afford a house, but they overbought by buying an expensive house that was outside of their economic level. There are a few that are hurting, because they have been laid off, had their hours cut back, and this has resulted in their current mortgage squeeze.

Buying a house involves the "total present cost" of the house; the monthly payment, the interest rate, and the payback period. Once you buy the house then the "total present cost" is set in stone. The three variables are the monthly payment, the interest rate, and the payback period.

Alot of these people are in trouble because of Adjustable Rate Mortgages. Sub-Prime Mortgages are all about creative ARMs. When these loans are renegotiated, the rates are going to have to be turned from ARMs to Fixed Rate Loans and/or the payback period is going to have to be extended out. The bottom line is to get the monthly payment back down, because the monthly payments skyrocketed to unaffordable levels when interest rates increased a few years ago.

These problems are going to be persistent, because our local economic malaise is not conducive to a turnaround on personal finance issues. Low Income levels around here brought about the overabundance of Sub-Prime Mortgages in our area. This issue is most definitely a symptom of our area's economic illness.

Address to Council: Beverly Sipe is involved in a Ministry to the homeless. She has been hanging out with homeless individuals so that she can understand how they live. She said that this has become an eye opener.

She says that during the week, that the homeless have CCM and the soup kitchen, but when they are closed there are no bathroom facilities. Something needs to be done. Her Suggestion, the bathrooms need to be reopened on the Square during daylight hours. She cited Bible verses James 2:5-9.