Smithfield
Town Council

    report from June 4 session

Council members present: Emery Ashley, David Barbour, John Dunn, Marlon Lee,
Steve Rabil, Travis Scott,
David Stevens, and Mayor Andy Moore
Absent:
None


Public hearing on town's new budget produces no opposition to what it does


Prior to the Town Council's adoption of the budget for 2019-20 Tuesday night, the floor was opened to comments from the public about it. Little was said, and no one objected to the prospect of a property-tax increase, the first in eight years.

Emma Gemmell repeated objections voiced at previous meetings to expansion of the town's water-treatment plant, located near her residence. While the expansion project has yet to be approved by the council, construction of a second million-gallon storage tank at the plant is in the new budget. She asked that the tank be removed from the budget.

Leslie Lazarus expressed concerns about annual deficits of more than $700,000 in the budget for the Recreation and Aquatics Center (SRAC) --- an amount that includes debt service of $474,920 on the facility plus a revenue shortfall of more than $300,000 (the SRAC's operating budget will be $981,173 offset by anticipated revenues of $659,000, in the year ahead).

Town Manager Mike Scott said the SRAC is "not intended to be a money maker," but rather a public service funded by taxpayers as other town departments. He also said the SRAC is "an economic-development driver" that can attract new residents to Smithfield. The nearby East River subdivision about to be built, he disclosed, has a provision in its homeowners' association that dues will include SRAC memberships.

Hank Daniels thanked the council for appropriating $1 million from the town's General Fund balance to rebuild Equity Drive with a sidewalk along one side. That U-shaped street is located off Outlet Center Drive near the Sleep Inn hotel that Mr. Daniels owns.

Prior to the public comments, the town manager reviewed highlights of the budget with a PowerPoint presentation. One of the items he stressed is that the town's budgets no longer transfer money from the Electric Fund to the General Fund as was done in years past. As a result, he said, the town is keeping its retail electricity rates "competitive" with Duke Energy and neighboring municipalities that operate their own electric systems as Smithfield does.

Councilman Travis Scott said some citizens have asked him why the town doesn't raise electric rates to keep property taxes from going up. He said that isn't fair because "two-thirds of our residents don't pay the town for electricity" since Duke Energy continues to serve West Smithfield even after that district's annexation to the town in 1993. (Smithfield's electric system dates back to 1913.)

Councilman Emery Ashley asked the town to break down how much of about $1.2 million in new revenue in the new budget can be accounted for by real-estate revaluation and how much by the town's growth. Mr. Scott said about it works out about half and half.

"I don't like a budget that's not revenue neutral," Mr. Ashley continued, but "this budget gets us back on the right track" to meeting the needs of what he termed a "high-service community" in regards to what Town Government provides.

After approval of the budget, former Councilman Perry Harris thanked the council and staff for "doing a great job" in getting the Town of Smithfield out of some "serious financial problems" less than 10 years ago. He noted that the town's reserves amounted to just 4.48% of its General Fund in 2011-12 and 0.85% the year before that.

Town Manager Scott said current policy is to keep that reserve at no less than 25%. Presently, it's up to 80%, he noted.

TOWN WILL SEEK $750,000 GRANT FOR HOUSING REHAB


Following a public hearing that drew no objections, the council authorized staff to apply for a federal $750,000 Community Development Block Grant that would be used to rehabilitate 23 owner-occupied but substandard residences in the neighborhood between Smith-Collins Park and Brogden Road. In addition, three dilapidated houses would be demolished and the lots cleared. "We are in full support," said Tony Nixon, chairman of the East Smithfield Community Organization. "This will enhance the town's appearance and its quality of life," he added. An earlier attempt by the town to win a similar grant wasn't approved.

FOOD-TRUCK AMENDMENT'S APPROVAL DELAYED


The council postponed till next month approval of an amendment to zoning rules that would allow "food trucks" to operate in Office & Institutional as well as B-2 and B-3 business zones. Council members expressed concerns about the food vendors setting up near churches, especially if they're permitted to sell alcoholic beverages. Planning Director Stephen Wensman was instructed to include such protection in the proposed rule changes. Presently, food trucks are allowed in the town's B-1 business zones, but Mr. Wensman pointed out that they've been allowed at special events, including the Ham & Yam Festival, outside the rule currently on the books.

SIGNS FOR STREET RESTRICTIONS APPROVED

The council
approved erection of "One Way" signs at the West Market Street entrance to Rose Manor and "No Through Trucks" signage on Powell Street. Both locations are in West Smithfield.

ELECTRIC-SYSTEM, LIGHTING PROJECTS APPROVED

The council
approved a $78,021 contract with Lee Electrical Construction of Aberdeen for the first phase of the town's "North Circuit" project to extend electrical service to areas near the eastward extension of Booker Dairy Road now under construction. Also approved was a plan for new lighting around the Exit 95 interchange at I-95. That's a joint project between the N.C. Department of Transportation and the town, which is budgeting $93,000 as its share of the work.

APPEALS COURT RULING GOES AGAINST THE TOWN

The council
met in closed session to discuss an N.C. Court of Appeals ruling handed down earlier Tuesday that sides with Theron Lee McLamb in his quest to overturn the town council's denial in October 2017 of his request for a Conditional Use Permit to operate an RV park off Venture Drive near the Pine Acres neighborhood. An earlier Superior Court ruling had also sided with Mr. McLamb, and the town had appealed that decision to the higher court. No formal action was taken as a result of the council's closed session Tuesday night.

Here's the full text of the Appeals Court ruling>


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