Thoughts about the Hickory City Council meeting - June 3, 2014

1) My (JT Shell) Persons requesting to be Heard speech before the City Council

*** Link to the Video

Hound Notes: Why did I write this? Because of some of the things I have witnessed in participating in the Body Politic of our area. Anyone who does not toe the Hickory Inc. company line eventually finds themselves being demonized by the true extremists. We can't have a vigorous debate about the community without some people hitting below the belt and going after others personal lives... 

And I think that it is ridiculous to have members of Hickory Inc. push forward a notion that the newbies to the area know better than the people who have been here. I'm not saying that people have to be born and bred here to know what is going on. What I am saying is that the people who were here before the year 2000 know how successful this community was economically. This area was pushed forward in publications as a beacon and then all of that fell apart. We, who have been here, know that the loss of our industrial base (furniture, textiles, and fibre-optics) is what has decimated this community's economic structure. The people who have moved in here haven't a clue about that.

Many of the new folks think that this is supposed to be a retirement community, because that was what the local Powers That Be pushed forward with the Foresight Commission back in the early to mid 2000s . The efforts made in relation to that report coordinated efforts to market the area heavily to retirees and made no efforts to market, or even maintain, towards the younger demographics. The efforts in relation to bringing the older demographics here did not take into account the necessary balance of demographics necessary to maintain the local economic ecosystem. 

The population was already aging here in the Hickory Metro. We replaced population lost from the losses of industry, but we traded an economically dynamic younger demographic population with an older demographic population; which tends to be winding down as consumers with limited upside economically, because they are on fixed incomes and their wealth has shrunk further due to the economic downturn that began in 2008. Most of the new folks to the area are those retirees that were basically recruited to come here. They think this area was built for them, because that is what they were sold on. Even many of the younger people, as few as there are, who have been recruited here, were recruited under this retiree model and think that is what this area is all about. We have seen the tangible negative consequences of that economic structure. This is not the fault of the new people that have moved to the area. They do however need to understand the mistakes that have been made and why it is in their interest to change our economic model towards something with sustainable growth.


2) No Tax increase in Hickory this year

*** Link to the Video of City Manager Budget Presentation
*** Link to the Council Discussion of the proposed Tax Increase (rejected)

Hound Notes: I am/ We are constantly addressed about how things don't happen behind closed doors and behind the scenes with this Council. Well, here is the link to Hal Row's show from Monday Morning where the Mayor spills the beans about what is going to happen on this night. In witnessing what happened the other night, it defies logic to believe that there was no communication about this subject before the meeting. It is also 100% related to the referendum, moving the Hickory Inc. agenda forward, and the future electability of the council members. It isn't about looking out for the wallets of the public.

*** Hal Row show, Mayor says he does not support a tax increase this year.         

***  20140601 - Monday Morning Meeting with the Mayor

Hound Notes:  Scott Bryan of the Hickory Daily Record was doing a play-by-play on Twitter the other night and he came to much of the same conclusions that I was coming to -- the paving money is necessary and it makes no sense to lump it in with the bond referendum. One of Scott Bryan's Twitter followers said, "@HDR_Scott They hem-&-haw over tax hike for real needs, but when the baseball team wanted ballpark upgrade $, they were all for it." I appreciated what @HDR_Scott said here, "If this building was on fire and a tax increase would put it out, I don't think Hickory City Council would approve it."

If they have a shortfall, then they are now going to have to use money from the unfunded balance (ie the Rainy Day Fund/Savings). Lumping the paving money into the Bond Referendum sure seems like an attempt to cajole the public into voting for the whole Enchilada that is the Bond Referendum for their Inspiring Spaces fund... and they speak volumes about the political dynamics involving the situation. Everyone basically agreed that they cannot raise the tax rate 2¢ now going into the vote on the referendum and then turn around and raise the tax rate again next year and in the future to get to the 10¢ that they need. Also, the values of property have fallen in the area. Assessments in Catawba County are going to be lower for the upcoming year. Tax rates are going to have to rise in order to get back to revenue neutrality. Hmm... where have you read this before?

Thoughts about last night's Hickory City Council meeting - May 6, 2014 - Check out item 3

Hickory Inc. had to take a different tact and not raise taxes before the referendum, but it is already seen that by one way or another that they are definitely (99%) raising taxes next year and going forward to pay for these projects. The only tax they are apparently looking at is the property tax, when every one of the communities they have been to, that they want to take parts from in transforming Hickory, have Business Improvement District taxes. The proposed Downtown Sidewalk should be paid for by Downtown Interests, because the benefit to the businesses there far exceeds the benefit to the general public.

I am not against all of these efforts. I am concerned about the administration of these efforts and the coordination, prioritizing, and accountability going forward in relation to the Inspiring Spaces initiative.


3) Zahra's Playground at Kiwanis Park Treehouse presented by Parks and Rec Director Mack McLeod

*** Link to the Video

4) City Manager Mick Berry presents a Citizen Review to the Council

*** Link to the Video

Citizen Review - Power Point Presentation 
Ridgeview Citizen Review - Thoughts about the Ridgeview Citizen Review meeting
Citizens Briefing Presentation - 04/29/2014

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.

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.

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."

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."...
  

GDP Report Is Far Worse Than It Looks | John Rubino

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

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.

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 - Charles Hugh Smith -  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....