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Economy tempers plans in 2009
by Staff
(Photo caption) Photo courtesy of Cam Finley-Efforts to make W. Kerr Scott Reservoir the primary public water source in Wilkes County with a raw water intake there and other work will continue in 2009.
With the economy not expected to start improving at least until late 2009, plans of county and town government officials are tempered by expectations of less revenue than budgeted.
A 3 percent decrease in sales tax revenue is projected for Wilkes in 2009.
"We will have to take a look at October, November and December sales tax revenue. That will affect a lot of what we can do in the coming year," said Zach Henderson, chairman of the Wilkes County commissioners.
“If we have a deficit, we may have to slow down with some of our plans. It’s not an issue of whether we want it or not, it’s a question of if we can afford it,” said Henderson. “We’ve got a lot of good things going on, but we may have to slow it down. Our budget is the big thing and we must evaluate it on a daily basis.”
A sharp decrease in gas prices helped, but a freeze on nonessential capital purchases, travel and hiring in county government instituted in late 2008 remains in effect.
Chief among major county projects in question due to the economy is building a new county jail and law enforcement center. “Proceeding with it depends on the money… on our ability to pay it (the debt) back. It’s a question of when we can take it on,” said Henderson.
“The state has been more than willing to work with us on this as long as it appears we are trying to solve our problem and we are,” he said, referring to overcrowding in the current county jail.
State officials are still reviewing plans submitted by the county for the new jail and law enforcement center.
County Manager John Yates said bids for construction likely would be sought once plans are approved and returned to the county. Yates said county commissioners are expected to wait until they see how the bids go before deciding how and when to proceed.
Plans advanced by the board last year call for building a two-story jail with capacity for 298 inmates and law enforcement center on county-owned land next to the county courthouse in Wilkesboro.
Before he left his job as Wilkes County manager to become Rowan County manager in April, Gary Page told Wilkes commissioners how they could avoid raising taxes if they borrowed $31 million to build the $28.5 million law enforcement center and jail and a $1.5 million Wilkes Emergency Medical Service base nearby and have $500,000 for unexpected expenses and $500,000 for bond financing closing costs.
Page said that after county government finished paying off a $9.5 million debt this June that was incurred in June 1997 to build the 70,000-square-foot county courthouse, the 24,000-square-foot county library in North Wilkesboro and a new Wilkes Community College building, the $1.2 million annual payments on this debt could be shifted to the debt for the new jail and law enforcement center. The plans also included getting $1 million annually from housing 50 federal pre-trial prisoners.
Also in question due to the economic downturn are plans to increase county government pay over a period of years to bring it up to par with other area counties, said Henderson. Commissioners put $900,000 for higher annual pay and about $289,000 for longevity pay in this year’s budget due to recommendations in a salary study by a Cary firm.
Henderson said county government’s major economic development projects in 2009 include continued improvements at the Wilkes County Airport to develop an “airpark” industrial park and seeking construction of a state prison on property owned by the Town of North Wilkesboro off River Road/Liberty Grove Road.
About 20 percent of the $6 million in airport improvements would come from county government. The other 80 percent would be federal funds.
County and town officials plan to continue efforts for constructing a raw water intake on W. Kerr Scott Reservoir and related work on the Wilkesboro and North Wilkesboro water systems in 2009 to provide a public water source. Wilkesboro now gets its water from the Yadkin River downstream from W. Kerr Scott Dam and North Wilkesboro gets its water from the Reddies River.
The N.C. Rural Economic Development Center in Raleigh recently awarded a $500,000 Clean Water Partner supplemental grant to help pay for “Phase 3” of the project. While the first two phases would include the construction of the intake and a raw water line to the Wilkesboro water treatment plant, Phase 3 involves the construction of a raw water line between the Wilkesboro and North Wilkesboro treatment plants.
Engineers recommended that Phase 3 be constructed first. That line would allow North Wilkesboro to draw raw water from the Wilkesboro intake on the Yadkin River in the event of an extended drought. North Wilkesboro currently draws from the Reddies River, but a low flow in the river this past summer caused town officials to place restrictions on water usage. No restrictions were needed in Wilkesboro.
Yates said he is gathering information on equipment that converts discarded glass into a gravel-like material for roads and others uses. He said the system, based at the county landfill, would save money by conserving landfill space and reducing expenditures on gravel. Yates said glass currently isn’t recycled due to lack of demand.
Applications from farmers for inclusion in agricultural districts will be accepted starting in 2009 under an ordinance approved by county commissioners in April. The districts provide a way to inform people about the locations of farming and logging operations to help protect them from “nuisance” lawsuits.
In Wilkesboro
Wilkesboro Town Manager Ken Noland said his town’s biggest project for the next year is an infrastructure improvement program that includes the town’s wastewater system at a cost of up to $10 million.
“Shortly after the start of the new year, we’ll embark on a public information campaign to inform the citizens of the project that is planned, along with the benefits and the costs of the project. We’ll also be showing them the requirements we face in order to pay for those improvements, including increases in the utility rates.
“We want our citizens to be well informed because this is a big decision and will have an effect on rates.”
The town’s wastewater treatment plant was opened over 43 years ago, and much of the equipment that was in place when the plant was opened is still in use today.
The plans also include major work at two wastewater pump stations in west Wilkesboro, and the installation of new lines from those stations to the treatment plant.
“We’ve also been looking into citizen service levels for the fire department and what the town needs in the future based on the growth of the town,” said Noland. “We want to make certain that the department is providing the best service possible.”
Noland said that the town is “looking at the possibility of hiring the first full-time employee in the fire department in the next budget year, most likely a chief. He would be charged with directing the department and working with the town council in moving toward a full-time department similar to the one in North Wilkesboro (which has one officer on duty at the station around the clock).”
The current chief, Keith Reid, receives a stipend of about $4,000 a year, and all of the firemen are volunteers.
“It’s important to have a well-trained professional chief lead in the process of building a department that will include paid and volunteer firemen,” Noland said. “We have been very pleased with the service that the department has provided, but we think there may be the possibility of providing even better service. A higher rating for the department would result in lower fire insurance rates for the town’s citizens.”
Noland said that he plans to introduce the new town planner in January. He will succeed John Frey, who resigned recently. The planner will be charged with developing the blueprint for the future of the town, and he will work with the development of the downtown business and historic district.
“We will want the new planner to move ahead with the master plan and development the StreetScape project,” said Noland.
Noland said that town officials “want to have more people living in the downtown area. We’re pleased with the progress that has taken place at Rose Glen, and we would like to extend that progress by making more living opportunities available for the public in the core downtown area.”
The town manager added, “the first step, at least in the minds of the council members, is the development of the former Wilkes County Schools Learning Resource Center (near town hall) into housing for seniors. That building is owned by the county, and through discussions with county officials, we want to find a way to preserve the building and convert it to senior housing.”
North Wilkesboro
North Wilkesboro Town Manager Hank Perkins said he sees a year ahead that continues some current projects, while others will be new.
“The downtown traffic feasibility study from January 2008 was sent out for bids,” he said of a study looking at opening Main Street to two-way traffic, as well as changing traffic patterns across the town.
“You have to study what effect it will have on traffic patterns around town” he said. “It’s a much larger consideration than just making a street two way.”
Engineering firms interested in submitting bids for the planning project are expected to do so later this month, he said.
North Wilkesboro will continue to seek funding for an industrial park through road. Said Perkins, “It may come in the form of an infrastructure stimulus package.”
The town will continue to work on a project to construct a close-security prison in North Wilkesboro’s industrial park. North Wilkesboro commissioners last year agreed to submit a request to build the prison in the industrial park to state officials.
“We will also continue an emphasis on small business creation,” Perkins said. “The strategy is concentrating on small business attraction that creates new quality employment opportunities, while staying business- and industry-based.”
Another project that may take center stage for North Wilkesboro in 2009 may be a clean-up effort for former business sites in town, Perkins said.
“We will seek an Environmental Protection Agency grant for possible environment assessments,” he said.
Among the facilities under the study would be the former American Drew furniture factory in North Wilkesboro, he said.
“There are a handful of others that also will be participating in the assessment grant opportunity,” he said. “We would look for that in February.”
Also, the town will work on a proposed raw water intake from the Yadkin River, Perkins said.
“We will continue with our efforts to get that line funded and built a raw water intake and lines from the W. Kerr Scott reservoir,” he said.
An infrastructure improvement grant proposed by the new federal administration may benefit that project as well as others in North Wilkesboro this year 2009, Perkins said.
Also in 2009, the town plans to begin a study to combat sedimentation issues on its current drinking water source, the Reddies River.
The town began a project last year to dredge sediment from the Reddies reservoir, and the study would look at modifications to prevent more sediment build-up, he said.
Another project that will see progress this year is an audit of North Wilkesboro’s water system, checking for leaks and other problems, he said.
A major new project may be the siting of a new fire department building for North Wilkesboro to replace the current one on Ninth Street, Perkins said.
“You’ve got to concentrate on a location in relation to the expected call volume,” he said. “Also you have available property to be able to build it, too.”
He said a search will include both priorities.
“The Damascus Church Road sewer system will go into construction in the next 12 months,” said Perkins.
Also, housing rehabilitation, as well as enhancement to Smoot Park and the corresponding greenway development, will also be priorities for North Wilkesboro in 2009, Perkins said.
Schools
The year ahead should be one of progress for Wilkes County Schools, despite the tough economic climate, said School Superintendent Steve Laws.
“We are steadfastly determined to provide the technology opportunities for our young people, even in light of the economic challenges,” Laws said. “This is going to involve the seeking of private sources even more than we have before.”
In 2008, Wilkes schools received several grants from private sources to help students get high-technology devices needed for modern education, such as a $900,000 Golden LEAF Foundation grant to provide all Wilkes County high school seniors with laptop computers.
Laws said that kind of commitment to funding technological advances for students would continue in Wilkes County, despite the recession.
“No one should doubt that we will achieve the goal of every student having their own electronic device and every classroom being equipped with SMART technology by 2012,” he said. “We’re not going to back off of that at all.”
SMART technology involves advanced software linking an interactive whiteboard to a sophisticated audio-visual system. Several classrooms in Wilkes County already have the technology.
But Laws said there are other problems that the schools will face this year that stem from a worsening economic outlook.
“We cannot foresee yet the consequences of the economic downturn, not only to public schools, but also public infrastructure and the business community,” he said. “All those things are intertwined.”
While the schools cannot act as a child’s parent, there are things school officials can do to help all children stay focused on learning.
“Economic downturns point to the importance of a quality education,” he said. “Skill level is often the determining factor in employability, so we have to be steadfast in preparing our young people for the future.”
The big question is how much money will be available for schools, Laws said.
“We have no idea what our budget’s going to be,” he said. “We do know that the resources we are accustomed to having are going to be far more limited.
“It demands that we evaluate everything we do, not because we don’t need to keep doing it, but which of those are more needed.
“It’s not a question of which ones are needed, because they are all needed.”
However, the economy affects state tax revenues, which means less money available for schools from federal, state and local government sources.
In November, the Wilkes County school system had to return $400,000 in state funds at the Department of Public Instruction’s request.
The SDPI was forced to make that request of all school systems in the state, as a result of declining tax revenues available to all state departments.
“The budget is going to be the overriding issue for us in 2009, there’s no question about that,” Laws said. “And probably 2010, as well.” |
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