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Raleigh’s recently adopted $697 million budget was sharply criticized this afternoon by Wake County Republican Chairman Claude E. Pope, Jr.

In a speech before the Wake County Republican Women’s Club, Pope said the council’s budget was stuffed with unnecessary spending at a time when everyone, particularly governments, should be cutting back.

Pope criticized the council’s decision to not reduce funding for the arts, and also took a shot at City Manager Russell Allen for accepting a $10,000 raise.

Pope compared Raleigh’s budget, which increases spending by $53 million, unfavorably with Wake County’s budget, which reduced spending by $30 million.

Pope said the presence of three Republicans on the Wake Board of Commissioners showed that the GOP is the party of fiscal responsibility.
“We applaud the efforts of the Wake County Board of Commissioners,” Pope said. “In contrast to the city, the county commissioners passed a budget that cut spending, showed compromise and fiscal restraint.”

Pope also criticized the City Council for adding $1.85 million in new spending by reducing the amount the city will put towards paying of existing and future debt.

“If you put off paying your mortgage for a year, you would no longer have a house to live in,” Pope said.

Pope praised Councilman Philip Isley, the only Republican on the 8-member Raleigh City Council and the only councilor who voted against the budget.

Pope said after his speech that he hadn’t spoken to Isley since the budget was adopted on Tuesday.

At least one of Pope's criticisms showed an unfamiliarity with Raleigh’s budget. Pope said the city should have cut inspectors since new building permits have dropped as the housing bubble has burst.
“Have any of these jobs been cut?” he asked.

The city’s adopted budget cuts 15 positions from the Inspections Department.

After his speech, Pope fielded questions from reporters. He said the City Council’s recent actions are an opportunity for Republicans to win back seats. City Council elections are officially nonpartisan, but the number of Republicans on the council has been shrinking in recent years.

Pope acknowledged that the GOP needs to field a stronger slate of candidates this fall.
“The Republican Party needs to do a better job fielding qualified candidates,” he said.

The filing deadline for this fall’s election is July 17.

Lee Sartain announced today that he is running for one of the two at-large Raleigh City Council seats. Sartain works on education technology issues at the William and Ida Friday Institute for Educational Innovation at N.C. State. He also graduated from NCSU.

Sartain is the fourth person to enter the race for the two at-large seats. The two current at-large members, Russ Stephenson and Mary-Ann Baldwin, are running for re-election. Realtor Champ Claris announced last week that he is also running.

Sartain's announcement said his campaign would focus on growing new jobs, comprehensive public transportation and strong neighborhoods:

“Raleigh’s high quality of life and embrace of education, technology, and innovation has led to rapid growth over the last twenty years. More people are calling Raleigh home than ever, and the pace is not expected to slow. This growth has also placed us at a crossroads, and Raleigh must take several strategic steps to ensure a bright future. Stepping up job growth downtown, building strong neighborhoods, and building a reliable transportation system will ensure that Raleigh is a destination city for years to come.”

Sartain also wants to create something called the Raleigh Innovation and Technology Zone in downtown Raleigh. He says it would be an economic development zone designed to compliment and model the success of the Research Triangle Park.

Michael Slawter, a 34-year-old examiner for the N.C. Secretary of State's office, announced today that he is running for the District C City Council seat currently held by James West.

West has held the seat, which covers Southeast Raleigh, since 1999.

In a release announcing his candidacy, Slawter said he's running because he's worried the city has become stagnant: 

“These are tough times economically, socially and I believe we need change. Mr. West has done a great job for Raleigh. However, I believe that more can be done for the Southeastern part of Raleigh and the wonderful folks in my district. We have store fronts that are boarded up, folks shot and left dead in the road, drug deals on corners and folks who are scared to shop at their local grocery store in broad daylight.  Now is the time to make changes. To bring about a new era in Raleigh that can move us in the right direction. I hope to be the leader of that movement.”

Slawter, who has lived in Raleigh for the past 16 years, is married with a young daughter. In addition to being an examiner, Slawyer acts as a the corporation's division liaison to professional boards in North Carolina. Slawter previously worked for the city of Raleigh and the sate Social Security Administration.

City Manager Russell Allen has told Raleigh Mayor Charles Meeker that he will accept any decision by the City Council to lower his recent $10,000 raise.

Lowering Allen’s salary would be in violation of the city manager’s employment agreement, which states that the “employee’s base salary or other benefits shall not be decreased during the term of the agreement.”

But Meeker said Allen won’t object should that occur. “Russell Allen has told me that if the council wants to adjust his salary based on budgetary reasons he will not hold us to the written contract,” Meeker said.

Meeker said last month that the council would revisit its May 5 decision in light of public anger over Allen’s annual salary being increased by 4.76 percent from $210,000 to $220,000.

Allen’s raise is three-quarters of a percent more than any other city employee would be eligible for under the city manager’s proposed $696 million budget for next year. The raise was criticized by a number of speakers at Tuesday night’s public hearing to discuss the city manager’s budget.

Meeker said Allen’s raise will be reviewed after the council has looked over the entire budget. The council will meet each Monday at 4 p.m. until a budget is passed.

The City Council spent 95 minutes in closed session during its May 2 meeting discussing Allen's performance review. Only Councilman Thomas Crowder voted against the raise after that discussion. Councilman Rodger Koopman did not attend the meeting.

Some councilors wanted to give Allen a larger raise than he received, while others wanted no raise.
Meeker said today that the purpose of the raise was to reward Allen for a job well done.

“What the council was attempting to do was reward an outstanding manager for excellent performance,” Meeker said.

Critics of the raise have said the council’s decision was tone-deaf given the current economic environment and the budget cuts being implemented by the city. The decision drew even more criticism after Allen released his budget, which calls for smaller raises for city employees, the elimination of a cost-of-living adjustment and higher health care costs for some.

“It’s certainly a perception issue. It’s not a lot of dollars but it’s a perception issue,” Meeker said. “And the council pays attention to perception so we’ll take a look at it.”

The City Council on Tuesday referred a proposal to require a $100 deposit from new water customers to its Budget and Economic Development Committee, which meets next week. There was also another water-related item on the agenda that I neglected to mention in my earlier blog post.

That was a mistake, because it almost certainly will affect more residents than a deposit requirement. That item was also referred to the Budget and Economic Development Committee.

The second proposal recommends raising a host of different fees and adding a new fee for customers who want their meter reread. Councilman James West was among the councilors on Tuesday who seemed queasy about raising or adding more fees in light of the city's recent water rate increase and the bad economy. "It seems like were just kind of nickel and diming people to death," West said.

Here's a summary of the water and sewer fee changes the city staff is proposing:

• LATE FEES: Change from $5 to 1.5 percent of bill with a $5 minimum base charge per month.

• DELINQUENT FEES: Increase current $20 delinquent fee charge to $50 at time of disconnection. (This is the fee customers get hit with if they are over 20 days delinquent and a service order is generated to terminate the account.) The proposal also recommends increasing the after hour reconnection fee from $10 to $50. The city estimates the higher reconnection fee would generate $100,000 in extra revenue if half the average number of evening reconnections agree to pay the higher fee.

• METER REREAD CHARGE: Customers don't currently pay to have their meter reread. The city performed 4,330 rereads last fiscal year. The recommendation is to charge a $35 fee for a reread. City estimates this could generate $113,000 a year and cover a portion of the cost of providing the service.

• SERVICE INTIATION FEE: Landlors and property managers are currently not charged the city's $50 initiation service fee for accounts. The recommended change is that landlords and property managers either register as a Utility Default Landlord, making them responsible for all charges associated to the premise or pay the $50 new service fee each time water service transfers back into their name. Estimated revenue benefit to city: $160,000.

• TAMPERING: Increase tampering fee from $42 to $100 for each offense.

• METER REMOVAL AND RESET: The city currently charges a $42 removal and reset fee when a customer has tampered with their meter multiple times. Staff recomments increasing this charge to $125. Estimated revenue benefit to city: $25,000.

City staff contends that the fee increases and new charges will simply put Raleigh in line with what other utilities charge and help pay for some of those services. (The proposed fee increases could come back up for discussion by the full City Council in two weeks.)

What do you think? Is Raleigh nickel and diming people to death, as Councilor West suggested?

About the only thing less popular than City Manager Russell Allen's raise at Tuesday night's budget hearing was the Hillsborough Street roundabout project. One speaker told the City Council that instead of spending $11 million installing roundabouts on Hillsborough it should have used that money for something more useful, like beefing of city employees pay. The comment drew a standing ovation from much of the crowd, something even the most strenuous condemnations of Allen's raise couldn't do.

It will be interesting to see whether the Hillsborough Street project becomes an issue during this fall's election. The result of more than a decade of dialogue, the redevelopment plan for the street has its supporters. But it's clear the project has its critics. And many of those critics are likely to become more vocal as the street gets torn up and inconveniences drivers.

Of course, the completed project may end up being a smashing success. But that success won't reveal itself until long after the election.

The City Council held its first budget workshop late this afternoon and it included the release of more details about the proposed cuts in City Manager Russell Allen’s budget. Among the more interesting items included in the budget notes were:

•  The cut backs at parks facilities include the closing of the Shelley Lake Boathouse, as my colleague Sarah Lindenfeld Hall reported last week. The boathouse is currently open Friday afternoon and all day Saturday and Sunday. Councilwoman Nancy McFarlane asked Parks and Recreation Director Diane Sauer about why the boathouse was closing all operations. (Most of the other cuts involved scaling back hours at all facilities during nonpeak hours.) Sauer said the boathouse’s facilities weren’t used much, the concession stand typically lost money and vandals frequently targeted the boathouse. Add paddle boat rentals and flavored icy drinks to the list of items not immune to the current recession.  

•  Cutting the arts funding from $4.50 per resident to $4 per resident would mean a 14 percent funding reduction for those receiving money under the program. Total funds would decrease from $1.71 million to $1.52 million.

• If the City Council decides to move forward later this year with construction of a series of remote operations facilities and a new public safety center downtown it will require a 1 cent property tax increase in fiscal year 2011 and 2 cent property tax increases in fiscal years 2013 and 2015. The combined cost of the two projects is a little more than $400 million. The City Council won’t make a decision about whether to move forward on these projects until the late summer or early fall, and Mayor Charles Meeker has already said the council is unlikely to green light a tax increase until the economy improves.  The council doesn’t have to take any action on these projects as part of this budget discussion because no additional funding is being included in Allen’s budget proposal. Councilman Philip Isley, an arch opponent of moving forward on the public safety center, reiterated that point this afternoon. City Manager Allen responded by saying that before the council makes any decision about delaying the safety center and remote operations buildings it should tour the city’s existing facilities. Allen said city staff are operating in buildings that are meant to service a city with a population of 100,000, not one approaching 400,000 people as Raleigh is.

Among the items on tomorrow's City Council agenda is a proposal that would require new Raleigh water customers to pay a $100 deposit to get service. Raleigh currently does not require customers to put a deposit down before opening a water and sewer account.

But the city’s Public Utilities and Finance departments say the amount of people skipping out on their water bills has risen in recent years, particularly in the last few months as the economy has deteriorated.

City staff is recommending that new residential and commercial customers be required to put down a $100 deposit beginning Dec. 1. That's the date when the city will switch over to tiered-water rates for residential customers and move to monthly billing, two features made possible by new billing software. Existing customers would not be subject to the deposit ordinance unless they have a poor credit history with the city.

Between 1999 and 2008 the annual amount of bills going unpaid to the Utilities Department has increased from $543,371 to $1,226,850. The utility system’s revenues increased from $37.6 million to $89.3 million during that same period.

The city disconnects on average 1,720 accounts per month with an average bill of $100. Over the last year about $30,000 of unpaid utility bills were due to bankruptcies and about $370,000 was due to bad checks or over-drafts, according to the city. In a memo to the City Council, Chief Financial Officer Perry James and Public Utilities Director Dale Crisp said that “the current economic situation only exacerbates the ability to collect on accounts that have gone in to delinquent status.”

Most other utilities in the Triangle do require new customers to put down a deposit. OWASA and Durham charge $50. Cary charges $60 but will soon raise its deposit to $150.

Raleigh already charges new water and sewer customers a $50 new service fee, meaning residents would need $150 to get service hooked up. The city’s proposal would allow for new customers to have the deposit spread over several bills.

The City Council meets at 1 p.m. Tuesday in City Hall, 222 W. Hargett Street. At 7 p.m the council will hold a public hearing to discuss City Manager Russell Allen's budget proposal.

Local realtor Champ Claris announced today that he is running for one of the two at-large seats on the Raleigh City Council. The two at-large seats are currently held by Russ Stephenson and Mary-Ann Baldwin, both of whom have already said they will seek re-election.

An e-mail announcing Claris’ candidacy says that “Champ believes his fresh perspective on our issues and responsible approach to government spending will greatly benefit the City of Raleigh. He looks forward to leading a renewed focus on common sense priorities such as: strengthening our economy, reducing crime, improving our roads, and protecting our water supply and natural resources.”

Claris also said, if elected, that he would focus on reducing taxes, improving
public safety, and making Raleigh government more efficient.

Claris grew up in eastern North Carolina and has lived in Raleigh for the last 14 years. He attended N.C. State. Since 2003 he has worked for York Simpson
Underwood.