Newsletter about the City Council meeting of June 15, 2010

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 6/15/2010 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below

Invocation by Chaplain Larry Bolick of Abernethy Laurels

Special Presentation
Presentation of Proclamation to Rick Patton Declaring Monday, June 21, 2010 as “Ride to Work Day” Encouraging the Use of Scooters and Motorcycles - Whereas the price of fossil fuels is growing and supplies are diminishing. Whereas the use of fossil fuels continue to damage our health through pollution and future through global warming. Whereas our infrastructure repairs fail to keep pace with its degradation. Whereas scooters and motorcycles use less fuel, cause less pollution, and have little impact on our infrastructure. Whereas scooters and motorcycles require only a fraction of space required by other vehicles to park, thereby addressing another an ongoing problem in our city. Scooters and Motorcycles offer a form of daily transportation to be encouraged.

Mayor Wright spoke of a group called the Retreads that is having their convention here this week. It is also Mayor Wright's hope that the Harley Owners Group will Have their anual meeting here in the upcoming year.

Consent Agenda:
A. Proclamation Declaring June 25, 2010 as “Dr. Jeffrey Kuch Day” in the City of Hickory

B. Approval of Award a Community Appearance Landscape Grant to Catawba Valley Behavioral Health for Non-Residential Property Located at 20 4th Street, SW in the Amount of $1,149.50 - The subject property is owned by The Mental Health Fund, Inc. and is occupied by Catawba Valley Behavioral Health. Catawba Valley Behavioral Health desires to improve the visual appearance of the property by installing and improving landscaping on the property. The cost of the improvements are estimated to be $2,299. On May 24, 2010 the Community Appearance Commission unanimously voted to recommend funding in the amount of $1,149.50.

C. Approve Resolution for Grant Application Authorization Through the Governor’s Highway Safety Program to Purchase Equipment for the Hickory Police Department - The City’s grant application proposal has been approved for consideration through the Governor’s Highway Safety Program (GHSP) for the purchase of five in-car digital cameras and five radars at a cost of $42,500. Approval of the Resolution guarantees the City of Hickory’s commitment to the City’s portion in the amount of $18,125. These funds are budgeted.

D. Approve Future Annexation Agreement From Jerry and Sue Carroll for Property Located at 2253 19th Avenue, NE - Jerry and Sue Carroll have requested to be connected to the City of Hickory’s water and sewer system without being annexed into the City limits and agree to be annexed in the future when the City finds it economically feasible. The Carroll property is located at 2253 19th Avenue, NE, which is identified on the Catawba County tax maps by PIN 3723- 09-07-0352. Said property abuts the Parkview Subdivision and is immediately adjacent to the existing city boundary. No other properties along the street are within city limits, which would make availability of services impractical.

E. Approve Amendment to 2009 Urgent Repair Program Grant Income Limits - The City of Hickory was awarded $37,500 through the NC Housing Finance Agency’s Urgent Repair Program to assist a minimum of eighteen eligible homes with urgently needed repairs and the City will provide matching funds available from the Rental Rehabilitation program income. Staff is requesting a change in income limits for the Assistance Policy, which will enable us to assist more families. Upon City Council’s approval, the Assistance Policy will be submitted to the NC Housing Finance Agency for approval.

F. Citizens’ Advisory Committee Recommendations for Assistance Through the City of Hickory’s Housing Programs:
Applicant Larry G. Pope is being recommended for approval for assistance under the City of Hickory’s First-Time Homebuyer’s Program for property located at 604 1st Street, SE in the amount of $6,500.

Applicant Carlos E. Emmett is being recommended for approval for assistance under the City of Hickory’s Housing Rehabilitation Loan Program for property located at 1528 Main Avenue Drive, NW in an amount not to exceed $10,000 for repairs to his home.

Funds are budgeted for the above items through the City of Hickory’s former Rental Rehabilitation Program income received in FY 2009 and/or income received through the Community Development Block Grant Program. The following applicants are being recommended for approval for assistance under the City of Hickory’s 2009 Urgent Repair Program for emergency-related repairs not to exceed $5,000. Funds are budgeted through Hickory’s Community Development Department funding received in FY 2009-10.
Dorothy M. Adams; 235 10th Avenue, SE
Shirley A. Gray, 744 7th Avenue, SE
Linda H. Shade, 236 8th Avenue Drive, SW

G. Approval of Funding Agreement With Western Piedmont Regional Transit Authority (WPRTA) for Transit Facility Located at Old S&W Chemical Site - Hickory City Council on June 1, 2010 approved a contribution of $150,000 to the WPRTA for their new transit facility to be located at the old S&W Chemical site in West Hickory. Entering into the Funding Agreement will protect the City’s $150,000 contribution and insure if the facility is not built that the City will recoup its contribution with interest. The tentative date for entering into the construction phase and having all project funding in place is December 2014. Said agreement stipulates failure to begin construction or have an approved project funding plan in place by December 31, 2014, the WPRTA will return all funds in full, including accumulated interest to the City by June 30, 2015. The project is a $3 to $4 million redevelopment project of a six acre site. The WPRTA will secure funding through the Federal Transit Authority.

H. Approve Construction of Bus Shelter on City-Owned Property Located Along the South Side of 7th Avenue, SW To Be Used by Greenway Public Transportation - The City of Hickory received a grant for the purchase of five covered bus shelters to be located at various sites in the City. City Staff and Greenway Transit, formerly Western Piedmont Regional Transit Authority have worked together to select locations for the shelters within City limits. The intersection of 7th Avenue, SW and 4th Street, SW meets the requirements of having an existing high-usage bus stop. No easements are required for installation since it is City-owned property. No budgetary action is required.

Budget Ordinance Amendments
1. To budget a $823 insurance claim check from Nationwide Insurance Company in the Solid Waste Maintenance and Repair of Vehicles line item. This claim is for damage to a sanitation truck on 04-14-10.
2. To budget a $9,901 insurance claim check from Trident Insurance Company in the Fire Department Maintenance and Repair of Vehicles line item. This claim is for damage sustained to Fire Department vehicle on 05-13-10.
3. To budget $66,740 of intergovernmental revenue from Catawba County in the Fire Department Overtime line item. Funds are to pay for the 1st Technical Rescue class that was completed in May, 2010.
4. To appropriate $122,995 of General Fund Balance and budget in the Staffing for Adequate Fire and Emergency Services (SAFER) Grant project. This represents year 2 local match for the multi year grant. This Grant was awarded by the Department of Homeland Security to fully staff the City of Hickory 2nd Ladder Company. The grant performance period runs from 04/30/09 - 04/29/14. The City of Hickory began the project July 1, 2009.

New Business - Public Hearings:
1. Land Development Code Text Amendment 10-01, Electronic Gaming Operations This public hearing was continued from the May 18, 2010 Council Meeting in order to gather additional information. This text amendment of the Land Development Code is to establish zoning regulations for Electronic Gaming Operations or what are commonly known as “Internet Sweepstakes Businesses”. Upon the Hickory Planning and Development Department’s research of these businesses, it was discovered there is an increasing number of other North Carolina municipalities and counties whom were also adopting zoning type regulations. There are currently six to seven electronic gaming operations within Hickory’s planning area. The proposed amendment would effectively grandfather the existing operations, since they existed prior to the enactment of this amendment. On April 28, 2010 the Hickory Planning Commission voted unanimously to recommend approval of the proposed text amendments to Section 7.1, Section 7.2 and to Section 16.1.

Cal Overby made the presentation by giving a brief synopis of the above and mentioning a few of the general locations of the Internet Sweepstakes businesses and introduced and addressed the following text amendment.

Staff attorney John Crone next addressed the Council by stating that in the prior meeting he had asked that this issue be continued to this meeting. He and staff attorney Arnita Dula have studied this issue and he went over some of what has been going on pertaining to this issue.

The legislature has several bills related to this issue. Some versions ban this all together, he stated that there is a question in his mind as well as others as to whether this is really gambling and whether this type of activity should be regulated anyway. Could this not be akin to going to Hickory Dickory Dock and playing games of chance. Some theory espouses that if we're not sure it's gambling and adults are doing it, then let's get something out of it. There are bills that will not tax them, but the state would get profits out of it.

There are a lot of municipalities that are taking a wait and see approach to see what the legislature will do. there are several cases in North Carolina where an injunction has been issued statewide. One such case, which has been applied to Burke County, it enjoins law enforcement officers from seizing these type machines. There are other cases pending throughout the state that attack various aspects of the procedure involved and the ordinances. The good thing is that Hickory's ordinance does not say though shall not have these types of machines, you can only have them in certain areas, and the ones operating now will be grandfathered. He stated that unless there is a burning desire to attack this issue this evening, then it may be more prudent... to keep abreast of the legislation... and come back to this issue.

Alderman Meisner asked, "we would not be keeping new ones from coming in?" Atty Crone stated that is correct. Mayor Wright stated we are already to the point of grandfathering 6 or 7. The mayor continued, "Tomorrow is town hall day in Raleigh... he will be asking representatives to please find a way to eliminate these gambling establishments that are sucker bets and take money used to feed, entertain, and nurture children. We ought to just call there bluff and say just close Chuck E. Cheese... We are comparing a compulsion that has griped some people, and its being promoted out there to Chuck E. Cheese and I just think that is absurd. I personally say, let's wait and see what the legislature does."

The Council followed Atty Crones recommended procedure of opening and closing the hearing. The Council voted the ordinance down, tabled it, and will come back to the issue at a later date.

The Hound believes the Council should have pulled the trigger on this one and passed this amendment. Mayor Wright said it best when he stated that,"If we sit back and say we will never pass a law because we are worried that it may be unconstitutional, then we may never pass anything."

This has been done out in the open and we all know that these sweepstakes negatively affect the poorest and least educated of our citizens. At the City Council meeting of December 15, 2009 I wrote:

It is obvious that these are gambling establishments and this state has since its inception regulated gambling. I was given a tip by many of my mentors over the years, "Follow the Money." Who are the people that own these businesses and where are they from and what are their associations in this state?

Next, I would like to see the city look into collecting sales tax from these sales of "Sweepstakes Fees" or see if that isn't permissible, then our do nothing representatives from this area need to introduce and support legislation that will allow us to create a special tax to collect revenue off of these operations. And if those legislators aren't willing to do so, then it is time to start looking for someone who will represent our ideals.

The City and County get revenue when McDonald's sells a sandwich or the grocery
store has a giveaway, and the Education Lottery is supposed to operate under the
guise of a Public Service (sort of non-profit), but these little hole in the wall gambling centers are all about easy money for the for profit vendors. Look
where these things are sprouting up. They prey upon the poor. It's just like the
"cash for gold" stores. In the end they lead to crime and perpetrate needless
anxieties and broken dreams.

I would just love to know how Attorney Crone can state that he questions whether this is gambling. What I have seen is that these games directly involve playing for cash. The people who play these games are looking to obtain easy money. It isn't regulated, which means there are no guaranteed payouts. This isn't an enterprise of entertainment like going to Las Vegas, which is fully regulated with governmental, mandated payouts. If this is going to be legal, then why not go ahead and allow all gambling. Heck, let's have horse tracks and dog tracks. They are certainly more lucrative.

2. Petition 10-03 – Rezoning of the Property Located at 2040 25th Street Drive, NE From R-3 Residential to OI-1 Office and Institutional - This 0.39 acre property is located at 2040 25th Street Drive, NE and is owned by Hildebran Investment Properties, LLC. The property owners petitioned to have the property rezoned from R-3 Residential to OI-1 Office and Institutional. The Hickory Future Land Use and Transportation Plan classifies the property as Primary Residential. The Land Development Code states that rezonings to OI-1 are inconsistent with the Primary Residential future land use classification unless the properties are within ¼ mile of an existing NC-1, NC-2, C-1 or C-2 zoning district or the property has frontage on a major thoroughfare. The rezoning is consistent with Hickory by Choice due to the property being adjacent to a NC-1 zoning district. The Hickory Regional Planning Commission on May 26, 2010 voted unanimously to recommend approval of this rezoning.approval. Dave Leonetti addressed the Council on this issue and the council unanimously approved the petition.

3. Resolution and Order for Petition of the City of Hickory to Close Three Portions of Right-Of-Way Adjacent to City-Owned Property Located at 740 5th Avenue, SW - On April 30, 2010 Staff Attorney, Arnita Dula on behalf of the City of Hickory submitted a petition to close three portions of right-of-way adjacent to City owned property located at 740 5th Avenue, SW in order to proceed with an 11-lot subdivision to be constructed on the property. The portions of right-of-way are no longer necessary for public use and appear would not be contrary to public interest. It is recommended that the City retain a 25’ easement for all existing public utilities in the areas to be closed. Due to the cancellation of the July 6 Council Meeting and the need to move forward a second reading is requested to be held on June 15, 2010. Todd Hefner addressed the Council on this issue and the council unanimously approved the resolution and approved on second reading.

Person(s) requesting to be heard: Several people came to this council meeting related to the Hickory swimming pool issue (closing of). Three people signed up to address the issue. The Mayor stated that after speaking with a significant number of Council members today, without taking a vote, is that we want to get some additional information on the usage of the pools, so that everyone can understand the cost/benefit analysis that the city has gone through on this issue. Although the budget has been approved, in extraordinary circumstances we can deal with issues that arise -- or changed information. What I am saying to you is when we hear you speak tonight, it will be without closed minds and with the understanding that we want to convey to you our understanding as well so that we have a mutual dialogue. You express your side and we express the staff and city side and we get to where we need to be.

Reverend David Roberts addressed the council - He stated that he is new to the area and is the pastor of the largest African-American church in the area, which is located in the Ridgeview community. The active attendance is 350 to 400 members. They are very much attuned to what goes on in the community. We rise and say that it has been brought to our attention that there were plans, which you just eloquently illustrated that you do plan to revisit the closing of the pools in West Hickory and Ridgeview.

Being somewhat of a Historian myself, I did some research and talked to some of the key people in this city. I came across this document, which I am sure that you are aware of called the Ridgeview Redevelopment plan established in 1999. In his readings, in 1992 signed by City Manager Gary McGee, that there were extensive plans renovate and refurbish the pool. That was revisited again in 1995 and 1999.

Upon coming to this community, I was at a meeting of the Ridgeview Concerned Citizens where in 2009 there was a promise made that by the year 2010 the renovations would have been done and the pool would have been opened. A letter was sent from Miles Champion to Mac McLeod on May 20, 2009 stating that the George Ivey Pool association had done some research and come up with some documents and some data on how to fix and repair the pool.

Catawba County, Mr. Jim Wilson received a letter on May 27, 2009 stated that they needed to fix it so that they could have a whole time turnover within 24 hours and that until that was done that the pool was recommended to be closed for 2009 and be reopened. Another letter on June 5, 2009 showed estimated costs detailed by the George Ivey Pool association and a reminder of the Virginia Grimes Baker act of 2007 detailing what needed to be done for the pool to be operable.

Pastor Roberts continued with further detailed requests and recommendations. He stated that when he came here that he went to the Citizen Class (College) and he was impressed that this was an All-American City and being an All-American Citizen says that you are concerned about every citizen in an All-American City. The citizens of the Ridgeview Community want their pool and they have that right. Angela Forrest runs a camp and her kids use the pool extensively and Morningstar (Church) has a camp and our kids use the pool.

Another lady spoke but I didn't catch her name. She stated that she came on behalf of the citizens of Ridgeview and as a citizen of Ridgeview. She was a part of the strategy in 1999 and they put things in and took things out. She remembers a promise made for the athletic complex and on of them was a pool. The only thing the citizens of Ridgeview ask is that you stand on the promise you made in 1999, 2005, 2008, and 2009. Here we are in 2010 and the pool is closed. We ask you again to revisit it and stand on your promises for the citizens of Hickory.

Ralph Connelly spoke next by stating that he has concerns. The purpose of this letter is to inform Council to honor the proposed maintenance and upgrades of Ridgeview and Westmont swimming pools. When he was a young person, Ridgeview Recreation Center was a field before it became a swimming pool or a center. It was promised by parents and officials with the city that they would have recreation and a pool. Can you imagine the joy that they felt, when they knew that this was going to take place. When others, from other cities around us, visited us, it made us proud of our city. It gave us a feeling of metropolitan. It was a very positive atmosphere and image. His daughter took swimming lessons at West Hickory and when his grandchildren visited from Florida, they took them to the Rigeview facility, which they very much enjoyed. He was pleased to read in the paper in 2009 that the city was going to repair and update the pool. This showed concern, responsibility, and stewardship on the city's part for them, but they have decided not to reopen the pools. This news was very disappointing. The pools are a beacon for the youth and keep them occupied during the summer months. As a city taxpayer, he hopes that they will reconsider the decision to reopen the pools as soon as possible.

Mayor Wright thanked the people for addressing the Council so eloquently. Alderman Meisner stated that he had done some research and every council member needs to see what he sees. Once this is dissemenated and dialogued... the Reverend made reference to the Paddock proposal, which was $250,000 and Aquatic wanted $366,000. Some people might remember that there was a larger crowd there when they closed the St. Stephens pool. His daughter had been a ligeguard there back in the 1980s and it has had four times the use. The bill to repair that was $330,000. The Mayor stated that he would like them to put together the fact sheet. How much usage and per pool per day, Cost per usage and compare it with St. Stephens and West Hickory.

But, he doesn't want them to come back to this meeting and discuss it without the same information that we do (the Council). He challenged staff and encouraged them to put together the information and let the folks who are here tonight, who have shown interest, and let them see the things the city is wrestling with. Alder Patton stated that they need to also have the the information about why the costs are so high (the pipes underneath), so that we have those facts and figures to support the community. Why it is costing $300,000 to $400,000. Alderman Lail stated that what he is hearing is "Don't close the pool." But the larger message is that we need that water recreational opportunity for Summer and we need to fold that in there to. We are talking about repair bills of $250,000. There are ways that we could meet needs that wouldn't involve digging up concrete and building new drains. There are other water recreation oppotunities and we can see what those might be. Manager Berry stated that they would do that.

The Mayor said that he appreciated the people coming out and showing their commitment and for the presenters being professional, matter of fact, and letting the Council know what was on the line.

The Hound believes this is the way that government is supposed to work. If more people took this kind of interest in the operation, implementation, and administration of public policy, then I don't believe our society would not be facing the troubles we see today. Mayor Wright originally came to office 8 1/2 years ago because of a city government that had become insulated and was not reflective of the values of our community. This was reflected in a City Council that felt it was alright to go to Philadelphia and spend thousands of dollars on wine and food at local taxpayers expense.

I do feel that Mayor Wright does care about the welfare of our community, but over time he became part of the governmental process. But, in moments like these, when the situation comes back to reality, we see the Original Rudy that people put their faith in, in 2001.

I think that Pastor Roberts got to the heart of the matter when he stated that when he came to Hickory that he went to the Citizen College and he was impressed that this was an All-American City and being an All-American Citizen says that you are concerned about every citizen in an All-American City. That is what the Hound has been getting at. That is what Harry Hipps talked about in his City Council campaign.

It isn't about an agenda of the moment or playing politics by addressing one group one way and another group another. It isn't about enriching yourself at the expense of others who have no connected interests. The mentality of looking out for everyones interests is a way of life. As I have stated a million times, this community's viability will rest upon the backs of the average, ordinary citizens. As their health and welfare go, so will the quality of life in this community. Kids don't vote, but they are the future of this community. If we don't invest in that future, then there will be no hope of a positive future.

You can go back and look at this blog, the resolution made at this meeting is all that we asked for; to look at the viability of the pools and work towards tangible near term and long term solutions.

Below are links that delved into these matters:
Continuing the Rant - The City of Hickory's Budget
Newsletter about the City Council meeting of June 1, 2010
Newsletter about the City Council meeting of May 4, 2010
HDR Editorial - Hickory council needs a member with vision

U.S. Economic woes come from the Debasement of the Dollar

Currently, Currency is not created for the benefit of society, but instead it is created and controlled directly for the personal interests of banks. Banks are using money and credit as a tool to control individuals, corporations, and government at all levels by keeping them in perpetual debt through interest obligations.

Easy Credit led to speculative bubbles that help those associated with financial markets become rich through information schemes associated with conflicts of interest and insider trading. These bubbles eventually burst when investments associated with Fiat Money and Debt Based Currency are overwhelmed by service to interest costs.

Under the U.S. Constituton, the Congress and the Federal Treasury are supposed to be in charge of the money supply. Money should be based on the public's interest and interest earnings associated with borrowing should also serve the public good, because the currency is supposed to belong to the people.

If money were directed towards the public good, then high priorities such as Infrastructure and Health Care could see more investment. Instead money is being directed to the Derivatives Casino Economy that is tearing down the fabric of our society. The United States must get back to becoming a productive, value added society. Currently, we are an Imperial society that has become addicted to destruction through consumption. We are no longer have a "fix it" society. We have become a wasteful, throwaway society.

Money is supposed to be a means to exchange goods and services that have real value. Much of our economy has been stifled, because of the huge percentage of our currency (and thus our economy) that is focused towards markets that carry no intrinsic value. The United States Treasury has printed dollars in association with the U.S. Central Bank (the Federal Reserve) that has only benefitted those associated with the U.S. Financial system. This money has been siphoned from the real, productive economy where tangible goods are produced.

The current Debt Based Monetary requires the economy to continually grow exponentially in order to keep solvent. It also requires people to utilize credit to fast forward purchases. In a period where financial institutions are facilitating easy credit, people will tend to purchase many items that they could have waited to purchase or really don't need. This tends to stoke the hot economy, but also tends to exacerbate economic slowdowns, because people have overextended themselves on credit, while borrowing for future purchases. Look at the effect that takes place when sales fall drastically. Positive or negative economic momentum has a tendency to feed off of itself under this Debt Based system.

There are alternatives to the current Debt Based Monetary system. Look at bartering. Bartering allows the market facilitation of trade without currency being involved. Bartering is a legitimate system, but the government wants to curatil bartering, because it is nearly impossible to tax such exchanges.

The real economy is limited to available tangible resources and connected to actual needs, while the current debt based monetary system is based upon speculative expectations of future resources that may or may not ever come into existence. This speculative momentum tends to lead to wild swings of markets, where what appears to be unlimited growth eventually falls victim to the natural law of limited resources, and supply and demand. Eventually a crash that matched the rapid expansion occurs followed by the market eventually establishing an equilibrium. When an economy gets into an exponential growth phase of the currency, then one can see that the currency decouples from reality due to unrealistic expectations and worst of all the value of current real assets diminish. This is what happens during a hyperinflationary scenario.

The current monetary system is designed to help banks achieve profits and does not take into account what serves the public's interest or the natural law of resources. The public have become victims of the casino economy that is directly attributable to derivatives. Derivative investments are basically attached to nothing tangible, because market movements are not tangible resources.

If one invests in a professional football team, then they have a direct interest in the outcome of that team's success. If one invests in the final score of a football game, then they have no direct link to the resources invested or derived from that football team and thus all they are doing is gambling. That is essentially what a derivative investment is -- betting on movements in the market, be it commodities, stocks, or indices.

If one buys a stock in a company, then they have made a direct investment to become an owner in that company. Any other investment related to that stock is a derivative and many of those investments have negative effects on the health of that compant. That is the reason why gambling related to sports is discouraged, because it tends to lead to actions that can ruin the fairness, trust, and competiveness associated with the enterprise of the sport. These derivative markets must be regulated with common sense measures to ensure that they are not becoming impediments to the health of viable corporate and governmental entities and markets in general.

When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain. — Napoleon Bonaparte

The supply of money drives the business cycle. And control of the supply of money is necessary to ensure an orderly method of market exchange for goods and services. Too much money chasing constant or diminishing resources creates inflation, while constant or diminshing money chasing too many resources creates deflation. The monetary system must maintain balance and it is historically clear that the current system has not been a good system to achieve the balance we need and it has not benefitted the general populace.

Over time we have seen the debasement of our money. This has happened before historically. Debasement is the practice of lowering the value of currency (associated with inflation). It is particularly used in connection with commodity money such as gold or silver coins. A coin is said to be debased if the quantity of gold, silver, copper or nickel is reduced.

For example, the value of the denarius in Roman currency gradually decreased over time as the Roman government altered both the size and the silver content of the coin. Originally, the silver used was nearly pure, weighing about 4.5 grams. From time to time, this was reduced. During the Julio-Claudian dynasty, the denarius contained approximately 4 grams of silver, and then was reduced to 3.8 grams under Nero. The denarius continued to shrink in size and purity, until by the second half of the third century, it was only about 2% silver, and was replaced by the argenteus.

In the United States our money used to be physically attached to the precious metals Gold and Silver. The Eagle is a base-unit of denomination issued only for gold coinage by the United States Mint. It has been obsolete as a circulating denomination since 1933. The eagle was the largest of the four main decimal base-units of denomination used for circulating coinage in the United States prior to 1933, the year when gold was withdrawn from circulation. These four main base-units of denomination were the cent, the dime, the dollar, and the eagle, where a dime is 10 cents, a dollar is 10 dimes, and an eagle is 10 dollars. The eagle base-unit of denomination served as the basis of the gold quarter-eagle, the gold half-eagle, the eagle, and the double-eagle coins.

From 1837 to 1932, the Gold Eagle carried a weight of 16.718 grams with a 90% gold/ 10% copper composition. This means that the coin carried a weight of .48375 troy ounces of gold, which was a $10 coin. The U.S. also issued a Double Eagle that carried a weight of .9675 troy ounces of silver, which was a $20 coin. That means that money was directly tied to a stable gold price of $20.67 per ounce during this time period.

90% Silver coins remained in circulation until 1965. The Silver Dollars that most of us have seen (the Morgan Dollar and the Peace Dollar) had a fineness of .900, giving a total silver content of 0.77344 troy ounces (24.057 grams) per coin. These coins were minted off and on for general circulation from 1878 until 1935.

By the early 1960s, the value of silver had risen to the point that it became worthwhile to melt down U.S. coins for their bullion content. U.S. silver coins (those of 10-cent value and above, which contained 90 percent silver through 1964) began to disappear from circulation, leading the U.S. (Coinage Act of 1965) to introduce layered composition coins made of a copper core laminated between two cupro-nickel outer faces for the 1965–present coinage years. The Kennedy half dollar design, however, continued to be minted silver-clad composition from 1965 to 1970, although the silver content was reduced to 40 percent. To find the value of the silver in a half-dollar, multiply the current market price for silver by 0.36169 for 1964 issues, and by 0.1479 for issues from 1965 to 1970 (This is the weight x 90% silver composition).

Here is a chart that shows the value of the coins based on $1200 per ounce Gold and $20 per ounce Silver (click spreadsheet to enlarge):


This should show you the loss of purchasing power that is associated with our present Legal Tender, Fiat Currency. I don't think we can ever go back to a standard associated with Gold or Silver, but we have to attach the currency to something in order to bring it back under control.

I think that most of us that understand the Federal Reserve System (created in 1913) believe that the central banking system does not work. It only works for those private interests that control it. The money in this country should be a tool of the government and that is the people. The great divide in this country has come from the separation of the currency from the people. In my opinion, the next great leaders of this country will be the people who bring the monetary system back to the people and represent the interests of the people over the interests of the fat cat financiers.

The beginning of the Second Phase of the World Economic Depression

U.S. retail sales unexpectedly fall in May



Plummeting Sales - (A sale is the pinnacle activity involved in selling products or services in return for money or other compensation). When sales fall it is generally due to a downturn in the business cycle and much of downswing we are currently seeing is directly attributable to the "debt-based" monetary system we currently live under, which requires an ever increasing and exponentially growing money supply in order to continue positive economic momentum.

The problem is that Newton's law of motion states, "For every action, there is an equal and opposite reaction." The vast expansion of credit that we saw due to low interest rates and easy credit in the 2000s is being followed by tightening of the credit markets and thus a reduction of money available to the general public.

People are purchasing fewer goods and services as a result and the full dynamic circle makes them worry about the negative ramifications that are associated with an economic downturn and the lack of security fostered by such dynamics.

Fewer Jobs - (A job is a regular thing performed to create a value in society (and personality of individual) for meeting the needs of that individual)). As a result of customers purchasing fewer goods and services, businesses begin to see inventories rise. With rising inventories, businesses have no need for excess labor. The business must find ways to reduce these pysical goods inventories. Labor cost is the largest expense of most businesses and thus the most crucial element of reducing overhead costs.

Lower Wages - (A wage is a compensation, usually financial, received by workers in exchange for their labor). If the macro-economy sees people have their employment terminated in many sectors of the economy, then the supply of labor will increase drastically at the same time that demand for labor is decreasing (drastically). That means that for businesses it becomes a buyers market when purchasing labor and they can pretty much name their price when it comes to wages.

Lower Prices - (In ordinary usage, price is the quantity of payment or compensation given from one party to another in return for goods or services). Because of increasing inventories and terms of credit (net 30, 60, 90), businesses must lower prices and profit margins in order to sell the merchadise and meet their short term debt obligations.


All of the above can take a toll and lead to the following consequences for both business owners and labor:

Foreclosures - Foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption.[clarification needed] Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or assessments.

Bankruptcies - Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a business or corporate debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the insolvent individual or organization). An involuntary bankruptcy petition may not be filed against an individual consumer debtor who is not engaged in business. (Bankruptcy in the United States)

Bank Failures - occurs when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities. More specifically, a bank usually fails economically when the market value of its assets declines to a value that is less than the market value of its liabilities. As such, the bank is unable to fulfill the demands of all of its depositors on time. Also, a bank may be taken over by the regulating government agency if Shareholders Equity (i.e. capital ratios) are below the regulatory minimum.

The failure of a bank is generally considered to be of more importance than the failure of other types of business firms because of the interconnectedness of banking institutions. It is often feared that the effects of a failure of one bank can quickly spread throughout the economy and possibly result in the failure of other banks, whether or not those banks were solvent at the time. As a result, banking institutions are typically subjected to rigorous regulation, and bank failures are of major public policy concern in countries across the world.

Articles that lead to the conclusion that we are in the second phase of the Depression:

George Soros: Risk Of Double Dip Recession Can't Be Ruled Out - Wall Street Journal - 6/10/2010

1930's Redux - IBTimes - Global Forex Trading Portal - 6/12/2010
Doubts about sovereign credit are forcing reductions in budget deficits at a time that the banks and the economy may not be strong enough to permit the pursuit of fiscal rectitude-George Soros

In English, what Mr. Soros is saying is that (European) austerity programs are coming at the exact worst time, because governments which implement them are likely to double-dip into recessions.

Tax Hikes and the 2011 Economic Collapse - Wall Street Journal - Arthur Laffer - 6/6/2010
Consider corporate profits as a share of GDP. Today, corporate profits as a share of GDP are way too high given the state of the U.S. economy. These high profits reflect the shift in income into 2010 from 2011. These profits will tumble in 2011, preceded most likely by the stock market.

The result will be a crash in tax receipts once the surge is past. If you thought deficits and unemployment have been bad lately, you ain't seen nothing yet.

Why We’re Falling Into a Double-Dip Recession - Robert Reich - 6/4/2010
The Labor Department reports this morning that the private sector added a measly 41,000 net new jobs in May. (The vast bulk of new jobs in May were temporary government Census workers.) But at least 100,000 new jobs are needed every month just to keep up with population growth. In other words, the labor market continues to deteriorate.

Of the small number of jobs created by the private sector in May, many came from temporary help services. Which is one reason why the median wage continues to drop.

Why are we having such a hard time getting free of the Great Recession? Because consumers, who constitute 70 percent of the economy, don’t have the dough. They can’t any longer treat their homes as ATMs, as they did before the Great Recession. Businesses won’t rehire if there’s not enough demand for their goods and services.


The week ahead in telling the tale - Thursday's consumer price index, and Friday's release of the leading economic indicators. Although the numbers are cooked, it will be good to gage a reading of what top economists think.


Next up: Debasing the currency

Continuing the Rant - The City of Hickory's Budget

This is a continuation of my commentary based on the Monthly Monday Morning Meeting with the Mayor on WHKY's First Talk show on June 7, 2010. This isn't about critiquing Hal, but as I stated I have some thoughts about what I heard on Monday morning and since I do have this forum, I am going to espouse them.

I think about what Mayor Wright said to Ray Hunt about a month ago during the second time that he approached the Council. Mr. Hunt initially addressed Council as a property owner in Southeast Downtown (across from Clark Tire). Initially, when Mr. Hunt addressed Council it was to address a grievance in which his tenant went to the city to report Mr. Hunt's building as untenable. The City sent officials to the building and issued code violations, but they never contacted Mr. Hunt, who is the owner of the building. Mr. Hunt was upset about the city never contacting him about the violations and how they could be remedied.

After I inquired, he told me about his tenant, who has not paid rent in a substantial period of time. Mr. Hunt had previously told this tenant that he was going to have to get his stuff off of the property, because he needed to have work done on the building so that he could find a new tenant, one that would pay their rent. Basically, the tenant used the city's processes as a vendetta against the property owner Mr. Hunt.

Mr. Hunt didn't feel that the situation had been remedied when he addressed the Council for a second time. When he went before Council, he asked if there were any thoughts about what he had addressed the Council about. Mayor Wright summarily cut him off and stated that he would be heard, but this wasn't going to be a debate. Mr. Hunt then looked frustrated and stated that he guessed he didn't have anything else to say and went and sat down.

To me, it was an embarassing moment. Several times I have seen people not have their concerns addressed by the council. Yes, the public is allowed to speak before the council, but one gets the sense that many times they are not listening or lending any credence to the addressor. If the addressor is being respectful to the council, then they should show respect to their issue or grievance. That is the bond that we should expect between the people and their representatives. Instead, a mentality of "us versus them" has been fostered by the system that has been created and I don't believe that chasm was the intent of our forefathers.

That is the reason why I created a blog. With it, we have another way to bind the government of, by, and for the people together. This is our playground and we encourage debate, thought, and openness. It is our desire.

I have heard people say that you have to take whatever you see on the internet with a grain of salt. I agree and that goes doubly for any other media outlet, because they censor a lot more relevant information and choose to dissemenate what they want their audience to know. The Hound is a Battle Royal of information, in which we respect our audience's intelligence and choose not to dictate the conditioning of their mind, but instead program their brain with thought provoking correspondence. Our goal is to seek the truth, not dictate it.

The reason why I have established the pieces of the puzzle above is because of what Hal stated at the end of his show. He talked about it always being nice to hear about the good things that are happening in the City of Hickory. And how lots of times we focus on the negative and negative things that are happening. Then he went into his diatribe about people being employed, garbage being picked up, water is coming to our homes, the tax rate is staying the same... And how it is good to be reminded of that.

Let's be honest, what the Mayor said during this interview would not be considered positive by many folks. Have some of us reduced our expectations to such an extent that the basic services paid for by the people are supposed to be awe inspiring. It is as bad as when our mothers would chastise us about cleaning our plate, because their are starving children over in some Third World Country. For God sakes, we pay for that water, sewer, garbage, police protection, and other basic services. Are these people appreciative of the service at restaurants because the server brings them their water or the kitchen staff gets their food cooked and the server can bring that to their table? Do they show appreciation that the oil company can deliver the gas to the service station? Or the purveyors, truckers, and grocery store employees can follow the processes to get the store shelves stocked?

Let's look at Hickory's proposed budget for 2010-2011. Hal initiated the conversation by talking about the budget being award winning and we weren't in dire straits like other cities he has seen. The Mayor addressed the budget by talking about City of Hickory staff and lauding them about how efficient they are with the budget and they don't spend money unnecessarily and they don't have a bureaucratic mindset. He said that it was very much like they were running a business.

Secondly, he stated that the good tax payers, in spite of the bad economy were paying their taxes. The collection rate is very good. He stated that the Council sets realistic policies with the staff and the staff is in charge of execution. Council doesn't tell staff where and when to cut. He stated that you don't see a lot of politics involved in the budget, like in some nearby large cities.

What Choice do taxpayers have? They aren't turning over tax dollars out of the goodness of their heart. If they don't pay the taxes, then the city will put a lien on their property. This was silly rhetotic.

Politics are rife throughout the City of Hickory decision making process. It is all about connections. Just because their isn't an elephant or donkey involved doesn't mean that politics play no role in decision making. Look at the interests of downtown and Northwest Hickory as prime examples of special interests.

Mayor Wright stated that people know that we aren't going to get hit with any shock or huge tax bills at a time when people can least afford them. He then talked about the things that they would like to do that they can't do. Examples were Cloninger Mill Park and Splash Parks instead of Pools. The Mayor talked about how there hasn't been good attendance at the city pools and that pools are passe.

Could that be because the pools have not been kept up to standards? Could that be because the City did the bare minimum in running the pools and maintaining them? First the cost was initially stated in the $45,000 range to fix the pools, then the price drastically rose to $800,000, then $850,000, and now the Mayor is stating that the costs would be $865,000. Yet, no one has shown anything close to an itemized list of the exorbitant costs associated with these mid sized pools.

When I was a kid, I used to attend First Baptist daycare in the Summer (from 1974 to 1976). We went to the pool twice a week and I would estimate there were well over 100 people at the pool each time we were there. In this economic downturn, what makes you think that more people might not attend the pool. I can tell you that the people that Harry and I spoke with last year surely had issues with what was happening.

I think it is more than obvious that the city wants those pools closed and they are unwilling to even discuss the idea of them being open. My questions regarding these pools are two-fold. Would the city be willing to donate the pools to a non-profit or church to run? Is the city going to sell these properties and if so and a for-profit enterprise wanted to run the pools would the city move forward expeditiously with such a transaction?

Another thought on City Sponsored water activities, I would like you to know that I don't expect any "Splash Parks" any time soon and if they are established, I believe that they will be located in an area North of the Tracks. The Splash Parks were addressed by Derek Williams of Site Solutions at the City Council Meeting of May 4, 2010 and the Mayor's comments are a verbatim reflection on Mr. Williams statements.

The Mayor stated that we aren't going to lose libraries or parks. City Staff has been patient and they understand the economy and they have had to forgo pay raises. He thinks the day will come when this thing will turn around. He stated that there are increases in fees and that seems fairer to us (city officials), because there is an element of control by the property owner.

What they don't seem to understand is that fees are regressive, especially with flat fees (garbage) and minimum payment fees (water). There is alot less control afforded to residents than the Mayor admits to when there is a minimum fee or there are exceptions, such as filling your swimming pool. Wealthier residents generally create more garbage and utilize more water resources than poorer residents. These costs hit the poorest harder. Whereas, increases in property taxes are progressive, because the wealthy pay higher tax based on their house, car, etc., which is usually more valuable than poorer resident's possessions.

The next thing that was mentioned was that the tax rate had not increased. The Mayor then went into his spiel about the comparison and improvement of tax ranks of Hickory versus other city's in North Carolina (John Locke numbers - 2nd to 11th over the last 10 years). He stated that 98% of the world is imperfect and Hickory is in the 2% that are about as close to perfect as you can get.

That's all great rhetoric, but let's get real. If we were in the top 2% of communities in this country, would businesses and people not be knocking down our doors to get in here. The Milken Institute and Forbes numbers have ranked us in the bottom 10% over the last several years. Whose rankings and criteria do you trust?

I think that tax burden wise, Hickory isn't too bad, but as far as jobs and income levels there isn't much to offer. The real (U-6) unemployment rate here is over 20%. We have a terrible underemployment problem and much of this is attributable to the mindset of local leadership, who have set us up to take few losses in local government projections, but they have also limited our potential to grow.

Government officials want to obsess about the property tax rate and the fact that it hasn't been raised, because they worry about electability and job security (politics). The bottom line is that based on assessments, Hickory residents are overpaying taxes, because they could not currently sell their houses for the assessed value. If the houses are revalued to their proper, realistic values, then the local government is going to have to raise the tax rate. They will do this under the guise of being revenue neutral. You see, it is all semantics about the revenues they need and they don't want to upset the simple folks who can't comprehend the sliding scale. If your house is presently valued at $100,000 and they revalue it at $80,000, then they will raise the tax rate by 20% from 50-cents to 60-cents per thousand dollar valuation and next year Hal and the Mayor can sell you the fact that it is revenue neutral.

Hal and the Mayor kept inferring about Charlotte's troubles. Well, Charlotte hasn't limited its growth prospects the way I believe we have. Charlotte is a larger city with more public amenities. That is the reason why they are having to cut back on some services, but they are by no means worse off than we are. And anyway, Great leaders don't point to the inadequacies of others to tout their own accomplishments, but that seems to be commonplace for the mentality of this city.

Charlotte is adjusting to the transforming economy. Sure, they have difficulties, but their unemployment rate is still better than ours and their population is 10-times larger than ours. We have had the worst unemployment rate in the state for years and indications are that we are in the beginning of a process of losing population, especially if we discount the illegal immigrants that are living in the area.

And neither side of these discussions should be deemed as positive or negative. They should be deemed as different points of view. Those of us that choose to look at the glass half empty should not be forced to drink the Kool-Aid of those that swear the only way to look at the glass is half full -- because those little children in the Third World don't get to drink Kool-Aid.

We can do some really positive things around here. I sincerely believe that City Staff should be commended for the budget, because they have made it work. It isn't sort of like a business. It is a business. It is the business of the people of Hickory who are the shareholders. City staff are not employees of Mayor Wright, City Council, and/or Mick Berry. They work for the interests of the people of Hickory. And I believe that they have carried that task forward well.

But, I do believe that we are going to have to see investment dollars utilized more creatively to get more of a bang for the buck and return of capital, if we are to start growing this city again, especially in these trying times. I am going to address that in an article in the next couple of days.

The Hounds June Rant - What will it take to wake people up?

Yesterday, I listened to the Monthly Monday Morning Meeting with the Mayor on WHKY's First Talk show as I have done monthly for years. Honestly, I appreciate Hal Row's show and although I haven't been listening live as much over the past few months, because of my job and insomnia, I keep up with the show and the direction that Hal wants to take the show.

I'm not really into critiquing Hal, but I have some thoughts about what I heard on Monday morning and since I do have this forum, I am going to espouse them and I will attempt to do so in a tasteful manner. I would like to preface what I say here by stating that Mayor Wright is entitled to his opinion and even if I don't agree with a few of the things that he stated yesterday, I do appreciate it when he steps forward in a responsible manner and willfully lets us know what he is thinking.

The first issue that the Mayor talked about was his attendance and duties involving Memorial day. I think he was spot on in his statements that more people should attend these services. The public definitely should show reverance to the troops. They do not ask to be put into the situations they are placed in. They are doing their job and fulfilling their duty.

But then, in my opinion, Mayor Wright got off track. He stated that this was the best time to be alive on this earth, because of the strength of the United States of America. He stated that we should be proud of that strength. We should be building on that strength. He stated that this world probably needs a benevolent, powerful leader and he doesn't know who else is going to step up and be benevolent. He stated that our soldiers make the rest of the world know that we are the ones that have to be accounted to.

As I stated, I do believe that we should stand 100% behind our troops, but is our government doing that? I believed in the so called War on Terror, when I thought it was going to be fought to be won. In my opinion, the intentions were never meant to make this nation and our forces occupiers or to enforce our ideals on anyone else. We cannot afford to have a mindset such as that. We have been in these battles for nearly a decade with no end in sight and somewhere along the way we have moved towards governance through the ideals of an Empire instead of as a Republic.

What do I mean by this? George Washington, in his farewell address to the American people urged the nation to avoid attachments and entanglements in foreign affairs. Have we followed this advice? No, We have for years used covert and overt operations to try to manipulate and control other governments for the benefit of a few multinational corporate oligarchs.

This has nothing to do with the troops. This involves politicians who have usurped the authority granted to the government by the constitution. These politicians have been all to willing to be bought off by the corporatists who are really in control of this nation.

If you think that I am being unpatriotic by making these assertions, then maybe you should go back and listen to what President Dwight Eisenhower said in his farewell address in 1961, when addressing The Military Industrial Complex.

Too many people just fall in line with the mainstream media's coverage of these wars. Everyone has fallen into a context of thought that these wars are like sporting events -- Good Guys versus Bad Guys. The questions must be asked about purpose and intent and whether those original purposes and intentions are being fulfilled.

These wars are a culmination of historical events that have developed since the beginning of man's existence on this planet. Is it unreasonable to look at the reasoning behind these wars. Is it wrong to project the future? Is it wrong to demand accountability from our government pertaining to the direction and goals set forth involving these military issues?

I don't think it is good that we try to become benevolent dictators of world policies. We can never permanently enforce these actions. No empire has ever been able to enforce the type of control necessary to maintain the empire. You can't do it militarily, you can't do it motivationally, you can't do it mentally, and you can't do it monetarily. So, what is the endgame? Have we bitten off more than we can chew?

These are clearly not the best times in the history of mankind. The 1990s were the zenith of the United States, but what we have seen is that the Wizards behind the curtain were manipulating perception by cooking the government and corporate books, selling the public on the idea that overconsumption was good, and instituting policies that allowed people to overexpand their credit through cheap money (low interest rates).

The fat created from the bubble economy of the late 1990s' dot.com bubble allowed the people of this country to live in denial for a decade about the true health of this nation's finances. The average person in this country is still unaware of what is going on and has chosen to remain fat, dumb, and happy. They still think that this is a normal business cycle recession and everything is going to come back. Really, has the average person ever been aware? These people are acting as a burdensome anchor that is preventing us from moving towards recovery.

U.S debt to rise to $19.6 trillion by 2015 - Reporting by Donna Smith; Editing by Kenneth Barry - Tue Jun 8, 2010 6:19pm EDT WASHINGTON June 8 (Reuters) - The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.

At the end of Hal's radio show, he talked about how it was good to discuss some of the positive things going on in our community. I will talk about some of the other issues that were discussed on this radio show over the next couple days, but I'll be honest, I didn't hear anything positive mentioned during that show. Maybe it was because the Mayor makes Hal feel warm and fuzzy, but there wasn't any good news on the City's Budget of Austerity, which was the other main point of topic.

I think we have got to get real. The economy is not turning around. What are you pointing to, if you are going to state that?

The worst problem we have in this community is that the people in this community don't care about the world that surrounds them and the actions of our local leaders show that they don't want these people to wake up and they don't want to take any steps that would make the local government more accessible to the people. They want to horde and control the decision making process and I don't think they have any contextual understanding of the world outside of their small group, and what they slurp up on the Boob Tube and a few mainstream periodicals.

I want you to look below at the map of the last 500 people that have looked at this blog. There are as many people looking at it who reside outside the vicinity of this region as those who live here. I think that speaks volumes about what this community is facing and its biggest liability.

I have people that talk to me all of the time about the issues that this community faces, but they don't want to get involved. I have been informed of what I consider unethical conduct taking place, but no one wants to step forward to ask pertinent questions and demand accountable answers. There are a handful of us that care and ask questions, but we are ignored, because the majority of the public and the local press don't care about openness and accountability. The public and the local press go along to get along.

I'm not here to talk about American Idol or Dancing with the Stars or Sports. I am here to talk about the reality of issues that have a true bearing on your life. And I hear the following statements alot from people. "That doesn't affect me." "I can't do anything about that." "That's the way its always been"... And the frog continues to boil.

People talk about how they want someone to step up and do the right thing and look out for the people's interest and not the power's interest; but we step forward and get abandoned by the sloths who in the end support the status quo of continually reduced expectations.

People keep thinking that we've hit rock bottom and this is as bad as it gets. They don't think that things can go down from here. They think it is impossible that this country could become a full blown Totalitarian Government or that we could be militarily invaded and we could be occupied by foreign nationals. We could become a Third World Country like these countries you see on the television. What we have learned from the history of the world is that none of this is impossible.

How long has this thinking that we have hit rock bottom been going on? It seems, as long as the check is coming in the mail, then the people don't care that the governments surrounding them are getting in a continually worse financial bind. Will it take the end of these social welfare programs for people? And will it be too late then? What will it take to wake people up?

Houndvision: Building a Raised Bed Garden - Ready to plant today

Would you like to start a garden today? Do you hate the thoughts of pulling weeds or spending hours building a garden only to lose it to those pesky weeds or crab grass?

This is the way to get a quick start in gardening when you are having trouble getting the soil to cooperate, because there may be a weed issue or the soil isn't properly amended. You can do this in just a few hours. The bed that I build in this video is 18 feet long by 1.5 feet in width and 8 inches deep at the center of each bag -- as is its twin bed along the fence. You could build a 9'x3' with the same depth or a 4'x6' and make it a couple of inches deeper.

The beds built here are 27 square feet in total area utilizing 11 bags of top soil(98 cents per bag on sale), 1/4 bags of 50lb sterilized play sand ($2.50 per bag on sale), and 1/10 of a bag of peat moss ($8.98 for 3 cubic feet). Extrapolating those numbers out, this project cost less than $14, when you include tax. Even without the added savings of the sales, you will add less than $5 to the total cost of this project.

I will probably stretch this to two feet when I enclose it this Fall. And my goal is to add a removable cold frame top to grow lettuces and other cold season plants and vegetables.

My backdoor garden area has had issues with crabgrass. I wanted to plant herbs there and begin the process of getting the weeds under control in that area. I got this idea of how to make this quick raised bed garden at the Mother Earth News website:

Mother Earth News: How to Make Instant No-dig Garden Beds



Many of the plants that you see in this video were plants that were started in February and March and transplanted the first week of April. I also have utilized 100% of the water resources collected in the Water Container system that I developed in April.

I hope these ideas might help open your mind to the possibilities of self sustainability and the many ways that you can save and conserve your resources, while leading a healthier lifestyle and reducing your dependence on the grid.

Houndvision: Garden Watering System
My Scientific Garden 2010

Newsletter about the City Council meeting of June 1, 2010

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 6/1/2010 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below

Invocation by Rev. Susan Smith of Exodus Ministries

Consent Agenda:

A. Resolution – Cancellation of July 6, 2010 City Council Meeting – Because of July 4th holiday

B. Approval to Declare Seven Automated External Defibrillator Units as Surplus - The Hickory Fire Department requests approval to declare these Units as surplus to be utilized by other public safety agencies. The units were purchased in September 2000 and April 2001 for the use on adult-aged cardiac patients only. New protocols have been established for North Carolina to upgrade equipment to adult and pediatric aged cardiac patients. Pursuant to General Statute 160A-274 City Council may surplus items for use by other governmental agencies. The St. Stephens Fire Department by letter of May 26, 2010 has requested one of these units.

C. Write-Offs for Fiscal Year 2009-2010 in the Amount of $164,346.90 - In accordance with the NC General Statutes and the City of Hickory’s financial policies, a list of accounts to be written off follows and is submitted for Council approval in conjunction with the annual audit for FY 2009-10 as required by law. Fiscal Year 2010 write-offs total $164,346.90; whereas, FY 2008-09 write-offs totaled $247,850.19. The majority of these accounts have been submitted to the North Carolina Debt Setoff Program, which means we are continuing to pursue collection. Collections from the NC Debt Setoff Program for Calendar Year 2010 have exceeded $28,000 so far.

D. Proclamation Declaring May 18, 2010 as Fiserv, Inc. Day in the City of Hickory

E. Approval for Financial Assistance to Group Workcamps Foundation (GWF) in the Amount of $9,000 -

The Foundation is a non-profit, interdenominational Christian volunteer home repair organization headquartered in Loveland, Colorado, which is a similar organization to Habitat for Humanity. It differs in that they repair homes instead of building them. Catawba County and the Hickory area have been chosen by the Foundation for home repairs that consist of construction of handicap ramps, porches, painting, sheetrock repair, weatherization, and other general repairs. Eighteen homes have been identified in Hickory with additional projects in the process of acceptance. GWF has requested $9,000 in support from the City of Hickory, which can be provided through the Rental Rehabilitation Program income. GWF will be reimbursed for materials following inspection of the completed work.

F. Request From the Hickory Museum of Art, Through Healing Eyes, Hospice of Catawba Valley and Women’s Resource Center for Use of Union Square for Movie Night in the Courtyard Event on June 3, June 10, June 17 and June 24, 2010 from 7:30 p.m. to 10:30 p.m.

G. Transfer of Cemetery Lots in Oakwood Cemetery From Stephen W. Brown, Eric Avant Brown and James A. Owenby Personal Representatives of the Estate of John W. Brown to James A. Owenby

Budget Ordinance
1. To budget $650 of International Council donations in the International Council expenditure line item to be used for the International Springfest event expenses.

2. To budget $150 of revenue from Catawba County in the Water and Sewer Pipes, Hydrants and Meters line item. Catawba County received a grant for a Water Infrastructure Hook-up Program that WPCOG is administering. Therefore, Catawba County is paying Hickory for the water (and/or sewer) taps as well as
the radio read water meters that are required for some of the locations that are hooking up to the system.

Capital Project Ordinance Amendment
1. To budget a total of $23,784,853 ($6,284,853 transfer from the Northeast Wastewater Treatment Plant Capital Reserve and $17,500,000 of State Revolving Funds) in the Northeast Wastewater Treatment Facility Upgrade Project. This amount includes construction costs, construction oversight costs, a
5% contingency and closing costs related to the SRF loan.

2. To decrease the Amity Lane Project Design and Miscellaneous operational line items by $9,711 and increase the Interest Earned by $226. This amendment is necessary to close the completed Amity Lane Capital Project and to transfer the $9,937 of remaining funds back to the original funding source.

Grant Project Ordinance Amendment

1. To accept a $3,690 transfer from the General Fund and budget in the Police Firing Range Upgrade Project-Justice Assistance Grant (J.A.G.) Fund. $3,690 represents Police Federal Reimbursement balances from previous years that have been rolled into Fund Balance at year end, therefore an appropriation is necessary.

New Business - Public Hearings:

1. Fiscal Year 2010-2011 Budget Ordinance - Pursuant to NC General Statutes §159-12(b), a public hearing shall be held before adopting the budget ordinance. This public hearing was advertised in a

newspaper having general circulation in the Hickory area on May 21, 2010. Copies of the budget ordinance were filed for public inspection in the Office of the City Clerk, Patrick Beaver Memorial Library and Ridgeview Library. The recommended budget is also posted on the City’s web page, www.hickorygov.com. Pursuant to NC General Statutes §159-13(a), the City Council is required to adopt a balanced budget before July 1, making the appropriations and levying taxes for the budget year. Manager Berry went over the proposed budget for the upcoming fiscal year. The budget is projected to be $85,215,943 which is .47% more than this years budget of $84,820,849. While the General Fund fell by 3.72%, the overall impact on the operating budget is a 1.59% decrease. He stated that the City of Hickory's financial policies have been held up as models by the institute of government for years, because of prudent budget policies.

Manager Berry made the statement that the City is in a strong financial position and referenced the undesignated balance fund, which has a surplus of $10,087,675. This fund began with a $11,900,000 at the beginning of the year. The City designated funds for projects, such as the Clement Boulevard project, which along with other expenditures led to a budget shortfall of $1.5 million, which is being made up for by other budgetary reductions. In the proposed budget, the City has designated $762,325 of the fund balance towards the upcoming years expenditures. Manager Berry states that this is not out of line. There is still $1 million set aside in fuel reserve and a parking fund reserve of $1.6 million.

Manager Berry went over some of the various expenditures that the appropriated fund balance will be used for. icluding a one time balloon payment, "Project No Vacancy," The Ensure "Greater Hickory Classic" at Rock Barn, the Convention and visitors Bureau, and the Hickory Downtown Development Association. He stated that the biggest concern is what the State of North Carolina might do about revenues that are owed to the city. He added comments about possible the Google initiative and the Wayfinding project, as outstanding projects where the fund balance might be used in the upcoming year.

As far as revenues, he stated that he is recommending that the tax rate stay the same for the upcoming year (50-cents per $100 value). There was no growth and no reduction in property tax revenue in the previous year. There is a $2 million gap that they knew that they would be facing. On the revenue side, they went to the solid waste fee and the water/sewer fee. He stated that as a major water supplier for the region, these water fee increases will also be raised to users in other areas served by Hickory. These water rates are still below average, as is the sewer rate.

On the expenditure side there are some unavoidable costs. employee health insurance has increaded by 3% and the North Carolina Retirement System is requiring the city to increase its contribution by 1.2%. There is still a half a million dollars supporting workers with a benefit package. Manager Berry is recommending the elimination of the longevity benefit for anyone hired after July 1. There is a hiring freeze that has been in place for over a year. If a department has to hire someone they have to go directly to the city manager for the request.

The City Manager addressed the issue of the pools involving his recommendation that the city pools be closed. He stated that these pools are antiquated. Federal law requires new vents to be placed on the areas where the water is circulated. In investigating this issue they found out that the pools were not circulating water sufficiently and it would cost hundreds of thousands of dollars to completely replace. The Parks and Recreation Commission is reccommending the pools be closed and is exploring what types of water based recreation should be offered. The mayor interjected by making a statement question about the pools being greatly underutilized. The city manager stated that they were. He also pointed out about the libraries having there hours cut.

The city manager stated that he is proud of is that there is a tendency with local governments that when you have a budget crisis that you postpone your capital replacement. They did not want to do that. They wanted to make cuts in operating costs that recurr year after year. The city's policy has been to set two-cents aside for capital replacement. So they don't have to borrow to replace the rolling stock. They can pay for it with cash.

The great unknown is what the State is going to do with their budget. They are guardedly optimistic. The Governor's budget hasn't taken any revenue from us and the house budget writers haven't tapped any of our funds. The City Manager mentioned and gave commendations to Warren wood and Karen Hurley along with all of the department heads. He stated that he shared with the co-workers that you learn alot about your organization when it is under duress. He is proud of the department heads and their staff in helping put together this budget.

The Mayor interjected that Manager Berry mentioned policies, but we all know that it isn't about policies. It is about execution. Isn't it great that we aren't facing some of the problems other municipalities are having. He stated that we have a staff that wants to work to make things go the way they should go. And we have taxpayers that pay their taxes and these people aren't complaining. Alder Patton asked about airport Tower funding, City Manager stated that it isn't being taken away, the FAA money will be there.

The Mayor stated that for $6 per day we get all of the services we have available. He also stated that it hasn't been long since we had the second highest property tax burden in the State of North Carolina. We are now 10th or 11th. He said that he surely hoped that pay raises won't be frozen for another year next year. The City Manager and Council's raises are directly equal to the avarage raise of all employees - therefore they will not be getting a raise. Fees will increase, but this is paid for by users. The users have some control over the services they use. He mentioned the SALT Block appropriation, which he stated benefits everyone in the city. He also mentioned the golf tournament, which is predicated on the Classic becoming a very different activity. It will involve alot more community involvement. Charities will be allowed to keep all of the proceeds from the tickets they sell.  He thinks this will make the classic truly a grass roots community thing. The committment is not contractual and it sil depend on what they do and what other municipalities and counties do. Just because something is in the budget doesn't mean you've got to spend it.

Alder Fox asked what other municipalities are participating? Mayor Wright stated that he understands that it is all of the ones that have in the past and they are being asked to step up there contributions. The tournament was bleeding losses and it would not have been feasable, if not for Ensure stepping forward to sponsor the tournament. 

Alder Fox stated that she hates to see the hours cut back at the library. She doesn't think this is the time to cut back on the hours of the library and other recreational services. She understands the pools. She commended the fine staffs at the library an in recreational services. The Council unanimously approved the budget.

The Hound thinks that city officials and staff deserve due credit for putting together a solid budget under such negative economic circumstances. Everyone has issues that they would like to see addressed or areas that they don't want to see cut. This budget is dictated upon keeping your head above water. It has been achieved without increasing a burden upon citizens whose responsibilty it is incumbent upon city officials to protect the interests of. I think that under Mr. Wood and Ms. Hurley's direction they should be commended for causing the least pain possible and being fair in the process.

Looking down the road things, in my opinion, things are going to get worse. Tough choices are going to have to be made and cuts are going to have to be made to the bone in the upcoming years. Not raising the tax rate directly correlates to Property Appraisal assessments. Right now people are having their properties assessed far above what they could ever sell them for. If these properties are fairly assessed in the future, then surely the rate will have to go up. Of course it will be done under the guise that it is revenue neutral. What will be do about abandoned properties, should we not be able to turn the economic circumstances around and people have to leave Hickory to find work elsewhere?

Also. I think we deserve to see the specifics about the pools, because I really feel that these numbers don't really add up and I can't just take the explanations for granted. The bottom line is that they don't want to operate the pools and they should just get down to the brass tax.  Is the city willing to sell those properties? Would the city consider contracting out those facilities? Will the city abandon the areas of town where those facilities reside in order to build a splash park on the "RIGHT" side of town? Everyone knows that this issue is not going to go away.