Town of Maggie Valley

Board of Aldermen Budget Workshop

June 6, 2005

MINUTES

Members Present: Aldermen: Roger McElroy

Mark DeMeola

Linda Taylor

Members Absent: Mayor Jo Pinter and Alderman Phil Aldridge

Staff Present: Manager Bob Shepherd, Finance Director Shayne Wheeler, Building Inspector Ron Mercier, Planning Director Kevin Byrd, Chief Scott Sutton, Public Works Director Mike Mehaffey and Town Clerk Vickie Best

Meeting Called to Order

Alderman McElroy called the meeting to order at 1:35 p.m. in the Town Hall Boardroom.

Fee Revisions: Kevin Byrd

Mr. Byrd went over the proposed fees with the Planning Board’s approval.

SEE ATTACHMENT 1

Alderman Taylor had concerns about the Flood Plain Development Permit. There could be liability associated with the Town providing a service that they are not qualified to provide.

The surveyor still must certify the flood plain area. The letter from the Town represents a pre-qualifier.

Alderman Taylor asked that Mr. Byrd contact the Haywood County Planner to see what type of documentation he provides.

In years past, the County verified flood plain lines for Maggie Valley.

The members decided to wait until a full Board was present before approving the Planning and Zoning Fee Schedule.

Fee Revisions: Ron Mercier

Mr. Mercier went over Building Inspection fees.

SEE ATTACHMENT 2

Mr. Mercier explained that Maggie is unique because it is a retirement community with expensive homes. In the past, the fees have been based on square footage, which means that the building permit for a $150,000 home would be the same as a permit for a million dollar home. The city of Asheville bases their fees on appraised value.

The proposed building permit fees are in line with Haywood County.

While reviewing the fee schedule, Alderman Taylor cautioned the Board about raising the fees for remodeling too high. The Town does not want to hinder anyone from upgrading their home or business. Renovations add to the tax base as well as appearance.

New structures and renovations both take about the same amount of time to inspect.

Alderman Taylor added that the Town does not want remodeling going on behind closed doors with substandard renovations creating hazards.

There is a need for a full-time Code Enforcement Officer other than Mr. Mercier and Mr. Byrd in order for the job to be done accurately and efficiently.

There is a penalty for beginning construction without a permit.

Alderman McElroy felt requiring engineering should be on a case-by-case basis.

As with the planning and zoning fee schedule, Council will wait until a full Board is present to vote on the proposed building inspection fees.

Health Insurance: Mike Mehaffey & Shayne Wheeler

Ms. Wheeler explained that staff met and discussed changing to Blue Cross/ Blue Shield if the rates are lower. United Health Care increased their rates 14%.

Council recessed from 2:11 p.m. until 2:18 p.m.

Alderman Taylor was under the impression that if a spouse had coverage through another agency, the Town would not cover them.

Any spouse with insurance coverage will not be covered with the town. United Health Care does not provide supplemental insurance.

A graduated system increasing with tenure would encourage employees to stay with the Town.

Staff will continue to search for ways to help defer the cost.

Policy Change for New Hires

See Attachment 3

Council will discuss the issue tomorrow when a full Board is present.

Consideration of Sewer Rate Increase

Alderman Taylor was not in favor of increasing sewer rates inside the corporate limits. An impact fee should be imposed, so that those funds are not restricted (Enterprise Fund) but rather go into the Capital Improvement Plan.

An impact fee would require a study be completed and special legislation adopted through the General Assembly.

The Dellwood Hill area properties are charged $1 more because a portion of the balance goes to the County.

Alderman Taylor had concerns about the up coming tax re-valuation and the proposed increase in permit and sewer fees.

Council members McElroy and DeMeola felt the current impact fee is to low. The cost of a septic system would cost more than connecting to municipal sewer.

In 1998, there were approximately 638 users, now there are approximately 1280 users.

It is difficult to compare Maggie Valley to surrounding towns, due to the difference in circumstances. The Town of Waynesville and Canton need sewer users because of the loss of industry thus creating extra capacity. The average home in Jackson County pays approximately $3,000 in impact fees.

Alderman Taylor felt that people would opt to install septic systems rather than be annexed and pay taxes there forward.

The cost of expansion in 2007 is estimated to be $1.7 million dollars. There are very few grants available for sewer plant expansions.

Alderman Taylor again stressed her concerns about meeting their obligations to taxpayers; adding that it would be nice to share the on some of these expenses.

The cost of electricity should be factored in as part of the reason for the fee increase.

Council will discuss the sewer rates at tomorrows meeting.

Annexation Study Cost: Kevin Byrd

Mr. Byrd reported that he looked at the study two ways; attempt to hire an intern or try to get help from the Department of Community Assistance (DCA).

Working with DCA would be more cost effective.

DCA recommends adopting a resolution of consideration, complete a sewer study and have a sealed engineering study.

Mr. Byrd offered to talk with McGill Associates about the cost of the engineering study. The resolution of consideration is good for two years.

Council asked that a resolution of consideration be placed on the June 21 agenda.

There being no further business to discuss, the meeting adjourned at 3:38 p.m. on motion by Alderman Taylor.

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Mayor Pro-Tem Roger McElroy

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Vickie Best, CMC Town Clerk