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Tuesday, June 3, 2014
No Tax increase in Hickory this year
The Mayor and the Council voted unanimously to not raise taxes this year. The consensus is that they didn't want to go into the Bond Referendum with a tax increase and then have to ask for another tax increase. Road paving will move forward with the monies coming from the unfunded balance (the rainy day fund). They will take their chances on the operational costs shortfalls (revenue uncertainty) and any shortfall will also come from the unfunded balance built into the General Fund.
In the Chamber - JT Shell speaks to council
My Persons requesting to be heard speech before the City Council:
Thank You Council,
I hope you will be patient with me. I will be as brief and courteous as possible. I am not up here tonight to tell you what to do. That would be a silly, futile endeavor. I am only here to express my opinion.
I am not a Friend of Hickory. I am part of the blood and the fabric of Hickory. I was born two blocks from here at Hickory Memorial. My Mammaw Shell was one of the lead nurses there. Ben Goodman Sr. was my Doctor from the time I was born until he retired and his family was good friends of both sides of my family.
One of my most vivid memories as a child was being in the Medical Arts Clinic, because I had been infected with poison ivy. I told Mammaw that I wasn't going to get a shot and she said I wouldn't have to. Well Doctor Abernathy was there, not Dr. Goodman, and he wanted to give me a shot. Well, his nurse pulls out a needle about this long and I took off running. By the time my grandmother caught me I was six blocks away over on the other side of Lenoir-Rhyne. I know how small Old Hickory was, and living in the St. Stephens area most of my life, I know how big it could be. I know the potential there. Potential that has never really been tapped into. Why? Because the focus has always gone back to the wealthiest areas of this community.
I have been accused of being an enemy of Union Square when I knew that place intimately growing up. I understand it's easier to label others than to try to understand where they are coming from. We all do that to a certain extent. My Pappaw Shell was the switch operator at the depot, before he became a clerk at Hickory Chair, and he took me to see the last passenger train stop at the depot back in the mid 70s. My mother was a personnel recruiter and she worked in the building above McGuire's pub for several years. My family bought our clothes at Spainhour's and Zerden's. My grandfather Padgett bought me food and magazines at the original Post Office BBQ. My other grandmother Mattie Padgett, who is nearly 92 years old, and not in good health these days, was a radio personality for years at WIRC. For years I wondered why people would call her Lillianne and then she did the swap shop until she retired at the age of 75. I can go on and on. but no one can honestly say that I don't know or understand Hickory?
That coffee table at the Snack Bar that you chat at Mr. Mayor, I used to sit there occasionally with my Grandfather Vic Padgett and others. I am not foreign to the good ole boy shootin' the bull that takes place in Hickory.
Unfortunately, I take umbrage at something that Alderman Lail said at the last city council meeting. To paraphrase, he said that the people, the transplants, who have moved here have a better idea of what Hickory is all about than the long time residents.
Now, I've known Brad since we were 14 years old. He might not know that his uncle and my uncle were roommates at Chapel Hill for a time. His grandparent's store was two blocks from my grandparent's house over off Sandy Ridge road. Our families have connections like many of the long time residents of the area. Some of us have been financially more fortunate than others -- congratulations -- and some of us have the perspective of the struggle that are these times -- no congratulations are necessary.
These people that have moved here are more socially and politically malleable than the long time residents who remember what an economically dynamic, hustling-bustling Hickory was like to live in -- it wasn't Quaint. You mistake these people's conformity with what y'all are pushing as some kind of higher calling from those who must know better.
Folks, they are going along to get along with a desire to fit in and tap into the power structure. A gentleman a couple years ago talked about showing the council an "attitude of gratitude" to get them to be more receptive to your interests. Folks, it doesn't matter how congenial you are. If your interests don't fall in line with many of these council people, then you will be pushed to the side. That can be done with a smile, if you just accept the way things are, or you can be painted as a heretic and called evil as some of us have been. If you push back and try to achieve an economic, social, ultimately political transformation, it can yield negative consequences to your personal wellbeing.
This brings me to one final thought, the "Friends of Hickory", which seems to have been formed of, by, and for the Hickory Inc. Power Structure in response to another group that has attempted to be agents to move this community forward towards a tangible 21st century conventional reality. If you believe that the Citizens for Equity in Government movement is the Enemy of Hickory, then you are very much misguided.
I have to admit I am a bit envious of the Friends of Hickory Incorporated, when I see how charmingly they have been treated; especially in comparison to how I have seen others treated. In the end, I say welcome to the arena, because any community organizing endeavor will help move this community forward. We should all work together when possible, but that doesn't mean that we should not have a vigorous debate regarding how this community moves forward.
I am sorry if I have offended anyone with what I have said here; not really. I am an American. I have a responsibility and a legacy to carry on to be free and brave and express myself.
Thank You Council,
I hope you will be patient with me. I will be as brief and courteous as possible. I am not up here tonight to tell you what to do. That would be a silly, futile endeavor. I am only here to express my opinion.
I am not a Friend of Hickory. I am part of the blood and the fabric of Hickory. I was born two blocks from here at Hickory Memorial. My Mammaw Shell was one of the lead nurses there. Ben Goodman Sr. was my Doctor from the time I was born until he retired and his family was good friends of both sides of my family.
One of my most vivid memories as a child was being in the Medical Arts Clinic, because I had been infected with poison ivy. I told Mammaw that I wasn't going to get a shot and she said I wouldn't have to. Well Doctor Abernathy was there, not Dr. Goodman, and he wanted to give me a shot. Well, his nurse pulls out a needle about this long and I took off running. By the time my grandmother caught me I was six blocks away over on the other side of Lenoir-Rhyne. I know how small Old Hickory was, and living in the St. Stephens area most of my life, I know how big it could be. I know the potential there. Potential that has never really been tapped into. Why? Because the focus has always gone back to the wealthiest areas of this community.
I have been accused of being an enemy of Union Square when I knew that place intimately growing up. I understand it's easier to label others than to try to understand where they are coming from. We all do that to a certain extent. My Pappaw Shell was the switch operator at the depot, before he became a clerk at Hickory Chair, and he took me to see the last passenger train stop at the depot back in the mid 70s. My mother was a personnel recruiter and she worked in the building above McGuire's pub for several years. My family bought our clothes at Spainhour's and Zerden's. My grandfather Padgett bought me food and magazines at the original Post Office BBQ. My other grandmother Mattie Padgett, who is nearly 92 years old, and not in good health these days, was a radio personality for years at WIRC. For years I wondered why people would call her Lillianne and then she did the swap shop until she retired at the age of 75. I can go on and on. but no one can honestly say that I don't know or understand Hickory?
That coffee table at the Snack Bar that you chat at Mr. Mayor, I used to sit there occasionally with my Grandfather Vic Padgett and others. I am not foreign to the good ole boy shootin' the bull that takes place in Hickory.
Unfortunately, I take umbrage at something that Alderman Lail said at the last city council meeting. To paraphrase, he said that the people, the transplants, who have moved here have a better idea of what Hickory is all about than the long time residents.
Now, I've known Brad since we were 14 years old. He might not know that his uncle and my uncle were roommates at Chapel Hill for a time. His grandparent's store was two blocks from my grandparent's house over off Sandy Ridge road. Our families have connections like many of the long time residents of the area. Some of us have been financially more fortunate than others -- congratulations -- and some of us have the perspective of the struggle that are these times -- no congratulations are necessary.
These people that have moved here are more socially and politically malleable than the long time residents who remember what an economically dynamic, hustling-bustling Hickory was like to live in -- it wasn't Quaint. You mistake these people's conformity with what y'all are pushing as some kind of higher calling from those who must know better.
Folks, they are going along to get along with a desire to fit in and tap into the power structure. A gentleman a couple years ago talked about showing the council an "attitude of gratitude" to get them to be more receptive to your interests. Folks, it doesn't matter how congenial you are. If your interests don't fall in line with many of these council people, then you will be pushed to the side. That can be done with a smile, if you just accept the way things are, or you can be painted as a heretic and called evil as some of us have been. If you push back and try to achieve an economic, social, ultimately political transformation, it can yield negative consequences to your personal wellbeing.
This brings me to one final thought, the "Friends of Hickory", which seems to have been formed of, by, and for the Hickory Inc. Power Structure in response to another group that has attempted to be agents to move this community forward towards a tangible 21st century conventional reality. If you believe that the Citizens for Equity in Government movement is the Enemy of Hickory, then you are very much misguided.
I have to admit I am a bit envious of the Friends of Hickory Incorporated, when I see how charmingly they have been treated; especially in comparison to how I have seen others treated. In the end, I say welcome to the arena, because any community organizing endeavor will help move this community forward. We should all work together when possible, but that doesn't mean that we should not have a vigorous debate regarding how this community moves forward.
I am sorry if I have offended anyone with what I have said here; not really. I am an American. I have a responsibility and a legacy to carry on to be free and brave and express myself.
20140601 - Monday Morning Meeting with the Mayor
The following is the interview of Mayor Rudy Wright on 1290 WHKYam Radio's First talk program with Hal Row.
WHKY does not archive these programs and make them available to the public, so I am putting this important public interview up under Fair Use guidelines.
The Mayor talks about the proposed budget for 2014-15 and the upcoming referendum. He talks about the proposed 2¢ tax rate increase and possibly making the 1¢ tax rate increase designated for road paving a part of the upcoming bond referendum. He says we should take our chances on the 1¢ tax rate increase associated with operational costs (he says revenue uncertainties). In summary, he says he does not support a tax increase this year.
He says to leave it all up to the voters in the Bond Referendum and next year "we" will decide whether we need the money for paving and revenue uncertainty. The Mayor says that they have $25 million of the bond devoted to transportation and $15 million devoted to the Business Park and other tangible economic development. He says that the there are people in favor of doing this now (as I told you). The Mayor associates the tax rates of 1¢ for paving and 1¢ revenue uncertainties and 4¢ for general improvements (Manager Berry's numbers from last year). The Mayor says that this would aggravate the voters. The Council IS going to make this happen "as much as possible" to the greatest extent possible either through the bond referendum or other revenue sources... most of the council is in favor of doing this up front.
Then in the next segment the Mayor starts talking about 8¢ associated with the $40 million Bond Referendum (that goes right to the heart of the numbers I discussed with you two weeks ago = 8¢ for Inspiring Spaces + 1¢ for paving + 1¢ for operational costs = 10¢).
Listen and fill free to comment.
Hound Notes: The Mayor is obviously a government guy. I've read and heard these people talking about buckets. Let's talk about double dipping or double counting. There is one freaking bucket and that is all of the revenue taken in by Hickory Inc. It doesn't matter how you divide it up or dole it out, at the end of the day it is the total amount of revenue under Hickory Inc.'s control. You take out a $40 million loan, then you have $40 million to spend as you see fit today, but that $40 million comes out of the capacity of future budgets. Hickory can't run at a deficit like the Federal Government. At the end of each year Hickory Inc. has to reconcile its books.
They can talk all day long about the Bond money. It cannot be separated out. At the end of the day you are borrowing that money against future revenues. So when it's time to pay off those bonds, you will have to either cut expenses from the budget or you will have to raise revenues through some sort of taxing mechanism in order to pay back the borrowed money. It isn't "raise property taxes" OR sell bonds. It is raise property taxes TO pay back the bond money. The Bond money isn't some kind of magic source of money.
It is ridiculous to talk about the paving money being part of the bond referendum. That additional money is needed from here on out. The projects as defined by and associated with this referendum are finite and will eventually end. We will always have to have roads paved and maintained in this community. Also, the Mayor can talk about our roads not being worse than other communities, that isn't why people are upset. People are looking at the roads now compared to what they were here 10 or 20+ years ago and saying they are awful. The cost of materials (petroleum) has risen and it is obvious that Hickory Inc. has been forced to cut corners here.
So, what it all comes down to is 1) is investing millions in these projects worth it, 2) what are the tangible benefits, 3) do we have the right people making the decisions about the priorities, and/or 4) are there mechanisms in place to assure accountability in association with this spending to ensure that this doesn't turn into a debacle like we saw with "the Sails" project.
Each of these projects need to be cut up into small definable, self contained segments. That way if the Council, now or later, finds the community in a bind due to these economically uncertain times that we live in, then they can pull back without these projects becoming an eyesore of unfinished business. Interest rates may be historically low today, but nothing says that they will be five or seven years from now. The reason I bring this up is because the $40 million will not be procured all at once, as City Manager Berry has stated in other venues, it will be procured in multiple tranches through the issuance of the authorized bonds over the next 5 to 7 years.
Sunday, June 1, 2014
Economic Stories of Relevance in Today's World -- June 1, 2014
U.S. Gasoline Consumption Plummets By Nearly 75% - Bullion Bulls Canada - Jeff Nielson - May 25, 2014 - Regular readers are familiar with my narratives on the U.S. Greater Depression, and (in particular) some of the government’s own charts which depict this economic meltdown most vividly. The collapse in the “civilian participation rate” (the number of people working in the economy) and the “velocity of money” (the heartbeat of the economy) indicate an economy which is not merely in decline, but rather is being sucked downward in a terminal (and accelerating) death-spiral. However, even that previously published data, and the grim analyses which accompanied it could not prepare me for the horror story contained in data passed along by an alert reader. U.S. “gasoline consumption” – as measured by the U.S. Energy Information Administration (EIA) itself – has plummeted by nearly 75%, from its all-time peak in July of 1998. A near-75% collapse in U.S. gasoline consumption has occurred in little more than 15 years. Before getting into an analysis of the repercussions of this data, however, it’s necessary to properly qualify the data. Obviously, even in the most-nightmarish economic Armageddon, a (relatively short-term) 75% collapse in gasoline consumption is simply not possible. Unless we were dealing with a nation whose economy had been suddenly ripped apart by civil war, or some small nation devastated by a massive earthquake or tsunami; it’s simply not possible for any economy to just disintegrate that rapidly, without there being some ultra-powerful exogenous force also at work. So how can this raw data, produced by the government itself, be explained? To begin with; the government chooses to measure U.S. gasoline consumption in a very odd manner: by measuring the amount of gasoline entering the domestic supply-chain rather than by measuring actual consumption at the other end of the supply-chain – i.e. “at the pump”...
Hound's Note : Check out the chart below from the article above, which goes to the point of what Mr. Nielson is trying to convey. It relates to the Velocity of Money Circulation in the United States and shows that we are in a full on Depression. Followers of this site will know that is what I have been calling it for years. We had a first leg down in 2008. The economy peaked in the middle of 2006 and began to turn down in 2007 until it fell off the cliff in 2008. Stimulus was put into the economy with the arrival of the Obama administration. You can see a slight uptick in the economy in the second quarter of 2009 that lasted until the fourth quarter of 2010. Since 2011 we have been down every quarter (to historic lows) in the measure of the velocity of money, which is the circulation of U.S. dollars...
(Wikipedia) is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period.[3] In other words, it is the number of times one dollar is spent to buy goods and services per unit of time.[3] If the velocity of money is increasing, then more transactions are occurring between individuals in an economy.[3] Although once thought to be constant,[citation needed] it is now understood that the velocity of money changes over time and is influenced by a variety of factors.[4] When the period is understood, the velocity may be presented as a pure number; otherwise it should be given as a pure number divided by time.[citation needed]
Analysts predict most employer-provided insurance will disappear as ObamaCare takes hold - Fox News - Jim Angle - May 31, 2014 - Across the political spectrum, analysts now say that 80 to 90 percent of employer-provided insurance, the mainstay of American health coverage for decades, will disappear as ObamaCare takes hold. The research firm S&P IQ predicts less than 10 percent of those who get insurance at work will still get it there ten years from now....
Former Congressional Budget Office Director Doug Holtz-Eakin said,"you could give them more, so after taxes they end up with the same and the math says you still come out ahead. And so employers have been doing this math ever since the law passed. I expect for them to get to the exits pretty quickly." Employers would also get rid of the headache and uncertainty of providing insurance, he noted. "Most people are not in the health insurance business they are manufacturers, exporters, they are service providers. And they would rather stick to that than worry about health insurance." So employers can offer more pay to workers, pay the fine and still come out ahead, while workers would still get health care. The only losers in all this would be the federal deficit and taxpayers, since many workers going into ObamaCare would qualify for subsidies, driving up the cost.
The Middle Class Will Die Within 30 Years Leaving "A Wealthy Elite & Sprawling Proletariat" - Zero Hedge - Tyler Durden - May 28, 2014 - If we continue down this path of ignorance, we will be left with a "tiny elite and a huge sprawling proletariat" who have no chance of "clawing their way out of a hand-to-mouth existence," is the loud and clear message from UK government advisor David Boyle. As The Telegraph reports, Boyle cautions, "we won't own our own homes, we won't be able to afford it," adding that "we cheerled the rise of property prices not realising that it would destroy, if not our own lives, but the lives of our children." His conclusion, "the middle classes have to wake up to prevent it happening and to create a political movement that will do it."
Few workers confident of easy retirement - USA Today - Nanci Hellmich - May 30, 2014 - ... Only 28% of U.S. workers are "very" or "extremely" confident that they'll one day fully retire with a comfortable lifestyle; a third are "somewhat" confident. And 19% of workers globally have high confidence levels that they'll have a comfy retirement, with the greatest percentage of people feeling that way in China (41%) and the lowest rates in France (6%) and Poland (4%), according to the survey of 16,000 workers and retirees in 15 countries in Europe, North America, South America and Asia. The survey was commissioned by the non-profit Transamerica Center for Retirement Studies and the Dutch insurance company Aegon. "Retirement systems vary by country, yet we all have in common an aging population and a need for people to take on more personal responsibility for long-term financial security," says Transamerica Center President Catherine Collinson. "Workers around the world face the increasing need to save, plan and self-fund a greater portion of their own retirement."...
John Rubino says that no US GDP report is complete without an explanation from the Consumer Metrics Institute of how Washington is fooling us. The latest one is even scarier than usual:
There are a number of disturbing items in this report:
-- Even at first glance this is not a good report. Although the headline number itself says "stagnation," in the context of earlier reports it shows an economy in dynamic transition from lackluster growth towards outright contraction. The overall headline number is down 2.5% from the prior quarter and down 4% from the next earlier quarter. These are significant changes, with the prior quarter's trend extended and the downward slope intensifying.
-- Private commercial investment dropped substantially, led by reduced outlays for residential construction, transportation equipment and IT infrastructure.
-- The year-long 2013 cycle of inventory building has come to an end. Over an extended time period inventories are mostly a cyclical zero-sum game, with excessive growth or contraction over any period being corrected (i.e., reversed) during a subsequent period. Moving forward we should expect that inventories will continue their cyclical contraction, with negative consequences to the headline number.
This video was originally published on May 5, 2014 and re-posted with permission from http://FinancialSurvivalNetwork.com
Hound's Note : Check out the chart below from the article above, which goes to the point of what Mr. Nielson is trying to convey. It relates to the Velocity of Money Circulation in the United States and shows that we are in a full on Depression. Followers of this site will know that is what I have been calling it for years. We had a first leg down in 2008. The economy peaked in the middle of 2006 and began to turn down in 2007 until it fell off the cliff in 2008. Stimulus was put into the economy with the arrival of the Obama administration. You can see a slight uptick in the economy in the second quarter of 2009 that lasted until the fourth quarter of 2010. Since 2011 we have been down every quarter (to historic lows) in the measure of the velocity of money, which is the circulation of U.S. dollars...
(Wikipedia) is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period.[3] In other words, it is the number of times one dollar is spent to buy goods and services per unit of time.[3] If the velocity of money is increasing, then more transactions are occurring between individuals in an economy.[3] Although once thought to be constant,[citation needed] it is now understood that the velocity of money changes over time and is influenced by a variety of factors.[4] When the period is understood, the velocity may be presented as a pure number; otherwise it should be given as a pure number divided by time.[citation needed]
Analysts predict most employer-provided insurance will disappear as ObamaCare takes hold - Fox News - Jim Angle - May 31, 2014 - Across the political spectrum, analysts now say that 80 to 90 percent of employer-provided insurance, the mainstay of American health coverage for decades, will disappear as ObamaCare takes hold. The research firm S&P IQ predicts less than 10 percent of those who get insurance at work will still get it there ten years from now....
Former Congressional Budget Office Director Doug Holtz-Eakin said,"you could give them more, so after taxes they end up with the same and the math says you still come out ahead. And so employers have been doing this math ever since the law passed. I expect for them to get to the exits pretty quickly." Employers would also get rid of the headache and uncertainty of providing insurance, he noted. "Most people are not in the health insurance business they are manufacturers, exporters, they are service providers. And they would rather stick to that than worry about health insurance." So employers can offer more pay to workers, pay the fine and still come out ahead, while workers would still get health care. The only losers in all this would be the federal deficit and taxpayers, since many workers going into ObamaCare would qualify for subsidies, driving up the cost.
The Middle Class Will Die Within 30 Years Leaving "A Wealthy Elite & Sprawling Proletariat" - Zero Hedge - Tyler Durden - May 28, 2014 - If we continue down this path of ignorance, we will be left with a "tiny elite and a huge sprawling proletariat" who have no chance of "clawing their way out of a hand-to-mouth existence," is the loud and clear message from UK government advisor David Boyle. As The Telegraph reports, Boyle cautions, "we won't own our own homes, we won't be able to afford it," adding that "we cheerled the rise of property prices not realising that it would destroy, if not our own lives, but the lives of our children." His conclusion, "the middle classes have to wake up to prevent it happening and to create a political movement that will do it."
Authored by Sarah Knapton via The Telegraph,
The middle classes will die out within 30 years because of rising property prices, which will rob today's children of their dreams, an economist has warned. David Boyle, a government advisor and fellow of the New Economics Foundation think-tank, said that youngsters can no longer expect the same level of affluence as their parents. Speaking at the Hay Festival he warned that Britain will be left with a ‘tiny elite and a huge sprawling proletariat’ who have no chance of ‘clawing their way out of a hand-to-mouth existence.’ He predicted that the average house price will reach £1.2 million by 2045, putting a home beyond the range of most people as wages fail to keep up with huge increases. Boyle said that the traditional middle classes will need three or four jobs just to be able to pay soaring rents. People will no longer have the space or time to pursue cultural interested. And he blamed bankers bonuses for artificially inflating the property market.
Few workers confident of easy retirement - USA Today - Nanci Hellmich - May 30, 2014 - ... Only 28% of U.S. workers are "very" or "extremely" confident that they'll one day fully retire with a comfortable lifestyle; a third are "somewhat" confident. And 19% of workers globally have high confidence levels that they'll have a comfy retirement, with the greatest percentage of people feeling that way in China (41%) and the lowest rates in France (6%) and Poland (4%), according to the survey of 16,000 workers and retirees in 15 countries in Europe, North America, South America and Asia. The survey was commissioned by the non-profit Transamerica Center for Retirement Studies and the Dutch insurance company Aegon. "Retirement systems vary by country, yet we all have in common an aging population and a need for people to take on more personal responsibility for long-term financial security," says Transamerica Center President Catherine Collinson. "Workers around the world face the increasing need to save, plan and self-fund a greater portion of their own retirement."...
John Rubino says that no US GDP report is complete without an explanation from the Consumer Metrics Institute of how Washington is fooling us. The latest one is even scarier than usual:
There are a number of disturbing items in this report:
-- Even at first glance this is not a good report. Although the headline number itself says "stagnation," in the context of earlier reports it shows an economy in dynamic transition from lackluster growth towards outright contraction. The overall headline number is down 2.5% from the prior quarter and down 4% from the next earlier quarter. These are significant changes, with the prior quarter's trend extended and the downward slope intensifying.
-- Private commercial investment dropped substantially, led by reduced outlays for residential construction, transportation equipment and IT infrastructure.
-- The year-long 2013 cycle of inventory building has come to an end. Over an extended time period inventories are mostly a cyclical zero-sum game, with excessive growth or contraction over any period being corrected (i.e., reversed) during a subsequent period. Moving forward we should expect that inventories will continue their cyclical contraction, with negative consequences to the headline number.
This video was originally published on May 5, 2014 and re-posted with permission from http://FinancialSurvivalNetwork.com
Saturday, May 31, 2014
Agenda about the City Council meeting of June 3, 2014
This Agenda is about the Hickory City Council meeting that took place on the date listed above. 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. You can also look in the upper right hand corner of the front page of the Hickory Hound and (will soon) find the link to the past history of Hickory City Newsletters.
Here is a summary of the agenda of the 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.
City Website has changed - Here is a link to the City of Hickory Document Center
City Council Agenda - June 3, 2014
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The Hound's Notes:
The Budget was discussed at the last meeting. There is a 2¢ increase in the property tax rate.
Link to City Manager Berry's presentation of the proposed budget for 2014-15
The City Manager and Assistant City Manager are presenting information in what the call Citizen Briefings, below are the Power Point Presentation and two briefing that have already taken place.
Citizen Review - Power Point Presentation
Ridgeview Citizen Review - Thoughts about the Ridgeview Citizen Review meeting
Citizens Briefing Presentation - 04/29/2014
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Invocation by Rev. Antonio Logan, Pastor Friendship Baptist Church
Consent Agenda:
A. Approval of a Resolution Supporting the Extension of North Carolina’s Historic Preservation Tax Credit Program. - The State of North Carolina currently offers tax credits for rehabilitation of historic buildings. This program offers a tax credit of up to 20 percent of rehabilitation costs of an income producing structure, which include commercial buildings and apartments. This credit can be paired with the Federal tax credit for a total tax credit of 40 percent. The State also offers a 30 percent tax credit for rehabilitation costs for non-income producing structures such as private homes. No federal tax credit is available for non-income producing structures. The State tax credits are set to sunset on December 31, 2014 if the General Assembly does not act to extend them. The Historic Preservation Commission considered the resolution at their May 27th meeting and recommends approval. Staff recommends that City Council adopt a resolution supporting the extension of North Carolina’s historic preservation tax credit program.
B. Approval to Write-off Uncollectable Accounts Totaling $280,419.79, in Accordance with North Carolina General Statutes. - North Carolina General Statutes establish all street assessments and property taxes that are over ten years old and are no longer collectable, and should be written off in conjunction with the annual audit. For the current fiscal year (FY2013-2014), there are no street assessments to be written off, but $82,153.73 in unpaid property taxes that exceeds the ten year limitation. The City of Hickory’s Accounting Division requires all other accounts that are over eighteen months in arrears be written off to comply with “Generally Accepted Accounting Principles” in order to more fairly represent financial assets of the City on the balance sheet. For the current fiscal year, this amount is $198,266.06. The Finance Division will continue to pursue collection of the debts. All eligible accounts over $50 are submitted to the North Carolina Debt Setoff Program for collection. As of May 7, 2014, the City of Hickory has collected $50,451.90 from the garnishment of North Carolina State tax refunds and North Carolina State lottery winnings during this fiscal year. Staff recommends approval to write-off uncollectable accounts for Fiscal Year
2013-2014.
C. Resolution – Cancellation of July 1, 2014 City Council Meeting. - Be it resolved by the City Council of the City of Hickory that the regularly scheduled City Council Meeting for July 1, 2014 be cancelled. (This meeting in July has traditionally been cancelled by the City Council.)
D. Approval of a Resolution to Declare Surplus Personal Property. - The City has a 2002 Freightliner JetVac Tanker Truck that is no longer of service to the City and request that this property be declared surplus by City Council. In accordance with G.S. 160A-270 for auction of personal property and local policy for surplus property valued above $30,000 the approval and declaration of surplus by Council is required before public auction of the item can be performed. In addition a ten day public notice will be published in the newspaper before the auction takes place. The preliminary estimated value of the tanker truck is $50,000.
E. Approval of a Resolution supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the Hickory Metro Convention Center Parking Deck. - The Hickory Metro Convention Center is owned by the City of Hickory, but operates under the Tourism Development Authority (TDA) board. The Convention Center is self-supported by event revenues and the hotel occupancy tax collected in Hickory and Conover. The six percent occupancy tax is collected by the City of Hickory and remitted back to the TDA to operate the Convention Center. In order for a local government in North Carolina to finance a project, approval is to be obtained from the Local Government Commission (LGC). The LGC requires City Council’s approval of a resolution prior to the LGC”s approval of the financing agreement application. Staff recommends Council approval of the resolution supporting an application to the LGC for the Hickory Metro Convention Center Parking Deck.
F. Approval of Service Agreement for Federal Legislative and Grant Services provided by Marlow and Company. - Marlow and Company staff provides support for the city of Hickory at the Federal level through grant writing and submittal assistance, organizing Congressional delegation visits in Washington, DC and assistance with issues that affect Hickory at the Federal level. Staff requests approval of the service contract for Marlow and Company for 2014-2015 in the amount of $3,750 per month for federal government consulting and grant writing services. This is the same price as the original contract five years ago.
G. Cemetery Deed Conveyance for Dale K. Cline, and wife, Brenda K. Cline. - Dale and Brenda Cline purchased four plots in Oakwood Cemetery on May 30, 1995. The Clines now desire to convey to themselves combining the four plots into two plots. They have expressed several reasons for this request. First, they have stated that they possibly want to have headstones placed on the unused portions of the plots. Second, they said they want to combine the plots due to their concern that the City will enforce Article X. Section 32.1 of the Code of Ordinances.
H. Budget Ordinance Amendment Number 25.
1. To budget a $250 Youth Council Grant from the State of North Carolina. The funds are for Youth Council activities.
2. To budget a total of $8,167 ($7,567 Rec. Special Activities and $600 Donations) in the Parks and Recreation Departmental Supplies line item. Funds are for the 2014 Senior Games Registration and Sponsorships.
3. To budget an $80 Library donation from the Sherman Alexie book signing in the Library Programming line item.
4. To budget a $46 Library donation from the John Hart book signing in the Library Programming line item.
5. To budget a $350 Library donation from the Friends of the Library for Adult Summer Reading prizes.
6. To budget $25,500 of Hickory Kiwanis Foundation Donations in the Parks and Recreation Improvement to Facilities Capital line item. The funds are for use in the construction of a new tree house for Zahra Baker All Children's Playground at Hickory Kiwanis Park.
7. To appropriate $7,470 of Insurance Claim to the Fire Department's Non-Asset Inventory line item. This claim is for damages to two SCBA packs that occurred on 5/2/14 when the two air packs were damaged during a mutual aid incident. The check was issued from Argonaut Great Central Insurance Company on 5/13/14 and deposited in Insurance Claim on 5/16/14.
8. To appropriate $46,263 of General Fund Balance to the Airport Aviation Rent line item. This transfer is to cover revenue losses at the Hickory Regional Airport due to the City's former FBO Operator being in default of their lease agreement on a hangar located at the Airport.
9. To appropriate $125,000 of Proceeds from Financing and budget in the TDA Parking Deck Project. This appropriation is for the design and GEO technical work.
10. To transfer a total of $34,000 of General Fund Contingency to the Unemployment Insurance line items in the Recycling, Fleet, Stormwater and Airport budgets. The transfer of funds is to cover a one-time insurance cost mandated by the State of North Carolina.
11. To transfer a total of $62,000 of General Fund Contingency to the Fuel line items in the Fire, Recycling and Residential Sanitation budgets. The transfer of funds is to cover fuel costs for the remainder of the fiscal year.
12. To adjust the Hotel Motel Occupancy Tax Revenue and Expenditure line items by $85,000 to reflect anticipated occupancy tax revenue.
I. Grant Project Ordinance Number 6.
1. To decrease the Windridge Bridge replacement project design line item by $152,800 of Federal ($114,600) and State ($38,200) Revenue. The Grant Project Ordinance is replaced with Capital Project Ordinance Number 7.
New Business - Public Hearings
1. Voluntary Satellite Annexation of 1218 Bugle Lane. - Mr. Jeremiah Turbeville, and wife Tanya Turbeville have submitted a petition for the voluntary satellite annexation of .479 acres of property, located at 1218 Bugle Lane. The petitioners are requesting annexation in order to connect to the City of Hickory’s sanitary sewer system. This public hearing was advertised on May 24, 2014 in a newspaper having general circulation in the Hickory area.
2. City Manager’s FY2014-2015 Recommended Annual Budget. - 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 24, 2014. 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.hickorync.gov. 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 2014-2015.
New Business - Departmental Reports:
1. Mack McLeod, Presentation of Zahra’s Tree House. - As part of the City’s fully-accessible Zahra Baker All Children’s Playground, a tree house was conceived to add tremendous value to the facility at Kiwanis Park. With the input from both local businesses and civic club, plans for a tree house structure were developed for the park. The proposed tree house will provide opportunities otherwise missed for children at the park. This particular project is a permanent upgrade for the facility and supports a long-term usage of the facility. All funds necessary to construct the tree house are private donations that have been deposited into a City of Hickory donations account. Staff recommends that Hickory Construction Company be awarded a sum of $33,000 for construction of a new tree house structure at Hickory Kiwanis Park as a complete turnkey project to include all permits and inspections.
2. Vacant Building Revitalization and Demolition Grant for Holbrook Landscaping for Property Located at 2146 Highland Avenue. - Holbrook Landscaping, LLC has applied for a Vacant Building Revitalization Grant in the amount of $30,000 to assist in the renovation of a former mill building located at 2146 Highland Avenue NE. The applicant plans to renovate the facility for use for a landscape contracting business. The applicant plans to invest approximately $230,000 in real property improvements to rehabilitate the industrial building. The Business Development Committee reviewed the application and recommends approval.
3. Citizen Briefing - The City Manager and Assistant City Manager Andrea Surratt are briefing
citizens as neighborhoods, businesses, civic and general public meetings about the City’s plan for growing jobs and population. The Manager will provide this same briefing to Council and the residents in attendance.
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. You can also look in the upper right hand corner of the front page of the Hickory Hound and (will soon) find the link to the past history of Hickory City Newsletters.
Here is a summary of the agenda of the 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.
City Website has changed - Here is a link to the City of Hickory Document Center
City Council Agenda - June 3, 2014----------------------------------------------------------------------------------------------
The Hound's Notes:
The Budget was discussed at the last meeting. There is a 2¢ increase in the property tax rate.
Link to City Manager Berry's presentation of the proposed budget for 2014-15
The City Manager and Assistant City Manager are presenting information in what the call Citizen Briefings, below are the Power Point Presentation and two briefing that have already taken place.
Citizen Review - Power Point Presentation
Ridgeview Citizen Review - Thoughts about the Ridgeview Citizen Review meeting
Citizens Briefing Presentation - 04/29/2014
----------------------------------------------------------------------------------------------
Invocation by Rev. Antonio Logan, Pastor Friendship Baptist Church
Consent Agenda:
A. Approval of a Resolution Supporting the Extension of North Carolina’s Historic Preservation Tax Credit Program. - The State of North Carolina currently offers tax credits for rehabilitation of historic buildings. This program offers a tax credit of up to 20 percent of rehabilitation costs of an income producing structure, which include commercial buildings and apartments. This credit can be paired with the Federal tax credit for a total tax credit of 40 percent. The State also offers a 30 percent tax credit for rehabilitation costs for non-income producing structures such as private homes. No federal tax credit is available for non-income producing structures. The State tax credits are set to sunset on December 31, 2014 if the General Assembly does not act to extend them. The Historic Preservation Commission considered the resolution at their May 27th meeting and recommends approval. Staff recommends that City Council adopt a resolution supporting the extension of North Carolina’s historic preservation tax credit program.
B. Approval to Write-off Uncollectable Accounts Totaling $280,419.79, in Accordance with North Carolina General Statutes. - North Carolina General Statutes establish all street assessments and property taxes that are over ten years old and are no longer collectable, and should be written off in conjunction with the annual audit. For the current fiscal year (FY2013-2014), there are no street assessments to be written off, but $82,153.73 in unpaid property taxes that exceeds the ten year limitation. The City of Hickory’s Accounting Division requires all other accounts that are over eighteen months in arrears be written off to comply with “Generally Accepted Accounting Principles” in order to more fairly represent financial assets of the City on the balance sheet. For the current fiscal year, this amount is $198,266.06. The Finance Division will continue to pursue collection of the debts. All eligible accounts over $50 are submitted to the North Carolina Debt Setoff Program for collection. As of May 7, 2014, the City of Hickory has collected $50,451.90 from the garnishment of North Carolina State tax refunds and North Carolina State lottery winnings during this fiscal year. Staff recommends approval to write-off uncollectable accounts for Fiscal Year
2013-2014.
C. Resolution – Cancellation of July 1, 2014 City Council Meeting. - Be it resolved by the City Council of the City of Hickory that the regularly scheduled City Council Meeting for July 1, 2014 be cancelled. (This meeting in July has traditionally been cancelled by the City Council.)
D. Approval of a Resolution to Declare Surplus Personal Property. - The City has a 2002 Freightliner JetVac Tanker Truck that is no longer of service to the City and request that this property be declared surplus by City Council. In accordance with G.S. 160A-270 for auction of personal property and local policy for surplus property valued above $30,000 the approval and declaration of surplus by Council is required before public auction of the item can be performed. In addition a ten day public notice will be published in the newspaper before the auction takes place. The preliminary estimated value of the tanker truck is $50,000.
E. Approval of a Resolution supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the Hickory Metro Convention Center Parking Deck. - The Hickory Metro Convention Center is owned by the City of Hickory, but operates under the Tourism Development Authority (TDA) board. The Convention Center is self-supported by event revenues and the hotel occupancy tax collected in Hickory and Conover. The six percent occupancy tax is collected by the City of Hickory and remitted back to the TDA to operate the Convention Center. In order for a local government in North Carolina to finance a project, approval is to be obtained from the Local Government Commission (LGC). The LGC requires City Council’s approval of a resolution prior to the LGC”s approval of the financing agreement application. Staff recommends Council approval of the resolution supporting an application to the LGC for the Hickory Metro Convention Center Parking Deck.
F. Approval of Service Agreement for Federal Legislative and Grant Services provided by Marlow and Company. - Marlow and Company staff provides support for the city of Hickory at the Federal level through grant writing and submittal assistance, organizing Congressional delegation visits in Washington, DC and assistance with issues that affect Hickory at the Federal level. Staff requests approval of the service contract for Marlow and Company for 2014-2015 in the amount of $3,750 per month for federal government consulting and grant writing services. This is the same price as the original contract five years ago.
G. Cemetery Deed Conveyance for Dale K. Cline, and wife, Brenda K. Cline. - Dale and Brenda Cline purchased four plots in Oakwood Cemetery on May 30, 1995. The Clines now desire to convey to themselves combining the four plots into two plots. They have expressed several reasons for this request. First, they have stated that they possibly want to have headstones placed on the unused portions of the plots. Second, they said they want to combine the plots due to their concern that the City will enforce Article X. Section 32.1 of the Code of Ordinances.
H. Budget Ordinance Amendment Number 25.
1. To budget a $250 Youth Council Grant from the State of North Carolina. The funds are for Youth Council activities.
2. To budget a total of $8,167 ($7,567 Rec. Special Activities and $600 Donations) in the Parks and Recreation Departmental Supplies line item. Funds are for the 2014 Senior Games Registration and Sponsorships.
3. To budget an $80 Library donation from the Sherman Alexie book signing in the Library Programming line item.
4. To budget a $46 Library donation from the John Hart book signing in the Library Programming line item.
5. To budget a $350 Library donation from the Friends of the Library for Adult Summer Reading prizes.
6. To budget $25,500 of Hickory Kiwanis Foundation Donations in the Parks and Recreation Improvement to Facilities Capital line item. The funds are for use in the construction of a new tree house for Zahra Baker All Children's Playground at Hickory Kiwanis Park.
7. To appropriate $7,470 of Insurance Claim to the Fire Department's Non-Asset Inventory line item. This claim is for damages to two SCBA packs that occurred on 5/2/14 when the two air packs were damaged during a mutual aid incident. The check was issued from Argonaut Great Central Insurance Company on 5/13/14 and deposited in Insurance Claim on 5/16/14.
8. To appropriate $46,263 of General Fund Balance to the Airport Aviation Rent line item. This transfer is to cover revenue losses at the Hickory Regional Airport due to the City's former FBO Operator being in default of their lease agreement on a hangar located at the Airport.
9. To appropriate $125,000 of Proceeds from Financing and budget in the TDA Parking Deck Project. This appropriation is for the design and GEO technical work.
10. To transfer a total of $34,000 of General Fund Contingency to the Unemployment Insurance line items in the Recycling, Fleet, Stormwater and Airport budgets. The transfer of funds is to cover a one-time insurance cost mandated by the State of North Carolina.
11. To transfer a total of $62,000 of General Fund Contingency to the Fuel line items in the Fire, Recycling and Residential Sanitation budgets. The transfer of funds is to cover fuel costs for the remainder of the fiscal year.
12. To adjust the Hotel Motel Occupancy Tax Revenue and Expenditure line items by $85,000 to reflect anticipated occupancy tax revenue.
I. Grant Project Ordinance Number 6.
1. To decrease the Windridge Bridge replacement project design line item by $152,800 of Federal ($114,600) and State ($38,200) Revenue. The Grant Project Ordinance is replaced with Capital Project Ordinance Number 7.
New Business - Public Hearings
1. Voluntary Satellite Annexation of 1218 Bugle Lane. - Mr. Jeremiah Turbeville, and wife Tanya Turbeville have submitted a petition for the voluntary satellite annexation of .479 acres of property, located at 1218 Bugle Lane. The petitioners are requesting annexation in order to connect to the City of Hickory’s sanitary sewer system. This public hearing was advertised on May 24, 2014 in a newspaper having general circulation in the Hickory area.
2. City Manager’s FY2014-2015 Recommended Annual Budget. - 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 24, 2014. 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.hickorync.gov. 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 2014-2015.
New Business - Departmental Reports:
1. Mack McLeod, Presentation of Zahra’s Tree House. - As part of the City’s fully-accessible Zahra Baker All Children’s Playground, a tree house was conceived to add tremendous value to the facility at Kiwanis Park. With the input from both local businesses and civic club, plans for a tree house structure were developed for the park. The proposed tree house will provide opportunities otherwise missed for children at the park. This particular project is a permanent upgrade for the facility and supports a long-term usage of the facility. All funds necessary to construct the tree house are private donations that have been deposited into a City of Hickory donations account. Staff recommends that Hickory Construction Company be awarded a sum of $33,000 for construction of a new tree house structure at Hickory Kiwanis Park as a complete turnkey project to include all permits and inspections.
2. Vacant Building Revitalization and Demolition Grant for Holbrook Landscaping for Property Located at 2146 Highland Avenue. - Holbrook Landscaping, LLC has applied for a Vacant Building Revitalization Grant in the amount of $30,000 to assist in the renovation of a former mill building located at 2146 Highland Avenue NE. The applicant plans to renovate the facility for use for a landscape contracting business. The applicant plans to invest approximately $230,000 in real property improvements to rehabilitate the industrial building. The Business Development Committee reviewed the application and recommends approval.
3. Citizen Briefing - The City Manager and Assistant City Manager Andrea Surratt are briefing
citizens as neighborhoods, businesses, civic and general public meetings about the City’s plan for growing jobs and population. The Manager will provide this same briefing to Council and the residents in attendance.
Friday, May 30, 2014
Economic Relevance - the Middle Class Squeeze
Marketplaces are about people and the majority of people are struggling. The Great Recession only ended for the affluent. It never ended for the middle class as defined in the post World War 2 to the Millennium era.
Excluding Obamacare, US Economy Contracted By 2% In The First Quarter - Tyler Durden - May 29, 2014 - As if the official news that the US economy is just one quarter away from an official recession (and with just one month left in the second quarter that inventory restocking better be progressing at an epic pace) but don't worry - supposedly harsh weather somehow managed to wipe out $100 billion in economic growth from the initial forecast for Q1 GDP - here is some even worse news: if one excludes the artificial stimulus to the US economy generated from the Obamacare Q1 taxpayer-subsidized scramble, which resulted in a record surge in Healthcare services spending of $40 billion in the quarter, Q1 GDP would have contracted not by 1% but by 2%!
Hound Note: Essentially what we are seeing is that GDP fell by 2% for the first quarter of 2014. That is reflective in the retail numbers we saw earlier this week. Now we are seeing a depression in middle class home sales, while wealthy homes are selling at an increased pace in most major cities. Add to this a 22% increase in the cost of food and not being able to rely on the government to be honest and you will see the mess we are in.
Housing Bubble 2 Already Collapsing for the 99% - The Testosterone Pit - May 28, 2014 -
This is precisely what shouldn’t have happened but was destined to happen: Sales of existing homes have gotten clobbered since last fall. At first, the Fiscal Cliff and the threat of a US government default – remember those zany times? – were blamed, then polar vortices were blamed even while home sales in California, where the weather had been gorgeous all winter, plunged more than elsewhere. Then it spread to new-home sales: in April, they dropped 4.7% from a year ago, after March's year-over-year decline of 4.9%, and February's 2.8%. Not a good sign: the April hit was worse than February's, when it was the weather’s fault. Yet April should be the busiest month of the year (excellent brief video by Lee Adler on this debacle). We have already seen that in some markets, in California for example, sales have collapsed at the lower two-thirds of the price range, with the upper third thriving. People who earn median incomes are increasingly priced out of the market, and many potential first-time buyers have little chance of getting in. In San Diego, for example, sales of homes below $200,000 plunged 46% while the upper end is doing just fine. But the upper end is small, and they don’t like to buy median homes [read… Housing Bubble 2 Veers Elegantly Toward Housing Bust 2] Yet it’s going according to the Fed’s plan. Its policies – nearly free and unlimited amounts of capital for those with access to it – have created enormous wealth in a minuscule part of the population by inflating ferocious asset bubbles, including in housing. But now electronic real-estate broker Redfin has made it official: in 2014 through April, sales of the most expensive 1% of homes have soared 21.1% year over year, while sales in the lower 99% have dropped 7.6%. And it wasn’t the first year. In 2013, sales of 1%-homes jumped 35.7%, while sales of the other 99% rose 10.1%. And in 2012, sales of 1%-homes rose 17.5%, while the rest of the market inched up a mere 2.9%.
Our “Make It Look Good” Economy Has Failed - Washington's Blog - May 29, 2014 The essence of the U.S. economy is make it look good: never mind quality or long-term consequences, just make it look good today, this week, this month, this quarter: make the pink slime look like meat, make the company look profitable, make the low-quality product look good enough to close the sale, make the unemployment rate low enough to justify re-electing the toadies currently in power, make the body count of bad guys look good, and on and on–just makes the numbers look good now, the future will take care of itself...
U.S. Food Inflation Running at 22% - Breitbart - Chriss W. Street - May 26, 2014 - After five years of the federal government telling the public that despite a $3.5 trillion increase in monetary expansion, the inflation rate is below +2%, the Department of Agriculture (DOA) just warned the American public that the consumer price index for food is up by 10% this year. The DOA tried to blame food inflation on the drought conditions in California, but last year’s drought was worse and food prices fell by -6%. The real problem is Federal Reserve monetary stimulus is stimulating inflation. I reported in "Food Price Inflation Scares the Fed” two months ago that commodity food costs were exploding on the upside. Given the lag in commodity costs impacting prices on grocery store shelves, annual U.S. food inflation is now running at +22% and rising.
The real culprit for food inflation is the $940 billion of additional monetary stimulus from the United States Federal Reserve’s quantitative easing over the last twelve months. Inflation has been in hibernation for a long time, but it is wide awake now....
Excluding Obamacare, US Economy Contracted By 2% In The First Quarter - Tyler Durden - May 29, 2014 - As if the official news that the US economy is just one quarter away from an official recession (and with just one month left in the second quarter that inventory restocking better be progressing at an epic pace) but don't worry - supposedly harsh weather somehow managed to wipe out $100 billion in economic growth from the initial forecast for Q1 GDP - here is some even worse news: if one excludes the artificial stimulus to the US economy generated from the Obamacare Q1 taxpayer-subsidized scramble, which resulted in a record surge in Healthcare services spending of $40 billion in the quarter, Q1 GDP would have contracted not by 1% but by 2%!
Hound Note: Essentially what we are seeing is that GDP fell by 2% for the first quarter of 2014. That is reflective in the retail numbers we saw earlier this week. Now we are seeing a depression in middle class home sales, while wealthy homes are selling at an increased pace in most major cities. Add to this a 22% increase in the cost of food and not being able to rely on the government to be honest and you will see the mess we are in.
Housing Bubble 2 Already Collapsing for the 99% - The Testosterone Pit - May 28, 2014 -
This is precisely what shouldn’t have happened but was destined to happen: Sales of existing homes have gotten clobbered since last fall. At first, the Fiscal Cliff and the threat of a US government default – remember those zany times? – were blamed, then polar vortices were blamed even while home sales in California, where the weather had been gorgeous all winter, plunged more than elsewhere. Then it spread to new-home sales: in April, they dropped 4.7% from a year ago, after March's year-over-year decline of 4.9%, and February's 2.8%. Not a good sign: the April hit was worse than February's, when it was the weather’s fault. Yet April should be the busiest month of the year (excellent brief video by Lee Adler on this debacle). We have already seen that in some markets, in California for example, sales have collapsed at the lower two-thirds of the price range, with the upper third thriving. People who earn median incomes are increasingly priced out of the market, and many potential first-time buyers have little chance of getting in. In San Diego, for example, sales of homes below $200,000 plunged 46% while the upper end is doing just fine. But the upper end is small, and they don’t like to buy median homes [read… Housing Bubble 2 Veers Elegantly Toward Housing Bust 2] Yet it’s going according to the Fed’s plan. Its policies – nearly free and unlimited amounts of capital for those with access to it – have created enormous wealth in a minuscule part of the population by inflating ferocious asset bubbles, including in housing. But now electronic real-estate broker Redfin has made it official: in 2014 through April, sales of the most expensive 1% of homes have soared 21.1% year over year, while sales in the lower 99% have dropped 7.6%. And it wasn’t the first year. In 2013, sales of 1%-homes jumped 35.7%, while sales of the other 99% rose 10.1%. And in 2012, sales of 1%-homes rose 17.5%, while the rest of the market inched up a mere 2.9%.
Our “Make It Look Good” Economy Has Failed - Washington's Blog - May 29, 2014 The essence of the U.S. economy is make it look good: never mind quality or long-term consequences, just make it look good today, this week, this month, this quarter: make the pink slime look like meat, make the company look profitable, make the low-quality product look good enough to close the sale, make the unemployment rate low enough to justify re-electing the toadies currently in power, make the body count of bad guys look good, and on and on–just makes the numbers look good now, the future will take care of itself...
U.S. Food Inflation Running at 22% - Breitbart - Chriss W. Street - May 26, 2014 - After five years of the federal government telling the public that despite a $3.5 trillion increase in monetary expansion, the inflation rate is below +2%, the Department of Agriculture (DOA) just warned the American public that the consumer price index for food is up by 10% this year. The DOA tried to blame food inflation on the drought conditions in California, but last year’s drought was worse and food prices fell by -6%. The real problem is Federal Reserve monetary stimulus is stimulating inflation. I reported in "Food Price Inflation Scares the Fed” two months ago that commodity food costs were exploding on the upside. Given the lag in commodity costs impacting prices on grocery store shelves, annual U.S. food inflation is now running at +22% and rising.
The real culprit for food inflation is the $940 billion of additional monetary stimulus from the United States Federal Reserve’s quantitative easing over the last twelve months. Inflation has been in hibernation for a long time, but it is wide awake now....
Thursday, May 29, 2014
Thoughts about the Ridgeview Citizen Review meeting
Disappointing to see how few people in the Ridgeview community showed up for the "Citizen Review" that occurred on Tuesday. If they don't care about their community, then why should anyone else? Let's go back and look at how few people in Ridgeview have even bothered to vote in Hickory City elections, but will show up to vote in the national elections. That is the reason why Ridgeview falls behind, because they have chosen to be politically irrelevant... and they will continue to get what they want.
The majority of people who attended were ministers from inside and outside the Ridgeview community. They all seemed very enthusiastic about what has been presented so far. The ministers in the area that I have seen are very much hooked up with the Hickory Inc. structure. I interpreted what they were saying as that they were all in and going to work with the city and help sell this to their congregations.
There are still no specifics as to the 3Ps -- projects, priorities, and price. City Manager Berry has said that the City Council will prioritize the projects and the Bond Referendum will be broad and refer to categories such as "Business Park" and "Transportation" with monetary values attached to each, but the City Council will be the entity that decides on the projects and the priorities.
Last week the Mayor talked about the tipping point in this community and the reason why we need to act. I've told you and shown you that we are past the tipping point. Maybe we aren't past the tipping point for the Council, the local Powers that Be, or the upper echelons of Hickory City Staff. These people are in the upper 10% of wealth holders in this community. They cannot fully relate to the negative economic momentum that the people at lower income levels have dealt with.
Citizen Review - Power Point Presentation
Just The Facts about Hickory's Loss of the Younger Demographic: Mr. Berry is showing graphs that were available five years ago that show the job losses and the devastating losses in the younger demographics that we have seen in this community over the past decade. Also factor into this that we have the lowest Per Capita Income of any major Metro area in the State of North Carolina. The encouraging sign is that the local Powers that Be are starting to freak out about the signs. The signs have been there for years, but I guess they have finally come to the realization that we have structural problems in this community and this downturn is not part of a normal economic cycle.
Hickory Area Population Remains at a Standstill. There are at least 4,000 fewer (January 2013 numbers) people living in Catawba County today than were here in 2009. We know that the eastern part of the county (Sherrills Ford and West Denver) has grown, because of it's accessibility to Charlotte. So, if the area there has grown by 4,000 or 5,000 people, then what does that mean for western Catawba County? It means that we have lost several thousand people here and it will soon be reflected in the numbers. We are beyond the tipping point.
The 1764 Business Park project is the type of economic investment we need to see. Mr. Berry talked about this business park being located at Robinson and Robinwood Roads over in the Startown Road area near CVCC and the Mall area. This type of Commerce Center can bring good paying jobs. These types of jobs can help with the underemployment issues we have been facing in this community.
If we are going to see the younger demographics come back into the community, then we are going to have to see these good paying productive jobs come to the community. The demographic structure of the community is not going to change because young people move here to be servants for Octogenarians. There is no money in that, but for a few doctors, some nurses, and a few administrators. They are going to move here if they can find stability and a career path created by complex industries.
The two main infrastructure project concepts that have been talked about are the Mainstreet Linear Park and the Lake Greenway at Geitner Park. The development at Geitner Park is already moving forward thanks to Bob Lackey and it is notable because we are seeing true public private development. The Mainstreet Linear park is pie in the sky. It is basically a $27 million dollar (the price mentioned late last year) sidewalk to connect Union Square to what has been defined before as the Wingfoot District and then up to Lenoir-Rhyne. There is already a sidewalk there and people use it all the time. It just seems that we are once again throwing Hickory Tax Dollars to the same ole group of people.
Make no mistake, most people aren't against infrastructure improvements. What they want to see are tangible benefits and mechanisms of accountability and fairness to ensure that we don't throw good money after bad in an effort that only benefits a few people. Every one of these cities that the Council has been to and touted have "Business Improvement District" Taxes for their Downtown areas. Why are Hickory citizens from the outskirts of town supposed to continue supporting Union Square through tax dollars, when about five people own the vast majority of property surrounding Union Square?
I've heard it bandied about by the oldsters here that support the proposed bond referendum that they are planting trees that they may never get a chance to sit under. Some of us view it as that you are writing checks that others are going to have to cover for you and there may not be money to cover those checks when the bills come due... but ain't that Amerika.
A marketplace is all about people. I have also heard the notion of marketing Hickory as a small town. Folks, that is what got us here. That was exactly what they were pushing in the early 2000s, when the goose got cooked. I don't like the idea of a Quaint Hickory. I want to see a Hustling-Bustling Hickory like we were 20 years ago. Hustling and Bustling people in a contemporary reality. That is what leads to growth.
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Steve Ivester and Harry Hipps have talked about developing clusters around our existing industries. Any economic development we see should center around development of Cluster Industries in our area. Harry gets it right in what he writes below:
Harry Hipps speaks about The Gallup-Healthways Survey
The majority of people who attended were ministers from inside and outside the Ridgeview community. They all seemed very enthusiastic about what has been presented so far. The ministers in the area that I have seen are very much hooked up with the Hickory Inc. structure. I interpreted what they were saying as that they were all in and going to work with the city and help sell this to their congregations.
There are still no specifics as to the 3Ps -- projects, priorities, and price. City Manager Berry has said that the City Council will prioritize the projects and the Bond Referendum will be broad and refer to categories such as "Business Park" and "Transportation" with monetary values attached to each, but the City Council will be the entity that decides on the projects and the priorities.
Last week the Mayor talked about the tipping point in this community and the reason why we need to act. I've told you and shown you that we are past the tipping point. Maybe we aren't past the tipping point for the Council, the local Powers that Be, or the upper echelons of Hickory City Staff. These people are in the upper 10% of wealth holders in this community. They cannot fully relate to the negative economic momentum that the people at lower income levels have dealt with.
Citizen Review - Power Point Presentation
Just The Facts about Hickory's Loss of the Younger Demographic: Mr. Berry is showing graphs that were available five years ago that show the job losses and the devastating losses in the younger demographics that we have seen in this community over the past decade. Also factor into this that we have the lowest Per Capita Income of any major Metro area in the State of North Carolina. The encouraging sign is that the local Powers that Be are starting to freak out about the signs. The signs have been there for years, but I guess they have finally come to the realization that we have structural problems in this community and this downturn is not part of a normal economic cycle.
Hickory Area Population Remains at a Standstill. There are at least 4,000 fewer (January 2013 numbers) people living in Catawba County today than were here in 2009. We know that the eastern part of the county (Sherrills Ford and West Denver) has grown, because of it's accessibility to Charlotte. So, if the area there has grown by 4,000 or 5,000 people, then what does that mean for western Catawba County? It means that we have lost several thousand people here and it will soon be reflected in the numbers. We are beyond the tipping point.
The 1764 Business Park project is the type of economic investment we need to see. Mr. Berry talked about this business park being located at Robinson and Robinwood Roads over in the Startown Road area near CVCC and the Mall area. This type of Commerce Center can bring good paying jobs. These types of jobs can help with the underemployment issues we have been facing in this community.
If we are going to see the younger demographics come back into the community, then we are going to have to see these good paying productive jobs come to the community. The demographic structure of the community is not going to change because young people move here to be servants for Octogenarians. There is no money in that, but for a few doctors, some nurses, and a few administrators. They are going to move here if they can find stability and a career path created by complex industries.
The two main infrastructure project concepts that have been talked about are the Mainstreet Linear Park and the Lake Greenway at Geitner Park. The development at Geitner Park is already moving forward thanks to Bob Lackey and it is notable because we are seeing true public private development. The Mainstreet Linear park is pie in the sky. It is basically a $27 million dollar (the price mentioned late last year) sidewalk to connect Union Square to what has been defined before as the Wingfoot District and then up to Lenoir-Rhyne. There is already a sidewalk there and people use it all the time. It just seems that we are once again throwing Hickory Tax Dollars to the same ole group of people.
Make no mistake, most people aren't against infrastructure improvements. What they want to see are tangible benefits and mechanisms of accountability and fairness to ensure that we don't throw good money after bad in an effort that only benefits a few people. Every one of these cities that the Council has been to and touted have "Business Improvement District" Taxes for their Downtown areas. Why are Hickory citizens from the outskirts of town supposed to continue supporting Union Square through tax dollars, when about five people own the vast majority of property surrounding Union Square?
I've heard it bandied about by the oldsters here that support the proposed bond referendum that they are planting trees that they may never get a chance to sit under. Some of us view it as that you are writing checks that others are going to have to cover for you and there may not be money to cover those checks when the bills come due... but ain't that Amerika.
A marketplace is all about people. I have also heard the notion of marketing Hickory as a small town. Folks, that is what got us here. That was exactly what they were pushing in the early 2000s, when the goose got cooked. I don't like the idea of a Quaint Hickory. I want to see a Hustling-Bustling Hickory like we were 20 years ago. Hustling and Bustling people in a contemporary reality. That is what leads to growth.
-------------------------------------------------------------------------
Steve Ivester and Harry Hipps have talked about developing clusters around our existing industries. Any economic development we see should center around development of Cluster Industries in our area. Harry gets it right in what he writes below:
Harry Hipps speaks about The Gallup-Healthways Survey
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