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Council Manager Memo #50 - July 10, 2009

Calendar Details:
Monday, July 13
       7:30am -
Mecklenburg Delegation Breakfast, Room 267
Wednesday, July 15
       3:30pm - Economic Development & Planning Committee, Room 280.  AGENDA: Small Business Resource Event, First Ward Park & Parking Deck, Carolina Theatre


Information Items:
July 13 Mecklenburg Delegation Breakfast
Resource:
       Boyd Cauble, City Manager's Office, 704-336-2009,
bcauble@ci.charlotte.nc.us

At 7:30 AM on Monday, July 13 in CMGC Rm. 267, the City Council will host a breakfast for the Mecklenburg Delegation. This breakfast is a follow up to the June 29 meeting with the Delegation where attendees agreed to continue the dialogue on state budget proposals.

An agenda for Monday's meeting is attached. Items for discussion include information on the latest state budget proposals, time frame for decisions, and City of Charlotte's reaction to latest proposals.

Also attached to this Memo is a sheet containing information on the estimated impact of the proposed state budget on the City of Charlotte.


North Carolina Legislative Update
Resource: 
       Boyd Cauble, City Manager's Office, 704-336-2209,
bcauble@ci.charlotte.nc.us

The Business Privilege License Issue -  The budget discussions, or lack thereof, became even more complicated with the Governor presenting options that caught both the Senate and House somewhat off guard.  Partisan politics and private negotiations between the House and Senate leadership continue to stimulate rumors of what is being proposed and when the final budget will be produced.

With the issue of local revenues unresolved, Boyd Cauble made efforts to visit with the leadership in the Senate and House to explain how we are the big losers if the Business Privilege License is repealed.  Charlotte stands to lose $17.5 million of the current $54 million collected state wide.  The next largest loser is Raleigh with $7 million generated from the tax.  Some smaller communities are also significant users of the tax. Matthews, with a $17 million budget, raises $200,000 annually from the Business Privilege License.

Most legislators were surprised to learn we will not be made "whole" given the additional new revenues generated from "broadening the tax base."  The most frustrating factor is not knowing the likelihood of the Senate getting the tax code changes approved.  If the House prevails with their budget proposal, there may not be any lost local revenue.

Now is the time for the Mayor and Council to furnish the public and media the facts about potential lost revenue and the impact on the citizens of Charlotte.  There is also a need to visit with key budget conferees and explain the need to leave Charlotte's Business Privilege License in place in order to avoid as much as a 2 1/2 cent increase in the local property tax or a drastic cut in services.

Annexation (HB524) - The annexation debate took a strange turn backwards when the House voted 60-59 to return the bill to Appropriations Committee for a fiscal note reflecting the cost of the Local Government Commission's involvement in reviewing and assisting local towns and cities with the service provision requirements of HB524.  Speaker Hackney broke a 59-59 tie by voting to seek the fiscal note.

The current bill is unacceptable because of the convoluted petition and voter registration requirements.  The bill requires 15% of the registered voters of the area to be annexed and the registered voters in the annexing city to sign a petition calling for a vote for the annexation.  The petition should be more difficult in large cities but the cost for a special referendum and identifying the eligible voters in the area to be annexed could be significant.

The most recent vote for a fiscal note means the eventual annexation vote in the House could be close.  Neither the opponents of annexation nor the supporters are pleased with the current bill.  More to come next week.

Open Government Act (HB 1134) - Late Thursday afternoon, the House voted overwhelmingly to impose a new requirement for local governments to pay the attorney fees of plaintiffs who successfully sue for the release of public information which the local government withheld.  An amendment failed by a single vote in Finance Committee which would have allowed the local government to recover legal fees if the court ruled in their favor. Therefore, attorney costs would only be covered by local governments should they lose in court.

Representative Lucy Allen offered an amendment on the House floor to exempt local government from paying legal fees if they acted in good faith by accepting their attorney's opinion that the information withheld complied with the public information law.  The amendment failed by 39-76.  The voting breakdown was very unusual, across party lines. Several bipartisan former local elected officials joined House attorneys who represent local governments in trying to explain the professionalism with which local officials deal with the public information statutes.  Many members prefaced their debate by saying they will probably "never again vote with several members who sided with them on this issue."  There were many surprises such as the House Minority Leader debating against the Minority Whip.  Likewise, the Majority Rules Committee Chair disagreeing with the two Majority Justice Committee Chairs.  After the Allen amendment failed, HB 1134 was approved by 109-6.

The bill will go to the Senate after final approval by the full House on Monday.


July 14 and 16 Public Meetings for Annexation Areas on Utilities Services
Resource:
       Doug Bean, Charlotte-Mecklenburg Utilities, 704-391-5070,
dbean@ci.charlotte.nc.us

Residents who did not receive water and sewer service from Charlotte-Mecklenburg Utilities prior to annexation will be provided with basic water and sewer services to the annexed area within two years of the annexation date.

Hood Road North Annexation Area was officially annexed within the city limits on July 1, 2009. Charlotte-Mecklenburg Utilities is hosting two public meetings for the newly annexed area at Back Creek Presbyterian Church in the new sanctuary. The church is located at 1821 Back Creek Church Road.

Tuesday, July 14, 2009 from 7:00 p.m. to 9:00 p.m. – For residents currently served by a private water / wastewater system like Aqua NC or Carolina Water.
Thursday, July 16, 2009 from 7:00 p.m. to 9:00 p.m. – For residents currently on individual wells and septic systems.

The meetings are to explain water and sewer improvements that are part of annexation, and how newly annexed citizens can become Utilities customers. Invitations to the public meeting were mailed to more than 800 residents in the area. Additional public meetings are being scheduled for other annexed areas. Staff will keep Council informed as to the time and place of those meetings.

 

Stimulus Logo

Stimulus Communications
Resource:
        Kim McMillan, Corporate Communications, 704-336-2643,
kmcmillan@ci.charlotte.nc.us

In order to keep the public informed about the American Recovery and Reinvestment Act Corporate Communications developed a webpage in April and recently starting publishing a newsletter called "Stimulating Times." The newsletter is dedicated to informing citizens about stimulus funds, eligible projects, and the awarding and implementation of grants in our community. The first edition is enclosed.

The newsletter will be published as needed and distributed electronically with editions available online at http://www.charmeck.org/charlotte/City+Economic+Recovery/Home.htm. Corporate Communications will make a small quantity of copies available to organizations if requested. Departments with stories in the newsletter should forward copies to their distribution lists and community partners that are participating in a program or are a beneficiary of a grant program or service.