Town of Maggie Valley

Board of Aldermen Budget Workshop

May 13, 2004

MINUTES

Members Present: Mayor Pinter Aldermen: Jim Higel

Linda Taylor

Members Absent: Aldermen: Marcus Fields and Phil Aldridge

Staff Present: Manager Scott Buffkin, Public Works Director Mike Mehaffey and Town Clerk Vickie Best

Others Present: Judy Higel, Greg Stevenson, Joe Dance, and Larry Dubuke

Meeting Called to Order

Mayor Pinter called the workshop to order at 1:36 p.m. on Thursday May 13, 2004 in the Town Hall Boardroom.

Brannon Forest Subdivision

Mr. Stevenson informed Council that he and Mr. Dance came to the meeting to listen in order to be more informed and able to answer questions from the residents within the subdivision.

A group of property owners within Brannon Forest Subdivision have talked with an attorney about the pending annexation.

Manager Buffkin reported that there may be some difficulty with the proposed satellite annexation of Brannon Forest.

§ 160A-376. Definition.
 For the purpose of this Part, "subdivision" means all
divisions of a tract or parcel of land into two or more lots,
building sites, or other divisions for the purpose of sale or
building development (whether immediate or future) and shall
include all divisions of land involving the dedication of a new
street or a change in existing streets; but the following shall
not be included within this definition nor be subject to the
regulations authorized by this Part:
 (1) The combination or recombination of portions of
 previously subdivided and recorded lots where the
 total number of lots is not increased and the
 resultant lots are equal to or exceed the standards
 of the municipality as shown in its subdivision
 regulations;
  (2) The division of land into parcels greater than 10
 acres where no street right-of-way dedication is
 involved;
 (3) The public acquisition by purchase of strips of
 land for the widening or opening of streets; and
 (4) The division of a tract in single ownership whose
 entire area is no greater than two acres into not
 more than three lots, where no street right-of-way
 dedication is involved and where the resultant lots
 are equal to or exceed the standards of the
 municipality, as shown in its subdivision
 regulations. (1955, c. 1334, s. 1; 1971, c. 698, s.
 1; 1973, c. 426, s. 61; 1977, c. 912, s. 6.)

§ 160A-58. Definitions.
 The words and phrases defined in this section have the
meanings indicated when used in this Part unless the context
clearly requires another meaning:
 (1) "City" means any city, town, or village without
 regard to population, except cities not qualified
 to receive gasoline tax allocations under G.S.
 136-41.2.
 (2) "Primary corporate limits" means the corporate
 limits of a city as defined in its charter,
 enlarged or diminished by subsequent annexations or
 exclusions of contiguous territory pursuant to
 Parts 1, 2, and 3 of this Article or local acts of
 the General Assembly.
 (3) "Satellite corporate limits" means the corporate
 limits of a noncontiguous area annexed pursuant to
 this Part or a local act authorizing or effecting
 noncontiguous annexations. (1973, c. 1173, s. 2.)

Alderman Taylor explained to Mr. Stevenson and Mr. Dance that all phases within the entire subdivision must be annexed. “We need a tax base that reflects the services provided. The bulk amount of the cost for infrastructures falls on a few shoulders.”

Alderman Higel was under the understanding that all residents were aware of the pending annexation because agreements were signed.

Manager Buffkin reported that the contractor has signed on some of the agreements. Mr. Dance added that some residents that purchased homes from the original owner were not told about the agreement.

The agreements have not been registered through the County Register of Deeds Office.

Alderman Higel emphasized that he does not want to force anyone to annex.

Alderman Taylor explained the last lawsuit over annexation in which the town won, adding that in lawsuits no one wins but the attorneys. “Brannon Forest residents would be a lot more upset if they had no sewer. The Town of Maggie Valley is lucky that we have gotten the grants we have to help off-set the cost of sewer line expansion.”

Alderman Higel suggested Alderman Taylor speak with the Brannon Forest Homeowners adding the option of raising the outside [outside the corporate limits] sewer rate rather than annexing the subdivision.

Mr. Mehaffey responded that the town has tried to assist Brannon Forest and a lot of agreements have been made. The residents will receive a lot more services than sewer if annexed.

Mr. Dance asked if council would put this issue on hold.

Alderman Taylor explained that the idea was to allow the developer to annex in phases. “I can’t see other developers going along with a policy when Brannon Forest does not.”

Alderman Higel agreed stating that the value of the homes is continually increasing especially with city sewer.

Mayor Pinter stated that it is only fair that Brannon Forest pays the same as others. “There are benefits to being in the town.”

Alderman Taylor stressed that the town is trying to protect the watershed areas and property values. “The broader the base the least amount of taxes people are going to have to pay. I don’t know what more we can do for developers.”

Mr. Dance emphasized that the homeowners are separate from the developer.

Alderman Taylor explained that the town is not at fault. “The sewer use ordinance did not address the issues that it should have. Now the ordinance has been corrected. We are trying to balance the scale where everyone pays evenly.”

Mr. Stevenson explained that he verbally told everyone he sold lots to about the agreement. “The mind set is that people forget.”

Mr. Dance added that the people are not going to take this sitting down. “Most people are opposed.”

Mayor Pinter felt the parcels should have been annexed when sewer was received. The Town was trying to help the developer thus in-turn the homeowners received a benefit by having sewer service all this time and not paying taxes. “This situation will not happen again.”

Mr. Dance argued that it is not fair to the property owners that were not told.

That would be an issue to take up with the developer or the person who sold the property.

Mr. Dubuke spoke up stating that he pays taxes and is not on city sewer and would love to talk with the residents of Brannon Forest.

Again Mr. Dance stated that the town is hurting the innocent.

Manager Buffkin agreed that the agreements should have been registered although the documents are on file with the town and are open to the public.

Mayor Pinter added that when she purchased Castlewood Inn she was not informed that the storm water run off and over-flow from Fantasy Golf ran directly into the sewer system. “I was responsible because I had purchased the property and it had to be fixed. I was able to work out an agreement with the former owner but the responsibly fell to me. It was not the town’s fault.”

In the beginning meters were required for each home, then an agreement was made and a flat fee was charged.

Alderman Higel felt that if a public hearing were conducted “people would come out of all of these hollers because they are paying and Brannon Forest is not”.

Mayor Pinter agreed adding that the town could maintain the roads in Brannon Forest but cannot maintain the roads in Valley Creek Run Subdivision. (Mayor Pinter lives in Valley Creek Run)

Manager Buffkin will research the state statutes and get back with Mr. Dance and Mr. Stevenson the following week.

Council asked that Manager Buffkin have the town attorney check over his findings and then “we can move forward”.

Budget Workshop

Manager Buffkin reviewed the summary sheet based on a .35 cent tax rate. Employee insurance was not part of the equation because the bids have not been received.

Approximately $19,000 in revenues is received per one-cent tax.

Manager Buffkin went on to explain the following:

C Beer & Wine refund is based on population not sales.

C The Enterprise fund pays a percentage of staff salaries and use of the building. Administration does a certain amount of sewer paperwork.

C The town matches up to 3% in 401K deductions.

C Parks and Recreation is a separate department in order to show a more accurate cost to the town.

C T-21 is the 20% match of the 20/80 funding.

Manager Buffkin reminded council that they have a “one time shot” at setting the tax rate for fiscal year 04/05.

Council was concerned about the high cost of employee insurance.

Council asked if the enterprise fund could help with the cost of a maintenance building. The estimated cost of the structure is $85,000.

Council briefly discussed getting a professional to evaluate the best locations for each department and the amount of space needed.

Council further discussed the liability associated with the town taking over substandard roads.

Mr. Mehaffey will take council to assess streets at 1:00 p.m. on Wednesday May 19, 2004. Council will meet with the Finance/budget committee for a joint budget workshop at 2:00 p.m. the same day.

ON MOTION BY ALDERMAN HIGEL, SECONDED BY ALDERMAN TAYLOR THE WORKSHOP ADJOURNED AT 4:05 P.M.

_____________________________________

Jo Pinter, Mayor

______________________________________

Vickie Best, Town Clerk