Economic Stories of Relevance in Today's World -- November 20, 2011

MF Global: Was It A Hit? - Zero Hedge - Lawrence Lepard - Submitted by Tyler Durden - 11/18/2011 - Imagine you are Ben Bernanke, or on the Board of Governors of the Federal Reserve. The time frame is July and August of 2011 and the price of gold is on a tear. Commodities inflation has been persistent and is breaking out everywhere. Your prediction that inflation “is contained” and is a “temporary phenomena” are beginning to look absurd. What do you do?..... Simple. Hint that QE3, the primary drive of inflation, is coming and then fail to deliver at the September FOMC meeting. That takes care of the price of gold and the gold stocks. Ah, but those pesky commodities speculators keep making money and trading against what you want the markets to do. So what is to be done there? Hey Jon Corzine, how about you tank the largest broker for the small commodities punters in the world, and we let them twist in the wind? That will serve them right. Teach them to bet against the government approved scenario..... Think it did not happen? Well think again. All of the pieces fit. It sure is convenient that all those commodities speculators are now out of the box. Also, who will want to speculate on commodities in the future given customer funds are no longer protected. Furthermore, commodities speculators are not a very “All American” group. From the authorities point of view they can say: screw them, who will feel sympathy? Hell, James Bullard, Fed Governor, in an interview on CNBC yesterday said the MF Global collapse proves that the system works. Yes it does Jim, for you. Personally, I have $90,000 at MF Global and I would like to have my honestly earned money returned. Unfortunately, the odds of that happening any time soon seem slim. In part because when MF Global entered bankruptcy the judge appointed a Trustee whose law firm has done substantial work for JP Morgan, a deeply interested party. We will probably never find out what happened here. But for those of us whose eyes are open the results speak for themselves.



Supercommittee failure could trigger US credit downgrade, economists warn - Economists predict dire consequences if committee fails to reach agreement on how to reduce America's massive debt - The Guardian (UK) - Dominic Rushe in New York November 18, 2011 - Economists are warning of dire consequences if US politicians fail to make progress this weekend in tense talks aimed at reducing America's massive deficit ahead of a Wednesday deadline. The bi-partisan congressional super-committee is charged with drawing up plans for a $1.2tn reduction in the nation's deficit by the middle of next week. Failure to do so will trigger an automatic "sequester" that will make cuts of that size to defence and social welfare programmes starting in 2013. But the two sides seem far from finding a solution after clashing over tax revenues. While Wednesday is the official deadline for the supercommittee to report back, it has until Monday to tell the Congressional Budget Office about the impact any plan they send to Congress will have on the budget. "Time is running out. What I can say is we are leaving no stone unturned, negotiations continue and we are looking to find a way. We recognise what's at stake and we're hoping to reach an agreement," Democrat committee member Chris Van Hollen told CNN Friday.


Oil hits $100 as US economy slowly improves - Chris Hahn - AP - November 16, 2011 - Oil prices hit $100 a barrel on Wednesday after a six-week surge that may drive gasoline prices higher in coming months and slow the fragile economic recovery. For now, there a few reasons to explain why oil jumped 30 percent higher since early October. One is promising. The U.S. economy continued to show signs of strength, meaning that the thirst for fuel may grow. The other factor is troublesome, as concerns rise about potential disruptions to critical -- and tightening -- world oil supplies, including unrest in the key oil-producing areas of the Middle East and Africa. The price run-up has led to increasing numbers of investors, such as major investment funds, pension funds, money managers and other speculators, to flood back into commodities markets. "This thing is on fire," independent oil trader Stephen Schork said. "Everyone's gobbling oil up."


Eight SEC employees disciplined over failures in Madoff fraud case; none are fired [A
key employee was not fired because he knew too much.] - Washington Post - By David S. Hilzenrath, November 11, 2011 - The Securities and Exchange Commission, which failed to stop Bernard Madoff’s long-running investment fraud despite repeated warnings, has disciplined eight agency employees over their handling of the matter but did not fire anyone. The SEC’s head of human resources and a law firm hired to advise the agency had recommended that SEC Chairman Mary L. Schapiro fire one person, whom the SEC described as a manager in the office that inspects investment firms. But the chairman decided not to fire the employee, because doing so “would harm the agency’s work,” SEC spokesman John Nester said. The disclosure that no one was terminated comes at a time when street protesters and other critics who blame Wall Street for the country’s economic plight are questioning whether the government is serious about holding powerful wrongdoers accountable. This week, a federal judge excoriated the SEC for letting firms such as Citigroup settle fraud charges without admitting or denying wrongdoing. Madoff’s fraud cost investors billions of dollars, shattered lives and became perhaps the biggest embarrassment in the SEC’s history. Many clients who had entrusted Madoff with their savings were left struggling to make ends meet.


Why Your Tax Bill Might Surge Next Year - Yahoo/Fox Business - by Bob Jennings - November 9, 2011 - In a recent tax planning meeting with one of our clients, we shocked them with what their income tax future looked like for 2013 if -- on the off-chance -- Congress continues to do nothing to provide a long-term permanent set of tax laws. They had no idea what tax breaks were expiring this year and next year, and how much it would cost them personally in extra income tax. But they aren't alone, many Americans and even tax professionals aren't aware that their tax bill could rise dramatically next year These clients are your average American family and their situation is a good example of the law changes that will affect all of us. Here's their tax situation with a table summarizing the expiring tax laws that are scheduled to occur in 2011 and 2012......


Major Individual Income Tax Benefits Expiring 12/31/2011:
• Personal tax credits applied against income tax no longer apply
• Higher alternative minimum tax exemptions revert back to extraordinarily-low thresholds
• $250 school teacher expense deduction ends
• Mortgage insurance premium deduction expires
• State and local sales tax deductions expire
• Tuition and related fees deduction end
• IRA to charity tax-free transfers stop
• 2% Social Security tax reduction ends

Major Individual Income Tax Benefits Expiring 12/31/2012:
• Marriage penalty equalization ends
• Dividends taxed at capital gains rates removed, taxed at regular rates now
• Capital gains low tax rates expires
• Removal of itemized deduction phase out for higher income Americans
• Removal of personal exemption phase out for higher income Americans
• Child care deduction limit of $3,000 reverts to $2,400
• Child credit reduces from $1,000 per child to $500 per child
• Low 10% tax bracket for low income Americans is eliminated
• Lower income tax rates and smaller brackets expires
• Refundable adoption credit and reduced deduction
• American Opportunity college education credit expires
• Major reduction in earned income credits and refunds
• Income tax exemption for debt forgiven on home foreclosures and repossessions
• Deduction for student loan interest ends
• Education IRA limit drops from $2,000 to $500

What actually happened with MF Global - November 15, 2011 - Trends Research Institute - Gerald Celente

Gerald Celente, on the MF Global scandal and the meltdown of the futures market

Gerald Celente, about the MF Global scandal and the meltdown of the futures market , this theft of clients' money has never happened before, the clients' accounts should have been kept as SEGREGATED accounts, so the clients could get all of their money back even if the company files for bankruptcy. I feel sorry for all the people who lost their money by MF Global . MF Global is a glip non important to markets, although its messed up, markets are only moving on the cnbc and other media headlines that continue to talk about europe and there problems. Its total manipulation to keep using media headlines about greece, italy, france, spain, to keep bringing the markets down. They keep fear mongering! There creating volitality, and once we have to talke about our debt issue on november 23 our markets will probablly go down more. Its total media manipulation

When will Jon Corzine and his cronies be arraigned?

MF Global is the tipping point. This is a meltdown right along the lines of the contagion created by Bear Stearns relating to the Mortgage Backed Securities market in 2008. This is about Precious Metals. There are a lot of people who have been ripped off.

The clowns that back the Republicans and Democrats keep the game rolling by buying into the con. Republicans for Small Gubment. The Democrats for the Common Man. Do you realize what dupes you are? You are dupes people... You are freaking dupes... And I have gotten to the point where I just have to laugh when I hear people talking about the debates and how they support this con man or that con man... And you do zero research.

You better get your provisions ready and figure out what you are going to do when the banks start going down, because when they merged the Holding Bank Corporations with the Investment Bank Corporations and allowed the revolving door between "Public Servants," Lobbyists, and Corporate Execs, the rigged game was on. The Real Estate mess happened, because Banking became all about Sales and the fees associated with sales. You ever traded stocks? It's hard to make a real return, because these investment companies basically try to encourage you to day (flip)trade and then they fee you to death, If you don't day trade, then they fee you to death with inactivity penalties. Then they have been caught frontrunning trades to make fees on the margins when you buy and when you sell. I know, because I lost a few thousand before I figured out that scheme.

You look at the Mortgage Industry. They certainly weren't doing anything that I was taught in school. But, the banks weren't going to hire someone like me with a degree in Finance. They wanted a psychology or marketing major who is taught how to push sales and talk customers into agreeing to purchase instruments that they don't need. The slow and steady pace of investment will win you the race,when it comes to building wealth, but that limits the ability of the bank to make convoluted paper profits. For years, the banks haven't been realizing substantive/real profits. It has all been on convoluted accounting gimmicks involving mark to fantasy when assessing the value of toxic financial instruments. They aren't investing in productivity. They have been flipping these electronic derivative instruments and rigging the markets through electronic/programmed trading schemes. And they have committed fraud all along the way, because they haven't been fulfilling their duties as a public trust or their fiduciary responsibilities towards individual investors or their clients.

It is time for hearings and trials. If the congress is unwilling, because of their conflicts of interest and prostituting themselves to these Banksters, then try these criminals on the State level. If not with the States, then let's have some D.A.s prosecute and Sheriffs arraign some of these people.

Study the MF Global incident that has started this contagion involving commodities.

Fund Transfers Are Focus of MF Global Probe - Wall Street Journal - SCOTT PATTERSON - November 18, 2011

Regulators have unearthed new details indicating MF Global Holdings Ltd. shifted hundreds of millions of dollars in customer funds to its own brokerage accounts in the days before its bankruptcy filing, according to people familiar with the matter.

Such moves could violate regulations stipulating that commodities brokers can't mix customer funds with brokerage funds. Brokerage funds often are used to back proprietary trading positions.

According to MF Global's internal records, the transactions were as large as hundreds of millions of dollars at a time, these people said.

It is common practice among futures brokers to maintain a buffer of firm capital in customer-segregated accounts to protect against possible customer losses, industry officials said. However, MF Global officials believe it was acceptable to use those funds when required for the company's needs, people familiar with the matter said.

It appears likely to regulators from their investigation so far that MF Global burned through all of its capital buffer during the week before the Oct. 31 bankruptcy filing, and then started tapping customer funds, according to people familiar with the matter.

The executives at MF Global knew exactly what they were doing. It does not matter if they were desperate. The bottom line is that they have broken the law. Jon Corzine may have been a Senator and Governor of New Jersey. Whoopty Freaking Do. One thing we see is another person in the long line of the revolving door of Goldman Sachs and the government -- where Corzine was once the CEO.

In the real world, we have people out here that are desperate and they go rob a person or a store. Nobody is cutting them any slack. They do time. It is time to quit cutting these con men posing as financial experts any slack. Why are we cutting these Bankster Robber Barrons any slack?

This is the reason why we can't find traction to get on the road towards an economic recovery, because we are endorsing malfeasance, corruption, and criminal activity based upon stature and cronyism. This is the cause of the Breakdown Crisis we see with the World Economy. These people have created the negative Economic Vortex, because there is no trust in the Economic/Commercial system. You can't trust what you are getting into when making an investment. No one minds assuming risk, but this corruption creates an unquantifiable risk to investments.

Morons lambast those kids who are protesting as part of the occupy movement. The maroons ought to realize that we should all be protesting. Instead of holding the door open for the white collar bank robbers, we should be slamming the door shut on their holding cells!!!

Paranoia?, Security?, and East Carolina University on Lockdown -- Silence DoGood

Flash, East Carolina University on lock-down because a man was spotted with an… umbrella.” That’s right, an umbrella. I don’t know if it was a single shot, semi-automatic, or belt fed umbrella, but apparently there was an expectation of rain yesterday in that part of North Carolina and the man who possessed said umbrella had it at sling arms as a means of preventing raindrops from interrupting the flow of his day as he went about his business.

Am I being remotely sarcastic? Remotely, yes. How anyone that has any knowledge of firearms could mistake an umbrella for an assault rifle is beyond me. And yes, the presumption there is the fact that someone has knowledge of weapons that made those calls. Of course, perusing the websites from that part of the State, one learns that several calls were made, the lock-down proceeded, and then all the kids in the lockdown with their cell phones began to throw gallons of gas on the fire with false reports, rumor, and innuendo. Reports of hostages being taken, an armed person in a building, were all flying because of social media access and became incredible wastes of time and resources.

Besides my umbrage with the umbrella being a weapon of mass death and destruction, my other issue is that of the necessity and use of social media during this or any other crisis. Texting, blogging, twittering, and anything else not relevant and not relaying exactly what is happening, with who, what, when, where, why, and how should be curtailed, halted, or have the binders put on it. In this instance rumor ran rampant fueled by and because of this cyber discussion. The situation thus, from the reports on file, quickly devolved into chaos and only served to as fodder to the hysteria and panic of the moment. These ne’er do well folks added their 2.5 cents worth of absolutely nothing but fear, paranoia, angst, and any other adjective you can think of for mindless behavior, to this scenario. It divided the response, it diverted resources from the initial objective and it was based in no fact whatsoever, was added to, then bent and twisted into nothing resembling what was actually transpiring.

Think about this if you please. You arm your children with cell phones for God only knows what reason and these little electronic distractions are erstwhile tolerated in the classroom for the same reason they’re supplied. However, if you receive a message from Chipper that the school is in lockdown or there is an armed person on campus in the monumental odds of such an event actually ever transpiring, do you think you’re going to be allowed into the school or even get close during a lockdown? Guess again. You will not be allowed anywhere close and if you insist, you will be detained or arrested. So you’re being part of the problem, citizen individual. And, by your knowing what is going on, how does that change things? Now that you’re in the know, does that somehow make it better? What can you do? We’ve already determined that you’re not getting into that perimeter, how is your knowing in real time beneficial? It’s not about you or your child, per se. It’s about all of the children and the people in that school. While you direct attention is for that one or two, the folks responding in have to take the entire population of that building or gathering into consideration. Every one understands you love your child and I think it unreasonable to expect anything to the contrary. You and every other parent of every other child that attends that institution. In those situations, stay out of the area, stay out of the way, and let those tasked with their safety and security do their job. It’s not about you get over yourself.

I do not want to see anyone harmed or injured as a result of inaction or ambivalence on the part of the police or any school official. Some that read this will argue that it is better to be safe than sorry in situations such as these. They will say that when you have reports such as the one with the assault umbrella, it is best to err on the side of caution. Absolutely, but to stage a panic? And in essence, that is exactly what transpired, panic. Just like walking into a crowded theatre and shouting, “FIRE.” There are two different modes of response in this quandary. The first is an investigatory response to a reported sighting of a person with a presumed weapon and the second is response to an active shooter. One involves a measured and controlled response and the other taking everything you have and piling it on fast.

I think this speaks as well to a decade of fear mongering and feeling safe and secure about terrorists, extremists, militiamen, fanatics, and your general all around whack-a-loons. We are captive in our own home, city, county, state, and nation. Freedom? Really? When you can shut down an entire college campus with an umbrella, what does that tell you about group think paranoia? We have become a nation of sheeple that have lost their zest to live and choose instead to exist. A nation who can’t seem to do anything for themselves, who depend or demand that everything be done for them, and cower in the shadow of an image of a man wielding an umbrella.

You cannot live in a country such as ours with the liberties and freedoms we enjoy and be completely safe. There is always a risk. There will always be a risk or there will not be any freedom or liberty. You don’t get served security and freedom on the same absolute plate. You get to have a choice. Now, you can reduce your risks, you can lessen the chances of such a travesty happening, but you can’t remove it. Otherwise you can talk about it, install cameras to see it, and station police in every school in every community in this nation. Does that render them or you safe? No, that gives you the illusion of safety, the feeling of being safe, doesn’t make it so. Next you’ll be talking about Big Brother and how oppressive they are and spying, checking, watching, looking, and tracking you. I’m sorry, scratch that last sentence in part. By the time we reach that phase, you won’t be allowed to discuss the Government or things going on… ever. You read and hear every now and again how the Federal agencies or intelligence services are winning the war on terror. They’ll break a plot or stop someone and come and tell us about it. This is called validating what they do and what you and I pay for. And for every one they stop, how many more do you think get through or continue on with their plans? Rest assured, our turn is coming around again. So, put down the phone, pay attention to your surroundings, and don’t make things worse by continually screaming “FIRE” or “ME, MY, or MINE” every time you see an umbrella.

Newsletter about the City Council meeting of November 15, 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 11/15/2011 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. Charles Kyker, Pastor, Christ United Methodist Church

Consent Agenda:

A. Call for Public Hearing - Ordinance Amending Hickory City Code Chapter 21, Section 21-13, “Use of Weapons” Regarding Firearms in City Parks (Authorize Public Hearing on December 6, 2011) This public hearing is required to make the City Code consistent with state law changes enacted in the 2011 Legislative Session.

B. Community Appearance Grant to Mayberry Partners, LLC – Non-Residential Property Located at 910 - 950 Tate Boulevard, SE in the Amount of $3,000 - This non-residential property, owned by Mayberry Partners, LLC, is located at 910 – 950 Tate Boulevard, SE. The applicants plan to purchase and place a sculpture on the property, including the installation of appropriate lighting. These properties are located within the Commercial Revitalization Area, and as such, are eligible to receive funding under the Appearance Grant Program. Prior to making its recommendation to City Council, the Community Appearance Commission requested the sculpture be reviewed by the Public Art Commission, which resulted in positive comments. The total cost for purchase and placement of the sculpture is $6,000, including an allowance for lighting. Given the standard 50/50 match, the proposal is eligible for an appearance grant in the amount of $3,000. On October 24, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $3,000.


C. Landscape Grant to Ryan Lovern (Fever Properties, LLC) – Non-Residential Property Located at 3031 North Center Street (NC 127N) in the Amount of $1,650 - This non-residential property, owned by Ryan Lovern (Fever Properties, LLC), is located at 3031 North Center Street. The applicant recently purchased the property (formerly, the Sunflower Nook), and the property has remained vacant for a period of time, allowing the existing landscaping to become overgrown and unkempt. The applicant proposes to upgrade the landscaping and add lighting, and has provided two bids which total $3,300 and $3,460. The applicant desires to go with the lower of the two bids, which would qualify her for a $1,650 grant, based on the standard 50/50 match. On October 24, 2011, the Community Appearance Commission unanimously voted to recommend grant funding in the amount of $1,650.

D. Approval to Apply for 2011 United States Environmental Protection Agency (EPA) Brownfield Assessment Grants (Hazardous Materials Grant - $200,000 and Petroleum Grant - $200,000) - The Planning and Development Department requests approval to apply for 2011 US EPA Brownfield Assessment Grants as follows: Hazardous Materials Grant - $200,000 and Petroleum Grant - $200,000. There is no required local match, and the grants are 100% federally funded. The application deadline is November 28, 2011.


E. Memorandum of Understanding Between the City of Hickory and Catawba County Regarding the County’s Voluntary Agricultural District Program - The City of Hickory has been asked to partner with Catawba County in an effort to support agriculture in our region. The Catawba County Board of Commissioners has adopted an ordinance establishing voluntary agricultural districts. This program is modeled after a state statute which gives local governments the authority to establish a program that recognizes working farms and other agricultural land as a benefit to the area. Since the program is county-wide, city residents with tracts of land that meet the minimum qualifications can enter into the program. The program is completely voluntary, does not involve zoning regulations, and agricultural uses are provided specific benefits that normally would not be available. Participants who meet the minimum criteria are identified on official county maps as being agricultural land uses, and the properties are also eligible to be identified through the installation of appropriate signage indicating an active agricultural use is nearby. These identification procedures are provided to serve as an announcement to neighboring property owners of the presence of active agricultural operations, and are provided in an effort to curtail complaints with respect to odors, noise and similar items. Staff Members from the City of Hickory and Catawba County have been discussing the City’s involvement in the program. By agreeing to the Memorandum of Understanding, the City essentially signs onto the County’s program.

F. Award Bid to Carolina Paving of Hickory, Inc. for Paving of Portions of Center Street in the Amount of $159,906 ($58,000 in CDBG Funds) - City Staff evaluated the existing conditions on portions of Center Street and determined that portions from the railroad along South Center Street to NC 127 and from 3rd Avenue NW along North Center Street to 5th Avenue NW require repaving. Portions of both roadway sections are in poor condition, and without repaving, the condition will continue to degrade, and the cost of repairs will increase significantly. Community Development Block Grant Funds (CDBG) in the amount of $58,000 will be used for part of the project, as limited funds deemed that all of the areas needing repaving might not be feasible. This prompted separating the project into two areas that the contractors priced individually. This particular project is a long-term upgrade for the roadway and supports continued high-level service to the area. Staff recommends that bid be awarded to Carolina Paving of Hickory, Inc. in the amount of $159,906, as a complete turnkey project to include all permits and inspections.


G. Citizens’ Advisory Committee Recommendations for Assistance Through the City of Hickory’s Housing Programs - The following requests were considered by the Citizens’ Advisory Committee at their regular meeting on November 3, 2011:
Kenneth Knight, 1149 15th Street SW, Hickory, was awarded a City of Hickory’s Housing Rehabilitation Loan. The Citizens’ Advisory Committee recommends approval for assistance not to exceed $8,000 for sewer and HVAC repairs to his house. Assistance would be in the form of a 3% interest loan for a 10 year period. Funds are budgeted for these items through the City of Hickory’s former Rental Rehabilitation Program income received in FY 2009 and/or program income received
through the City of Hickory’s Community Development Block Grant Program. Each of the following applicants is being recommended for approval for assistance under the City of Hickory’s 2011 Urgent Repair Program. This program provides qualified low income citizens with assistance for emergency-related repairs not to exceed $5,000.
Vermerrial Bennett, 167 12th Street Court SE, Hickory
Una Hunt, 1333 13th Street NE, Hickory
The Citizens’ Advisory Committee considered these requests at their November 3, 2011 Meeting and recommends approval of the above applicants.

H. Application for the Use of Frans Stadium by Girls on the Run Catawba Valley for “New Balance Girls on the Run 5K” Event to be held on December 10, 2011 from 6:00 a.m. to 2:00 p.m.

I. Proclamation – Proclaiming Sunday, October 30, 2011 as John Link Day in the City of Hickory

J. Proclamation – Veterans Day – November 11, 2011

K. Budget Ordinance Amendments
1. To budget a $58,000 Community Development reimbursement to the General Fund Street Paving line item for a long-term upgrade of South Center Street. The project includes the repaving of South Center Street from the railroad tracks to NC Hwy. 127. $58,000 of Community Development Block Grant funds will be used for part of the South Center Street portion of the project. The Street Division will use $101,906 of budgeted street paving funds in addition to the $58,000 reimbursement for a total $159,906 paving project.

2. To transfer $60,000 of Water and Sewer Fund Contingency to the Collection System Contracted Services line item. This transfer is necessary to pay KRG Utility Contractor for an emergency repair of 8" ductile iron sewer line. The bottom lining of the line is corroded due to problematic sewer; therefore the
repair is necessary.

3. To appropriate $7,196 of Restricted Government Revenue from the City of Claremont and budget in the Water and Sewer Claremont Division Repair of Equipment line item. This payment is for billable work the Water and Sewer department completed at the Claremont Plant.



New Business:- Public Hearings

1. Rezoning Petition No. 11-01 – Annual Process for Minor Amendments to Hickory By Choice 2030 and the Land Development Code - Rezone 56 Properties Along Highway 321 NW, Clement Blvd, NW and 9th Avenue NW from CC-1 Community Commercial to C-2 General Business - City staff has identified an area to be rezoned from its original designation in the Hickory By Choice 2030 Zoning Map. A total of 56 properties along Highway 321 NW, Clement Blvd. NW and 9th Avenue NW from CC-1 Community Commercial to C-2 General Business. These properties are located in Ward 5. The Hickory By Choice 2030 Comprehensive Plan classifies the properties as Community Commercial; however, at its October 26, 2011, the Hickory Regional Planning Commission unanimously recommended re-classifying this area as C-2 General Business because that classification is a better fit with both the existing land uses on the subject properties and the uses and character of development likely to occur in the future. The properties are currently used for commercial, office and light industrial purposes, which are permitted in the C-2 General Business District. Staff finds that it is reasonable to amend the Zoning Map due to the character of the existing development and future development that is likely to occur on the subject properties. Dave Leonetti made the presentation, which received the unanimous consent of the Council.

The change is sought to address the issues of vacant properties and the future proposed widening of Highway 321. The difference between the two classifications deal with building design and building placement. CC1 requires buildings to be closer to the street, which doesn't work along a 5 lane divided highway.

2. Rezoning Petition No. 11-02 – Annual Process for Minor Amendments to Hickory By Choice 2030 and the Land Development Code - Rezone Portion of 1415 and 1445 16th Street NE from R-4 Residential to NC Neighborhood Center Commercial - City staff has identified an area to be rezoned from its original designation in the Hickory By Choice 2030 Zoning Map. The request is to rezone a portion of 1415 and 1445 16th Street NE from R-4 Residential to NC Neighborhood Center Commercial. These properties are located in Ward 3. A portion of each property is already zoned NC Neighborhood Center Commercial. The proposed rezoning corrects a mapping error that occurred when the current zoning map was adopted. These two properties had been zoned NC-1 Neighborhood commercial in their entirety under the previous zoning map. The Hickory By Choice 2030 Comprehensive Plan classifies the properties as high density residential; however, the land uses on the subject property have been present fora number of years. Staff finds that it is reasonable to amend the Zoning Map due to the character of the existing development. Dave Leonetti made the presentation, which received the unanimous consent of the Council.

This redrawing of the map is meant to address a mapping error. There were GIS issues related to street numbering/naming.

 


3. Rezoning Petition No. 11-03 – Annual Process for Minor Amendments to Hickory By Choice 2030 and the Land Development Code - Rezone Six Properties Along the South Side of 2nd Avenue SE Between 2nd Street SE and 3rd Street SE from R-4 Residential to OI Office and Institutional - City staff has identified an area to be rezoned from its original designation in the Hickory By Choice 2030 Zoning Map. The request is to rezone six properties along the south side of 2nd Avenue SE between 2nd Street SE and 3rd Street SE from R-4 Residential to OI Office and Institutional. These properties are located in Ward 4. The proposed rezoning corrects a mapping error that occurred when the current zoning map was adopted. These properties had been zoned OI-1 Office and Institutional under the previous zoning map. The Hickory By Choice 2030 Comprehensive Plan classifies the properties as high density residential. This rezoning is consistent with Hickory By Choice 2030 because the properties are located along a major thoroughfare and act as a transition between commercial and residential land uses. The intent of the adoption of the new zoning map was to translate existing uses into similar zoning districts rather than
create non-conforming uses. The properties are currently used for residential and office purposes, which are permitted in the OI Office and Institutional District. Staff finds that the proposed rezoning is consistent with Hickory By Choice, and therefore, recommends approval. On October 26, 2011, the Hickory Regional Planning Commission voted unanimously to recommend approval of the requested rezoning. Dave Leonetti made the presentation, which received the unanimous consent of the Council.

 This is the northern boundary of Kenworth. This is also a mapping error that needs to be corrected. Future Land use would have this area becoming High Density residential.

 4. Text Amendment Petition No. 11-01 – Annual Process for Minor Amendments to Hickory By Choice 2030 and the Land Development Code - Land Development Code Article 3 (Zoning Districts), Article 4 (Overlay Districts), Article 6 (Use Regulations), Article 7 (Intensity Dimensional and Design Standards), Article 9 (Standards of General Applicability), Article 10 (Signs), Article 12 (Nonconformities), and Article 14 (Definitions) - City staff is initiating on behalf of the City of Hickory a text amendment to the Land Development Code. When the current Land Development Code was adopted in February, 2011, Staff stated it would suggest minor modifications to the document on an annual basis to correct inconsistencies, ensure the document remains user-friendly, and help implement the comprehensive plan. The proposed changes address issues found by Staff in the implementation of the code since its adoption. Therefore, Staff recommends approval of the proposed text amendments. On October 26, 2011, the Hickory Regional Planning Commission voted unanimously to recommend approval of the proposed text amendments. Brian Frazier made the presentation, which received the unanimous consent of the Council.



Overview of Proposed Changes
• Changes to the building design standards in Article 3 to make them easier to understand and implement while still requiring high quality development.
• Corrections of errors and inconsistencies in the Use Table related to Drinking Establishments, Marinas, Duplexes, Daycares, and Schools.
• Changes to the manufactured home appearance criteria that will facilitate the replacement of manufactured homes with newer units that meet Department of Housing and Urban Development standards
• Changes to the use standards that address signage at nursing homes and the location of accessory dwelling units.
• Changes to the standards governing accessory structures that are more flexible while still protecting adjacent properties and ensuring accessory structures do not overwhelm the primary structure.

• Changes to nonresidential district setback stand .-irds to he mor( consistent across zoning districts.
• Changes that permit a reduction in the parking requirements for existing parking lots to allow for the provision of parking lot landscaping,
• Clarification of affirmative methods of compliance with the city's Iandscape and buffer requirements by allowing a waiver option through an agreement between property owners.
• Changes to the sign code regarding sign heights window sign.iae, directional signage, directional signage, high rise signs, and projection signs.
• Addition to the nonconformities section to permit the rebuilding of nonconforming duplexes. This is necessary because the elimination of duplexes as a permitted use in the R-2 district has created a number of nonconforming duplexes in these areas.
• Defining ground floor elevation. This definition was accidentally removed from the new code and its inclusion will make calculating window requirements much easier.


New Business - Departmental Reports:

1. Request for Second Reading - Award Bid to Carolina Paving of Hickory, Inc. for Paving of Portions of Center Street in the Amount of $159,906 ($58,000 in CDBG Funds) - Portions of this repaving project do not have adequate drainage capability and will need to be milled to remove part of the existing asphalt. Also, the repaving of the section in the immediate vicinity of Frye Regional Medical Center will be done at night to minimize disruption to the hospital, and portions of that roadway section also require milling. Approval on second reading is requested in order to complete the work before winter weather sets in.

2. Presentation – Playground Design/Layout and Award of Bid to Playworld Systems in the Amount of $122,231 for the Zahra Baker All Children’s Playground - That Will Be Located in Kiwanis Park – 805 6th Street SE - This community effort, spearheaded by the Kiwanis Clubs of Catawba County, has resulted in the collection of more than $170,000 from the community, businesses, foundations and grant funds for the Playground for Zahra. The playground will be in Kiwanis Park, which is located at 805 6th Street SE, just off Lenoir-Rhyne Boulevard. The playground is to be built in the spring of 2012 utilizing a community build process. A groundbreaking ceremony is scheduled for Wednesday, November 16, 2011 at 10:00 a.m. at Kiwanis Park.

Playworld Systems is the only vendor that provided all minimum play element requirements as specified in the Request For Proposal. Playworld Systems is also providing the City of Hickory with the best playground design. Therefore staff recommended that the bid be awarded to Playworld systems for $122,231.

The significance of tomorrow is that it would be Zahra Baker's Birthday.  Site Solutions volunteered to put together the conceptual site plan. Request For Proposal were issued on September 28 and due back by October 28th. Due to the $20,000 grant from KABOOM, the RFP required that they be one of Kaboom's preferred vendors. Some minimum requirements include that all decks must be accessible by ramps or accessible stairs, the safety surface is poured in place, a glide-saw motion activity will accommodate wheelchair participants and able body children simultaneously, there will be a wheel chair platform and two other accessible swings...

The Hound thinks this is a very good effort and shows the role that public-private partnerships can play towards leveraging capital to accomplish Public/Quality of Life endeavors when a community works together. The Mayor should be applauded for championing such an effort and worthy cause. As was mentioned by Mac McLeod and others, this park will not only be a place for Hickory Children of all abilities to enjoy together, but this will be a park that will be enjoyed by people throughout the region. And it will remind people about the effects of child abuse and neglect on the specific victims, such as Zarha Baker, as well as the effects on our society overall.


3. Hickory By Choice 2030 – Proposed Map and Demographic Updates - When Hickory By Choice 2030 was formally accepted by the Hickory City Council in January, 2011, Staff stated it would suggest minor modifications to the document on an annual basis to correct inconsistencies and ensure the document remains up to date. The proposed changes address demographic updates with new data from the 2010 Census. Staff also suggests one land use map amendment due to changing conditions in the area. On October 26, 2011, the Hickory Regional Planning Commission voted unanimously to recommend approval of the recommended amendments.

This is the same as the presentation made in Text Amendment Petition No. 11-01

 Overview of Proposed Changes
• Changes to the building design standards in Article 3 to make them easier to understand and implement while still requiring high quality development.
• Corrections of errors and inconsistencies in the Use Table related to Drinking Establishments, Marinas, Duplexes, Daycares, and Schools.
• Changes to the manufactured home appearance criteria that will facilitate the replacement of manufactured homes with newer units that meet Department of Housing and Urban Development standards
• Changes to the use standards that address signage at nursing homes and the location of accessory dwelling units.
• Changes to the standards governing accessory structures that are more flexible while still protecting adjacent properties and ensuring accessory structures do not overwhelm the primary structure.
• Changes to nonresidential district setback stand .-irds to he mor( consistent across zoning districts.
• Changes that permit a reduction in the parking requirements for existing parking lots to allow for the provision of parking lot landscaping,
• Clarification of affirmative methods of compliance with the city's Iandscape and buffer requirements by allowing a waiver option through an agreement between property owners.
• Changes to the sign code regarding sign heights window sign.iae, directional signage, directional signage, high rise signs, and projection signs.
• Addition to the nonconformities section to permit the rebuilding of nonconforming duplexes. This is necessary because the elimination of duplexes as a permitted use in the R-2 district has created a number of nonconforming duplexes in these areas.
• Defining ground floor elevation. This definition was accidentally removed from the new code and its inclusion will make calculating window requirements much easier.

Context of Hickory By Choice 2030:
Newsletter about the City Council meeting of January 18, 2011 - Addendum Hickory By Choice 2030

General Comments:
***Alder Patton spoke about her mother's participation in the Hickory Police Academy and listening to the participants and what they got out of attending the 12 week course.
***Alder Fox gave appreciation to Mac and the Parks and Recreations Department's partnerships with Rotary and Hickory Landmark Society in the restoration of the Boy Scout Place. Alder Patton added that these public-private collaborative partnerships to (get people to) chip in and not rely on one person to help make this community better.

The History of At-Large voting in Hickory - The HDR articles and Council Minutes Documents

The following are the documents related to the changing of the municipal elections for Hickory City Council from Direct Ward to a Modified At-Large system as referred to in the articles: 

1961 -- A lesson in Hickory's History
1967 - How we got where we are today

Left Click the Images below, then right click and choose view image, and finally click the magnifying glass to see image in full size. And remember Ctrl+ will further increase image size.

Changes in Hickory Charter Discussed at Kiwanis Meet - Hickory Daily Record - 3/1/1961

2 Changes made by Board - Hickory Daily Record -February 22, 1967

Hickory Charter Revision Discussed For County Bar - Hickory Daily Record - 3/1/1961

At -Large elections Included - Hickory Daily Record - March 6, 1967

Hickory Charter Revision Wins Uphill Approval - Hickory Daily Record - May 12, 1967

Hickory City Council Minutes - Special Session - Monday March 6, 1967

Hickory City Council Minutes - Regular Meeting - March 7, 1967 - Starts at bottom of 471 and Rhyne vote changed during second reading on page 472.

City Council Regular Meeting - March 21, 1967 - Wards in the City of Hickory

Economic Stories of Relevance in Today's World -- November 13, 2011

For Bank Of America, Debit Fees Extend To Unemployment Benefits - Huffington Post - Janell Ross | Nov 10, 2011 - CORDOVA, S.C.-- Shawana Busby does not seem like the sort of customer who would be at the center of a major bank's business plan. Out of work for much of the last three years, she depends upon a $264-a-week unemployment check from the state of South Carolina. But the state has contracted with Bank of America to administer its unemployment benefits, and Busby has frequently found herself incurring bank fees to get her money.          To withdraw her benefits, Busby, 33, uses a Bank of America prepaid debit card on which the state deposits her funds. She could visit a Bank of America ATM free of charge. But this small community in the state's rural center, her hometown, does not have a Bank of America branch. Neither do the surrounding towns where she drops off her kids at school and attends church.          She could drive north to Columbia, the state capital, and use a Bank of America ATM there. But that entails a 50 mile drive, cutting into her gas budget. So Busby visits the ATMs in her area and begrudgingly accepts the fees, which reach as high as five dollars per transaction. She estimates that she has paid at least $350 in fees to tap her unemployment benefits.          "It really boggles my mind," she said. "This bank is taking little bits of money out of thousands of pockets, including mine."          Bank of America recently aborted plans to charge ordinary banking customers $5 a month to use their debit cards in the face of national outrage. But the bank has quietly continued to mine another source of fees: jobless people who depend upon the bank's prepaid debit cards to tap their benefits. Bank of America and other financial firms -- including U.S. Bank, Wells Fargo and JP Morgan Chase -- have secured contracts to provide access to public benefits in 41 states. These contracts typically allow banks to collect unlimited fees from merchants and consumers.          In short, the same banks whose speculation delivered a financial crisis that has destroyed millions of jobs have figured out how to turn widespread unemployment into a profit center: The larger the number of people who are out of work and dependent upon the state for sustenance, the greater the potential gains through administering their benefits.          "It's absolutely ridiculous," said Sue Berkowitz, director of the South Carolina Appleseed Legal Justice Center, a Columbia nonprofit that represents low-income people facing foreclosure, food insecurity and other problems. "It should not cost you any more to use a debit card than if they had issued you a check."         For the state, handing Bank of America responsibility for unemployment benefits secured cost savings, said Berkowitz, but they have come at vulnerable people's expense.          "When it comes to ordinary people getting the benefits they have earned, the benefits they need, they don't seem to spend a lot of time worrying," she said.          Bank of America asserts that its prepaid debit cards are a good deal for everyone -- from state taxpayers to people drawing unemployment benefits.          "We have provided prepaid card programs to government agencies for many years," said Jefferson George, a Bank of America spokesman based at the company's Charlotte headquarters. "Clients value the cost savings and increased efficiency and individuals appreciate the ability to receive their benefits payments more quickly and securely."              South Carolina officials say their state's current arrangement with Bank of America, launched in July 2010, has proven a good value for taxpayers. The South Carolina Department of Employment and Workforce, which oversees unemployment benefits, expects to save as much $5 million in check printing and mailing costs annually through its contract with Bank of America, said an agency spokeswoman, Adrienne Fairwell. She said the state was also attracted to the debit cards as a means of helping jobless people who do not have bank accounts avoid the fees they must pay to cash checks. Roughly one tenth of all South Carolina households -- about 182,000 families -- did not have a bank account as of last fall, according to a recent Pew Research Center report. But some banking experts say the relevant cost savings are accruing to the banks themselves. New federal regulations cap what banks can collect from merchants when consumers swipe ordinary debit cards at store cash registers. The new swipe fee limits will cut Bank of America's revenues by $2 billion this year, according to Richard Bove, an analyst who follows Bank of America for Connecticut-based brokerage and research service Rochdale Securities. "Most banks are aiming to recoup 30 to 50 percent through other methods," which include prepaid card fees, said Nancy Bush, an analyst with NAB Research, LLC, a a New Jersey-based investment consulting company, who monitors Bank of America.          Those limits do not apply to most prepaid debit cards, making them particularly attractive to banks, say experts. Prepaid cards are still a small business for banks, but the sector is quickly growing, experts say. South Carolina now distributes half of all unemployment benefits using Bank of America prepaid debit cards, according to the state department of employment and workforce, with most of the other half delivered through direct deposit.          Neither the state nor Bank of America would disclose the details of their contractual arrangement. A bank spokesman termed the deal "confidential." When The Huffington Post asked the state for for the details of the contract, the spokeswoman required the submission of a formal Freedom of Information Act request. Yet one week after that request was lodged, the state has not provided the contract terms. But The Herald, a Rock Hill, S.C. newspaper, reported in 2009 that South Carolina pays the bank a 3 cent fee for each transfer it facilitates on a prepaid debit card. The bank collects the same fees from the state for handling direct deposit of unemployment benefits, a state spokesperson said. Banking experts say the real money lies in the fees the bank collects for a range of services. When the state first contracted with Bank of America, the list of potential fees the bank was allowed to collect included a $1.50 charge when a customer visited a bank ATM or teller more than once per week, a $1.50 charge for use of an out-of-network ATM, a $1.50 charge for speaking to a customer service operator more than once per month, and 50 cents for entering the wrong PIN number at an ATM more than four times or requesting more funds from an ATM than remained on the card......


Americans' Ability to Afford Food Nears Three-Year Low - Overall access to basic needs also declines to a new low - Gallup - by Lymari Morales - November 10, 2011 - WASHINGTON, D.C. -- The percentage of Americans reporting that they had enough money to buy the food they or their families needed continued to decline in October, nearing the record low seen in November 2008. The percentage who did not lack money for food in 2011 fell to 79.8% from 80.1% in September, continuing a decline that began in April. This is only the second time since Gallup and Healthways began tracking this measure as part of the Gallup-Healthways Well-Being Index in January 2008 that less than 80% of Americans reported that they had enough money to buy food throughout the past year. The record low was in November 2008, at the start of the economic crisis, when 79.4% reported that they had enough money to buy food for themselves or their families. This measure -- which asks if one had enough money to buy food in the past 12 months -- has decreased to its lowest level of the calendar year each October since 2009. The reason for this pattern is unclear and does not appear to be related to world food prices. In 2008, fewer Americans reported that they had enough money to buy food in August and November than in October, likely affected by high gas prices in the former case and the onset of the economic crisis in the latter. Still, this October finds fewer Americans saying that they had enough money to buy food over the past year than in each October for the past three years.          Further indicating that Americans are facing mounting economic strain, the percentages saying they have enough money to provide adequate shelter or housing and healthcare and/or medicines for themselves or their families have also declined each October since 2009. These percentages did show slight improvement between 2008 and 2009. ...


Thanksgiving Meal Cost Jumps 13% - Bloomberg - Jeff Wilson - Nov 10, 2011 -  The cost of a Thanksgiving dinner in the U.S. will jump 13 percent this year, the biggest gain in two decades, as prices rose for everything from turkey to green peas to milk, the American Farm Bureau Federation said.
A meal for 10 people on the holiday, which falls on Nov. 24 this year, will rise to $49.20 from $43.47 last year, the biggest increase since 1990, based on foods traditionally served including stuffing and pumpkin pie, the farm group said today in a release. Turkey was the most expensive and had the biggest gain, with a 16-pound bird up 22 percent at $21.57.                “Our informal survey is a good barometer of the rising trend in food prices this year,” John Anderson, a senior economist at the Farm Bureau in Washington, said in a telephone interview. “We are starting to see the supply response to higher prices, but there are substantial lags.”                Thanksgiving meal costs are up more than the pace of food inflation in the U.S., where the government forecasts prices will increase 3.5 percent to 4.5 percent this year, the fastest since 2008. Rising commodity and energy prices boosted the cost of food eaten at home by 6.3 percent in September compared with a year earlier, according to data from the Census Bureau.


Median home prices fall for 3Q in most US cities - AP - By DEREK KRAVITZ, AP Real Estate Writer - November 9, 2011 - WASHINGTON — Home prices dropped in nearly three quarters of U.S. cities over the summer, dragged down by a decline in buyer interest and a high number of foreclosures. The National Association of Realtors said Wednesday that the median price for previously occupied homes fell in the July-September quarter in 111 out of 150 metropolitan areas tracked by the group. Prices are compared with the same quarter from the previous year. Fourteen cities had double-digit declines. The median price in Mobile, Ala. dropped 17.7 percent, the largest of all declines. Phoenix and Allentown, Pa., Atlanta, Las Vegas and Miami also experienced steep declines. Eight cities saw double-digit price increases. The largest was in Grand Rapids, Mich., where the median price rose 23.7 percent. South Bend, Ind., Palm Bay, Fla., and Youngstown, Ohio also saw large price increases. The national median home price was $169,500 in the third quarter, down 4.7 percent from the same period last year. Most analysts say prices will sink further because unemployment remains high and millions of foreclosures are expected to come onto the market over the next few years....



Ten Million American Families Sliding Towards Foreclosure - Sherwood Ross - Infowars.com - November 8, 2011 - Of the 55-million families with mortgages, 10.4-million of them “are sliding toward failure and foreclosure”—a tragedy that will depress the U.S. housing market for years to come, a result of too many houses for sale and too few buyers.                     That’s the blunt conclusion of distinguished economics journalist William Greider, to be published in an article in the November 14th issue of The Nation magazine. America’s “Economic recovery will have to wait until that surplus (excess houses) is gone, because the housing sector has always led the way out of recession,” Greider says. “The more housing supply exceeds demand, the more prices fall. The more prices fall, the more families get sucked into the deep muddy. The vicious cycle is known in the industry as the death spiral. So far, there’s no end in sight.”                     Greider says the solution is to forgive the debtors: “Write down the principal they owe on their mortgage to match the current market value of their home, so they will no longer be underwater. Refinance the loan with a reduced interest rate, so the monthly payment is at a level that the struggling homeowner can handle.”                  Forgiving the debtors is the right thing to do, Greider continues, “because the bankers have already been forgiven. The largest banks were in effect relieved of any guilt for their crimes of systemic fraud or for causing the financial breakdown—when the government bailed them out, no questions asked.”                 Far from a show of gratitude, Greider notes the response of the banks has been ugly. “Right now, these trillion-dollar institutions are methodically harvesting the last possible pound of flesh from millions of homeowners before kicking these failing debtors out of their homes—the story known as the ‘foreclosure crisis.’”                   The largest and most powerful banks are standing in the way of the solution and the Obama administration “is standing with them,” Greider adds, “because bankers and other creditors would have to take a big hit if they were forced to write down the debt owed by borrowers. The banks would have to report reduced capital and their revenue would decline if homeowners were allowed to make smaller monthly payments.”



12 FactsAbout Money And Congress That Are So Outrageous That It Is Hard To Believe That They Are Actually True - The Economic Collapse Blog

#1 The collective net worth of all of the members of Congress increased by 25 percent between 2008 and 2010.
#2 The collective net worth of all of the members of Congress is now slightly over 2 billion dollars.  That is "billion" with a "b".
#3 This happened during a time when the net worth of most American households was declining rapidly.  According to the Federal Reserve, the collective net worth of all American households decreased by 23 percent between 2007 and 2009.
#4 The average net worth for a member of Congress is now approximately 3.8 million dollars.
#5 The net worth of House Minority Leader Nancy Pelosi increased by 62 percent from 2009 to 2010.  In 2009 it was reported that she had a net worth of 21.7 million dollars, and in 2010 it was reported that she had a net worth of 35.2 million dollars.
#6 The top Republican in the Senate, Mitch McConnell, saw his wealth grow by 29 percent from 2009 to 2010.  He is now worth approximately 9.8 million dollars.
#7 More than 50 percent of the members of the U.S. Congress are millionaires.
#8 In 2008, the average cost of winning a seat in the House of Representatives was $1.1 million and the average cost of winning a seat in the U.S. Senate was $6.5 million.  Spending on political campaigns has gotten way out of control.
#9 Insider trading is perfectly legal for members of the U.S. Congress - and they refuse to pass a law that would change that.
#10 The percentage of millionaires in Congress is more than 50 times higher than the percentage of millionaires in the general population.
#11 U.S. Representative Darrell Issa is worth approximately 220 million dollars.  His wealth grew by approximately 37 percent from 2009 to 2010.
#12 The wealthiest member of Congress, U.S. Representative Michael McCaul, is worth approximately 294 million dollars.

Insider Trading by Nancy Pelosi - The appearance of impropriety is impropriety!!!

Judge Napolitano: Feds Fix Economic Numbers

1967 - How we got where we are today

The following is a furthering of the discussion of how the City of Hickory came to the point where municipal elections, relating to City Council, were changed from Ward specific to the Modified At-Large system that we have today. Following the 1961 Charter revisions, you have had two municipal elections that have taken place in 1963 and 1965 as we come to a special session, which took place on Monday, March 6, 1967 at 9:00 o’clock a.m.

In Context, let me explain the City representatives at that time. Mayor – Julian Whitener / Ward 1 - Neill Clark Jr. / Ward 2 – Oren Cline / Ward 3 - John Watts / Ward 4 – Mildred Rhyne / Ward 5 - Hugh Abee / Ward 6 – Robert Shores Jr.

Consideration was given to two bills to be introduced to the North Carolina General Assembly to amend the 1961 Charter Revision. The City Attorney read the two bills after which discussion ensued particularly in regard to holding Municipal Elections At-Large.

Alderman Hugh Abee strongly opposed the “at large” elections, stating, “Hickory politics would return to a machine system with “Old Hickory” running the Highland and West Hickory Sections.”

The Mayor read parts of a letter to the Council from the League of Municipalities, which pointed out that 78 out of 106 cities with more than 2,500 populations elected their governing bodies at large, Only Hickory and six others have ward elections such as ours, he added. He pointed out further that it was incumbent upon Council to keep the population within the wards as equal as possible, because of the recent ruling by the Supreme Court in regard to the “one-man, one vote” issue.

Section Four of the document presented to the General Assembly states, “The aldermen to be elected in the year 1967 shall be nominated fro m Wards 4, 5, and 6 and shall initially hold office for a period of 3 years; thereafter they shall be nominated and hold office for a period of four years. The alderman elected in 1968, and every four years thereafter, shall be nominated from Wards 1, 2, and 3. The Mayor shall be elected for a term of three years at the election held in 1967, and thereafter shall be elected for a term of four years.

The Recorded vote shows Mayor Julian Whitener, Alderman Neill W. Clark Jr., Oren L. Cline, Mildred R. Rhyne, and Robert M. Shores Jr. voting aye and Hugh H. Abee and John W. Watts voting no.

Moving forward to the next evening, Tuesday, March 7, 1967, the Mayor remarked to the Council that when the vote was taken on Monday morning on the proposed Bills that were to be introduced into the General Assembly, it was first suggested that each item be taken separately; however, in order to expedite the matter, they were voted on as a whole on first reading. On second thought, it is felt that perhaps it might be better to vote on each item separately on second reading, as when the Bills are presented to the General Assembly, it might be necessary to inform them which of the items were unanimous and which were on split votes.

Alderman Shores moved, seconded by Alderman Cline, that Section 1 of the Bill entitled "An Act to Amend Certain Sections of the Charter of the City of Hickory as Contained in Chapter 323, Session Laws of 1961", relating to candidates being voted on "at large", be approved, and that said proposed Bill be forwarded immediately to the General Assembly.

Upon vote being taken on the motion, the following vote occurred:

Voting Aye: Mayor Julian G. Whitener, Alderman Neill W. Clark, Jr., Alderman Oren L. Cline, Alderman Robert M. Shores , Jr ., Voting Nay: Alderwoman Mildred R. Rhyne, Alderman Hugh H. Abee, Alderman John W. Watts

Whereupon, the Mayor declared the foregoing passed on second and final reading.

Alderwoman Mildred Rhyne stated that at the previous meeting, she did not vote, and she assumed it was counted "yes", but that she would have to vote "no" on the issue because she had been contacted by many people in her ward to do so. She said they have made progress under the ward system. She added that with the recent Court ruling regarding "one-man, one-vote", it may be that in the future there will need to be a change made, but that she was in favor of "crossing that bridge when you came to it". She felt the Aldermen could be of more service to their wards under the present system, not that she or a single one of the other Aldermen are not interested in the City as a whole and have supported all measures for the whole City.

Alderman Abee said he had talked with people throughout the City and in no case has he found anyone who favors the "at large" system.

The Mayor remarked that to him the City of Hickory is a corporation and every citizen a stockholder, and the stockholders should have the right to elect their Board of Directors. As it now stands, only one-sixth of the stockholders have the right to vote on each Alderman. It has been his feeling, without trying to be disagreeable, that this is one of the ways with which to meet the "one-man, one-vote" rule. He felt it was long past due that each citizen have the right to say who serves in each ward.

Alderman Abee remarked that if the matter were put to a vote of the people, he believed the people would vote against it. Alderman Clark said he would have to go along with what 75% of the municipalities in North Carolina are doing.


In a March 6, 1967 article from the Hickory Daily Record entitled “City Charter Changes Sought – At-Large Elections Included,” by Glenn Sumpter, the situation is summarized. The City Council by a 4-2 vote today at a special meeting approved a motion to ask the North Carolina General Assembly to amend the City Charter to provide for at-large election of aldermen.

Under the resolution adopted, the General Assembly will be asked to approve a change that would require Hickory to have six aldermen, one from each of the City’s six wards, however the Aldermen would be elected at large. If more than two candidates announce from any of the six wards, a primary will be held within that ward to select the top two candidates. The top candidate would then be chosen by the voters of the city at large…

The article goes on to state how Aldermen Abee and Watts voted against this amendment to the charter and addresses Mr. Abee’s assertion that it would give a group of politicians a chance to build bloc votes in other wards to defeat the candidate that would best represent a ward.

Another article two months later in the Hickory Daily Record dated May 12, 1967 entitled “Home Rule an Issue - Hickory Charter wins uphill approval, “ states A change in the Hickory Charter making way for the election of Alderman at large has been approved by the General Assembly. The old ward system of electing aldermen will be junked in 1970.

An amendment proposed by Representative J. Reid Poovey, which would have put the charter changes before residents in an election was defeated. Ratification of the Charter Bill is expected today.

Representative Lloyd Mullinax today issued a statement on the Hickory Charter, referring to it as “strictly a local issue,”… “I am a strong advocate of ‘home rule’ in matters of this kind rather than in ‘rule from Raleigh.’ I voted in favor of the State Draft of proposals sent to us by the duly elected body of Hickory and I opposed any changes that the city had not requested for this bill. For me to have done otherwise would have been for me to impose ‘Rule from Raleigh’ on the people rather than to vote ‘rule by local governments.’”

“I regret any controversy that has been generated over this matter, but I do not believe that neither I nor Representative Poovey nor Senator (Adrian) Shuford should try to force our own personal opinions on the good people of Hickory over the objections of the governing body of the city and contrary to their directions"…

The Hound: What is striking about the March 1967 meetings is that a special meeting was called in which this issue was addressed. There was a first reading and it appears that Ms. Rhyne wasn’t prepared for that meeting and so she didn’t vote, as she states, and then she comes back and votes no the next night.

In 1967, you were going to have a municipal election in November, so in brainstorming discussions with others, we have felt that Mayor Whitener wanted this issue pushed through, because he knew that he had the votes with the Council that had been elected in 1965. How could he be sure that he would have the votes after another election? He couldn’t and so he probably thought it was a now or never moment to finish what had been started in 1959, with the commissioning of the committee that had brought forth Charter Revision recommendations in 1961, which included At-Large voting for City Council races. You also need to remember that 1959 was Mayor Whitener’s first year in office, so this system was something that he was very involved in and he had every intention of shepherding through.

In reading this information from 1961, what strikes a chord with me in looking at the purpose of all of this are the words of Mr. Geitner, when he states, “the elected man would be responsible to the city-at-large and not just to a small section with no political status.” And then couple this with what Alderman Abee discusses, when he states, “Hickory politics would return to a machine system with “Old Hickory” running the Highland and West Hickory Sections.”

I believe that the two statements ring true. Mr. Geitner seems to be inferring that whoever is elected is going to be more statesmanlike and represent the best interests of the city as a whole and not necessarily look towards the interests of a smaller section of Hickory that carries no gravitas (stature/importance). Mr. Abee is addressing how Candidates/Representatives of one ward would be making deals with Representatives/Power Brokers of another ward in order to first get elected and then to maintain power, while looking out for the interests of their ward constituents would become a secondary interest.

Alderman Abee, in 1967, gets into the issue of Bloc voting, in which voters from a represented interest (whether common or geographical) can determine the outcome of multiple candidates. He states his firm opposition, “that it would open up ways for a group of politicians to build up bloc votes in other wards to defeat particular candidates.” Alderman Abee was the Alderman who represented West Hickory. I believe he understood the intentions of the “Powers That Be” in Hickory. The intention was to keep the working class people in Hickory in their place. And if any candidate ran, who was going to represent the interests of the working class man, then the people from what Alderman Abee states as “Old Hickory” would make sure that the voting bloc would get the “Radical” defeated.

In the article "1961," Mr. Geitner goes into his summation of the city as a corporation and I agree with what he states, but I think he carries it out to a conclusion that I can’t agree with. I agree that every citizen is a stockholder and deserves a right to choose its Board of Directors, but I don’t think that means that the people of one Ward should be determining who is the representative of another ward.

Why? Because too many shenanigans can take place to manipulate the wards towards the outcome of the so called Board of Directors and unlike with a Business Corporation, we have to abide by structures set forth within the charter granted by the State of North Carolina. Residents aren’t the only shareholders within the City of Hickory. You have many other varied interests within Hickory (such as business and property owners without established residency) that don’t have voting rights. Are they to be granted voting rights? No. You can only vote if you live on a piece of property within the City of Hickory Proper as set forth by Statutes of the North Carolina General Assembly.

The different wards of Hickory have a multitude of socio-economic and cultural differences and this diversity needs to be and should be represented.  Just because someone doesn’t represent a notion, idea, and/or mindset you understand doesn’t mean that it is invalid or radical. Different layers of thought lead to more creativity and thus ingenuity and innovation. Most of you will see past the interjection of the "One Man, One vote" issue. That has to do with apportionment and this issue had nothing to do with apportionment. If we were/are all the same, then why even have wards? They knew this. It was about control.

Look at the vote and it relates to much of what we see today. Wards 3, 4, and 5 voted against the At-Large system. That is Kenworth, Ridgeview, and West Hickory. Wards 1, 2, and 6 along with the Mayor voted for the change. That is Historic Hickory, Northeast Hickory, and Viewmont. Do you see the pattern?

The final thought that I would like to leave you with in relation to this article is the travesty that people weren’t allowed to vote on this issue. Representative Poovey wanted to make that happen, but Representative Mullinax talked about Home Rule. This is a technicality of words, because this wasn’t about changing a budget or some other administrative issue. This was about the structure of how people vote being changed by the people who are recipients of those votes. Hickory’s Charter is its Constitution and it should have been representative of the wishes of the different segments of the city. As you can see it wasn’t a cut and dried issue and thus the citizen’s will should have been taken into consideration after debating the issue thoroughly… Hmmm… The more things change. The more they remain the same!!!

The current City Council could do the right thing and schedule this Special Election and let the citizens debate this issue and have the vote and maybe rekindle some interest in Hickory's politics and governance.

Let the People Vote!!!

But if the Council won’t do the right thing, then please

Sign the Petition!!!