The Ponzi Economy
Pimco's Bill Gross on Scoping Out Subprime - The co-founder of Pimco, the $1 trillion-plus fund manager, avoided the subprime bubble by turning his analysts into fake home buyers - Bloomberg Businessweek - Diane Brady - June 9, 2011 - In 2006, there were signs that this had become a highly leveraged Ponzi economy and that housing was at the pinnacle of this leverage. The temperature of the U.S. housing market was always best read here in Orange County [Calif]. But one day that August, as I was going across the street for my daily yoga exercise, it occurred to me that we needed to get a feel for the rest of the country... We had 40 credit analysts covering companies like IBM (IBM) and General Motors (GM). I thought: Why not take 10 of these people and turn them into pretend real estate buyers? Instead of sending them to Armonk to interview the treasurer of IBM, let's send them to places like Detroit, Miami, or Vegas to pretend to be in the market to buy a house. They didn't have a bankroll, and they obviously weren't going to buy a house. Nonetheless, I gave each of them a territory and told them to go there two or three times a month until June 2008. They were told to be serious buyers, to get serious information... There was no pushback, but I wondered whether it was kosher. I wasn't necessarily proud of the obvious deception. But this little bit of trickery alerted us to what was really going on: the liar loans and the extravagant lending practices. We got much better real-time information, and we learned homes were being bought without a down payment or without documents to prove income. The extent of the lending malpractice—to use a nice word—was shocking, and it caused us to stay out of the subprime market.
China’s economy: Burgeoning giant or bubble ready to burst? - Globe and Mail - Brian Milner - June 16, 2011 - Unlike deficit-ridden governments in the U.S. and Europe, Beijing was – and still is – swimming in surpluses. So money was no object. The Chinese leadership was highly motivated to do whatever it took to get the economy back on the fast track. Strong economic growth is vital to maintaining the country’s improving living standards, keeping social unrest in check, greasing the wheels of China’s unique version of state capitalism and ensuring that the Communist Party’s hegemony remains unchallenged... China’s heavy pump-priming worked. Major infrastructure and social-housing projects got off the ground quickly. A flood of subsidies kept large numbers of factories open, avoiding the spectre of millions of unemployed migrant workers taking to the streets. But the influx of cheap credit and investment capital has also created dangerous bubbles in real estate and other assets... It’s on the domestic front where China’s frailties stand out – a feeble financial system, falling consumption as a share of GDP, weak job growth, major inefficiencies in state-dominated sectors and unfavourable demographics stemming from the one-child policy – and where dreams of global domination are most likely to come unglued.
Stimulating a Dead Economy - Huffington Post - Jim Worth - 06/17/11 - The U.S. economy is surviving only because of over-stimulation. We're living on fumes in this country, and the pursuit of happiness has come to an end for millions of families! Main Street is still suffering. But, the market is on Viagra, shored up by QE2, the Fed program to buy hundreds of billions of dollars in U.S. Treasury Bonds. As QE2 winds down, and the economy falters, the discussion turns to the possibility of QE3. A tremendous number of band-aids have been administered to keep the U.S. economy from hemorrhaging; to prevent not only a domestic collapse, but a global one... The Fed's covert loans, exposed by Bloomberg's lawsuit under the Freedom of Information Act, and brought to the attention of the American people by Senator Bernie Sanders and Representative Ron Paul, shows some despicable -- potentially criminal -- actions in the program including loans to Muammar Gaddafi totaling more than $26 billion. The President's Housing Affordable Modification Program, designed to help homeowners, was pretty much a failure and has done little to stabilize the housing market. The FDIC's loss-share program is a fire-storm waiting to explode and the Treasury's $300 billion guarantee to Citibank is a hidden time-bomb that falsely supports over-priced Citi stock... There are subsidies to oil companies and agriculture corporations, and other equally destructive giveaways. (The Hound doesn't believe in his summation that it is all the Republican's fault, but I am still scratching my head about why we are giving huge tax breaks to corporations who don't seem to give a crap about U.S. economic interests).
U.S. Economic Outlook
IMF Sees Risks to Global Economy Mounting - Wall Street Journal - Sudeep Reddy - June 17, 2011 - The International Monetary Fund released its latest global economic forecast Friday, cataloging risks that have piled up in the world economy over just the past two months... The IMF says it still expects global growth of 4.3% this year, down slightly from the 4.4% estimate offered in April in what it called a “mild slowdown of the global expansion.” Among advanced economies, the U.S. is seen growing at 2.5% (slower than the prior 2.8% estimate) while Japan is expected to contract 0.7% (instead of 1.4% growth).
Alan Simpson, Erskine Bowles Predict Coming Economic Crisis - Newsmax - Forrest Jones - June 18, 2011 - A crisis will strike the U.S. economy within two years if politicians don't roll up their sleeves and address fiscal spending like they did in the 1990s, warns former Sen. Alan Simpson. Simpson, a Republican who co-chaired President Barack Obama's National Commission on Fiscal Responsibility, says the United States faces "the most predictable economic crisis in history" by 2013. His remarks echo comments made by his partner in studying deficit reduction, Democrat Erskine Bowles, according to CNS News. The tipping point "will come when the rating agencies find out we Economy, Alan Simpson, Erskine Bowleshave no plan" to seriously address federal spending and the national debt, Simpson says... Simpson, along with Bowles, former President Bill Clinton's chief of staff and co-chair of the spending committee, have warned that fiscal deficits must narrow if the U.S. economy is to recover at a more adequate pace. Simpson says Bowles reached across the aisle to craft policy and acted in the interest of the country, and not just in his political party when in office. "How do you think he did the balanced budget in '96?" Simpson asks... Earlier this year, Simpson told the Senate Budget Committee that the United States was headed toward financial disaster unless spending was curtailed. "This debt and these deficits that we are incurring on an annual basis are like a cancer, and they are truly going to destroy this country from within unless we have the common sense to do something about it.” (The Hound agrees with Simpson and Bowles premise, but unless the Financial Banking Cartel is brought back into line, then they are wasting everyone's time. They are talking about saving Trillions over a decade, which history shows can never be guaranteed, while trillions in spending will go on as usual. A few years ago a $400 billion deficit was looked upon as a disaster and now $1.5 trillion dollar deficits with hopefully a couple hundred billion in cuts is supposed to cure the problem. All of this doesn't even include what is taking place off budget. This is all window dressing on the Titanic. This mindset is not going to cure the ills that we face!!!)
Germany Fires Debt Shot at US - Goldseek.com - Dr. Jeffrey Lewis - June 16, 2011 - In what will likely be the first of many European debt downgrades for the United States, Germany’s own Feri credit rating agency took down the United States’ debt rating from AAA to AA. The difference is marginal in many ways (after all, few countries ever get to become AAA rated), but for the United States, which has always been AAA, this confirms that the downside is here. In addition to downgrading the United States’ debt, the agency also had a few warnings for Washington DC. The ratings agency CEO Tobias Schmidt is reported as saying, “The U.S. government has fought the effects of the financial market crisis primarily by an increase in government debt. We do not see that there is sufficient attention being paid to other measures.” Later on in the release, he would remark that the current deficits are not sustainable.
How Miserable? Index Says the Worst in 28 Years - CNBC - Jeff Cox - June 17, 2011 - When it comes to measuring the combination of unemployment and inflation, it doesn’t get much more miserable than this. In fact, misery, as measured in the unofficial Misery Index that simply totals the unemployment and inflation rates, is at a 28-year high, reflective of how weak the economic recovery has been and how far there is to go. The index, first compiled during the soaring inflation days of the 1970s by economist Arthur Okun, is registering a nausea-inducing 12.7—9.1 percent for unemployment and 3.6 percent for annualized inflation—a number not seen since 1983. The index has been above 10 since November 2009 and had been under double-digits from June 1993 through May 2008... Investor sentiment continues to fall. The latest Investors Intelligence survey, a weekly poll of newsletter authors, points to bulls outnumbering bears by just a 37 percent to 26 percent margin. Yes, it does indicate more people believing the market is heading higher than lower, but the bullishness is around financial crisis levels. The survey includes a smattering of comments from participants. One of the more common that represents the bearish perspective looks at how much optimism there had been in the market prior to the May 2 highs. “Frankly, we have been stunned by the disconnect that we see between these optimistic calls over the past six to nine months and the reality of what is occurring in the global economy,” wrote Boston-based Hans P. Black in the Interinvest Review & Outlook. Conversely, misery is not universal, with Elliott F. Gue’s Personal Finance Newsletter making the case for the optimists that one should not “fall prey to the panic fanned by the usual fear-mongering doomsayers,” a group that presumably includes those unemployed or bewildered by inflation and, thus, in misery.
The Top and the Bottom
Survey: U.S. trails in equal legal treatment of citizens - McClatchy Newspapers - Daniel Lippman - June 13, 2011 - The U.S. lags behind western Europe in access to civil justice and legal assistance, according to an international survey released Monday that also raised questions over whether U.S. police forces treat all citizens equally... A fair legal system provides a critical backbone and infrastructure for countries - ensuring that they run effectively, citizens get a fair shake and companies can operate under predictable rules, the researchers said... While the U.S. scored high in many areas - including checks and balances in the legal system, civil liberties, freedom of expression and independence of the judiciary - it trailed western European countries in such areas as legal access for low-income communities and ethnic minorities and also scored low in perceptions of whether police treat people of different backgrounds equally. "In the United States, rich individuals take their disputes to courts, whereas poor and low-income individuals normally don't use the formal dispute resolution mechanisms. They simply either negotiate, do nothing or resort to violence in the worst-case scenario," said Juan Botero, the director of the index... The findings echoed experts who have said that the much-heralded Arab Spring protests this year were sparked in part by major shortcomings in the rule of law and mistreatment of ordinary citizens across the region. The protests started after an impoverished Tunisian street vendor lit himself on fire after an altercation with local police. "Widespread corruption which goes unpunished and the selective administration of justice is very much part of the sense of alienation and anger which people all across the region felt," said Marc Lynch, a professor of Middle East politics at George Washington University.
Recession… what recession? Pelosi's wealth grows by massive 62% (and Boehner and Cantor are also millionaires) - UK Daily Mail - Paul Bentley - June 16, 2011 - House Minority Leader Nancy Pelosi saw her wealth rise considerably last year, from just more than $20million to a huge $35.2million. Establishing Pelosi's place as one of the wealthiest lawmakers in the country, the sudden 62 per cent rise was revealed in the annual release of forms detailing the assets and liabilities of congressmen today. New House Speaker John Boehner also remained a multi-millionaire, with his wealth jumping from $1.8million in 2009 to $2.1million in 2010, and his deputy Eric Cantor reported even higher earnings.
Working America's Dismal State - Steve Lendman Blog - June 17, 2011 - From 2007 - 2009, private sector wages and salaries declined sharply, while unemployment, underemployment, and their median and mean durations skyrocketed... In fact, "(t)he tepid recovery from the 2007 - 09 recession through (Q I 2011) marks the first time in post-World War II history that civilian employment as measured by the" Current Population Survey (CPS) "failed to register any net growth seven quarters following the end of the recession." As a result, real unemployment as measured in the 1980s tops 22%, not the manipulated Bureau of Labor Statistics (BLS) 9.1% headline figure. Wages have also stagnated or declined, and benefits are eroding... From 2009 Q II through 2010, real US national income rose $528 billion. Pre-tax corporate profits alone increased $464 billion (88% of real national income) while aggregate real wages and salaries rose only $7 billion or 1%, despite double-digit inflation, not the manipulated BLS 3.6% CPI in the previous 12 months, excluding or underweighting food, energy, transportation, rent, college tuitions, and other sharply rising components... Since 1988, EPI published it annually, including data on household incomes, wages, jobs, unemployment, wealth, and poverty. Notably it said from 1948 - 1979, one third of average income growth went to America's 10% richest. However, from 1979 - 2007, the richest 10% got 91% of average income growth, an unprecedented disparity still widening as working households experience deepening hard times with no relief in sight because policy initiatives demand greater sacrifices when massive social spending is required to relieve need... Wealth destruction from 2007 - 2009, was disproportionately experienced by 80% of Americans. The average net worth of America's wealthiest 1% was 225 greater than the median 2009 household net worth - the highest ratio on record. In 2009, about 25% of US households had zero or negative net worth. For Black households, it was 40%. Their median net worth was $2,200, "the lowest ever recorded" compared to Whites at $97,900. In 2009, America's 20% richest controlled 87.2% of all wealth. The top 1% controlled 35.6%. In 2009 dollars, median household wealth fell from $71,900 in 1983 to $62,200 in 2009 while America's richest got richer. In 2009, the Forbes top 400 wealth averaged $3.2 billion - 523% higher than 1982. Their collective net worth was $1.3 trillion. Today it's greater... During the "Great Recession," 8.4 million jobs were lost, and long-term unemployment and underemployment registered record highs. Because of the deepening housing depression, home equity as a percent of property value fell from 59.5% in 2006 Q I to 36.2% in 2009 Q IV. "For the first time on record, the percent of home value (owned outright by homeowners) dropped below 50% - meaning that banks now own more of the nation's housing stock than people do." Moreover, one-fourth of mortgage holders are under water because of rising debt and plummeting prices. Homeowners' equity as a percent of home value fell from around 70% in the early 1970s to 36.2% in Q I 2009.
Gerald Celente - The Ponzi Scheme is Collapsing - June 17, 2011
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Sunday, June 19, 2011
Saturday, June 18, 2011
Do people even know? Hickory Airport Operators (River Hawk Aviation) in Bankruptcy
River Hawk Aviation, the Fixed Based Operator at the Hickory Airport, has filed for Chapter 11 Bankruptcy as of May 19, 2011 in Western North Carolina (North Wilkesboro) Bankruptcy Court. The case is being administered by Judge J. Craig Whitley.
This bankruptcy also affects River Hawk's prior acquisition of Carolina Air Charter, which is addressed on the following web page River Hawk Aviation Acquires Carolina Air Charter, Inc. from March 19, 2008. This bankruptcy also affects Eagle Aviation, which is a FBO headquartered in West Columbia, South Carolina. Apparently River Hawk inherited a stakeholder position in Eagle Aviation through its acquisition of Profile Aviation on August 28, 2007. Profile Aviation was the former FBO at the Hickory Regional Airport.
In a Reuters article dated November 27, 2008 entitled Richard Girouard Joins River Hawk Board , Management forecasted revenues from the Company's existing operating subsidiaries to be approximately $14-$15 million for the upcoming twelve months ending September 2008. Apparently this was a rosy scenario projection when one looks at what has happened over the subsequent 3 1/2 years.
The Hound has detailed the problems associated with the former and current Fixed Based Operators and the subsequent problems partially inherited and otherwise mismanaged by all parties associated with the Hickory Regional Airport. These parties include Hickory City Elected Officials and Administration who have failed to take the bull by the horns and have allowed this problem to fester since at least 2007 and the former and current operators of the airport who have apparently not been working in good faith with City Officials since River Hawk acquired Profile in 2007. The City didn't have a clue of what was happening during that acquisition and in the subsequent time period River Hawk has struggled to meet its financial obligations including those to the City. The City has known the issues and failed to act prior to and since I wrote the following on September 30, 2009 - Mind Blowing - The City's Mismanagement of the Hickory Regional Airport.
During the past two years we have seen more information come to light that shows that River Hawk wasn't going to succeed at the Hickory Airport, but for some reason the City has decided to sit on its hands and let the situation continue to deteriorate. I think it is time that the City answer questions from outside of their constant closed sessions. I don't think those closed sessions meetings related to this issue have occurred except as a method to save face. I think everyone who is honest with themselves has to believe that the deteriorating situation at the airport is an embarrassment.
The lack of a viable airport hurts the economic prospects of Hickory! The lack of a viable airport hurts the the tax base in Hickory! The lack of a viable airport hurts existing and prospective business generation in Hickory!
I would like to ask if our City Officials would operate in the same fashion they have in this situation if they had leased out one of their personal properties for someone else to operate in the same manner that our local airport has been operated in the past several years. I personally don't think they would have tolerated it. Yet, what we see here is a situation very similar to what people gripe about when it comes to higher level politics and governance. If River Hawk would have succeeded, then their profits would have gone to Wall Street investors, but since they have failed our community is the one who has taken the hit. Aviators know of the mismanagement of the Hickory Airport and they have been bypassing it for the last several years. While other airports in the area (Statesville and Lincolnton) have been growing, our airport is dead. Our airport used to be a viable hub for Piedmont Airlines and now there is hardly any activity at all.
We have seen the loss of the viability of our airport become a huge social loss for the community and our City leaders don't seem to care. What we see here is that profits would have been privatized and benefited private parties, such as the current owners of River Hawk (and the former FBO administrator who is now a stakeholder in River Hawk), and the loss has been socialized; because the years that have gone by will probably mean that the Hickory Airport will never be able to recover and will most likely never be a viable Center of Aviation again.
We have seen this same scenario countless times involving multiple issues over the last several years. Where is the accountability? Wake up or kiss it all goodbye!!!
U.S. Bankruptcy CourtWestern District of North Carolina (Wilkesboro)Bankruptcy Petition #: 11-50641 | |
River Hawk Aviation, Inc. |
In a Reuters article dated November 27, 2008 entitled Richard Girouard Joins River Hawk Board , Management forecasted revenues from the Company's existing operating subsidiaries to be approximately $14-$15 million for the upcoming twelve months ending September 2008. Apparently this was a rosy scenario projection when one looks at what has happened over the subsequent 3 1/2 years.
The Hound has detailed the problems associated with the former and current Fixed Based Operators and the subsequent problems partially inherited and otherwise mismanaged by all parties associated with the Hickory Regional Airport. These parties include Hickory City Elected Officials and Administration who have failed to take the bull by the horns and have allowed this problem to fester since at least 2007 and the former and current operators of the airport who have apparently not been working in good faith with City Officials since River Hawk acquired Profile in 2007. The City didn't have a clue of what was happening during that acquisition and in the subsequent time period River Hawk has struggled to meet its financial obligations including those to the City. The City has known the issues and failed to act prior to and since I wrote the following on September 30, 2009 - Mind Blowing - The City's Mismanagement of the Hickory Regional Airport.
During the past two years we have seen more information come to light that shows that River Hawk wasn't going to succeed at the Hickory Airport, but for some reason the City has decided to sit on its hands and let the situation continue to deteriorate. I think it is time that the City answer questions from outside of their constant closed sessions. I don't think those closed sessions meetings related to this issue have occurred except as a method to save face. I think everyone who is honest with themselves has to believe that the deteriorating situation at the airport is an embarrassment.
The lack of a viable airport hurts the economic prospects of Hickory! The lack of a viable airport hurts the the tax base in Hickory! The lack of a viable airport hurts existing and prospective business generation in Hickory!
I would like to ask if our City Officials would operate in the same fashion they have in this situation if they had leased out one of their personal properties for someone else to operate in the same manner that our local airport has been operated in the past several years. I personally don't think they would have tolerated it. Yet, what we see here is a situation very similar to what people gripe about when it comes to higher level politics and governance. If River Hawk would have succeeded, then their profits would have gone to Wall Street investors, but since they have failed our community is the one who has taken the hit. Aviators know of the mismanagement of the Hickory Airport and they have been bypassing it for the last several years. While other airports in the area (Statesville and Lincolnton) have been growing, our airport is dead. Our airport used to be a viable hub for Piedmont Airlines and now there is hardly any activity at all.
We have seen the loss of the viability of our airport become a huge social loss for the community and our City leaders don't seem to care. What we see here is that profits would have been privatized and benefited private parties, such as the current owners of River Hawk (and the former FBO administrator who is now a stakeholder in River Hawk), and the loss has been socialized; because the years that have gone by will probably mean that the Hickory Airport will never be able to recover and will most likely never be a viable Center of Aviation again.
We have seen this same scenario countless times involving multiple issues over the last several years. Where is the accountability? Wake up or kiss it all goodbye!!!
Thursday, June 16, 2011
Are You Ready? -- Gerald Celente
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COLLAPSE: IT’S COMING! ARE YOU READY? KINGSTON, NY, 13 June 2011— Everything is not all right. And things are going to get worse … much worse. The economy is on the threshold of calamity. Wars are spreading like wildfires. The world is on a razor’s edge. Not so, say world leaders and mainstream media experts. Yes, there are problems, but the financiers and politicians are aware of them. Policies are already in place and measures are being taken to correct them. Whether it’s failing economies, intractable old wars or raging new wars, the word from the top always maintains that steady progress is being made and comforts the populace with assurances that the brightest minds and the sharpest generals are in charge and on the case. On all fronts, success is certain and victory is at hand. Only “patience” is required … along with more men, more time and more money. As far as these “leaders” and their media are concerned, the only opinions that count come from a stable of thoroughbred experts, official sources and political favorites. Only they have the credentials to speak with authority and provide trustworthy forecasts. That they are consistently, if not invariably, wrong apparently does nothing to diminish their credibility. How can any thinking adult possibly imagine that the same central bankers, financiers and politicians responsible for creating the economic crisis are capable of resolving it? Within days of its announcement, we predicted that Bush’s TARP (Troubled Asset Relief Program) was destined to fail, and subsequently predicted the same for Obama’s stimulus package (The American Recovery and Reinvestment Act). They were no more than cover-ups; there would be no recovery. Meet the New Plan, Same as the Old Plan Democrat or Republican, it makes no difference. Despite the heated rhetoric, solving economic problems had less to do with the party in power and more to do with professional competence. Both sides had their turn in office. Both used their power to initiate policies that created the problems. Both sides had their shot at fixing the messes they were responsible for. Both sides failed, as we predicted. Given who they are and what they’ve done, we confidently predict an unbroken sequence of bipartisan failures in the future. The Beltway Incompetents are in the driver’s seat. What person with a healthy instinct for self-preservation would believe the promises of politicians or trust the judgment of central bankers or Wall Street financiers whose only real interest is self interest? Not “Business as Usual” In the 1920s, US President Calvin Coolidge declared, “The business of America is business.” Four score and 10 years later, the business of America has become war: The forty-year War on Drugs; The ten-year War on Terror; the Afghan War (longest in American history); the eight-years-and-no-end-in-sight Iraq War; the covert wars in Pakistan and Yemen; and most recently, the “time-limited, scope-limited kinetic military action” in Libya. While the justifications for engaging in these wars were all different, all were murderous, immoral, interminable, ruinously expensive and abject failures. Why would anyone believe the optimistic battle communiqués issued by the “czars” in charge and the battlefield brass who keep reassuring the public that reapplying previously failed strategies would, this time, lead to success? Yet even in the face of their proven failures and gross incompetence, anyone daring to challenge the party line or the conventional wisdom is dismissed as an “alarmist,” “fear monger,” or “gloom-and-doomer.” However unwelcome our forecasts may be – pessimism, optimism, like or dislike are all irrelevant – only their accuracy counts. We correctly forecast:
We also said that the Federal Reserve’s sighting of economic “green shoots” in March 2009 was a "mirage” and predicted that their much vaunted “recovery” was no more than a temporary solution, a quick-fix to be followed by “The Greatest Depression.” And now, in June 2011, with the Dow on a down trend and the economic data increasingly pointing in the direction of Depression, Washington and Wall Street remain in denial. The only debate among the “experts” is whether or not a “double dip” recession is likely. However, for the man on the street – pummeled by falling wages, higher prices, intractable unemployment, rising taxes and punitive “austerity measures” – “Depression,” not “recession,” and certainly not “prosperity,” is just around the corner. According to a June 8th CNN/Opinion Research Corporation poll, 48 percent of Americans believe that another Great Depression is likely to occur in the next year – the highest that figure has ever reached. The survey also indicates that just under half of the respondents live in a household where someone has lost a job or is worried that unemployment may hit them in the near future. Suddenly, after years of obvious economic hardship experienced by tens of millions of Americans – only when the suffering and pain can no longer be cloaked in abstractions and cooked statistics – does an emboldened media dare utter the forbidden “D” word. For Trends Journal readers, alerted to this emerging trend some three years ago, the prospect of Depression should come as no surprise. Neither should the idea that, when it hits and can no longer be denied, a long suffering public will take to the streets. When I made this forecast back then it was written off by most of the major broadcast and print media. Now, however, when one of their own, belatedly and hesitantly, raises that possibility he is elevated to sage status and it becomes big news. In early June, Democratic strategist James “It’s the Economy, Stupid” Carville, having finally mastered the higher math of adding two plus two, warned that decaying economic conditions heightened the risk of civil unrest. As I described it all those years ago: “When people lose everything, and have nothing left to lose, they lose it.” Trend Forecast: The wars will proliferate and civil unrest will intensify. As we forecast, the youth-inspired revolts that first erupted in North Africa and the Middle East are now breaking out in Europe (See “Off With Their Heads,” Trends Journal, Autumn 2010) Given the trends in play and the people in power, economic collapse at some level is inevitable. Governments and central banks will be unrelenting in their determination to wring every last dollar, pound or euro from the people through taxes while confiscating public assets (a.k.a. privatization) in order to cover bad bets made by banks and financiers. When the people have been bled dry financially and have nothing left to give, blood will flow on the streets. Trend Lesson: Learn from history. Do you remember when it first became apparent that the US economy was in deep trouble and heading toward the “Panic of 08”? Not many will. Most people were in a summer state of mind and in holiday mode. It was late July 2007 when the stock market suddenly plunged from its euphoric 14,000 high. Though we had warned in our Summer 2007 Trends Journal (released that June) that “trends indicators point to a major crisis hitting the financial markets between July and November,” the diving Dow was downplayed as a mere “hiccup” … a time to pause between more mouthfuls of expansion. Biggest mistake in a falling stock market The huge swings in the Dow are giving investors pause. But taking your money out of the market now could be the gravest mistake of all. NEW YORK — This past Thursday was the second worst day of the year for the Dow Jones Industrial Average. But remember, it was just a week ago today that the Dow closed above 14,000 for the first (and only) time. Fluctuations in the market shouldn't get to the 401(k) investor. Keep in mind your time horizon - most of us are going to be invested in the market until we retire, often decades from now. CNN 27 July 2007 Four years and trillions of dollars in stock and 401(k) losses later, that typical “take a deep breath, stay the course” advice looks tragically misguided. The Dow would eventually lose more than half its value and now, in June 2011, it’s fallen below 12,000. The moral of this story is to not let your mind take a summer vacation. Conditions are rapidly deteriorating and it is imperative to remain on high alert. Another violent financial episode is looming. It may be triggered by economics (e.g., debt defaults and debt crisis contagion in Europe, a crashing US dollar, or commodity price spikes); it could be terror (false flag or real), a man-made disaster (another Fukushima) or one made by Mother Nature … or any combination of the above. Publisher’s Note: To excel in any field – from gourmet chef to concert pianist to close-combat warrior – you have to practice … endlessly, over and over, until finally the training sinks in and becomes a part of you. In that spirit, I again repeat: preparing for financial survival is a “practice.” And it has to be treated as if you are preparing for battle; expect the unexpected and prepare for the worst, which in these perilous times could be a declaration of economic martial law. Banks may close, currencies may be devalued and deposit withdrawals may be imposed. Remember Gerald Celente’s basic survival strategy, “GC’s Three G’s: Guns, Gold and a Getaway plan.” In the Summer 2011 Trends Journal (mid-July release) we will provide practical strategies to cope with the coming collapse and offer approaches that, if implemented, could reverse the prevailing negative trends. |
| ©MMXI The Trends Research Institute® |
Wednesday, June 15, 2011
Working on a Report about Saturday's meeting of Citizens for Equity in Government
I attended this past Saturday's meeting that only had about 13 attendees. The meeting conflicted with a lot of other happenings around the area. The League of Women's Voters had another meeting going on, there we graduations, and others were on vacation. The hope is that the next meeting in July will have more attendees and by all accounts I believe that it will.
A lot of what was spoken about was about the separation between our local government/governance and the average folks in Hickory. I will get into more of the specifics in a more detailed report over the next few days.
What has me anxious is to see what is going on and how it related to the dysfunction of Government at all levels. These are frightening times in many respects, because we see trouble on social and economic levels. And this effects the people of the lower socio-economic strata more than anyone, because those at the upper levels of the pyramid push their problems down the line. We are living in a Ponzi Scheme Economy. I think most people realize that, but they are satisfied to live this moment in denial under a belief that if they ignore the problems we face that they will just go away.
Our local government and political philosophy operates under a notion that if we save all of our dollars during these rainy days that eventually when the sun shines we are going to float to the top of the heap. The question begs to be asked, "When has this ever happened during the history of civilization?"
When a collapse happens, the whole system goes down. There will be no prisoners taken -- so to say. When the United States Federal Reserve Note System Collapses, we are still going to have to deal with the aftermath of that destruction just like all of the other communities in our country. Fiat Monetary Systems always collapse. It isn't a matter of if. It is a matter of when.
The understanding we must have is that our Social System will only survive the collapse of our currency if we realize that people matter more than money. As I have pointed to you many times on this blog, when the currency collapses there will still be ways to create a marketplace through bartering or alternative currencies. The problems we will see will be because of the transition from what the accepted currency currently is to what it shall be after the collapse of the Federal Reserve Note System.
One of the issues that we discussed the other day was the way that groups of people are constantly pitted against one another. It is the all too well known method called Divide and Conquer. This shouldn't be about color, gender, religious preference, or whatever. This hurts the people at the Lower Economic Strata most of all, because they are the most vulnerable to instability of the economy and the society in general. They have no gated community to hide behind when it hits the fan. They can't afford extra security when there is a riot.
In the times we are living in, we cannot afford to allow ourselves to be divided. Unfortunately, during a Disaster or Collapse that is when riots and chaos will occur, because of the way that groups are pitted against one another. Most of this is created by ignorance and lack of understanding, empathy, and compassion for others who don't fit what someone considers their norm. We can't afford to associate with Modern Professional Wrestling Politics. We can't afford to buy into talking points, obfuscation, and soundbytes.
We need to get on to the road to recovery. We need to start working together to build something, instead of constantly creating obstacles and being destructive. I think that was the mood of the discussion from last Saturday's meeting. I hope people of all backgrounds will join us on this mission to bring Government back to the people of the area. That idea has no party affiliation, color, or creed. That idea is about fairness, justice, and being a good human being.
Peace
A lot of what was spoken about was about the separation between our local government/governance and the average folks in Hickory. I will get into more of the specifics in a more detailed report over the next few days.
What has me anxious is to see what is going on and how it related to the dysfunction of Government at all levels. These are frightening times in many respects, because we see trouble on social and economic levels. And this effects the people of the lower socio-economic strata more than anyone, because those at the upper levels of the pyramid push their problems down the line. We are living in a Ponzi Scheme Economy. I think most people realize that, but they are satisfied to live this moment in denial under a belief that if they ignore the problems we face that they will just go away.
Our local government and political philosophy operates under a notion that if we save all of our dollars during these rainy days that eventually when the sun shines we are going to float to the top of the heap. The question begs to be asked, "When has this ever happened during the history of civilization?"
When a collapse happens, the whole system goes down. There will be no prisoners taken -- so to say. When the United States Federal Reserve Note System Collapses, we are still going to have to deal with the aftermath of that destruction just like all of the other communities in our country. Fiat Monetary Systems always collapse. It isn't a matter of if. It is a matter of when.
The understanding we must have is that our Social System will only survive the collapse of our currency if we realize that people matter more than money. As I have pointed to you many times on this blog, when the currency collapses there will still be ways to create a marketplace through bartering or alternative currencies. The problems we will see will be because of the transition from what the accepted currency currently is to what it shall be after the collapse of the Federal Reserve Note System.
One of the issues that we discussed the other day was the way that groups of people are constantly pitted against one another. It is the all too well known method called Divide and Conquer. This shouldn't be about color, gender, religious preference, or whatever. This hurts the people at the Lower Economic Strata most of all, because they are the most vulnerable to instability of the economy and the society in general. They have no gated community to hide behind when it hits the fan. They can't afford extra security when there is a riot.
In the times we are living in, we cannot afford to allow ourselves to be divided. Unfortunately, during a Disaster or Collapse that is when riots and chaos will occur, because of the way that groups are pitted against one another. Most of this is created by ignorance and lack of understanding, empathy, and compassion for others who don't fit what someone considers their norm. We can't afford to associate with Modern Professional Wrestling Politics. We can't afford to buy into talking points, obfuscation, and soundbytes.
We need to get on to the road to recovery. We need to start working together to build something, instead of constantly creating obstacles and being destructive. I think that was the mood of the discussion from last Saturday's meeting. I hope people of all backgrounds will join us on this mission to bring Government back to the people of the area. That idea has no party affiliation, color, or creed. That idea is about fairness, justice, and being a good human being.
Peace
Sunday, June 12, 2011
Economic Stories of Relevance in Today's World -- June 12, 2011
Questions surround feds' raid of Stockton home - KXTV Sacramento - June 8, 2011 - A federal education official Wednesday morning offered little information as to why federal agents raided a Stockton man's home Tuesday... U.S. Department of Education spokesman Justin Hamilton confirmed for News10 Wednesday morning federal agents with the Office of the Inspector General (OIG), not local S.W.A.T., served the search warrant. Hamilton would not say specifically why the raid took place except that it was part of an ongoing criminal investigation... (Hound - This is a story about unreasonable search and seizure over a student loan).
Bill Gross: Treasury investors will 'get cooked' - CNN Money - By Hibah Yousuf - June 8, 2011 - Investors who have been betting on Treasuries are destined "to get cooked like frogs in an increasingly hot pot of water," the well-known bond bear told attendees at a Morningstar Investment conference in Chicago... Gross, who manages the $235 billion Pimco Total Return Fund (PTTAX), said real interest rates, which remove the effect of inflation to measure the actual yield an investor receives, have fallen into negative territory... He pointed out that Treasury inflation-protected securities with a maturity of 5 years are trading at a yield of -0.5%. In October 2008, the 5-year TIPS' real interest rate stood at 4%... Given the "staggering" drop in yields and the fact that, on a historical basis, they are low, Gross said interest rates can't sink much further "absent a potential crisis in the dollar."
The Situation Room: Corporations paying no federal income tax - CNN - Jack Cafferty - April 21, 2010 - GE and Bank of America pay no taxes... (Video)
The Federal Reserve Cartel: Freemasons and The House of Rothschild - Global Research - by Dean Henderson - (Part 2 of 4) - In 1789 Alexander Hamilton became the first Treasury Secretary of the United States. Hamilton was one of many Founding Fathers who were Freemasons. He had close relations with the Rothschild family which owns the Bank of England and leads the European Freemason movement. George Washington, Benjamin Franklin, John Jay, Ethan Allen, Samuel Adams, Patrick Henry, John Brown and Roger Sherman were all Masons... Roger Livingston helped Sherman and Franklin write the Declaration of Independence. He gave George Washington his oaths of office while he was Grand Master of the New York Grand Lodge of Freemasons. Washington himself was Grand Master of the Virginia Lodge. Of the General Officers in the Revolutionary Army, thirty-three were Masons. This was highly symbolic since 33rd Degree Masons become Illuminated. [1]... Populist founding fathers led by John Adams, Thomas Jefferson, James Madison and Thomas Paine- none of whom were Masons- wanted to completely severe ties with the British Crown, but were overruled by the Masonic faction led by Washington, Hamilton and Grand Master of the St. Andrews Lodge in Boston General Joseph Warren, who wanted to “defy Parliament but remain loyal to the Crown”. St. Andrews Lodge was the hub of New World Masonry and began issuing Knights Templar Degrees in 1769. [2]
Ron Paul tells Manchester crowd inflation will hit 50 percent - New Hampshire Union Leader - Mark Hayward - June 11, 2011 - Texas congressman Ron Paul on Friday predicted that inflation will hit 50 percent in the next couple of years, thanks to the massive debt the country has accumulated... Social Security checks will still be cut and interest payments will still be made, but the inflated dollars will allow the government to repay borrowed dollars with devalued money, Paul said.
Many of us won’t be able to retire until our 80s - Marketwatch - By Robert Powell - June 9, 2011 - What’s more, it’s even worse for low-income workers, according Jack VanDerhei, one of the co-authors of the study. Those who earned (on average over the course of their careers) less than $11,700 per year, the lowest income quartile, would need to defer retirement till age 84 before 90% of those households would have just a 50% chance of affording retirement... Those who earned between $11,700 and $31,200 will need to work till age 76 to have a 50% chance of covering basic expenses in retirement. Those who earned between $31,200 and $72,500 will need to work to age 72 to have a 50% chance and those who earned more than $72,500, those in the highest income quartile, catch a break; they get stop working at age 65 to have a 50/50 chance of funding their retirement.
China ratings house says US defaulting: report - AFP - June 10, 2011 - A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order... "In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying... Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.
US Is Nearing Even Worse Financial Crisis: Jim Rogers - CNBC - Margo D. Beller - June 8, 2011 - The U.S. is approaching a financial crisis worse than 2008, Jim Rogers, chief executive, Rogers Holdings, warned CNBC Wednesday... "The debts that are in this country are skyrocketing," he said. "In the last three years the government has spent staggering amounts of money and the Federal Reserve is taking on staggering amounts of debt... "When the problems arise next time…what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around."... The well-known investor believes the government won't shut down in August if agreement isn't reached on raising the debt ceiling, but he did say "draconian cuts" are needed in taxes and spending, especially military spending.
GM's Akerson pushing for higher gas taxes - The Detroit News - David Shepardson and Christina Rogers - June 7, 2011 - General Motors Co. CEO Dan Akerson wants the federal gas tax boosted as much as $1 a gallon to nudge consumers toward more fuel-efficient cars, and he's confident the government will soon shed its remaining 26 percent stake in the once-bankrupt automaker.... For the years 2017-25, federal officials are considering 3 percent to 6 percent annual fuel efficiency increases, or 47 mpg to 62 mpg. That could boost the cost of vehicles by up to $3,500... "You know what I'd rather have them do — this will make my Republican friends puke — as gas is going to go down here now, we ought to just slap a 50-cent or a dollar tax on a gallon of gas," Akerson said... "People will start buying more Cruzes and they will start buying less Suburbans."
Bill Gross: Treasury investors will 'get cooked' - CNN Money - By Hibah Yousuf - June 8, 2011 - Investors who have been betting on Treasuries are destined "to get cooked like frogs in an increasingly hot pot of water," the well-known bond bear told attendees at a Morningstar Investment conference in Chicago... Gross, who manages the $235 billion Pimco Total Return Fund (PTTAX), said real interest rates, which remove the effect of inflation to measure the actual yield an investor receives, have fallen into negative territory... He pointed out that Treasury inflation-protected securities with a maturity of 5 years are trading at a yield of -0.5%. In October 2008, the 5-year TIPS' real interest rate stood at 4%... Given the "staggering" drop in yields and the fact that, on a historical basis, they are low, Gross said interest rates can't sink much further "absent a potential crisis in the dollar."
The Situation Room: Corporations paying no federal income tax - CNN - Jack Cafferty - April 21, 2010 - GE and Bank of America pay no taxes... (Video)
The Federal Reserve Cartel: Freemasons and The House of Rothschild - Global Research - by Dean Henderson - (Part 2 of 4) - In 1789 Alexander Hamilton became the first Treasury Secretary of the United States. Hamilton was one of many Founding Fathers who were Freemasons. He had close relations with the Rothschild family which owns the Bank of England and leads the European Freemason movement. George Washington, Benjamin Franklin, John Jay, Ethan Allen, Samuel Adams, Patrick Henry, John Brown and Roger Sherman were all Masons... Roger Livingston helped Sherman and Franklin write the Declaration of Independence. He gave George Washington his oaths of office while he was Grand Master of the New York Grand Lodge of Freemasons. Washington himself was Grand Master of the Virginia Lodge. Of the General Officers in the Revolutionary Army, thirty-three were Masons. This was highly symbolic since 33rd Degree Masons become Illuminated. [1]... Populist founding fathers led by John Adams, Thomas Jefferson, James Madison and Thomas Paine- none of whom were Masons- wanted to completely severe ties with the British Crown, but were overruled by the Masonic faction led by Washington, Hamilton and Grand Master of the St. Andrews Lodge in Boston General Joseph Warren, who wanted to “defy Parliament but remain loyal to the Crown”. St. Andrews Lodge was the hub of New World Masonry and began issuing Knights Templar Degrees in 1769. [2]
Ron Paul tells Manchester crowd inflation will hit 50 percent - New Hampshire Union Leader - Mark Hayward - June 11, 2011 - Texas congressman Ron Paul on Friday predicted that inflation will hit 50 percent in the next couple of years, thanks to the massive debt the country has accumulated... Social Security checks will still be cut and interest payments will still be made, but the inflated dollars will allow the government to repay borrowed dollars with devalued money, Paul said.
Many of us won’t be able to retire until our 80s - Marketwatch - By Robert Powell - June 9, 2011 - What’s more, it’s even worse for low-income workers, according Jack VanDerhei, one of the co-authors of the study. Those who earned (on average over the course of their careers) less than $11,700 per year, the lowest income quartile, would need to defer retirement till age 84 before 90% of those households would have just a 50% chance of affording retirement... Those who earned between $11,700 and $31,200 will need to work till age 76 to have a 50% chance of covering basic expenses in retirement. Those who earned between $31,200 and $72,500 will need to work to age 72 to have a 50% chance and those who earned more than $72,500, those in the highest income quartile, catch a break; they get stop working at age 65 to have a 50/50 chance of funding their retirement.
China ratings house says US defaulting: report - AFP - June 10, 2011 - A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order... "In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying... Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.
US Is Nearing Even Worse Financial Crisis: Jim Rogers - CNBC - Margo D. Beller - June 8, 2011 - The U.S. is approaching a financial crisis worse than 2008, Jim Rogers, chief executive, Rogers Holdings, warned CNBC Wednesday... "The debts that are in this country are skyrocketing," he said. "In the last three years the government has spent staggering amounts of money and the Federal Reserve is taking on staggering amounts of debt... "When the problems arise next time…what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around."... The well-known investor believes the government won't shut down in August if agreement isn't reached on raising the debt ceiling, but he did say "draconian cuts" are needed in taxes and spending, especially military spending.
GM's Akerson pushing for higher gas taxes - The Detroit News - David Shepardson and Christina Rogers - June 7, 2011 - General Motors Co. CEO Dan Akerson wants the federal gas tax boosted as much as $1 a gallon to nudge consumers toward more fuel-efficient cars, and he's confident the government will soon shed its remaining 26 percent stake in the once-bankrupt automaker.... For the years 2017-25, federal officials are considering 3 percent to 6 percent annual fuel efficiency increases, or 47 mpg to 62 mpg. That could boost the cost of vehicles by up to $3,500... "You know what I'd rather have them do — this will make my Republican friends puke — as gas is going to go down here now, we ought to just slap a 50-cent or a dollar tax on a gallon of gas," Akerson said... "People will start buying more Cruzes and they will start buying less Suburbans."
Peter Schiff interviewed by Max Keiser
Saturday, June 11, 2011
Newsletter about the City Council meeting of June 7, 2011
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 right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.
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 6/7/2011 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below:
Please remember that pressing Ctrl and + will magnify the text and page and pressing Ctrl and - will make the text and page smaller. This will help the readability for those with smaller screens and/or eye difficulties.
Invocation by Rev. Bill Garrard, Retired from United Methodist Church
Special Presentations:
A. Presentation of Proclamation Proclaiming Wednesday, June 8, 2011 as J. T. Poston Day in the City of Hickory - Whereas, JT Poston won the 2011 3A State individual Golf Championship with a single day scoring record of 63 on the first day; and whereas, JT followed up with a second day score of 68 to win by 9 strokes.; whereas JT set the all-time scoring record for High School play with a score of 131 and his new record breaks the old record set back in 1937. JT was conference player of the year for 3 straight years and helped to lead the Hickory High team to 5th,, 1st, 3rd, and 2nd place finishes in the State. He won two consecutive State Championships and JT is going to represent Hickory well by going to Western Carolina where he will play golf. Yesterday in the Hickory High School shootout, he shot 32 on 9-holes on the Jackson course. Therefore on behalf of Hickory City Council, I do hereby commend JT Poston for his competiveness and sportsmanship and hereby proclaim Wednesday, June 8, 2011 as JT Poston day in the City of Hickory.
JT thanked everyone and the Hickory High School Coach talked about JT’s hard work and discipline and talked about Hickory High’s Senior class and the tremendous character. Mayor Wright mentioned that the 32 was 1-stroke behind the all-time record set in 2001.
B. Presentation of the Distinguished Budget Presentation Award for the Fiscal Year Beginning July 1, 2010. This is the Sixteenth Consecutive Year the City Has Received this Recognition. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort.
Consent Agenda:
A. Resolution – Cancellation of July 5, 2011 City Council Meeting - Be it resolved by the City Council of the City of Hickory that the regularly scheduled City Council Meeting for July 5, 2011 be cancelled due to the annual tradition of canceling the first City Council Meeting in July because of the possibility of not having a quorum of Council as a result of the July 4th holiday and vacations. (This meeting in July has
traditionally been cancelled by the City Council.)
B. Write-Offs for Fiscal Year 2010-2011 in the Amount of $198,299.15 - 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 2010-11 as required by law. Fiscal Year 2011 rite-offs total $187,214.23; whereas, FY 2009-10 write-offs totaled $164,346.90. Accounts over $50 that are eligible 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 2011 have exceeded $17,000 so far.
C. Work Authorization No. 09-05 – Talbert & Bright, Inc. – One Obstruction Survey for Runway 6/24 End Threshold Surfaces at Hickory Regional Airport As Required by NC Division of Aviation in the Total Lump Sum Amount of $16,857 - This work authorization includes performance of an obstruction survey, as required by the NC Division of Aviation, in order to identify any trees and other objects that penetrate threshold approach surfaces to the Runway 06/24 ends. The Federal Aviation Administration’s share of the costs is $15,171 (90%), and the City has a local matching obligation of $1,686 (10%), for a total of $16,857. A budget amendment is not required.
D. Request by Hickory Police Department for Approval to Apply for a Grant from the US Department of Justice to Assist in Funding the Purchase of 39 Bulletproof Vests - Hickory Police Department requests permission to apply for a grant from the US Dept. of Justice to assist in funding the purchase of bulletproof vests for police officers. If awarded the grant, the City will receive up to 50% of the cost (39 vests @ $700 each). Hickory Police Department is committed to improving officer safety and has a “mandatory wear policy” in effect, with monies being budgeted annually to purchase vests. HPD will
be notified after July 1st if awarded the grant.
E. Proclamation Declaring May 23 – 29, 2011 as “American Legion Auxiliary Poppy Week” in the City of Hickory
F. Request to Approve Appearance Grant to Dr. Steven Smith – Non-Residential Property Located at 256 3rd Avenue NW in the Amount of $5,000 - Dr. Steven Smith owns non-residential property located at 256 3rd Avenue NW. Dr. Smith plans to improve the appearance of the property by installing new awnings, painting and glazing of windows and the installation of new landscaping. The amount of the improvements is estimated to be between $12,000 and $18,000. Since both bids exceed $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
G. Request to Approve Appearance Grant to Paige Johnson – Non-Residential Property Located at 817 8th Avenue NE in the Amount of $5,000 - Paige Johnson owns non-residential property located at 817 8th Avenue NE. Ms. Johnson plans to improve the appearance of the property with new stucco work, creating a new parapet, installing new windows and lighting fixtures. The amount of the improvements is estimated to be between $9,600 and $11,245. Since one of the two bids exceeds $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
H. Request to Approve Landscape Grant to Gavin Mitchell – Non-Residential Property Located at 15 2nd Avenue NW in the Amount of $2,500 - Gavin Mitchell owns non-residential property located at 15 2nd Avenue NW. Mr. Mitchell plans to improve the appearance of the property by removing old unmaintained
landscaping and to replace it with new landscaping. The amount of the improvements is estimated to be between $4,879 and $5,288. Since one of the two bids exceeds $5,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $2,500 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $2,500.
I. Request Denial of Appearance Grant to Michael and Nora Perkett for Residential Property Located at 813 Main Avenue, SW in the Amount of $5,000 - On April 25, 2011 the Community Appearance Commission unanimously voted to recommend funding in the amount of $5,000 for a residence in a non residential zoning that is proposed to be converted by owners Michael and Nora Perkett into a bed
and breakfast. They had proposed to use the grant funds to paint the existing structure and to install decorative security fencing for an estimated cost of $11,300. The City Manager’s Office does not recommend approval by City Council. The residential structure sits between two (2) warehouse/industry uses, making it an unlikely place for a successful bed and breakfast, therefore having the potential of not becoming a B&B and giving funds to a private residence. While the CAC is clear in its intention to encourage improvement of properties through the appearance and landscaping grants, for what purpose and intent those funds are allocated should be closely monitored by City Council. If the subject property is verifiably converted to a bed and breakfast at some time in the future, the owners can reapply for an appearance grant as a viable commercial property as apposed to a residence that hopes to become a commercial property. (Pulled from the Agenda and tabled)
J. Budget Ordinance
1. To budget a $189 donation from the Catawba County Young Republicans in the Library Departmental Supplies line item. This donation is for the purchase of summer reading supplies.
2. To budget a $750 International Council donation in the International Council line item. This donation is for the 2011 International Springfest event.
3. To budget a total of $1,200 International Council donations in the International Council line item. Donations will be used to conduct the 2011 International Springfest event.
4. To appropriate $27,658 of Capital Reserve Fund Balance and transfer funds to the Fire Department's Non-Asset Inventory line item. This amendment is necessary to help pay for the purchase of scheduled replacement computer equipment for the Fire Department.
5. To appropriate $16,900 of General Capital Reserve Fund and transfer to the Solid Waste - Specialized Equipment Capital line item. This amendment is necessary to pay the contractor to paint the finish coat on the Transfer Station’s new compactors and all metal structure associated with the compactors. This is part of the Solid Waste Transfer Station project and should have been included in the original project.
6. To accept and budget an $8,175 materials reimbursement check from Mr. Anderson and budget in the Water and Sewer Pipes; Hydrants; Meters line item. Mr. Anderson contacted the Public Utilities Division about extending the water services down Wildlife Club Rd. in Alexander County and said that he would pay for the materials. Therefore; this reimbursement check is for the cost of materials that were needed for the extension.
7. To transfer $208,669 from Capital Reserve Fund Balance Appropriated to the Water and Sewer Fund Capital Water Lines account. This transfer is necessary to pay NCDOT (North Carolina Department of Transportation) for a Utility Agreement for the relocation and adjustment of certain municipal owned water lines along project U-2307AE in Catawba County, Eastside Thoroughfare from north of SR 1692 to north
of 1453 at the end of Springs Rd. This item was budgeted in FY07-08 but is just now being billed by the State. Funds for this agreement reside in Capital Reserve Fund Balance and therefore a budget amendment is necessary.
New Business - Public Hearings:
1. Fiscal Year 2011-2012 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 27, 2011. 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. The City Manager recommends adoption of the attached budget ordinance for Fiscal Year 2011-12.
Manager Berry wanted to show where the City has been over the past 5 years. We have gone through the Great Recession, which has been the most difficult economic times of our generation. This has played out directly in our budget. We have seen less than 1% growth in the past 5 years. In fiscal 08-09 we saw a deficit that is attributable to capital projects that were administered during that year.
This had a direct impact on the fund balance, but over the 5 years. It has remained intact. Money has been set aside for the Northeast Wastewater Treatment Project. Versus other cities, we do not see the City of Hickory looking towards bankruptcy. Two primary issues that are driving communities towards bankruptcy are their Debt payments are consuming Revenues and their other is their Unfunded post employment liabilities (Retirement and Retiree Insurance). There are 644 employees within the City of Hickory.
Five years ago, the City of Hickory was $7.6 million in debt and is presently $2.6 million in debt. In seven years, the City would be out of General Fund debt. There is a Caveat with the Convention Center, but it is Self-Supporting through the Hotel/Motel Occupancy tax. There has been a significant reduction of debt as a percentage of revenues.
The City is going to earn more debt than we pay. Manager Berry spoke of the credit issues that face the federal government. The City has gone up from AA- to AA. The Mayor added that this has come at a time when the debt rating agencies have tightened up.
The City is part of the Local Government Employee Retirement System. This is a jointly funded system. The employee contributes 6% and the City provides 4.89%. The City is not facing the liability. The Money is in the bank when the employees retire. The Mayor added that this does not mean that the money is not there to pay for every benefit. It means that with a normal range of earnings and COLAs that the retirees and the fund will be in decent shape for the future.
Manager Berry stated that the City has a very conservative healthcare program. There are 66 former employees who are still on healthcare insurance. The total expense for everyone is $291,000. Within the scope of the budget this is a relatively minor expense. The City pays 25% of the premium for those who retire with between 20 and 29 years with the City. The City pays 100% for people who have been with the City for 30 years +. This has been capped when these people obtain medicare. This benefit has recently been eliminated for newly hired employees.
Even with the addition 26 Public safety Employees including a Ladder Company in the Fire Department and Police Officers, the City is still down 40 employees (and 34 positions have been frozen). This has had an impact on other departments. Most of the other departments have seen a 10% reduction in their staffing. He does not say that in a proud way, because it has put some stress on the workers and as things improve they will be coming back to add some things back.
What impact has this had on services? The Institute of Government in Chapel Hill has rated the City of Hickory as a comparison to 14 cities of similar size in ten services that are provided. The City of Hickory ranked below the average cost in 90% of the services that were provided in 2010. For 5 consecutive years they are below the average cost in 80%. He then showed the phone survey from 2008 (by the Jackson Group) was very well received.
Manager Berry states that in the last five years with only a 1% increase in the budget we have done a lot. People might say there has been a bunker mentality, but there have been capital projects, the police radio project, Cripple Creek Fall outline… We have moved the city forward.
Manager Berry next mentioned the 2,300 jobs at 9 different businesses that created $109 million in tax bases. He stated that seeds have been sown, saplings are growing, but we need more rain. We need a better economy.
In 2011-12 he expects to see more of the same. He thinks we have seen the worst of it. He mentions the increase in Sales tax Revenues. The budget will not increase any taxes or fees. The overall budget is down 2% to $83.4 million. Operating funds are flat. The general Fund will see a slight decrease. There has been a slight decrease in county property values. Revenue Neutral Tax Rates should have been 51-cents, but they held the line at 50-cents. There is a plan to give merit-based raises in this fiscal year, but a couple more things need to happen first.
The City did not get selected for the recent round of Brownfield Grants. He mentions how we will have to deal with vacant buildings as a top priority. He wants to focus on technology. We are serious partners with other local communities to create a Multi-Jurisdictional Technology and Business Park.
The Mayor stated that a lot of time has been spent since February on this budget. The mayor is proud that they are going to be able to hold the line on taxes. In 2001, we were 2nd in the State in tax burden, which is property tax plus sales tax. Today we are 15th, which is right in the middle. He states that we have tried to keep from being an unfair burden to tax payers. Alderman Meisner stated that this has been done without citizens receiving any noticeable reduction in services. Alderman Lail stated that this is the first year in a while that City fees have not been increased and this has been done with the understanding of how difficult things are for citizens at this point in time.
The Hound constantly talks about the issue of Austerity. There are people who actually think that austerity is good, but austerity impedes growth. You have to invest in the future in order to have one. What we have seen is that most of the investment within this community has come from outside governmental sources. That isn't all bad, because the City has used monies, such as stimulus, to be able to leverage capital and maximize investment in certain infrastructure to move forward. It is easy to see that the city does think through investments and attempts to always get the most bang for the buck.
What one needs to realize is that, in terms of real dollars, the overall budget has fallen drastically over the five years. When looking at the Consumer Price Index, one sees that the revenues in real terms have actually fallen dramatically. In today's dollars the actual 2006-07 revenues ($42.9 million) would be $47.9 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lost nearly 12% of its revenues during this timespan.
In terms of expenditures the actual 2006-07 expenditures ($39.9 million) would be $44.5 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lowered its expenditures by nearly 4% of in this timespan. So in real terms the City has (negatively) increased its spread of General Fund revenues over expenditures by 8%.
To get a big picture analysis of Economics, you have to look at the element of inflation in the system. In 2006-07, the proposed budget was $76 million. In today's dollars that would be $84.8 million. We see that the proposed 2011-12 budget is $83.4. That is a 1.7% reduction compared to the budget of five years ago, which 1.7% is not a drastic shift. What we see through all of this is that the budget is definitely being kept in line, which is excellent. The problem is that if Revenues stay on this path, a 12% reduction in real terms, then even more drastic cuts in services offered are definitely going to have to be made.
In looking at ways to begin growing City Revenues, one must realize that property values are going to remain stagnant at best. The only way to raise revenues will be to bring money generated from Sales back up. The only way to do that is to get people spending and the only way to do that is to increase the city's Employment capacity. It is obvious, that is what is going to have to be worked on to get back on a path to progress. We have to get good paying jobs back in our local economy or we can't raise that sales tax and that is the only thing that can improve budgets 5 years plus down the line. This is not cup half full or empty. This is reality.
2. Continuation of Public Hearing of May 17, 2011 – Proposed Ward Boundary Map Based on the 2010 Federal Census Results and Approval of Resolution At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population
based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was
further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input
at the public hearing and consider adoption of the requisite resolution. At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
New Business - Departmental Reports:
1. Consideration of Offer to Purchase and Contract for Property Owned by Joe Robert LaFone, Sr. Heirs Located at 230 3rd Street, SW in the Amount of $16,000 - Staff requests consideration to purchase a .46 acre vacant lot owned by Joe Robert LaFone, Sr. Heirs located at 230 3rd Street, SW. The property is adjacent to 6.59 acres owned by the City of Hickory and could potentially be used for expansion of the Hickory Police Department. The offer is based on an asking price of $16,000 and a tax value of $10,000. Chief Tom Adkins made the presentation and went over the above information. The Council unanimously consented.
At right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.
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 6/7/2011 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below:
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Invocation by Rev. Bill Garrard, Retired from United Methodist Church
Special Presentations:
A. Presentation of Proclamation Proclaiming Wednesday, June 8, 2011 as J. T. Poston Day in the City of Hickory - Whereas, JT Poston won the 2011 3A State individual Golf Championship with a single day scoring record of 63 on the first day; and whereas, JT followed up with a second day score of 68 to win by 9 strokes.; whereas JT set the all-time scoring record for High School play with a score of 131 and his new record breaks the old record set back in 1937. JT was conference player of the year for 3 straight years and helped to lead the Hickory High team to 5th,, 1st, 3rd, and 2nd place finishes in the State. He won two consecutive State Championships and JT is going to represent Hickory well by going to Western Carolina where he will play golf. Yesterday in the Hickory High School shootout, he shot 32 on 9-holes on the Jackson course. Therefore on behalf of Hickory City Council, I do hereby commend JT Poston for his competiveness and sportsmanship and hereby proclaim Wednesday, June 8, 2011 as JT Poston day in the City of Hickory.
JT thanked everyone and the Hickory High School Coach talked about JT’s hard work and discipline and talked about Hickory High’s Senior class and the tremendous character. Mayor Wright mentioned that the 32 was 1-stroke behind the all-time record set in 2001.
B. Presentation of the Distinguished Budget Presentation Award for the Fiscal Year Beginning July 1, 2010. This is the Sixteenth Consecutive Year the City Has Received this Recognition. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort. - Mayor Wright stated that they are so proud that the city met the incredibly high standards for excellence in budgeting. This is the 16th straight year in receiving this award. Karen Hurley stressed that this takes a total team effort.
Consent Agenda:
A. Resolution – Cancellation of July 5, 2011 City Council Meeting - Be it resolved by the City Council of the City of Hickory that the regularly scheduled City Council Meeting for July 5, 2011 be cancelled due to the annual tradition of canceling the first City Council Meeting in July because of the possibility of not having a quorum of Council as a result of the July 4th holiday and vacations. (This meeting in July has
traditionally been cancelled by the City Council.)
B. Write-Offs for Fiscal Year 2010-2011 in the Amount of $198,299.15 - 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 2010-11 as required by law. Fiscal Year 2011 rite-offs total $187,214.23; whereas, FY 2009-10 write-offs totaled $164,346.90. Accounts over $50 that are eligible 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 2011 have exceeded $17,000 so far.
C. Work Authorization No. 09-05 – Talbert & Bright, Inc. – One Obstruction Survey for Runway 6/24 End Threshold Surfaces at Hickory Regional Airport As Required by NC Division of Aviation in the Total Lump Sum Amount of $16,857 - This work authorization includes performance of an obstruction survey, as required by the NC Division of Aviation, in order to identify any trees and other objects that penetrate threshold approach surfaces to the Runway 06/24 ends. The Federal Aviation Administration’s share of the costs is $15,171 (90%), and the City has a local matching obligation of $1,686 (10%), for a total of $16,857. A budget amendment is not required.
D. Request by Hickory Police Department for Approval to Apply for a Grant from the US Department of Justice to Assist in Funding the Purchase of 39 Bulletproof Vests - Hickory Police Department requests permission to apply for a grant from the US Dept. of Justice to assist in funding the purchase of bulletproof vests for police officers. If awarded the grant, the City will receive up to 50% of the cost (39 vests @ $700 each). Hickory Police Department is committed to improving officer safety and has a “mandatory wear policy” in effect, with monies being budgeted annually to purchase vests. HPD will
be notified after July 1st if awarded the grant.
E. Proclamation Declaring May 23 – 29, 2011 as “American Legion Auxiliary Poppy Week” in the City of Hickory
F. Request to Approve Appearance Grant to Dr. Steven Smith – Non-Residential Property Located at 256 3rd Avenue NW in the Amount of $5,000 - Dr. Steven Smith owns non-residential property located at 256 3rd Avenue NW. Dr. Smith plans to improve the appearance of the property by installing new awnings, painting and glazing of windows and the installation of new landscaping. The amount of the improvements is estimated to be between $12,000 and $18,000. Since both bids exceed $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
G. Request to Approve Appearance Grant to Paige Johnson – Non-Residential Property Located at 817 8th Avenue NE in the Amount of $5,000 - Paige Johnson owns non-residential property located at 817 8th Avenue NE. Ms. Johnson plans to improve the appearance of the property with new stucco work, creating a new parapet, installing new windows and lighting fixtures. The amount of the improvements is estimated to be between $9,600 and $11,245. Since one of the two bids exceeds $10,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $5,000 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $5,000.
H. Request to Approve Landscape Grant to Gavin Mitchell – Non-Residential Property Located at 15 2nd Avenue NW in the Amount of $2,500 - Gavin Mitchell owns non-residential property located at 15 2nd Avenue NW. Mr. Mitchell plans to improve the appearance of the property by removing old unmaintained
landscaping and to replace it with new landscaping. The amount of the improvements is estimated to be between $4,879 and $5,288. Since one of the two bids exceeds $5,000, the applicant is eligible for the full grant. However, should the actual cost be less, the applicant would be reimbursed dollar per dollar up to the $2,500 maximum. On May 23, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $2,500.
I. Request Denial of Appearance Grant to Michael and Nora Perkett for Residential Property Located at 813 Main Avenue, SW in the Amount of $5,000 - On April 25, 2011 the Community Appearance Commission unanimously voted to recommend funding in the amount of $5,000 for a residence in a non residential zoning that is proposed to be converted by owners Michael and Nora Perkett into a bed
and breakfast. They had proposed to use the grant funds to paint the existing structure and to install decorative security fencing for an estimated cost of $11,300. The City Manager’s Office does not recommend approval by City Council. The residential structure sits between two (2) warehouse/industry uses, making it an unlikely place for a successful bed and breakfast, therefore having the potential of not becoming a B&B and giving funds to a private residence. While the CAC is clear in its intention to encourage improvement of properties through the appearance and landscaping grants, for what purpose and intent those funds are allocated should be closely monitored by City Council. If the subject property is verifiably converted to a bed and breakfast at some time in the future, the owners can reapply for an appearance grant as a viable commercial property as apposed to a residence that hopes to become a commercial property. (Pulled from the Agenda and tabled)
J. Budget Ordinance
1. To budget a $189 donation from the Catawba County Young Republicans in the Library Departmental Supplies line item. This donation is for the purchase of summer reading supplies.
2. To budget a $750 International Council donation in the International Council line item. This donation is for the 2011 International Springfest event.
3. To budget a total of $1,200 International Council donations in the International Council line item. Donations will be used to conduct the 2011 International Springfest event.
4. To appropriate $27,658 of Capital Reserve Fund Balance and transfer funds to the Fire Department's Non-Asset Inventory line item. This amendment is necessary to help pay for the purchase of scheduled replacement computer equipment for the Fire Department.
5. To appropriate $16,900 of General Capital Reserve Fund and transfer to the Solid Waste - Specialized Equipment Capital line item. This amendment is necessary to pay the contractor to paint the finish coat on the Transfer Station’s new compactors and all metal structure associated with the compactors. This is part of the Solid Waste Transfer Station project and should have been included in the original project.
6. To accept and budget an $8,175 materials reimbursement check from Mr. Anderson and budget in the Water and Sewer Pipes; Hydrants; Meters line item. Mr. Anderson contacted the Public Utilities Division about extending the water services down Wildlife Club Rd. in Alexander County and said that he would pay for the materials. Therefore; this reimbursement check is for the cost of materials that were needed for the extension.
7. To transfer $208,669 from Capital Reserve Fund Balance Appropriated to the Water and Sewer Fund Capital Water Lines account. This transfer is necessary to pay NCDOT (North Carolina Department of Transportation) for a Utility Agreement for the relocation and adjustment of certain municipal owned water lines along project U-2307AE in Catawba County, Eastside Thoroughfare from north of SR 1692 to north
of 1453 at the end of Springs Rd. This item was budgeted in FY07-08 but is just now being billed by the State. Funds for this agreement reside in Capital Reserve Fund Balance and therefore a budget amendment is necessary.
New Business - Public Hearings:
1. Fiscal Year 2011-2012 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 27, 2011. 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. The City Manager recommends adoption of the attached budget ordinance for Fiscal Year 2011-12.
Manager Berry wanted to show where the City has been over the past 5 years. We have gone through the Great Recession, which has been the most difficult economic times of our generation. This has played out directly in our budget. We have seen less than 1% growth in the past 5 years. In fiscal 08-09 we saw a deficit that is attributable to capital projects that were administered during that year.
This had a direct impact on the fund balance, but over the 5 years. It has remained intact. Money has been set aside for the Northeast Wastewater Treatment Project. Versus other cities, we do not see the City of Hickory looking towards bankruptcy. Two primary issues that are driving communities towards bankruptcy are their Debt payments are consuming Revenues and their other is their Unfunded post employment liabilities (Retirement and Retiree Insurance). There are 644 employees within the City of Hickory.
Five years ago, the City of Hickory was $7.6 million in debt and is presently $2.6 million in debt. In seven years, the City would be out of General Fund debt. There is a Caveat with the Convention Center, but it is Self-Supporting through the Hotel/Motel Occupancy tax. There has been a significant reduction of debt as a percentage of revenues.
The City is going to earn more debt than we pay. Manager Berry spoke of the credit issues that face the federal government. The City has gone up from AA- to AA. The Mayor added that this has come at a time when the debt rating agencies have tightened up.
The City is part of the Local Government Employee Retirement System. This is a jointly funded system. The employee contributes 6% and the City provides 4.89%. The City is not facing the liability. The Money is in the bank when the employees retire. The Mayor added that this does not mean that the money is not there to pay for every benefit. It means that with a normal range of earnings and COLAs that the retirees and the fund will be in decent shape for the future.
Manager Berry stated that the City has a very conservative healthcare program. There are 66 former employees who are still on healthcare insurance. The total expense for everyone is $291,000. Within the scope of the budget this is a relatively minor expense. The City pays 25% of the premium for those who retire with between 20 and 29 years with the City. The City pays 100% for people who have been with the City for 30 years +. This has been capped when these people obtain medicare. This benefit has recently been eliminated for newly hired employees.
Even with the addition 26 Public safety Employees including a Ladder Company in the Fire Department and Police Officers, the City is still down 40 employees (and 34 positions have been frozen). This has had an impact on other departments. Most of the other departments have seen a 10% reduction in their staffing. He does not say that in a proud way, because it has put some stress on the workers and as things improve they will be coming back to add some things back.
What impact has this had on services? The Institute of Government in Chapel Hill has rated the City of Hickory as a comparison to 14 cities of similar size in ten services that are provided. The City of Hickory ranked below the average cost in 90% of the services that were provided in 2010. For 5 consecutive years they are below the average cost in 80%. He then showed the phone survey from 2008 (by the Jackson Group) was very well received.
Manager Berry states that in the last five years with only a 1% increase in the budget we have done a lot. People might say there has been a bunker mentality, but there have been capital projects, the police radio project, Cripple Creek Fall outline… We have moved the city forward.
Manager Berry next mentioned the 2,300 jobs at 9 different businesses that created $109 million in tax bases. He stated that seeds have been sown, saplings are growing, but we need more rain. We need a better economy.
In 2011-12 he expects to see more of the same. He thinks we have seen the worst of it. He mentions the increase in Sales tax Revenues. The budget will not increase any taxes or fees. The overall budget is down 2% to $83.4 million. Operating funds are flat. The general Fund will see a slight decrease. There has been a slight decrease in county property values. Revenue Neutral Tax Rates should have been 51-cents, but they held the line at 50-cents. There is a plan to give merit-based raises in this fiscal year, but a couple more things need to happen first.
The City did not get selected for the recent round of Brownfield Grants. He mentions how we will have to deal with vacant buildings as a top priority. He wants to focus on technology. We are serious partners with other local communities to create a Multi-Jurisdictional Technology and Business Park.
The Mayor stated that a lot of time has been spent since February on this budget. The mayor is proud that they are going to be able to hold the line on taxes. In 2001, we were 2nd in the State in tax burden, which is property tax plus sales tax. Today we are 15th, which is right in the middle. He states that we have tried to keep from being an unfair burden to tax payers. Alderman Meisner stated that this has been done without citizens receiving any noticeable reduction in services. Alderman Lail stated that this is the first year in a while that City fees have not been increased and this has been done with the understanding of how difficult things are for citizens at this point in time.
The Hound constantly talks about the issue of Austerity. There are people who actually think that austerity is good, but austerity impedes growth. You have to invest in the future in order to have one. What we have seen is that most of the investment within this community has come from outside governmental sources. That isn't all bad, because the City has used monies, such as stimulus, to be able to leverage capital and maximize investment in certain infrastructure to move forward. It is easy to see that the city does think through investments and attempts to always get the most bang for the buck.
What one needs to realize is that, in terms of real dollars, the overall budget has fallen drastically over the five years. When looking at the Consumer Price Index, one sees that the revenues in real terms have actually fallen dramatically. In today's dollars the actual 2006-07 revenues ($42.9 million) would be $47.9 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lost nearly 12% of its revenues during this timespan.
In terms of expenditures the actual 2006-07 expenditures ($39.9 million) would be $44.5 million and the projection for the upcoming year is $42.8 million. This means that in real terms the city has lowered its expenditures by nearly 4% of in this timespan. So in real terms the City has (negatively) increased its spread of General Fund revenues over expenditures by 8%.
To get a big picture analysis of Economics, you have to look at the element of inflation in the system. In 2006-07, the proposed budget was $76 million. In today's dollars that would be $84.8 million. We see that the proposed 2011-12 budget is $83.4. That is a 1.7% reduction compared to the budget of five years ago, which 1.7% is not a drastic shift. What we see through all of this is that the budget is definitely being kept in line, which is excellent. The problem is that if Revenues stay on this path, a 12% reduction in real terms, then even more drastic cuts in services offered are definitely going to have to be made.
In looking at ways to begin growing City Revenues, one must realize that property values are going to remain stagnant at best. The only way to raise revenues will be to bring money generated from Sales back up. The only way to do that is to get people spending and the only way to do that is to increase the city's Employment capacity. It is obvious, that is what is going to have to be worked on to get back on a path to progress. We have to get good paying jobs back in our local economy or we can't raise that sales tax and that is the only thing that can improve budgets 5 years plus down the line. This is not cup half full or empty. This is reality.
2. Continuation of Public Hearing of May 17, 2011 – Proposed Ward Boundary Map Based on the 2010 Federal Census Results and Approval of Resolution At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population
based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was
further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input
at the public hearing and consider adoption of the requisite resolution. At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
Newsletter about the City Council meeting of June 7, 2011 -- Addendum on "The Newly Proposed Ward Boundary Map"
Save Democracy at the local level meeting - June 11, 2011 - 10am to Noon
SAVE DEMOCRACY AT THE LOCAL LEVEL IN HICKORY, NC All interested groups and citizens are invited to a citywide coalition meeting of
CITIZENS FOR EQUITY IN GOVERNMENT - Saturday, June 11, 2011 -10:00 am to Noon
Patrick Beaver Memorial Library Meeting Room, 375 3rd Street NE, Hickory, NC 28602
Contact: Billy Sudderth, 828 308 4669
New Business - Departmental Reports:
1. Consideration of Offer to Purchase and Contract for Property Owned by Joe Robert LaFone, Sr. Heirs Located at 230 3rd Street, SW in the Amount of $16,000 - Staff requests consideration to purchase a .46 acre vacant lot owned by Joe Robert LaFone, Sr. Heirs located at 230 3rd Street, SW. The property is adjacent to 6.59 acres owned by the City of Hickory and could potentially be used for expansion of the Hickory Police Department. The offer is based on an asking price of $16,000 and a tax value of $10,000. Chief Tom Adkins made the presentation and went over the above information. The Council unanimously consented.
Wednesday, June 8, 2011
Newsletter about the City Council meeting of June 7, 2011 -- Addendum on "The Newly Proposed Ward Boundary Map"
Continuation of Public Hearing of May 17, 2011 – Proposed Ward Boundary Map Based on the 2010 Federal Census Results and Approval of Resolution
At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input at the public hearing and consider adoption of the requisite resolution.
At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
Four people spoke againt this proposal. The first person person to speak was Barbara Byrd, she spoke about what was going on back in the 1970s when she grew up. She spoke about there being no purpose at that time that kids were dropping out of school... had nothing to do and everything to lose, but who cares and who loses. She spoke about the Jim Crow law, which occurred during this era and it is still being practiced here today. Over 40 years, you would think that this would overcome and respect all races -- a lesson to be learned in itself. Why should we be reminded of racism, name calling, riots, seperate this, separate that, all of this for a huge political power struggle that you people hold offices to stand for us as people and citizens of Hickory. Questions are being asked, what can we do to end this era? What is expected from our city officials? More so, what is expected of us to help move this city of Hickory to the next level for all people? We need representation from all, including all races, to help make this happen. No one can begin to think or feel or never act upon our community, in which we live, which is Ward 4 Ridgeview. We all need to be on the same page, so let's try to realign and move forward. Leave all of this Jim Crow Law behind and thrive for the future. What is so wrong with wanting to move the Ward lines so that we can get better representation so that we can get proper representation so our voice can be heard. We have plenty of issues that need to be addressed as well, such as poverty out of our neighborhood... raise the standards for higher education and exemplify our place in society, so that we can improve all of our kids for the betterment of our children, our heritage, and our dignity. Let's lay down this Jim Crow law tonight, because we can only dream of an All-American City. Which one of these communities? Ours bleed so yours is going to bleed also. Don't take the soul and heart out of ward 4. Let it thrive. One day we can all stand proud and say to you, this is an All-American City in which we live. And tonight, please keep in mind that our children are our future. Our community belongs to each and every one of us. All we ask is that we have a voice, the same as you guys do, and that we feel comfortable in our homes at night. Say yes to some of these wrad lines that really need to be adjusted for all people.
The following comment will be summarizations of the statements of James Franklin Davis, Deborah McNeur, and Larry Pope:
J. Franklin (Jimmy) Davis addressed the Council. The decision that you've made indicates that The City is going to prioritize incumbency protection over minority voting rights and that is a pretty undemocratic position to take. The current method of elections is unfair. If future conditions of elections continue to bear out the trend that candidates that are the choice of minority voters cannot win when pitted against white candidates, in an at large election, then you will have to reevaluate your legal options. Jimmy then used a couple of segments that went over questions that have been asked on the Hickory Hound in the January Rant entitled the Pursuit of Excellence. He then speaks of a Bible quote, "Take heed who is chief amongst you and let them be your servant." Are you (the council) the he who is being referred to. The ultimate measure of a man or woman is not where he or she stands in moments of comfort or convenience, but where he or she stands at times of challenge and controversy. The true neighbor will risk his position, his status, and even his life for the welfare of others. Studies show Hickory at the bottom of the barrel in just about every national study that e have seen, yet Council members are patting themselves on the back and are proud of the work that they are doing -- Really? Jimmy then went into the State of Hickory 2011. "We don’t need leaders who are in the political arena to stroke their ego. We need leaders in this community who are thinkers and who are intellectually curious. We need leaders who know how jobs are created, because if they don’t, they could cause the loss of jobs and the empirical evidence of the last decade shows that this was a contributing factor in what happened to our job market. Our leaders lost sight of what businesses need to make employment viable."
Jimmy states that the essence of all of our work, regardless of what particular issue or activity in which we are involved, is to foster a spirit of authentic community. All of our work therefore should promote social, economic, and personal relationships that are firm and realize that equality, dignity, the worth and potential of every person and all peoples. We take care to stand with the poor, the oppressed, any group or person in such a way that we stand for the best interest of the whole.
The next person to speak was Deb McNeur. With all due respect, the Mayor stated that it was unfair to unseat an incumbent by eliminating a seat. That is not really the truth. It would not be in favor of eliminatinating a seat, byt it would be in favor of electing someone of low socio-economic status to the Council to give fair representation to all of the areas. Part of Ward 4 is West Hickory, Westmont, and Green Park also. It's not really a racial issue. (Deb) doesn't like it being divided along racial issues, but it is a south side of the tracks issue. The big issue is the socio-economics. No one from Ward 4 West Hickory could get elected either. She considers the wards having been gerrymandered to keep the status quo in place, which is not conducive to someone being fairly represented that does not have the socio-economics most of you sitting there (City Council) do.
Larry Pope was the next person to speak. Larry commended City staff who had helped him when he had low blood sugar while visiting city hall that morning. He is proud of how they represent the city. They need to be commended. He considers himself a citizen of a very good city. Larry has asked several times about going back to what we had in 1970, in which Council elections were purely ward based. With the blended at-large system, minorities and low income folks in our city don't stand a chance of being elected. (Larry) is a good example. He won his ward 4 times, but when it went to at-large he was defeated, because folks all over the city voted against (Larry), because they couldn't control Larry or he wouldn't vote the way that they wanted him to vote. (Larry) says to (Council) that the only way that we can make elections in the city representative is to let the folks of their ward be chosen by the citizens of their ward. (Larry) is asking tonight for (Council) to give us an answer so that he knows whether they intend to go to Ward election, He wants them to vote on it and how they vote on it. He wants to know whether they will vote to go back to NCGS 160a-104 and go back to ward elections so that citizens can choose who they want to represent them and not have citizens who do not live in that ward choosing who will represent them.
The Mayor stated that he believed that the 3rd proposal should be adopted. It is absolutely no better or worse than alternative 4, except that it unseats a sitting council member. It does not change voting patterns. It does not give more power or less power.
Alder Patton stated that she seconded the motion. Much of what has been discussed ignores that there has been a minority elected to the ward for many years. She truly believes that the city has moved past color. It is not based on color. If there is a viable good candidate that the city wants to elect, then that can incude not just a black, but Asian, Hmong, or Latino. She believes that Hickory would elect a minority.
(Deb McNeur) later spoke up during an address of council and stated that she wanted to remind the Council that the person elected by the at-large vote (Z. Anne Hoyle) was not the choice of the people of that ward. She stated that is the reason why Alderman Guess is on the Council is because the people of ward 4 were not going to vote for M. Hoyle.
Alder Fox stated that she wants to say that she has thought about this and it was a numbers process. She considered it a fair process. All of us regardless of the wards that we represent spend a lot of time in other areas that are not basically our wards. She can speak for council members who have spent hours in areas that they don't represent. She is satisfied with what has taken place here. we were not charged with how to look at how we vote.
The Mayor stated that we had another open meeting and all we are talking about is two percent, but it eliminates a city council member. he feels comfortable with what they have done. It has nothing to do with depriving anyone's voting rights in any way. He can't think of anything realistically that would have changed things.
There was contention as the Council members voted 7-0 to adopt the resolution. Larry Pope demanded that as part of Title 2 of the Americans with Disabilities Act that they state their name and how they voted. The Mayor stated that he was not going to do that unless someone tells him that the law requires that. Attorney Crone stated that it was obvious that it was a 7-0 vote, but did not answer about the legality of the issue. Mr. Pope stated that if forced to that he would challenge the issue in court. He does not know which council members are here or not here. He cannot see a single individual. (Larry)asks for it to be done the way that the law requires it to be done. Hank Guess made a motion that the Council vote in that format. That motion was seconded by several council members. The Mayor stated that they have always voted in an appropriate manner, but in his opinion they should not start saying that they are going to do something that the law requires in one instance, but not another. If the law requires it... Alderman Guess stated that it's not that... Mayor Wright stated that before he votes he wants to know whether the law requires it. Atty. Crone stated that it was clear that every member here voted unanimously, but would not address the legal issue. Crone stated that he doesn't see what the big deal is one way or the other. Lail, Seaver, Guess, Fox, and Patton voted Aye to the voice vote. Mayor Wright and Meisner voted No to the Voice vote. In the voice vote each member stated their name and voted yes to adopt the Ward line third proposal.
The Hound says Whew!!! This was contentious and really doesn't need to be. I don't believe that this is an issue of Jim Crow, separate but equal, law. I can understand the angst of the people of the Ridgeview community over issues with the city in the past. I agree with Deb McNeur that this is an issue of socio-economics and it is an issue of the two sides of the tracks. I don't see anything vitriolic about that being stated.
Look at the precincts that had the highest turnout. They were the Viewmont wards. In my opinion that is because there issues are taken care of. They are choosing who will represent every ward. As has been stated to me, the reason why you don't see neighborhood associations in North Hickory is because their issues are already addressed. They don't need a place to vent their frustrations about their neighborhoods issues.
I also agree that the wards are gerrymandered. There is no rhyme or reason to the way they are drawn. They could come up with these same numbers by drawing a sliced pie map- of Hickory that does not have wards drawn here there and everywhere. I do believe that there should be more direct representation of the specific parts of Hickory. An outside of the box idea and compromise would be to have each quadrant of the city have a representative, with some compromises for population distribution, elected specifically by that quadrant, and then have two at large council positions voted on by people throughout the city and the Mayor. Then have the mayor position with some superceding authority.
Right now, what gives Mayor Wright any more status than the other Council members? They all are voted on by the same electorate in the same manner. Truly, the other Council members have just as much power as the Mayor. If this is going to be the case, then why even have a formal election for a Mayor. Why not have a more parliamentary system with seven wards and let the council members choose who will be the Chairman of the Council.
One thing is for sure. This is an issue. It needs to be debated. We need to know why the Post-1970 electoral model works best. Why are we holding unnecessary primary elections? Why is there such low participation? Do we not want more people to participate? And I am not naive, do people really even care?
At its April 5, 2011 meeting, City Council received an initial (Alternative 1) map showing ward boundary changes which would balance each ward’s population based on the 2010 Census. City Council designated a subcommittee (Wright, Fox, Meisner) to analyze ward boundaries and recommend changes to City Council. Feedback from the Council meeting was used to develop Alternative 2, and the subcommittee met in open session on April 26, 2011. Alternative 2 was further refined to keep Planning Commission Members in their wards and takes into consideration City Council Members’ comments. Alternative 3 was developed, and the subcommittee met in open session on May 6, 2011. The subcommittee recommended Alternative 3 for City Council to receive public input at the public hearing and consider adoption of the requisite resolution.
At the May 17, 2011 meeting, Attorney Allison Riggs, Southern Coalition for Social Justice, presented an alternative ward redistricting map for City Council consideration. City Council unanimously voted to continue the public hearing to June 7, 2011. Further, Council directed that another meeting of the Subcommittee on Ward Redistricting be held prior to the June 7th Council Meeting. The subcommittee met in open session on May 25, 2011 and reviewed the option presented by Attorney Allison Riggs, Southern Coalition for Social Justice. Alternative 3 was unanimously approved and recommended to City Council for consideration along with the requisite resolution.
Four people spoke againt this proposal. The first person person to speak was Barbara Byrd, she spoke about what was going on back in the 1970s when she grew up. She spoke about there being no purpose at that time that kids were dropping out of school... had nothing to do and everything to lose, but who cares and who loses. She spoke about the Jim Crow law, which occurred during this era and it is still being practiced here today. Over 40 years, you would think that this would overcome and respect all races -- a lesson to be learned in itself. Why should we be reminded of racism, name calling, riots, seperate this, separate that, all of this for a huge political power struggle that you people hold offices to stand for us as people and citizens of Hickory. Questions are being asked, what can we do to end this era? What is expected from our city officials? More so, what is expected of us to help move this city of Hickory to the next level for all people? We need representation from all, including all races, to help make this happen. No one can begin to think or feel or never act upon our community, in which we live, which is Ward 4 Ridgeview. We all need to be on the same page, so let's try to realign and move forward. Leave all of this Jim Crow Law behind and thrive for the future. What is so wrong with wanting to move the Ward lines so that we can get better representation so that we can get proper representation so our voice can be heard. We have plenty of issues that need to be addressed as well, such as poverty out of our neighborhood... raise the standards for higher education and exemplify our place in society, so that we can improve all of our kids for the betterment of our children, our heritage, and our dignity. Let's lay down this Jim Crow law tonight, because we can only dream of an All-American City. Which one of these communities? Ours bleed so yours is going to bleed also. Don't take the soul and heart out of ward 4. Let it thrive. One day we can all stand proud and say to you, this is an All-American City in which we live. And tonight, please keep in mind that our children are our future. Our community belongs to each and every one of us. All we ask is that we have a voice, the same as you guys do, and that we feel comfortable in our homes at night. Say yes to some of these wrad lines that really need to be adjusted for all people.
The following comment will be summarizations of the statements of James Franklin Davis, Deborah McNeur, and Larry Pope:
J. Franklin (Jimmy) Davis addressed the Council. The decision that you've made indicates that The City is going to prioritize incumbency protection over minority voting rights and that is a pretty undemocratic position to take. The current method of elections is unfair. If future conditions of elections continue to bear out the trend that candidates that are the choice of minority voters cannot win when pitted against white candidates, in an at large election, then you will have to reevaluate your legal options. Jimmy then used a couple of segments that went over questions that have been asked on the Hickory Hound in the January Rant entitled the Pursuit of Excellence. He then speaks of a Bible quote, "Take heed who is chief amongst you and let them be your servant." Are you (the council) the he who is being referred to. The ultimate measure of a man or woman is not where he or she stands in moments of comfort or convenience, but where he or she stands at times of challenge and controversy. The true neighbor will risk his position, his status, and even his life for the welfare of others. Studies show Hickory at the bottom of the barrel in just about every national study that e have seen, yet Council members are patting themselves on the back and are proud of the work that they are doing -- Really? Jimmy then went into the State of Hickory 2011. "We don’t need leaders who are in the political arena to stroke their ego. We need leaders in this community who are thinkers and who are intellectually curious. We need leaders who know how jobs are created, because if they don’t, they could cause the loss of jobs and the empirical evidence of the last decade shows that this was a contributing factor in what happened to our job market. Our leaders lost sight of what businesses need to make employment viable."
Jimmy states that the essence of all of our work, regardless of what particular issue or activity in which we are involved, is to foster a spirit of authentic community. All of our work therefore should promote social, economic, and personal relationships that are firm and realize that equality, dignity, the worth and potential of every person and all peoples. We take care to stand with the poor, the oppressed, any group or person in such a way that we stand for the best interest of the whole.
The next person to speak was Deb McNeur. With all due respect, the Mayor stated that it was unfair to unseat an incumbent by eliminating a seat. That is not really the truth. It would not be in favor of eliminatinating a seat, byt it would be in favor of electing someone of low socio-economic status to the Council to give fair representation to all of the areas. Part of Ward 4 is West Hickory, Westmont, and Green Park also. It's not really a racial issue. (Deb) doesn't like it being divided along racial issues, but it is a south side of the tracks issue. The big issue is the socio-economics. No one from Ward 4 West Hickory could get elected either. She considers the wards having been gerrymandered to keep the status quo in place, which is not conducive to someone being fairly represented that does not have the socio-economics most of you sitting there (City Council) do.
Larry Pope was the next person to speak. Larry commended City staff who had helped him when he had low blood sugar while visiting city hall that morning. He is proud of how they represent the city. They need to be commended. He considers himself a citizen of a very good city. Larry has asked several times about going back to what we had in 1970, in which Council elections were purely ward based. With the blended at-large system, minorities and low income folks in our city don't stand a chance of being elected. (Larry) is a good example. He won his ward 4 times, but when it went to at-large he was defeated, because folks all over the city voted against (Larry), because they couldn't control Larry or he wouldn't vote the way that they wanted him to vote. (Larry) says to (Council) that the only way that we can make elections in the city representative is to let the folks of their ward be chosen by the citizens of their ward. (Larry) is asking tonight for (Council) to give us an answer so that he knows whether they intend to go to Ward election, He wants them to vote on it and how they vote on it. He wants to know whether they will vote to go back to NCGS 160a-104 and go back to ward elections so that citizens can choose who they want to represent them and not have citizens who do not live in that ward choosing who will represent them.
The Mayor stated that he believed that the 3rd proposal should be adopted. It is absolutely no better or worse than alternative 4, except that it unseats a sitting council member. It does not change voting patterns. It does not give more power or less power.
Alder Patton stated that she seconded the motion. Much of what has been discussed ignores that there has been a minority elected to the ward for many years. She truly believes that the city has moved past color. It is not based on color. If there is a viable good candidate that the city wants to elect, then that can incude not just a black, but Asian, Hmong, or Latino. She believes that Hickory would elect a minority.
(Deb McNeur) later spoke up during an address of council and stated that she wanted to remind the Council that the person elected by the at-large vote (Z. Anne Hoyle) was not the choice of the people of that ward. She stated that is the reason why Alderman Guess is on the Council is because the people of ward 4 were not going to vote for M. Hoyle.
Alder Fox stated that she wants to say that she has thought about this and it was a numbers process. She considered it a fair process. All of us regardless of the wards that we represent spend a lot of time in other areas that are not basically our wards. She can speak for council members who have spent hours in areas that they don't represent. She is satisfied with what has taken place here. we were not charged with how to look at how we vote.
The Mayor stated that we had another open meeting and all we are talking about is two percent, but it eliminates a city council member. he feels comfortable with what they have done. It has nothing to do with depriving anyone's voting rights in any way. He can't think of anything realistically that would have changed things.
There was contention as the Council members voted 7-0 to adopt the resolution. Larry Pope demanded that as part of Title 2 of the Americans with Disabilities Act that they state their name and how they voted. The Mayor stated that he was not going to do that unless someone tells him that the law requires that. Attorney Crone stated that it was obvious that it was a 7-0 vote, but did not answer about the legality of the issue. Mr. Pope stated that if forced to that he would challenge the issue in court. He does not know which council members are here or not here. He cannot see a single individual. (Larry)asks for it to be done the way that the law requires it to be done. Hank Guess made a motion that the Council vote in that format. That motion was seconded by several council members. The Mayor stated that they have always voted in an appropriate manner, but in his opinion they should not start saying that they are going to do something that the law requires in one instance, but not another. If the law requires it... Alderman Guess stated that it's not that... Mayor Wright stated that before he votes he wants to know whether the law requires it. Atty. Crone stated that it was clear that every member here voted unanimously, but would not address the legal issue. Crone stated that he doesn't see what the big deal is one way or the other. Lail, Seaver, Guess, Fox, and Patton voted Aye to the voice vote. Mayor Wright and Meisner voted No to the Voice vote. In the voice vote each member stated their name and voted yes to adopt the Ward line third proposal.
The Hound says Whew!!! This was contentious and really doesn't need to be. I don't believe that this is an issue of Jim Crow, separate but equal, law. I can understand the angst of the people of the Ridgeview community over issues with the city in the past. I agree with Deb McNeur that this is an issue of socio-economics and it is an issue of the two sides of the tracks. I don't see anything vitriolic about that being stated.
Look at the precincts that had the highest turnout. They were the Viewmont wards. In my opinion that is because there issues are taken care of. They are choosing who will represent every ward. As has been stated to me, the reason why you don't see neighborhood associations in North Hickory is because their issues are already addressed. They don't need a place to vent their frustrations about their neighborhoods issues.
I also agree that the wards are gerrymandered. There is no rhyme or reason to the way they are drawn. They could come up with these same numbers by drawing a sliced pie map- of Hickory that does not have wards drawn here there and everywhere. I do believe that there should be more direct representation of the specific parts of Hickory. An outside of the box idea and compromise would be to have each quadrant of the city have a representative, with some compromises for population distribution, elected specifically by that quadrant, and then have two at large council positions voted on by people throughout the city and the Mayor. Then have the mayor position with some superceding authority.
Right now, what gives Mayor Wright any more status than the other Council members? They all are voted on by the same electorate in the same manner. Truly, the other Council members have just as much power as the Mayor. If this is going to be the case, then why even have a formal election for a Mayor. Why not have a more parliamentary system with seven wards and let the council members choose who will be the Chairman of the Council.
One thing is for sure. This is an issue. It needs to be debated. We need to know why the Post-1970 electoral model works best. Why are we holding unnecessary primary elections? Why is there such low participation? Do we not want more people to participate? And I am not naive, do people really even care?
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