how to influence your coupty commissioner to influence your coupty commissioner the political...
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How to Influence Your Coupty Commissioner
The Political Context for theSudden Rescinding of the ProposedQuarter-Cent Sales Tax Referendum
March 2OLLWatauga County, North Carolina
What follows are e-mails and other documents relating to the 3-2vote taken by the Watauga County Commission on March 15,20tL, to rescind its own resolution (pa3sed two weeks earlier, onMarch 1) calling for a public referendum on raising the local salestax a quarter-cent.
These documents were obtained through a public documentsrequest.
The emails have been arranged (so far as possible) in strictchronological order. Some names, all e-mail addresses, and allphone numbers have been redacted.
Taken on their face, these documents appear to show thatRepublican commissioners had decided to rescind their vote forsales tax referendum prior to the public hearing on March 15.Deborah Greene appears to have engineered their "out" byhaving Sen. Dan Soucek and Rep. Jonathan Jordan contact thecommissioners to assure them there would be no unfundedmandates/cuts coming from the General Assembly.
Who's Who, What's What
Adams, Thomas (Tommy) - officer, Watauga Co. GOP and active with theBoone Tea Party
Bedell, Gail - Watauga GOP and Tea Party activist, member of the GOP's"media team"
Blust, David - Republican Vice Chair of the County Commission. Served a
previous term (2002 - 2006) on the County Commission before running forthe NC Senate seat, which he lost to Steve Goss
Bolster, Don - Chair, Media Committee, Watquga Co. GOP
"Boone Doggle" - document written in 2010 by Joseph Coletti, Michael
Sanera, & Terry Stoops of the John Locke Foundation (at the request ofWatauga Co. GOP/Tea Party?) to prove that a proposed quarter-cent sales
tax increase last year was a bad thing. IOn-line text:http:/'www.johnlocke.org search how/policvo/o2Orepofts ^11l JosephColetti appeared at a Boone press conference with Republican and Tea Partyactivists in Aug. 2010 to discuss the writing
Carter, Madeline Karen - long-time conservative gadfly, letter-writer, and
essayist
Coffey, James - former Republican county commissioner. From 2002-2006,chair of the commission
Coletti, Joseph - works for the John Locke Foundation and co-author of"Boone Doggle," a denunciation of the 2010 proposed quarter-cent sales taxreferendum (commissioned by the Watauga GOP/Tea Party?), He appearedat an August 2010 press conference and spoke against the referendum
Cooper, Sandra - Watauga GOP and Tea Party activist
County Manager - See Nelson, RockY
"Danr" see Soucek, Dan
"David," see Blust, David
Deal, Jim - Democratic County Commissioner, former Chair of theCom mission
DiCola, Eugenia ("Jean") - Watauga Co. GOP party activist and officer
DiCola, Ignatius ("Nate") - married to Jean DiCola
Futrelle, Tim - Democratic county commissioner, elected 2008
Gable, Vince - Republican member of the County Commission. Elected Nov.2010
Greene, Deborah - leading Watauga County political activist. Has been achief strategist for county Republicans, though she is currently registeredUnaffiliated. Was a leader against the zoning of polluting industries in 2001-2002 and helped elect a Republican majority to the County Board ofCommissioners in 2002 and again in 2010 a
Honeycutt, Keith - former Republican county commissioner beginning in2002, Defeated for reelection in 2006
John Locke Foundation - a conservative "think tank," part of the Art Popeempire
"Jonathanr" see Jordan, Jonathan
Jordan, Jonathan - Republican member of the NC House representing Ashe& Watauga counties. Elected Nov. 2010. Former director of research at theJohn Locke Foundation
"Keithr" see Honeycutt, Keith
Maxwell, Josette - Watauga GOP activist
Miller, Nathan - Republican Chair of the County Commission. Elected Nov.2010
Nelson, Rocky, Watauga County Manager - who announced in Feb. 20ILthat he would be retiring at the end of his current contract in July
Pierce, Margaret - Finance Dir.ector, Watauga County
"Rockyr" see Nelson, Rocky
Soucek, Dan - Republican member of the NC Senate representing WataugaCounty (and three other counties). Elected Nov. 2010
Tea Party (a.k.a. Boone Tea Party) - organized against the 2010 proposedquarter-cent sales tax referendum. After Republican county commissionersvoted on March L,2011, to hold another quarter-cent sales tax referendum,the Tea Party quickly jumped on board with an email rationalizing andsupporting it
"Vincer" see Gable, Vince
Watauga County School Board - comprised of Chair Deborah Miller (R), LeeWarren (R), Delora Hodges (R), Steve Combs (D), and John Welch (D). Allfive members of this Board voted unanimously on Feb. 14, 20It, to sendletters to both Sen. Dan Soucek and House member Jonathan Jordanopposing Senate Bill B (lifting the cap on Charter Schools) and House Bill 41(educational voucher bill). The Board (with Le'e Warren absent) again voted4-0 on March 3,2011, to communicate their opposition to Senate Bill B toNC House member Jonathan Jordan
Boone Doggle Page I or r
Sent: Friday, March 04,20LL 7:38 PM
To: Nathan Miller; David BlusU Vince Gable
Attachments: BooneDoggle.pdf (215 KB)
Commissioners
The simple truth is that you need to read Boone Doggle again. Please note that John LockeFoundation figures it is equivalent to a L cent property tax increase'
Then follow these simple steps:
1) Put your Counfy Manager on Administrative Leave of Absence; your Assistant County Manager willget the message. Most buiinesses don't keep someone for 6 months after they announce leaving
2) Cut the budget 1O%.
3) Take up to $4 million from "rainy day fund"
4) Auction off the Smitherman Winkler Property. That should bring $1 million.
5) If that is not enough, then auction off the remainder of the old high school. The appraisal was for$14,000,000. I found the old information in my files. I would think that some of those people who
made bids before would definitely be interested in an auction beginning at $14 million.
6) Use the proceeds from the sale to pay down the debt; this will leverage you some more on thebudget since your debt payments will go down.
Deborah Greene
Debbie
https://mail.watgov.orglowa/tempexport(@wat gov.orgl?ae:Item&t:IPM.Note&id:RgAA.. . 3l24l20ll
Email Camplaign to Commissioners Page 1 of 1
Email Camplaign to Commissioners
Sent: Sunday, March 06, 2011 9:35 PM
To: Jean Carbano l*ffiCc: David Blust; Nathan Miller; Vince Gable
Jean
The Commissioners will be holding a public hearing on March 15. Many people do not attend thesehearings because they don't feel comfortable publicly speaking. Please provide the Party with theseemail addresses so that people can express their opinions with the Commissioners.
I personally want them to take the public hearing as an opportunity to gracefully back out of whatthey have decided to do. The Local Government Commission recommends that the unreserved fundballnce be at least Boh of the General Fund Expenses. The budget for 61301201 1 shows GeneralFund Expenses of approximately $41 million ahd the unreserved fund balance is approximately $2Omillion. This is ovei an above the money held in required reserve fund balances. The unreserved fundbalance is supposed to be a "rainy day fund". The Democfats used this fund since 2004 to leverageloans for a spending spree. My fear is that this move is going to jeopardize the election in 2 years andput the Dembcrats Oait< in control. And, if we don't cut the budget, spend down the unreserved fundsand auction off the old high school, we are going to give them even more to leverage for debt' The oldhigh school was appraised years ago for $t4 miltion. It has never been worth $36, $32, $30, $28 or$25 million. That *as a big lie that was used to get the local government commission to approve the$70 million loan and get public support for the loan. And, the 6130 l2OlO financial statement (page
58) shows that the budget tor 613O12010 was padded by lOo/o. And, since budgets are carriedforward, the budget for 61 30 1201 1 is also padded. I believe that this blaming the need fot the 1 I 4
cent sales tax on State mandates is going to be to the detriment of Dan Soucek and Jonathan Jordan,another ploy by the Democrat staff that our Republican commissioners are relying on. (It isdeplorable ihai our Republican school board members have went against Dan and Jonathan.) We
hive to get this situation under control or we are headed for a train wreck. I can't believe that afterwe, Watauga County citizens, stopped the trend of the I I 4 cent sales tax fiasco (an article featuring usin boone Doggle), that our Republiian commissioners would fall into this trap. And, I believe that it isa trap. I think our commissioners are focused on misinformation that is causing a "knee jerk''reaction. Hopefully, we can get this turned around. Otherwise, we will have lost everything that we
worked so hard to accomPlish.
[I have heard that there is a group that is going to ask for the Republican commissioners resignationat the convention. I hope thG does not happen. I am not involved with this and have only heard of itsecond hand. This would be very embarrassing and we have had enough of that negative attention so
far. I have spoken with the person that was supposedly organizing this request for resignation and Idid not get the impression tiat they were going to do any such thing. I asked them if they were going
to the cJnvention Lnd they said no. However, I was told by someone else that they were sending,someone else. So, I just don't know what to actually expect. It could be a rumor and lets hope that itis.l
Following are the Commissioners email addresses:
Commissioner David Blust ; Commissioner Nathan Miller; Commissioner Vince Gable li
Deborah Greene
https://mail.watgov.org/owa/tempexport(A,watgov.orgl?ae:ltem&t:IPM.Note&id:RgAA.. . 312512011
From: "Boone Tea Party" <ilrtEffi>Date: Mon, Mar 7, 20It B:17 PmSubject: The new county sales tax referendum issueTo: fdeleted]
For those of you who have been reading about the prospect ofanother county sales tax increase referendum, here's the story fromour conservative county commissioners. Vince Gable and Nathan Millertalked to us to correct the mis-reporting that has been going on. Thefacts are these:
During the budget retreat, the commissioners proposed and voted on
holding a referendum (MaY t7) to vote on having a .25 cent countysales tax. The purpose was to give the county commissioners theoption of a sales tax to balance the budget. It was done to make thatoption available, as a last resort to pay this year's debts. If thereferendum paSSeS, however, the tax will not xautomaticallyx go intoeffect. The decision was made for the referendum so that if it doesbecome necessary to raise additional revenue, that source will be
available. This would be a last-ditch option to PAY THE BILLS.
Here are the fiscal realities that prompted that vote:
- The county is $1 .7 million in dept because the old high schoolhas not been sold and the interest on a note comes due in 201t.
- The school board revealed that due to its budgetary shortfall,it needs an additional $1 million just to maintain its current status quo.
If the board does not get the additional funds, the result could be upto 30-40 teaching positions being cut, and if Governor Perdue's budgetis approved, that number may rise to 60.
- Governor Perdue's proposed budget would throw expenseshistorically covered at the state level back to the counties--such as
teaCherS' workers' compensatiOn insurance payments, maintenanCeand purchase of school buses.
The county commissioners have proposed significant cuts this year'sbudget. Further cuts would be in county support of non-profitprograms such as Meals on Wheels, Oasis, Hunger Coalition, etc. In a
worst-case scenario, the cuts alone may not make up the needed gaps
in funding. If additional funding is necessary the following are the onlyrevenue sources for the county:
- Raise property taxes
- Institute a land transfer tax (taxing every land sale transaction)
- Raid the county's reserve funds
- Institute a I/4 cent sales tax (with a 3-year re-evaluation)
At this time there are many unknowns, The conservatives in the Statelegislature are going to fight Governor Perdue's budget proposal.However, that outcome won't be known until June or July. Meanwhile,the commissioners are going to continue to look at every option toavoid additional taxing--especially additional budget cuts and drawingfrom the county's reserve funds. 1
Vince and Nathan said that the conservative commissioners are unitedin their opposition to increasing the sales tax. But they strongly feelthey need to keep every option on the table and if the referendum wasnot scheduled now, the legal time constraints would delay getting thefunds until 2012--too late to help this year's budget.
xHere's more opportunity to find out about this issue for yourselves:*
- xVince Gable will be interviewed tomorrow at 7:40 a.m on Rotenin the Morning radio show WATA 1200/WXIT 1450.x- xVince will also be heard Wednesday at 9 a.m. on "The Right Side"WXIGT 1450. X
- *There will be a public hearing March 15 to get input fromcitizens and get input on additional options. *
This is a challenging issue. We are opposed to wasteful spending andtax increses. But there is a difference between a tax to take onadditional debt (for example, the proposed recreation center) and a
tax to pay down debt incurred by prior elected officials.
From: "Boone Tea Party"Date: Tue, Mar B, 20IL 7:07 pmSubject: Our apologies...To: "Boone Tea Party"
Due to an oversight, the email sent out about the sales taxreferendum was not blindcopied. Therefore/ any replies wereinadvertently sent to the entire tea party list. We are sorry for the
error. While healthy debate is both good and desirable, what wecannot tolerate are personal attacks, focusing on individuals ratherthan issues. We regret subjecting our readers to these unfortunatecomments.
The Boone Tea Party Steering Committee
Sales Tax Referendum 2011
Sales Tax Referendum 2011
Sent: Wednesday, March 09, 2011 9:47 AM
To: Eugene Dicola tillllErlCc: David Blust; Nathan Miller; Vince Gable;
Page I or )
The Commissioners will be holding a public hearing on March 15' Many people do not attend these
hearings because ttr"y aon t feel clmfbrtable with publicly speaking. Please provide the Party withthese email addressei so that people can express their opinions with the Commissioners.
The public hearing wilt hopefully be an opportunity to gracefully back out of this misguided liberal
situation.
The6l30l2010 financial statement (page 58) shows that the budget for 613O12010 was padded by
10%.'And, since budgets are carried-forward, the budget for 613012011 is also padded.
The old high school was appraised years ago for $14 million. It has never been worth $36, $32, $30,gZA oi$Zi miflion. itt"t iu"" a big lie thaiwas used to get the local government commission to
il;;.;th" $io--ilion loan and to garnish public_ supp-ort for the loan. That high school should be
auctioned off and the proceeds used-to pay dbwn the debt which would lower the enormous debt
service, During Commissioner Deal's r"ign, the county purchased over $16 million in property and
the school board transferred ownership o"f the old high Jchool. There is a lot of property that needs to
be deemed surplus and sold, Raising taxes should not be an option,
The Local Government commission recommends that the unreserved fund balance be at least Bo/o of
the General Fund exp"n"es. The budget for 6/30 12011 shows General Fund Expenses of
.o;r;;il;"iy$+t111nio" and the unieserved'fund balance is approximately $20 million as of
OTSOtZOtO. lftris is over an above the money held in required reserve fund balances') The
unreserved fund baLnce is supposed to be a "rainy day fund". The liberal spenders used this fund
since 2004 to leverage loans f&'a spending spree on what they called "opportunities".
My fear is that proposing a increase in taxes is going to jeopardize the election in 2 years and put the
liberal spenders Oa"t in""orrtrol. And, if we doJt "ut
tt. budget, spend down the unreserved funds
and auction off the old high school, we are goingto give themlven more to leverage fordebt. -I believe
that this blaming the neea for the i74 cent"sale"s tar on State mandates is going to be to the detriment
of Dan soucek and Jonathan Jordan, another ploy by the liberals who are misguiding our conservative
commissioners. (It is deplorable that or, "orr""*utive
school board members have went against Dan
and Jonathan.) w" tt""! to get this situation under control or we are headed for a train wreck. I
https://mail.watgov.org lowa/tempexport(Awat gov.oryl?ae:Item&t:IPM.Note&id:RgAA'. . 312412011
Sales Tax Referendum 2011 Yage /. ot )
can't believe that after we, Watauga County citizens, stopped the trend of the I l4 centsales tax nt""P(an article featuring us in Boone Soggle), tlat our conservative commissioners would fall into thisirap. And, I believJ that it is a trap.-I tfrnt our commissioners are focused on misinformation that is
causing "
i'krr"" jerk" reaction. Hopefully, we can get this turned around.. Otherwise, we will have lost
everything that we worked so hard to accomplish'
First, the Commissioners should cut 10% of the budget. Second, they should sell (auction) all unusedproperty and apply it toward our debt to reduce our debt service. And, as a tap into the "rainy-dayirrn^d", *tri"tt is 4i"t" over the minimum recommended amount. New taxes and raising taxes is NOT
AN OPTION!
Following are the Commissioner email addresses and some email correspondence between myself andMargaret Pierce, the Finance Director:
EMAIL ADDRESSES
Commissioner David Blust ; Commissioner Nathan Miller; Commissioner Vince Gable
EMAIL DIALOGUE
From: ]Sent: Saturday, March 05,2011 9:33 AMTo: Margaret PierceSubject: Budget vs Actual To-Date
Margaret
I would like a budget vs actual to-date report.
Deborah Greene
**PLEASB NOTE NEW EMAIL ADDRESS.**
From:MargaretPierceffiTo:ffiSent: Tue, March 8,20118:27:33 AMSubject: RE: Budget vs Actual To-Date
Ms, Greene.
I have all the budget amendments ancl the budget to actual report ready, The totzrl is $5.80. The packet is on the
fi.ont counter ready for you. I arn in nteetittgs this rnorning and out Wednesday to Friday, so if you have any'
questiols, please iet me knorv. The dates on thcr budget amendment requests dtrplicated 7J-2A10 to l2-31-2010
so t only ditl ttrose amendtnents once. The alnencittrents are by liscal yeaL.
Thank you.
Margaret Piercealnre#From:Sent: Tuesday, March 08, 2011 9:08 AMTo: Margaret PierceCc: David Blust; Nathan Miller; Vince Gable
Subject: Re: Budget vs Actual To-Date
https://mail.watgov.org lowa/tempexport(d,watgov.org/?ae=Item&t:IPM.Note&id:RgAA.. . 312412011
Sales Tax Referendum 2011
Margaret
Is it true that the Local Govemment Commission recommends that counties hold 8% of general fund expenditures in
unreserved fund balance?
What is the balance of the unreserved fund balances for Watauga County as of 6l30DAl0? Do you have an up-to-date
approximation?
What are the 2010=201 I budgeted general fund expenditures that would be used to calculate this 8%?
How is the amount that is required to be withheld in reserved fund balance determined?
Deborah Greene
Unrserved Fund Balance - Questions and Answers Posed to'Margaret Pierce
##From: ...
Add to ContactsTo: Margaret Pierce
Commissioner David Blust ; Commissioner Nathan MillerCc:
; Commissioner Vince Gable ff
Margaret,
Page 3 ot )
ofL?
Considering the $16,861,4I1 unreserved you provided and the expenditures of $43,098,802 you
provided, *1" hurr" 39.I2%o held in the unrlserved fund. If we maintained 24o/o, we would need oniy
btO,g+g.ZtS. nccoiJi"g to the information below, the amount over an above the recommended 8% is
for "unforseen needs or"opportunities" and "may be budgeted in the following year to address these
situations". Has the couirty got a formula thaf is being used to determine the amount being held inunreserved fund? Or, is arbitrary and capricious?
The minimum g7o is computed as $3,447,gO4. This would leave $13,413,507 for "unforseen needs"
""A $S,OOO ,782 in ttre utrres"rved capital reserve fund for "unforseen opportunies". Would you agree?
http: / f www.nctreasurer. com/ lgc/ LgcMemos/ Memo20 10-25final.pdf
The minimum level of fund balance available for appropriation that should be on hand to enable the
unit to meet currentobligations and to prevent the unit from experiencing cash flow difficulties is B% of the priory".r;" expenditur"". In addition to the 8% needed to prevent cash flow difficulties, units also
addition to the gyo needed to prevent cash flow difficulties, units also maintain fund balance available
for appropriation in the Geneial Fund in case unforeseen needs or opportunities should
arise. Fund balance available for appropriation at:lgp.g.9.9.th is a source that may be budgeted in the
following year to address these situations. There is'irijf an e;tablished minimum amount that should
be in reserve for these purposes. The officials of the individual units should make thatdetermination. The u*o.rrrl of fund balance available for appropriation maintained by a particular unitwould be influenced by such factors as the size of the unit, economic conditions within the unit,future capital outlay needs, stability of revenue sources and susceptibility of theunit to natural disasters. The staff iends letters to units if the amount The staff sends letters to unitsif the amount of fund balance available for appropriation as a percentage of prior year expenditures in
the General Fund falls below g%. The staff aiso compares the percentage of fund balance available for
https://mail.watgov.org/owltempexport@wat gov.otgl?ae=Item&t:IPM.Note&id=RgAA.' . 312412011
isSales Tax Referendum 2011 Page 4 oI )
appropriation to the prior year percentages for similar units. If that percentage is materially below theaverage of similar units, the staff will send a letter to alert the unit of this fact. Units will beencouraged to evaluate the amounts in reserves and determine if their level is adequate.
Deborah Greene
Cc: David Blust ; Nathan Miller re; VinceGable
Subject: RE: Budget vs Actual To-Date
Ms. Greene,
1. 'Ihe LGC recornmends a minimurn of BYo to 24oA.'l'his is to have one to three montl'rs opel'atiltgreseIVe.2. $ I 6,861 ,411 at 6-30- I 0. I do not have a nelver apploxirnation at th is tinre.3. $43,098,802; curent expenditure buclget.4. The Reserve b1, State Statute forrnula can be fbund on the State Treasurel''s rvebsite athftp://www.nctreasurer.com/dsthome/StateAndl.ocalGov/AuditingAndReporting/. Other reserves are
based on the type of reserve such as encumbrances, board designations, ol'statutory.
Please let me knorv if yt-ru have any furtlier questious. '['ltank you,
From: Margaret Pierce
Margaret Pier"ce
From:Sent: Tuesday, March 08, 2011 9:46 AM
To: Nathan MillerSubject: Column for Watauga Democrat Newspaper: GOP's Say vs. Demo's Say.
Nofhon;
ftellyou o voice ryq4nng$qge 9n your Commissioner's phone line, ond oskedtor your pernrbsrb n ond informotionlo write o Oeiense of the newCommissioners sfrofegies to bolonce fhe counfies budget and reduce del'icit.
Our county GOP medio committee con write somefhin g and we meef /ofe fhisofternoon lo discuss our Morch column for the locolnewspoper.
Don 8o/sferilF
On Wed, Mar 9, 20ll at 8:01 AM, ffi> wrote:I Nofhon:: Losf night we had our medio commiffee meeting, ond we hove written a column for:, the Wotougo Democrof on fhis subl'ecf supporting our GOP mernbers of the County, Commission. I be/ieve Tommy Adoms will be sending it fo you prior to our having it, published. ^,
: Don
, ln o messoge doted 3/812011 10:04:22 A.M. Eostern Stondord Time,
i writes:i
Don:
I didn't know I had a commissioners voice mail box or phone line. I will need to find out what that is.
Thank for offering to help us out on this, Let me talk to the other two fellas and I'll get back to you' By
the way my cell Phone is tFFThanks
Nathan
Re: Column for Watauga Democrat Newspaper: GOP's Say vs. Demo's Say'ThomasAdamsffiSent: Wednesday, March 09,20L1 I:27 PM
To: Iff-fCc: Nathan Miller a
Attachments: 3.8.2011 Sales Tax.doc (29 KB)
Nathan,
please find attached the Watauga Co. GOP's Letter to the Editor regarding the Sales Tax Referendum.
please read over the letter for fact checking proposes. The letter is intended to reflect facts about the
issues and the local GOP leadership's stance.
The column has to be submitted today in order for it to run prior to the public hearing - please get back
to me as soon as possible.
Best,
Tommy
During the summer of 2010 the Republican Party focused on defeating the Proposed Sales Tax increase,
while at the same time supporting the candidacies of Vince Gable, Nathan Miller, and David Blust for
county commissioner. Thankfully we were successful on all counts,
The newly elected Republican Commissioners are now tasked with balancing Watauga County's budget
in light of past out of control spending. The fiscal realities are numbing: The School Board requested an
additional 51 million from the county to maintain its current level of operation, without which, 30 - 40
teaching positions may be lost. Moreover, if Governor Perdue's cost-shifting budget passes, Watauga
County will be obligated to fund those line items which in the past were funded by the state' This could
make the number of lost positions soar to 60. tn addition, $1,7 million in interest on the old high school
comes due this year.
Under Republican leadership, consideration is being given to s,everal options, one of which is a Sales Tax
increase. A referendum has been called in order to allow the Commissioners the option to raise revenue
by increasing the sales tax by % cent.lf the referendum passes, the tax will not automatically go into
effect. lt should be understood that public support of the referendum only allows commissioners the
option to increase the Sales Tax, if need, in order to decrease the County's debt. Our three conservative
commissioners are united in their opposition to raising the Sales Tax unless all other options have been
exhausted. Substantial cuts have already been proposed to the County's budget, with more cuts under
serious consideration.
Last August, under the Democrat-controlled Commission, voters were asked to support a Sales Tax
increase in order to fund addition spending -the proposed new Sts million recreation center. Citizens
soundly defeated the referendum citing Watauga County's staggering Sto+ million indebtedness.
The difference between the two governing philosophies used in proposing a Sales Tax increase is
striking. Democrat Commissioners wanted to increases taxes in order to support additional spending,
while Republicans choose to increase taxes as a last resort if need to balance the budget.
The Watauga County Republican Party opposes tax increases to support out of control spending, but the
party realizes a tax increase aimed at paying down debt may be required to return Watauga County back
to fiscal stability. For this reason we stand with our newly elected Commissioners'
There will be a public hearing to discuss the Sales Tax and other options at 6pm on March 15'h in the
Commissione/s Chambers in the Courthouse Annex Building. Please attend to learn more about the
issue.
GRATITUDE FOR YOUR ONGOING LEADERSHIP
GRATITUDE FOR YOUR ONGOING LEADERSHIPGSent Wednesday, March 09,2011 2:13 PM
To: ilffi; David Blust; Nathan Miller; Vince Gable
Page I of'2
Dear Ms. Greene,First, I wish to express belated gratitude [should have done this long ago] for your heroic efforts this
past summer in getting the County Democrat-sponsored sales tax referendum defeated. I am convincedthat you personally are primarily responsible for the current Republican-dominated CountyCommission. The three Republican Commissioners, in particular, owe you a great debt of gratitude. Iam sure that they already expressed this gratitude at the time of their election--RlcHT?
Thank you so much for your current leadership role in stopping current efforts to resuscitate the sales tax
idea. If only your efforts were backed by the current County Republican regime and by the Republican
Women Club.
The Tea Party leadership has already STI-INNIGLY written about their support for a second sales tax
referendum. I hope that I misunderstand the Tea Parly position, and that if I do, I hope that the Tea
Party of WataugaCounty will clari$ its position in opposition to the a second sales tax referendum. I
do not think that the rank-and-file Tea Partiers would support their leadership-they would vote withtheir feet out of the Tea Party--if this leadership were to support the referendum in any manner
whatsoever.
Every Conservative group should land on the three Republican Commisioners like a ton of bricks'
I have carefully read your note that you disseminated earlier this morning, and I am in total agreement
with every one of your arguments:--the upcoming County Commission's public hearing should be an occasion for the three Republican
Commlssioners to oppose the referendum [the damage already inflicted can be contained IF the three
Republicans reverse course] ;
--I defer to your excellent research when you write that the County financial statement is padded by at
least 10 percent, and that at least this amount [if not a lot more] can be cut from the County budget;
--I agree that the old high school and other County-owned but unusued properties should be sold--even
at a lower price;--I agree that the Unreserved Fund Balance should be used to meet the deficit since the Fund is there for
a"tainy day," and the "rainy day" is now upon us;
--I agree that a second referendum will jeopardise the Republican hold on the Counfy Commission in
20t2;--I agree that the three Republicans on the Commission are placing Dan Soucek and Jonathan Jordan on
https://mail.watgov.org lowa/tempexport(@watgov.orgl?ae:Item&t:IPM.Note&id:RgAA... 312512011
GRATITUDE FOR YOUR ONGOING LEADERSHIP
the defensive even before they get their tenure underway'
I would add that the the Boone Town Council is responsible for the refusal to sell the old high school,
AND THIS SHOULD BE WRAPPED AROLIND THEIR NECKS--TOGETHER WITH THEIRPOSITION ON SAME-SEX MARzuAGE--IN THE UPCOMING FALL TOWN ELECTION.
It is my understanding--correct me if I am wrong--that Target wanted to buy the old high school la1d,
but that the Town Council refused because they were fearful of the geometry of the eventual building.
Apparently, the Town Council dislikes cubes. Walmart does not look like a cube to me, and I am sure
that Target too would have used some pleasant shape, other than a cube'
The Boone Town Council has consistently been against growth of any sort for the Boone area, and even
a casual walk through downtown would support this contention. Boone looks now exatly as it did 20
years ago. This is nothing to be proud of, in particular considering how many more thousands of lower
middle class jobs we could have had for the people of Boone and of Watauga County.
Lastly Ms. Greene, I agree with you that we did not elect a clnservative Republican County
Commission so that they could become just an echo of the old liberal Democratic majority. It's about
time for the three Republicans to grow up, emerge from the the shadow of the Democrats, and show
their conservative mettle.
I remain gratefultl yours,
TTnreDe &la.
PageZ ot2
@
https://mail.watgov.org lowa/[email protected]/?ae=ltem&FlPM.Note&id=RgAA.. . 312512011
Tax increase
Tax increase t'age I or I
Sent: Wednesday, March 09, 2011 8:28 PM
To: David BlusU Nathan Miller; Vince Gable
Sir,
When I voted for you, I based that vote on both your representation of yourself as conseryative and the
assertions that you made that you would represent the citizens of Watauga in effforts to reduce
government expenses. I did not expect tacil support of a sales tax increase and an "option." From my
ioint of vie*, tu* increases should not be an option for conservative representatives. We know that the
attedgea value of the old high school *us grosily overstated. Now is the time to set a market price for
the real estate and get rid ofit and use the proceeds to reduce debt on the new school. Now is also the
time to address the bloat in county government and reduce expenses via elimination of excess personnel
and elimination of programs that-do not fit within the ethic ollimited govemment. I am disappointed in
what I perceive ur yo,ri weakness in maintaining your conser?ative prinicples, I trust this is a one time
mistake. Please don't disappoint your supporters.
Respectfully,
re
https://mail.watgov.org/owa/tempexport(@wat gov.orgl?ae:Item&t=IPM.Note&id:RgAA'. . 312412011
Sales Tax Referendum
Sent: Wednesday, March 09,2011 10:34 PM
To: David BlusU Nathan Miller; Vince Gable @Commissioners
Apparantly you didn't hear a think that Mr. Colletti from the John Locke Foundation said at our press
conference. you can resolve for the sales tax to be used for anything want to; however, by law, you
can,t earmark it for anything and it can be used for whatever. This is reminiscent of 2002. The
iepublican controlled boarJraised property taxes by 10 cent with the revaluation and claimed that
nolry and James Coffey didn't tell them. And, now you have Rocky and Jim Deal running the *o*'Why is it that yor,
"u.rr't".rse the 'rainy day fund"? You !?ve over 49ok of the general fund expenditures
in unreserved funds. Look at the finhncial statementl The 8%o that the Local Government Commission
recommends is for cash flow and the rest is for "unforseen needs". And, you need to go ahead an -
auction off the old high school. Start the bidding at $14 million (the apprai.sed value; that's right the
appraised value was lublished in the news a lon-g time ago and the reason I tried to get a cop{ oltlt"appraisat was to show the LGC that they were b"i"g deceived with the $36 million figure that had been
given to them. Remember Rocky Nelson's response to my allegations' He s-aid that my opposition
iras political. He said I was a RepUgLtCAN. He said thal I phnned to run for office' And, he bragged
about the board being all DEMOCRATS. He claimed that the Republicans were not reelected because
of opposition to the hTgh school. (However, David, you were deci-ded to run for another office and Keith
*"" fb. the high schoo-1.) He then pointed out that there was an upcoming election without any
REpUBLICAN opposition. Do t need to send you a copy of the letter? During Commissioner Deal's
reign, the county p"r"fr"..a $16,028,000 worth of prbperty. And, you know as well as I do that not all
of that property-iJbeing used and needs to be auctioned off'
We have worked way too hard to get Republican control. While I appreciate that you want topay down
the debt, I don't agrle with any tal< incr-ease or new taxes to accomplish it. Please note that the very
fund balance that allowed theiiberal Democrats to go on a spending spree by leveraging it with debt is
still there and you are just going to grow it with the path you are taking. I believe that you are playing
into a TRAp. No one tras te-arnda thi lesson; you are relying on the same old staff. If you want
Republican principles to flourish, then your staff has to be of the same mind set'
We, the citizens of Watauga County, put a stop to the trend of the sales tax option. And, you road that
ticket into oflice. Wilt;; you ttrintcing? Or, the better question, where are your Republican values?you say that this option is the last resoit. It shouldn't even be an option as long as you lt* -"
padded
budget, unreserved fund balances at the levels you do and millions in unused property that should be
declared surplus. We are not STUPID!
Deborah Greene
Sales Tax Referendum rage I ()r I
https:i/mail.watgov.org lowa/tempexport@,watgov.org/?ae:Item&t:IPM.Note&id:RgAA.. . 312412011
Boone Doggle
Sent:To:
Page t or t
Boone Doggle
Wednesday, March 09,2011 11:33 PM
David BlusU Nathan Miller; Vince Gable
Attachments: Boone Doggle.pdf (215 KB)
Commissioners
See attached.
You need to studY uP.
Deborah Greene
https://mail.watgov.org/owa/tempexpofi@,watgov.orgl?ae:Item&t:IPM.Note&id:RgAA.. . 312412011
200 W. Morgalr, #200
o Raleigh. NC;2?601
pr''*, Il9-B2u-3fi7(:
4.,919-821-,5117
www.iohD-locke.org
'fltt: ihiltn I'oehc kbunddtion i"s <1
50/ft)fi ) nonpntli 1.. nar pttrtLsrrn ns"'un:ltin sli ! tr I t detlia,t tctl tr> in pntt, i ng puhli <
f'liay t.ld)(l( in N<t'th (urttlinc Viuop<'ir-lsrrrT)r".s$cd lty ttu,thttrs do not ttT'tlt\sdril,v
rcfl(:cl those ttf the sluff<u' b,Lutl oflh t l,,x,hc l\trattlolttn
Boon€-DoggleWatauga C ounty's prop osed
$1.9 rnillion tax increase
Dn. Tsnnv SroorsrJosnPy CoLETTI, DR. MtcH.lsL S.llnnlAucusr 2010
Knv Ponms
. Watauga County commissioners want voters to approve a $ 1.9 million sales tax
increase to build new recreational facilities. If past is prologue, this new money
will not be spent wisely.
. Watauga County commissioners approved the most expensive high school ever
built in the state, without a vote of taxpayers'
, At $79.5 million, this high school cost almost $17 million more than a similar
schooljust built in Wake County, which is an amount equal to nine years'worth
of revenue from the proposed sales tax. In other words, if the commissioners had
been more frugal with taxpayer funds, the county could have met its recreational
needs for nine years without needing a sales tax inuease.
. Excessive spending on the new high school alone caused county commissioners to
miss the 2006 schools facilities needs projection by $20 million, leaving other new
school and renoration needs unmet'
, Watauga commissioners budgeted $7.9 million to pay that and other debt in fiscal
year (FY) 201I, up from $2.9 million in FY 2006.
. Now the county commissioners are asking voters to approve a quarter-cent sales
tax increase, which would raise taxes by $1.9 million - the equivalent of a prop-
erty tax increase of 2.2 cents per $100 in assessed r'aluation.
. Although commissioners promise to use the estimated $ 1.9 million in new tax
revenue to pay for new recreational facilities, their promise is not legally binding.
They could use the money for any legal purpose, including paying debt service on
the new high school.
. Given the experience with the high school, should taxpayers now believe that
commissioners would do a better job building new recreational facilities?
. The chairman of the commission claims that over half of the new sales tax rev-
enue would come from visitors, Even if this assertion were true, county residents
would still pay the equiralent ol a one-cent properfy tax hike.
, County commissioners have called the election lor August 31, a date that is likely
to suppress voter turnout, Robeson County commissioners used the same political
trick with its August 3 sales tax vote, which saw a turnout of just 4,3 percent of
registered voters. Only 2.9 percent of registered voters aPProved that tax increase.
A Mlrrrn on Tmisr anu CoNrmuucuThe August 3l quarter-cent sale s tax
increase vote for new recreational facilities is
about trust and confidence. Watauga County
commissioners are asking voters for a $1.9
million tax increase. Voters should decide ifthe commissioners have earned their trust.
Are voters confident that commissioners
would spend this new money wisely?
The expenditures on the new Watauga
High School, the most expensive school ever
built in the state of North Carolina, suggest
that county government officials have not
been good stewards of taxpayers' money' Infact, the $17 million in excessive spending
on this high school would have been enough
money to meet the county's needs and delay
the sales tax increase for almost 9 years (se e
the table, "Wake vs. Watauga High School
Projects").
Let's start at the beginning In 2006,
Watauga County Schools officials projected
that they would need $58.2 million to meet
their various school facilities needs over the
ensuing five years. This amount included $45
million for new schools and $9.6 million foradditions and renovations. I
By 2010, the county commissioners had
spent $79.5 million on a new high school
alone, exceeding the school district's initialneeds projection by over $20 million.
To get a better sense of the excessive
costs of Watauga High School, county com-
missioners in Watauga County spent $17
million more on a high school than one built
in Wake County during the same period (see
the table). Wake County's Heritage HighSchool appears to make better use of avail-
able square footage, thus reducing the cost ofthe facility. \{hile Wake Counfy commission-
ers are interested in getting the most bang
for the education buck, Watauga's county
commissioners seem to have little interest in
proper stewardship of taxpayer dollars.
A LasrrNc Iuplcr oN CouNTY FrulxcrNcThe impact of this excessive spending by
the county commissioners is far-reaching.
Although commissioners promise to use
WATAUCA COUNTY'S PROPOSED S1.9 MILLION IAX INCREASE 2
Wake vs. Watauga High School Projects2
the estimated $1.9 million in new revenue
from the sales tax increase to pay for new
recreational facilities, their promise is notlegally binding Commissioners could use the
money for any legal purpose. Additionally,the experience with the high school should
cause taxpayers to question the ability ofthe commissioners to build new recreational
facilities frugally.One of the most pressing needs created
by the new high school is paying the debt
service on the bonds. The bonds to build the
new high school have caused county's pay-
ments on the county's debt to soar. The 2010
payment alone is almost $B million.Make no mistake. If passed, the addi-
tional $1.9 million raised by the tax increase
would be the equivalent of a property taxincrease of 2.2 cents per $100 in assessed
valuation. The current recession is not the
time to ask Watauga County families to pay
higher taxes.
Despite the unproven claim by the chair-
man of the commission that over half ofthe new sales tax revenue would come from
visitors, it is more likely that county resi-
dents would pay the vast majority the sales
tax increase. Even if the assertion were true,
howeve4 county residents would still pay
$950,000, or the equivalent of a 1.l-cent
propefty tax hike.
StnmsssrNc rH{ Voru Ix Onosn'ro Wr'r?
Finally, the county commissioners are
using a well-known political trick by calling
Heritnge
High School
Watauga
High School
Coungt Wake Watauga
Opmed Fall2010 Fall2010
CapaciEt 1600 students 1500 students
Acreage I 10 acres 89 acres
Square
Footnge264,416 sq. ft. 285,196 sq. ft.
Cost $62.7 million $79.5 million
RE6IONAL BRIEF
the single-issue election for August 31. His-
torically, a single-issue election called outside
the regular May primary or November gen-
eral election dates suppresses voter turnout'Such was the case when Robeson County
commissioners used the same ploy for the irsales tax vote on August 3, which saw a
turnout ofjust 4.3 percent of the registered
voters. The number of Robeson County vot-
ers approving the tax increase was 2,052, orjust 2.9 percent of the registered voters. In agovernmental system based on the "consent
of the governed," should m{or tax increases
be approved by jirst 2.9 percent of the voters?
\{hich tiny group of voters turns out for
these special elections? Experience shows
that people who directly benefit from the
increased spending are the ones most likely
to turn out in these special single-issue elec-
tions. In Watauga County, the relatively
small number of residents who would use the
recreational facilities and county employees
would be those most likely to directly benefit
and most likely to turn out.
If new county recreational facilities are
a high prioriry why haven't county commis-
sioners planned to provide them through
existing revenues? What low-priority activi-
wATAucA couNTY's PRoPosED 51.9 MlLLloN TAx INcREAsE 3
ties have taken precedent over this high-pri-
ority need, and does that indicate inadequate
planning by the counfy staff and commis-
sione rs?l?.,:gianai /?rril1 No. 77 ' '\u5^rrsl
18, 20 I (l
Dr Terry Snops is Drectnr of Education Studia
at the John Locke Foundation. Joseph Coleui is
Director of HeatttL and Fiscal Pokqt Sadies atJLE
Dr Michael Sanera is Director of Raearch and I'ocal
Goa ernrnsnt Sadins at J LE
F,rqn Norus
l. School Planning/Division of School Support
DPI/PSNC, "2005-06 Public Schools Facility Needs
Assessment," December 18, 2006, P. 3'
2. Wake County Public School System, "Facilities
Design and Construction: Heritage }{igh," www.
w cp s s. net /faciliti.e s /p roj ect: / ?pi d= 4 4 ; Morrte Mitchell,
"' Dream' become s a r ea)iry," Wns ton- Salan Jo umal,
July 3 l, 20 1 0, www 2 i ournaln ou c om / content / 2 0 I 0 /jttl /3 / /dream- b ecomts-a-realig' /new s-reginnal; sfr.+ a
Architects,'nVatauga High Scho ol," wuw. sfla - arc late cts'
com/ Enuironmmts / Enuircnmmt. asp x? Proj ect= 553; North
Carolina Department of Public Instruction, School
Plarning Division, "Costs of Recent School Projects,"
July 2 l, 20 I 0, wtt;w. schnolcleainghnus e'org.
NEGIONAL BRIEF
Josette Maxwell
To: Vince Gable; Nathan Miller
Actions
Thr.rrsday, March 10, 2011 9:lB AM
I want to make certain f have the facts straight.
There are two separate fiscal crisis situations facing WataugaCounty.
First, in the current fiscal year ending 30 June 201L, it isnow projected that there witl be a shortfall of $1.8 mil}iondollars. This results from less than expected revenue receipts,unforeseen additional normal expenditures and' in large part'because the fiscal year budget did not include a very significantinterest payment due in May for an outstanding loan. Thereis no choice but to find a means by which to pay the $1.8 million'At this stage, during the next three months of the fiscal year,planned expenditures wil-l- have to be significantly cut which means
making some very hard decisions and, if insufficient, to useSome of the legatly required reserve fund. It's not a case ofbel-t tightening thatts already occurred. The case now ishaving to make cuts that really hurt.
Secondly, for the fiscal year beginning July L, 20IL, there isanti-cipation that there will be a significant shortfall in moniesreceived from the state, a shifting to the county budget itemsnormally covered by state money because of the State's effortsto balance their budget. Additionally, increase expenditureswil-1 be required just to keep the st.atus quo for the next fiscal
year. no; 'et;mpia;the sctroormillion dollars will- be needed.revenue to rePlace monies lost
Board estimates an additiohal oneThe county will have to come uP with
because of State budget action.
Prudent fiscal management dictates that action begin now todeal with a probable situation, loss of revenue from the State.The means by which the county can generate revenue to make up
the shortfall from the State are restricted to taxation ordepleti-ng the required reserve fund, if they are permitted todo so (1t's a legal mandate). One possibility is imposition ofa quarter cent county sal-es tax. In ordSr to maximize impactin the next fiscal year, it would have to be approved by a
referendum in May. Acting in a prudent manner, the commissionershave filed the papers which would permit a referendum to be
held in May in order to generate revenue October thru DecemberIF it is decided that a referendum should be held'
To acquaint the public with the fiscal problems faced this yearand next year and generate input from the public on how to dealwith these crises situations, the Commissioners are holding a publichearing Tuesday, March 15th at 6 pm in the Administration Building on
KingStreet. People are urged t.o att.end and share their views on how
best to deal- with the crisis situations bearing in mind thatsomething has to be done, choices have to be made.
If the above is correct, f 'ITI going to emai-l it to several- groupsto try and correct misinformation. Feel free to use anythingabove in any way you think wil-l help the situation withoutattribution. I do urge you to differentiate between the twodifferent problems and al-so to emphasis the limited means bywhich one can deal with the situation in the current andupcoming fiscal years.
Josette Maxwel-l
Fiscal situation clarification
Nathan MillerSent ltens
Ms. Maxwell.
That was excetlent. You hit the nail
Thanks.
Nathan
Miller & Johnson, PLLCP. O. Box 491 66 West King StreetBoone, NC 28607
Thursday, March 10, 2011 9:23 AM
on the head.
John Locke Foundation - 114 Cent Sales Tax Summary
John Locke Foundation - Il4 Cent Sales Tax Summary
Sentl Thursday, March 10,2011 4:28 PM
To: David Blust; Nathan Miller; Vince Gable
Commissioners
Please read the article at the following link from the John Locke Foundation.
http;/fwww,newgrecord,com/content/2010/11l03/article/all nc sales tax questions fail in election#nrcAnc Middle2-Jump
Deborah Greene
Page I of I
https://mail.watgov.org lowaltempexport(Ewatgov.org/?ae:Item&t=IPM.Note&id:RgAA.. . 3l25l20ll
In a message dated 311012011 6:34:39 P.M. Eastern Standard Time,
rewrites:For Nathan, Vince, David and Others Very Active in County Politics/lssues (I don't have
ItEmail):
I know how the Emails have been flying re the sales tax referendum and related
fiscal/budget issues. I will make this note as short as possible and hope that it provides
useful information ui this debate, which burst into the open only this week, proceeds. I
hope to be constructive--but also to present instructive" information.
Everyone is doing his/her best. We also know that "it's hot in the political kitchen."
please print the attached spreadsheet at your convenience. It's a one-pager that may be
read and digested in 5-10 minutes. It summarizes the voting in the August 2010 Sales
Tax Referendrm. It provides data re the political dimension of these issues' It may be
that the political dimension is not paramount as these issues are considered and ultimately
resolved; it is, however, not absent'
A couple of comments keyed to the spreadsheet:
1. The Republican base--in both "close" to Boone precincts like Blue Ridge and
"outlying" precincts like Beaver Dam--turned out in record numbers and voted
overwhe-imingly against the sales tax increase. It was an historic turnout for a "stealth"
election.
2. ltwasalso the first defeat that Jim Deal experienced in his manipulation of the
County.
3. It's prudent to assume that this core group also turned out in November and was
obviously augmented by other Republican and Unaffiliated voters who wanted a change
in governing-ptrilosophy at all levels. Can we also say that this loyal cadre thought they
weie votinglo frotA the line on taxes, among other issues, when they voted in November?
In the County Commission's process of seeking input and in possibly explaining issues to
the public about these complex issues, it would be helpful to cover the following
question, which goes steP-bY-steP:
From Deborah Greene's current research:
UnreservedFundBalanceat6130110: $16,861,411 (Source: MargaretPierce,Finance
Director)
e. What is the Unreserved Fund Balance?
B. Why was the balance relatively large at the end of FY 09110 (6130110)?
C. Has this balance been applied to current line items in the FY10/11 budget?
D, If so, to what?E- Why'can't the $l.Smillion bond payment be covered in whole or in part from this fund
category?
If ordinary people could understand why this can't be done--or hasn't been done--there
would be a better understanding of the fiscal issues'
At any rate, the political data point to the need to cover this shortfall without a tax
i4crease--or Deborah's analysis that the County Commission will return to Democrat
control i621l}may well be conect. There is an iron logic in those numbers. We should
take it into account for the ongoing success and growth of our Party and conservative
principles.
I don't know the source, but these old sayings often nail the truth: "Gotta stick with the
people who brought you to the dance'"
Jean Di Cola
Friday, March l!,2011 12:08 PMTo:Mffi;Nathan Miller; Vince Gable; David Blust
Cc:M
County Republicans:
I think we all need to take a deep breath and remember these facts:
1. We were successful in electing 3 very new, conservative and important commissioners
to the Watauga County Commission Board.
2. These three new commissioners have started to reign in spending as promised,
reviewed potential cuts in expenses and have pledged to reduce the budget, operate
within that budget and reduce the huge deficit'
3. They have put an emergency contingency to use a sales tax inuease of ll4 of a cent as
a last resort and onlY if needed.
4.If anew sales tax is required to meet these promised objectives, they will review the
situation in 3 years and act atthattime to cancel or continue the tax.
We have a column giving this information to the public in the Sunday edition of the
Watatuga Democrat newipaper's Opinion page and authored by the Watauga County
Republican Party and ONLY if they must publish with a person's name, I gave them
pemission to use mY name.
We can lose control of the new GOP majorities in local, state and federal govemment
positions only if we do not support these people and fheir promised agendas to save this
country frornirresponsible "piogressive" actions that are bankrupting us and possibly
ruining it for our children and grandchildren forever'
Stop the radical behavior by "nitpicking" and settle down to asking questions and
listening to the answers before writing and talking about more irresponsible actions.
Thank you,
Don BolsterChair Media Committee
Friday, March 11,2011 6:30 PM
Actions
To:MGCc:M
; Nathan Miller; David Blust;
Mr. Bolster:
You just crossed the line with this statement:
"Stop the radical behavior by "nitpicking" and settle down to asking questions and
listening to the answers before writing and talking about more irresponsible actions."
Who are you to judge anyone? I don't "nitpick" and I am not a "radical" and I am not
"inesponsible". I assume that you were speaking with the ones you addressed this to. Iam unaffiliated and a sales tax wasn't good last August and it isn't a good idea now. And,
I take pride in knowing the FACTS! And, ryhen I take a stand on something; I don't
throw my principles out the window because of and R or D behind it.
You are welcome to write anything you wish and have your opinion; however, don't
resort to personnel attacks. You can keep those emails to yourself!
Deborah Greene
Vince Gable;
Friday, March ll,20I1 6:39 PMTo:M#Cc:M
ffiDeborah:I was not talking about you. You do an excellent job researching and presenting your
views. I admire that very much. If you want to know what I was referring to, go back and
read the list of emails.One point needs to be made though...The past "D" commissioners introduced the
referendum to spend more money, andtoday's "R" introduced the possibility of a
referendum to reduce deficits. Big difference.Like I said, take a breath.
Don
----- Forwarded Message ----
F
To:rtFSent: Fri, March 11,20117:29:24PMSUbJCCI: RE: POLITICAL DIMENSION OF SALES TAX ISSUE; KEY QUESTION AT
ENDMr. Bolster
I haven't nevef seen a tax that was passed that ended. You might want to read Boone
Doggle and there is also a very informative article that was written recently about the
,ourrti"5 that attempted to pus th. ll4 centsales tax option since we soundly defeated it'
Not one county has succesifully passed it and as the writer of the article points out the
people don't want it. It is ridiculous to put this out as a contingency' These
commissioners need to ask the same questions I have been asking and doing the research
that I have been doing. In fact, the information that I am providing them should be
coming from their fin-ance director. I tried to tell the Commissioners before they went in
that the money was there and that all it took was to stop all of this capital expenditure
("funding opportunities"). I rcalize that the commissioners are being deceived; they
don't. Just *h.r. did they hear that all of these mandates would be coming from the
State? I wrote both Dan and Jonathan and asked them to contact the commissioners to
ward off that propaganda. And, they have contacted them and reassured them. So that
takes care of tnal ltlZ0propaganda. However, the idea that there is a shortfall is another
piece ofpropaganda. ^I
hivi acquired a copy ofthe budget vs actual report for the
period littiot-t through 3lglz011 and a copy of every budget amendment for the same
period. I know exactl! what is going on. I have started asking questions and getting the'*r*.r,
from the finance director and sharing them so that there is no doubt in what I am
saying. I have been dealing with this same old staff for a long time and know how sly
they ie. It is like pulling teeth to get to the truth. I hope that by asking the question and
g.tiing the answeri that the commiisioners should; they will see for themselves. I had
t op.a to get my answers before the public hearing' However, I only have part of the
information because the finance director is out of the office for this week. I have
supplied everyone with a copy of the Local Government Commissioner memorandum
about the unreserved fund baiance. Anyone who claims to read that and look at the
county financials and says that we need is sales tax either doesn't understand, refuses to
,.. th. writing on the *ull ot has other motives. However, I will agree that we need to
stop borrowin-g until we get our debt paid down. And, one way to do that is to sell this
,urplu, prop.riy. Commlssioner Deal doesn't want the fund balance touched because that
*outa p"t un rrrd to the borrowing. He leverages off of it' I saw Keith Honeycutt join
forces with Jim Deal and I believe his motivation was the dollar. And, many people
haven't forgotten that and they haven't forgotten 2002 when the commissioners had the
opportuniti to reduce the taxes; claimed a reduction and actually we had a 10 cent tax
inrr.ur.. ihe people in the County are calling the commissioners Rhinos. Boone Doggle
said it all- It comes down to trust. And, they don't trust them and they don't like being put
through this. And, they don't see the difference. They see that the government has spent
miliJrs over the past 6 years and if you stop the spending, you will have money. It is
plain and simple. -Logical
at that. Ifpeople were upset as they were over a $1 lease to the
@farmer's market; how do you think they feel about a contingency sales tax option?
Now with that said. The Republican Party may have reacted too fast. You should have
waited until after the convention and until after the public hearing. However, the damage
is done. ,'
Deborah Greene
Actions €eSaturday, March 12,201112:46 AMTo:M#Cc:M
Don,
In good faith as a citizenand a Party activist, speaking only for myself, I too, like
De6orah, cannot let part of your comments go unanswered'
,,Stop the radical behavior by "nitpicking" and settle down to asking questions and
listening to the answers before wiitittg and talking about more irresponsible action."
Everything else that you have written in response to my Email of 3/i0 contributes to
discussion of County fiscal issues and the possibility of another sales tax referendum. I
look forward to reading the column providing information on these issues in Sunday's
Watauga Democrat. t ltso thank yo, for all of your work this past year as Chairman of
the Media Committee.
Let me respond:
I'll preface my remarks with a couple of observations. I start with a premise that a
political party deals in voting data--hard facts about precincts, tumouts, whatever voting
pafierns maybe analyzed. I find it confusing that compiling a spreadsheet summaizing
in. gl:1/10 sales tax vote would be characterized as "radical behavior," "nitpicking," or
an ,,irresponsible action." Second, I've always believed that conservative principles and
working for ongoing Party success included a commitment to open discourse, examining
various points o-f viJw, honest and even heated debate, and finally arrival at a position on
an issue, In this context, use of the injunction to "Stop' . . ." in the sentence above is
puzzling and probl em ati c .
I value your opinion and I truly want to understand how my Email fits within the
statement above. So I'm suggesting a format to help us get to that point of mutual
understanding. I'll repeat selected paragraphs from the Email and ask you
to respond. Please answer by Sunday evening, 3112, as I plan to attend the 3/15
Commissioners'meeting and want your input beforehand'
To begin with selected paragraphs from the Email:
Please print the attached spreadsheet at your convenience. It's a one-pager that may be
read arrd digested in 5-10 minutes. It summarizes the voting in the August 2010 Sales
Tax Referendum. It provides data re the political dimension of these issues. It may be
that the political dimension is not paramount as these issues are considered and ultimately
resolved; it is, however, not absent.
Response: please explain how this is "radical," "nitpicking," an "irresponsible action" or
p.rhup, irrelevant. Is there a flaw in the argument that how people voted.before on a tax
inrr.ur. is no longer a consideration when they may be asked to vote again on a tax
increase?
A couple of comments keyed to the spreadsheet:
(Skip to #3): It's prudent to assume that this core group also turned out in November and
*u, ob,riously augmented by other Republican and Unaffiliated voters who wanted a
change in governing philosophy at all ievels. can we also say that this loyal .-dt.thought they were rroiing to iroiA the line on taxes, among other issues, when they voted
in November?
Response: Again, for the integrity of my thought pfocesses, I would appreciate knowing
how these statements are "radtal," "nitpicking," or "irresponsible actions." Political
analysts and the "pundits" pointed out that one of the keys to the GOP successes in Nov'
at ali levels was a-platforrnthat included no tax increases, particularly in a recession' Is it,,radical" to put Watauga voters in this categoty? I was just asking, Can we' ' ' '? I didn't
even take the step of putting them in the category'
In the County Commission's process of seeking input and in possibly explaining issues to
ihe public about these complex issues, it would be helpful to cover the following
question, which goes steP-bY-steP:
u*"r.*.d Fund Balan ce at 6130110: $ 16,861,41 1 . ($ource: Margaret Pierce, Finance
Director)A. What is the Unreserved Fund Balance?
B. Why was the balance relatively latge atthe end of FY 09110 (6130110)?
c. Has this balance been applied to current line items in the Fy10/11 budget?
D. If so, to what?f- Wny'.*'t the $1.8 million bond payment be covered in whole or in part from this
fund category?
Response: You ask that someone "settle down to asking questions. . . . ." There are five
questions in this excerpt. If it's "radical" or "irresponsible" to ask for answers to this set
of questions (or maybe they're not questions?) as a means of providing information for
p.opt. who aie not experts in local govemmental accounting, I'll stand corrected. Please
iU.ify so that in any future writing that I do I will have a better idea of how to frame
questions.
,,. . . . the political data point to the need to cover this shortfall without a tax increase--or
Deborah's analysis that the County Commission will return to Democrat control in2012
may well be correct. There is an iron logic in those numbers. We should take it into
acctunt for the ongoing success and growth of our Party and conservative principles'
Response: I need help with this. Is this speculation "off the wall" and/or "irresponsible"
aftei reading the spreadsheet? Reasonabll people may come to different conclusions'
you have the spreadsheet. I would be interested in your conclusion if you care to write it
in the space beiow. But more to the point of your statement, I need to understand how it's,,radicai,,' "nitpicking," and "irresponsible" to study politi cal data and draw a conclusion
from it. I'm just not getting that.
Thank you in advance for your consideration and time in answering by the evening of
3112.
I'm glad that you too--as I do--recognizethe value of Deborah Greene's work over a
period of years on issues of importance in Watauga County'
Jean Di ColaIn response to the message from r€IE ,3ll1l20Il
Mr. Bolster:
I was reviewing what you wrote in item 4. How can you be certain in 3 years that they
(whoever they will bejwiil cancel or continue the tax for the reasons promised by a prior
board. Take a deep bieatht. In2 years Gable, Futrelle and Deal will be running. Who
will they be? Remember. Last August, we worked against a sales tax referendum that,
by law, cannot be earmarked for any specific expenditure - capital, debt' etc. It can be
spent however desired regardless oith. resolution. We also pointed out that resolutions
*.un nothing; they are nJt binding. So, if enacted' who are we going to be trusting with
the decision? Who has that crystal ball? I want one!
Deborah Greene
Fwd: POLITICAL DIMENSION OF SALES TAX ISSUE; KEY QUESTION AT END
Sent:To:
Cc:Attachments:
Everyone,
Very briefly, this is the end of the Email chain that I originally started (on 3/10) by sending a spreadsheet with
votihg results from the 8/31/10 sales tax referendum.
Don clarified, both in writing and conversing at the Convention, that his comments referred to an Email written by
someone else; he did not have my Email in mind:
"Sorry for getting you hard working people 9n9ry. ,-, ,-..,--_ L^:^-il .
The comment from soiteoie ci;ai"ni one of oiriruly conservative commissioners a "despicable human-be-ing." is
pretty radicat ana irresfoisibte, esieciatly when directed to a veteqan that was willing to sacrifice his life for this
country and his buddies in battle in Vietnam'i iont,t'consider any data uncovered by you or Deborah anything but outstanding work and presentation."
Don has made clear that his comments did not apply to my work or to Deborah Greene's work. We all condemn-
and the Tea party Steering Committee has condemhed- that odious personal attack on Vince by someone
responding to a fea Party note in a totally separate Email chain.
I reiterate my thanks to Don for his leadership and work on the Media Committee, which was at the top in terms of
Gop Committees who came through this pait highly successful year. Don is also a true Party loyalist in allowing
his name to be used so that certain columns may be published'
I have a final observation to end the chain that I started on the Referendum issue.
We need to try to think ahead as well as wrestle with the present. Here's a scenario that could happen as
one of the "unintended conseqLlences" of the sales tax issue:
1. The referendum is held.
2. TheRepublican base splits its vote-4,342 voted NO on 8131t1O (majority are Rep. re the spreadsheet).
3. The Dems. vote overwhelmingly yes; they are the Party of tax increases and even in tough times will have
their eyes on more spending "dowh ihe road," Unaffiliated vote YES by slight margin.
4. The referendum will probably pass. our Rep. No vote will lapse into apathy. Willthe GoP have a vigorous
organization in all 20 precincts to counteract this?
S. 2012: Obama's coming to NC will not be enough to bring out the substantial part of the Rep. base that has
tapseO back into apathy. ihey cannot be "turned bff ano on" like a light switch. Dem. turnout will be
niin. Dems. crave po,r"r, use it when they're in office and claw baCk after their defeats. They also look after
th6ir own. The term DINO (Dem. ln Name Only) does not exist'
6. Who may not win re-election?
(A) Republican candidates for County Commissioner'
iei .Jonatf'an Jordan, who only has two counties to work with. Vote in Watauga will do him in.
iC) ZZ,IZZ Oan Souibf< may survive because he represents 4-5 counties. lt will be touch-and-go for Dan.
Did our folks, at all levels, work so hard only to be "cancelled out" by an "unintended consequence" like this?
Appreciate everyone's patience in sticking with these Emails. lt is in the end a healthy process.
Re: POLITICAL DIMENSION OF SA.,. (14 KB)
Jean DiCola
@ENDRe: Fwd: POLITICAL DIMENSION OF SALES TAX ISSUE; KEY QUESTION AT
Sent: Sunday, March 13,2011 11:09 PM
To:f-Gc: ffi Nathan Miller; Vince Gable; David Blust;
Thanks Jean.
I second that. None of our commissioners waffant such a cogrment. They are all trying to do their best.
I am trying to help them. I know the pressure that they are under and I know how well-organized and
devious the liberal spenders can be. I think that the commissioners are not being given the correctpicture and that this is a definite TRAP. Our commissioners are wrestling with this decision. And, I can
only hope that I get the information to them before it is too late. I have dealt with "despicable" elected
officials; but, this is not deserving our commissioners. I have called Vince several times on differentissues and he has always been patient. He takes in what you say; he really considers your point of view.He takes his time and then he formulates an opinion. I respect that. And, I want to applaud ourcommissioners for their conduct at the Farmland Protection Plan public hearing. They conduct an
engaged public hearing and that makes you feel good as a citizen. During my comments at the publichearing, Vince actually asked me questions. That is so unusual; but, very welcomed. And, he then
made a resolution, after discussion with the other commissioners, to take a recommendation I made and
go forward with it. And, this came after much thought and investigation on his part. He didn't just talkwith me; he had talked with many others. And, he is very polite. I saw Commissioner Deal repeatedly
ask for changes to every resolution that Vince offered. And, Vince was very polite and demonstrated he
could compromise. All of our commissioners give you a sense of listening and the atmosphere is a one
of citizens are welcome. This is something that has been lacking for a long time. I may not agree withevery decision that they make; however, I respect them for being genuine and giving their meetings thathometown feeling.
Deborah Greene
Cleanup Gramman on Financial Less Page I oI'/
Cleanup Gramman on Financial Less
Sent: Monday, March t4,20LL2:49 PM
To: David Blus$ Nathan Miller; Vince Gable
Commissioners
I cleaned up my lesson, It had some grammar issues'
Deborah Greene
Commissioners
I hope to give you a crash course in reading your financial statement. What qualifies me? I worked
for feloitte & Touche in Miami, FL I worked as a tax manager. I also trained auditors. Deliotte &
Touche was one of the "big 6" accounting firms in the US."PLEASE READ THIS. I SPENT A
CONSIDERABLE AMOUNT OF MY PERSONALTIME PREPARING THIS SO THAT YOU CAN BECOME
INFORMED AND SO THAT NO ONE CAN PULL ANYTHING OVER ON YOU. THIS WILL GIVE YOU A
REAL GOOD START. WE CAN GET INTO SOME OTHER THINGS LATER. i AM WILLING TO GIVE YOU
A CLASS. JUST LET ME KNOW. YOU WILL NEED TO HAVE PAGES 21 THROUGH 25 PRiNTED OUT
FROM THE FINANCIAL STATEMENT FAR 6/30/2010. (These are the pages of the file that need to be
printed 21to 25. I AM ATTACHING IT OR YOU CAN GO TO THE COUNTY WEBSITE AND
DOWNLOAD IF YOU WOULD RATHER DO SO.
BASIC INTRODUCTIONFirst, the g16,861,411 that is shown on the County's 6/30/2010 financial statement in the
"unreserved fund balance" under the General Fund Account iS NOT LAND; IT iS MONEY' See below
2 statements from the Manager's Discussion (page 9 of 110)
THIS IS ABOUT THE COUNTY'S CAPITAL ASSETS (LAND,BUILDINGS, EQUIPMENT, ETC)
',The County's totalnef assefs increased by $40,658,090 primarily due to an increase in revenues
and expenditures less than budgeted amounts along with the transfer of the old Watauga High
School and the Mabet Elementary School from the Watauga County Board of Education."
THIS IS ABOUT THE COUNTY'S UNRESERVED FUND BALANCE UNDER THE GENERAL FUND
ACCOUNT
"The County's unreserved fund balance for the general fund was $16,861,411 at the end of the
year, representing 35.94o/o of total General Fund expenditures"
On page L4 of L10, you will find this statement:
,,CapitalAssefs. Watauga County's investment in capitalassefs for its gavernmental and business -
type activities as of Juie 30, 2010, totats $152,878,14a (net of depreciation). These assets include
buitdings, land, machinery and equipment, park facilities, and vehicles."
THE UNRESERVED FUND BALANCE IS NOT A CAPITAL ASSET; IT IS NOT LAND!
On page 14 of 110, you will find this statement:
"specificallyt unreserved fund balance can be a useful measure of a government's net resources
available for spending at the end of the fiscal year'"
Page 12 of 110
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CleanuP Gramman on Financial Less
,,Nef assefs is reported in three categories: Invested in capital assets' net of 'related
debt of
$81,536,842, nestr'iie;';;;;urrli, ;,r iliiii,-iii-una u'il"ii'i't"i iet assets of $26'eB1'354''PQtrJJvlv
t' f ''---
,,The invested in capitar assets, net.of rerated debt category is defined as the--county's investment in
county awned ,upiiu'luJJJi"iL o, a27, Aii*irgr, uuto'o.{iiziiuipment' office and other
equipment), tess r;;;;nd'J"lot rtitt'outstiniiig tnut G'iittJiito acq.uire those items' The
countyuses rhese 'lrrZi"ii ii"i,ii services to citizens; ;;;;;a;;'ttv' these assets are not
avairabre forfuture spending. Atthoug^h ine county', inr"rii'"lit"ii iti capitatassefs is repofted net
of the outstandins debt, the resourc"; ;;;;;;;ii"ipuv tnz't i"bt must be provided bv other
sources, since the capitat agset3 *rroii""-Jl"i to-'riq'iaui;;;?;: i;ait11i12,^1t rune 30' 2010', the
increase in this category of n.et asse-ts-is-iui to current viir additions to capitarassers being more
than offset by current year depreciatio;; ;;;";t;; and new long-term debt issuances'
Another category of netassefs is restricted net assets. This represents resources that are subiect to
external restrictions'o' no* they may be used'
The finat category of netassefs is unrestricted netassefs. ;fhis batance may be used to meet the
government', ongiii''g-iiiiutiont to citizens and creditors"'
THE 'NRESER'ED
FUND BALAN.E IS IN THE 926,9g1,354 FIGURE (The unrestricted net assets')
LET THE LESSON NOW BEGIN:
LESSON 1: The county prepares 2 financiar statements: Government-wide and Fund Financial'
LESSON 2: The Fund Financial sta_tement is broken 9g*n into 3 statements, by major type of
Funds (you can find;he'i;io*ing i"f";;;;;; on pus" zz-is of 110 if vou want to read it for
;;;;ii ait"itrv rrom the statement) :
Governmentat: General, Capital Reserve' WHS' Other
EnterPrise: Solid Waste
Fiduciary (held for benefit of parties.outside of government): Social :"1j::' Fund, Vehicle.Tax
Town Fund (tax coir"cieo by county d;;;;;;ni); pensiJniiurrnund; :-air commissary Fund; Fines
and Forfeitures Fund (fines coLected tTr-ai;;; ,"q;ireo to"so io iluta of Education); Motor Vehicle
Tax Fund (to be paid io state rr"uru*i'n"giri"t of oeed's rund (to be paid to state Treasurer';'
LESSON 3: We are going to focus on the Fund Financial statement oegqu:q it provides the greatest
detail and more ,p"L-#iiiriv we -will
roiui on tne G'p'ern#ffiGd *li:l]: comprised of the
following (see page-ii oi iro if you ;;;ii"i"uO it Olt"cttv rtom the statement):
"The County reports the following maior governmental funds:
GeneralFund_ThisistheCounty,s'primary?p":1!i|gfund,Itaccountsforatlfinancialresourcesof the senerat s"r;;;;;;i iiiipi tnlse iedriied to oe ici'unted for in another fund'
capitar Reserve Fund - This is a.speciar revenue fund, It accounts for the county's reserves set
iiia, fo, future capitatasset additions'
WataugaHighschoolCapitalPrglectFund-rhfil^lcapitatproj??t.fy|d'Itaccountsfortheconstruction ortni'iew nign schoor.,ilt.,. roan proceeor *J* pr"..-d into this fund and then of
course money nuiio L.'tiunrr"rr"o rr"* tn. cenerar Fund when construction went over'
other. Substance Abuse Tax; Emergency Telephone !911); Fire District.;,occupancy Tax; Capital
projects; .DBG s;ilil situ'HouriXs=;':bffi"'il;;li.iiil illur.l upp"t watausa River Project
t++^.. t/^qil lr/'rsov.ors/owa/tempexport(D,watgov'org/?ae=Item&t=IPM'Note&id=RgAA" ' 312412011
Page3 ot'lCleanup Gramman on Financial Less
LESSON 4: Go to the statement. It starts on page 21 of 110. You need to actually have this
printed out so you.un ioilo* along with the lesson. You will note that the funds are divided into
columns. Lets take a look at the GENERAL FUND (1st column)
The first thing I want you to note is that there are NO CAPITAL ASSETS' THESE ARE THE
UNRESTRICTED ASSETS THAT ARE NOTED ON THE GOVERNMENT-WIDE FINANCIAL' THIS IS
MONEY (NOT LAND, BUILDINGS, ETC.)
There are 2 parts to every financial statement: A Balance sheet (assets, liabilities and fund
balances in this case -money available for spending - remember this is the Fund Balance sheet and
does not include .upitui iirets as would be found on the Government - wide Balance sheet') and a
Revenue, expenditure and Change in Fund Balance Sheet (this represents money coming in
and money going out - the cash flow and has nothing to do with capital assets increases of
decreases - money onlY - no land).
you have AssETs (again read carefully - this is moneY and not land - see for yourself)
cash and cash Equivalents - cash on hand and maybe a money market earning interest YOU
HAVE $21,343,983 as of 6/30/2010.
Taxes Receivable - money that is due on taxes for the year.
Due from other Governments - money from state, Federal and possibly some small amount from
Towns.
Due from other Funds - money due to be transferred out of Capital Reserve, WHS, or Other
Accounts Receivable - money due from other income resources other than taxes'
other Assets - money invested in shott-term investments
Totat Assets - Total of the above. YOU HAVE A TOTAL OF MONEY RESOURCES AS OF 6/30/2010
OF: $24,889,538 IN THE GENERAL OPERATING FUND!
Now lets go to the Liabilities, what you owe as of 6/30/2010: You HAVE A TOTAL OF MONEY DUE
TO BE PAID FOR BILLS YOU OWE AS OF 6/3A/2010 OF $1,830,546.
At this time lets subtract the liabilities from the assets: We get $23,058,989'
Now that brings us to the Fund Balances - Please note that the total Fund Balances equal the net
assets above of $23,058,989 - the spendable money remaining as of 6/30P010' Now how is it
broken down? It is broken down into RESERVED and UNRESERVED. The RESERVED is spoken for
and you can't use it. The UNRESERVED is money that you can apply toward the next year's
budget. The local jou"rnr"nt commission recommends that you maintain B% of your prior year
general operating f"und expenditures to meet cash flow demands (ie. all of you tax money will not
come in at the beginning of your tax year and the same is for other revenue resources). Then you
are encouraged to noto -more
for "unforeseen needs" and/or "unforeseen opportunites" in upcoming
years. Generally ronly is budgeted from this fund for the next year and unfortunately, it is tapped
into during a year through budget amendments. I say unfortunately because there are items that
the county is aware or i"nat the'v don't budget for and that is frustrating - like projected overruns on
construction of tne high school br furniturJfor ttre new high school. And, then there are those
unforeseen opportuniites such as the Rocky Knob Bike Park, etc. It has been used for many years
now to spend on tneie;oppottrnities" to our detriment' And, even worse, it has been used as a
bargaining tool for or leveraging debt approval'
h*ps://mail.watgov.org/owa/tempe xpott@,watgov.otgl?ae:Item&t:IPM'Note&id:RgAA" ' 3l24l20ll
Cleanup Gramman on Financial Less
So lets get to it.
you have the RESERVED fund balance first and it shows how that money is reserved. This is the
reserved portion of the money available less liabilities that is reserved. it amounts to $6,2O0,578'
I get this by adding up the items under that heading (reserved for State stature - an amount the
State requires that you hold in reserve; Encumberances; Register of Deeds; 911; Post-retirement
benefits; No Till Drill).
Then you have the UNRESERVED fund balance. YOU HAVE $16'861'411. NOT LAND; IT IS
MONEYI This is the pot of gold which some say doesn't exist!
IAT THIS POINT I WANT TO DRAW YOUR ATTENTION TO THE NEXT COLUMN OVER' THE CAPITAL
RESERVE FUND. PLEASE NOTE THAT IT HAS $3,660,782 in the UNRESERVED FUND BALANCE' I
HAVE A QUESTION INTO MARGARET ABOUT THIS BECAUSE THIS iS THE FIRST YEAR THAT AN
UNRESERVED FUND BALANCE HAS APPEARED ON A COUNTY FINANCIAL STATEMENT UNDER
cAPITAL RESERVE FUND. LooKING AT THE BUDGET AND ACTUAL YEAR-TO-DATE; THE MONEY HAS
NOT YET BE APPROPRIATED. LOOKS LIKE MORE MONEY iS AVAILABLE!)
Now, lets proceed to the REVENUE, EXPENDITURE AND CHANGES IN FUND BALANCE (It
starts on page 22 of L1O.) It is broken down by the funds in the columns just like the BALANCE
SHEET - General Fund, Capital Reserve Fund, wSH, other and Total. This is activity that took place
with money during the period 7/t/2009 through 6/30/2010'
Again lets look at the first column which represents the General Fund. (This may be familiar to you
because it looks like your budget does. And, note, your budget doesn't have any land assets in it')
Start with your REVENUES, you had $45,100,992' Then your EXPENDITURES, you had
g45,gg5,073. you will note that the expenditures are subtracted from the revenues to give you
your "*i"rs
or (deficiency) in assets. This shows a deficiency for 6/3A12010 of $794,081 at this
point. Where.dbes the deiiciency come from, it comes from the FUND BALANCES. ITHIS MAY
HAVE BEEN BUDGETED OR MAY HAVE BEEN A BUDGET AMENDMENT; WE WILL ADDRESS THAT
I-ATER WHEN WE EXAMINE THE BUDGET VS ACTUAL REPORT] HOWCVET, YOU fiTSt hAVC tO 9O tO thE
next section before we start dipping into fund balances'
The next section is the oTHER FINANCING SOURCES - transfer from other funds, transfer to
other funds, loan proceeds, future project funding appropriations (this seems to not be used)'
Money is transferred in and out of iuno oatanceslt budget time (recorded as 7/I/2009 by journal
entries) and during tn" V"ur through budget amendments by journal entries. if you want to follow
that mize, then you wilf need to ask for the budget amendments for that year.
These transfers give us g380,4gg in additional income. so now, the deficiency that comes from the
FUND BALANSE is $+rg,beg . tt is calted CHANGE rN FUND BALANCE (It is a negative so we are
subtracting from our beginning fund balance. If it had been a positive, we would be adding it to our
beginning fund batance.) please note that this is the UNRESERVED AND RESERVED CoMBINED' It is
no[ brot<en down on this sheet like it was on the balance sheet.
Page4oI /
@
D
$23,O58,989, This ties into the same figure on the BALANCE SHEET'
TAKE A BREAK
LESSON 5: Go back and look at the other funds. You might be interested in the WHS fund. This is
the new high schooi .apitar projects fund. This balance is carried forward to the next year. At this
https:/imail.watgov.org/owa/tempexport@,watgov.org/?ae:ltem&t:IPM.Note&id:RgAA.. , 3l24l2Al1
Cleanup Gramman on Financial Less Page 5 ot 7
6Apoint there was g5,045,505 transferred from other funds into the WHS Fund. It probably came \-/from the ,,Unreserved General Fund Balance". I would have to examine the budget amendm.ents;
however, I am sure that is correct. But, how did the "Unreserved General Fund Balance" only drop
by g413,583? The General Fund budgeted expenses were cut during the budget year; not at the
beginning of the year (ie padded). The Finance Director claimed to me that the County was frugal
in spending.
LESSON 6: Now lets go to the BUDGET versus ACTUAL REPORT. Again, this is broken down by
funds. we will focus on the General Fund. It starts on page 24 of IL}' (By the way, you can get
one of these for the current year that you are in. I got one. It will give you the information year to
date. Mine was as of 3/B/20IL. I am working on aialyzing that foryou'. However, I saw a need to
get you up to speed on'the basics first. The Copy I got actually showed the amendments which was
Ieally informative; the financial report copy does not show the amendments')
The first column is oRIGINAL BUDGET. This represents the original approved budget tor 7/Ll2O09
to 6/30/201Q.
The next column is FINAL BUDGET. This represents the imended budget as of 6FA/2010' This is
the original budget after all budget amendments - transfers from other budgets, dipping into fund
balances, etc. I have attended 6nough meetings to know that a lot of that goes on' Too muchl
The next column is the AcTuAL which represents the actual revenues and actual expenditures.
The next column is the VARTANCE which represents the positive and negative between what was
budgeted and what actually occurred.
LOOK At thc FINAL COLUMN AND THE ACTUAL AND ANALYZETHE VARIANCE'
First thc REVENUES:The property tax coilection was actually up $768,861 from what was budgeted' The sales tax was
actually down 9386,048 from what wai budgeted. The overalt revenues were up $277,168from what was budgeted.
Now thc EXPENDITURES:The general operation expenditures were 93,Loz,g7g less than what was budgeted. Public safety's
expenditures were $zrs,bss less than what'was budgeted. Economic and Physical expenditures
were $138,281 less than were budgeted. Human services expenses were $353,230 less than
budgeted. Education expenses were $965,909 less than what was budgeted' The Debt service
principal payments w"r" rigtrt on budget. That is good. The Debt service interest payments were
gt,L3T less than ouigeieO] (As you fno*, tne $25 million installment agreement principal was not
budgeted because it riur not due'in this budget year or the next for that matter. so only the
interest was budgeted on that agreement.) fhe totat expenditures were $4,813,363 less than
budgeted.
Now, ask yourself this question? How is it that you have budgeted for what you think You ne.9!.for
the upcoming year uno't1uu" this much left over? The answer is simple, the expense for the wHS
was more than whai was budgeted and what was borrowed. So, either the County knew this was
going to happen and padded the budget for expected construction over runs in the General Fund
Budget or they found a way to cut expenses during the year to make up for the problem' Either
way, it shows that the fat was there. Remember back on the REVENUE, EXPENDITURE AND
6HANGE IN FUND eALANcr sHEET, there is a transfer into the wHS Fund. It came from the
General Fund.
This brings you to the REVENUES OVER (UNDER) EX.PENDITURES: $5,090'531Don't let the tifle confuse you. This meani ttrat after all was said and done, the General Fund has
more revenue and less expenditures to the tune of $5,090,531'
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Cleanup Gramman on Financial LessPage b ot I
And, is that same figure, the adjustm-ent to the Fund Balance? We only adjusted Fund Balance
down 9413,583 from the beginning of ilieV"ai. -Sg,^y"
know then that the entire $5'090'531
doesn,t come from the Fund Balance. only, $413,583 came from the Fund Balance'
Now rets go back and anaryze this orHER FTNANCTNG souRcES. what are those transfers back
and forth. The g4,025,171 was originaily-uudgeted to be transferred from the Generar Fund to the
Capital Reserve frnJ. nnO, that is J.truf fV wnlt toof place. You can see that by examining the
Budget Vs Actuar for the capitar Reserve Fund which starts on page 25. (Unfortunately, you don't
have any descriptions because of the way the report was reproduced on line and in print form'
Maybe the Finance Director could print yo,, on" in.landscape' The rest of us have to cut and
paste.) Again, it wouta take looking at ine journal entries to follow these transfers in detail' The
Eq-,oi6,it was obvious because it matched dollar for dollar.
Looking at the same statements for the CASH RESERVE FUND, see page 25 of L10' The Cash
Reserve Fund had a fund barance or$z-,Gs,803 as ot7/L./2oog, tt traol transfer in of $4,025,L7L
from the General n""o l*l r.now this because it meets $1 of $1 with the budgeted amount to be
transferredfromtheGeneral Fund. Ithasatransferoutoi $),5g0,+Al' Withoutseeingthe journal
entries (or budget u-t*Orn"nts) it is fraiJ to say where it went' However, there was a transfer
from otherfunds into the wHS fund orEio+s,sbs ana there was a transfer of 96,117,019 from
other funds to the Generar Fund, so, plrt of it might.have went to the General Fund and then was
transferred out to the capital Reserve Fund. aottom line. The capital Reserve Fund began with
$7,165,803 and ended up with $S,gOO,iAi. And it is listed as all 'iUnreserved Fund Balance"
according to Page 21 of 110.
The Fund Financiat statement section does not include a Budget vs Actual for the wHs
Fund. However, the Fund is in third.olu*n of the Fund Financial siatement' see pages 21 and
22.
Lesson 7: What happens to these Fund Balances? we have already talked about the GENERAL
FUND RESERVED AND 'NRESER'ED
FUND BALAN.ES. The reserved is restricted in use' The
unreserved is not restricted in us. The unreserved barance needs to have at least 80/o of the prior
year budgeteO expenies to meet cash flow demands according to LGC's recommendation' You can
appropriate some of it toward the next y"ut;t budget' And, ai we have seen some of it will end up
being appropriated through budget amendments during the year for what we have been told are
,,unforeseen opportunitieJ". It ii time to use some of this money for what it was intended
"unforeseen needs",
This comes from page 9 (manager's comments): "The county's unres,erv,e^d fund balance for the
general fund was iiL,Sl'l,qll-at the end of the year, representing 35'94o/o of total General Fund
expenditures"
I provided you with a link to a memorandum from the Local Government commission dated
4l3o/20rc (state agency that watchoogr vorr financial statement and approves your debt)' I am
attaching it. Theiiiisiussion on the Un-reierved Fund Balance begins on page 5:
uEach year the staff of the Local Government commission analyzes the financial statements of cities
and counties to determine the amount of fund balance availabie for appropriation in the General
Fund, and the amiint of fund balanci available for appropriation as a percentage of prior year
expenditures. These numbers are sigiiiicant because the'property tax is.v maior source of revenue
in the General ruia, ine-iaiority oV property tax reve.nues are received in the latter
months of the calendar year. Therefol",ii"i" should be reserves on hand in the form of fund
balance avaitabte for appropriation at June 30th to prevent the unit from experiencing cash flow
difficurties during the first two quarteiiir tn,- next fiscar year. The minimum revel of fund balance
available for appropriation that shouli be on hand to ena'ble the unit to meet current obligations and
to prevent tne uniirrii experiencing iasn ftow difficulties is Bo/o of the prior year's expenditures'
https://mail.watgov.org/owa/tempexport(Ewat gov.otgl?ae:Item&t:IPM'Note&id:RgAA" ' 312412011
Cleanup Gramman on Financial Less
In addition to the Bo/o needed to prevent cash flow difficulties, units also maintain fund balance
avairabte for appropriation in the Generar Fund in case unforeseen needs or opportun.itiel slotlld
arise. Fund batance available for appropriation at June 30th is a saurce that may be budgeted in the
fottowing year to adiress these siiuations. There is not an established minimum amount that should
be in reserve for tnisi-jurposes. The officiats of the individual units should make that
determination. The amount of fund balance avaitable for appropriation maintained by a particular
unit would be influenced by such factors as tlte size of the' unii, economic conditions within the unit'
future capitat outtai iiiii, stability of revenue sources and susceptibility of the unit to natural
disasters."
There was also a chart of counties and their populations, expenditurgt-9ld^l'nd balances' The
average for a gounty with our population and expenditures was $t0,526,289' This was for
6/30/2001 So as of OtiOtZOdg,'*" had gt7 ,467 ,724 in the GENERAL FUND UNRESERVED FUND
BALANCE and gZ,165,ie3'in the CAPITAL'RESERVE UNRESERVED FUND BALANCE' As of
6/30/2OLO,wehad$16,S6I,4IintheGENERALFUNDUNRESERVEDFUNDBALANCEand|i,o'AOJeZ in the CAPIiAL RESERVE UNRESERVED FUND BALANCE'
,,Governmentat Funds - The focus of watauga county's governmentat funds is to provide
information on near-term inflows,outflows, and balances of usable resources. Such information is useful in assessing the County's
fi na n ci n g req u i rem ents.specifically, unreserved fund batance can be a useful measure of a government's net resources
available for sPending at theend of the fiscal year, The general fund is the chief operating fund of tl9
-cgyntv' At the end 9f-the
current fiscar year,-rnr"r"ir"d fund barance of the General-Fund was 9i6,8G1,411 while total fund
balance decreased to g23,0s8,989. As u irurrr" of the general fund's liquidity, it may be useful to
compare both unres"irud fund balance and totat fund balance to total fund expenditures'
rJnreserved fund balance represents si,gq percent of total General Fund expenditures, while total
fund batance represents 47.16 percent of that same amount,AtJune 30, 2070, the governmental
funds of Watauga County reported a coibined fund balance of $34,078,425, a 34'45 percent
decrease over rast year. The primary reason for this decrease is the continued construction of the
new high school"'
CLOSING COMMENT
so, if we are now done with the high school construction, we should be able to appropriate some of
this fund balance to the EMERGENCY DEBT that was created because the old high school wasn't sold
when projected. And, the opportunity to sell it before was prefaced on n,ot wanting to pay a lease
(which didn,t make sense since the interest payments we have paid on that g25 miilion was a wash
to the lease; but, not now because we didn't sell it, we are still paying the interest and now the
principle payments ai" Oue.l Did we have 3 bids or were they irumpeO up? You have the appraisal
for $14 million, You know what the property is really *qrh. 'so,
you should auction it off' If you
have someone interested in buying it ana ritnev are reaty interested, th.ey will bid on it at the
auction. That will solve a lot of your problems or are you guys going to be s.peculators like the last
board? Or, is tn" .f'ri"i+eculator stiil running the show show? Just who is handling the
n"goiiatio'is on the ptop"tty7 If isn't one of you, then I don't buy into it'
Deborah Greene
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@
https:/imail.watgov.org/owa/tempe xport@,watgov.orgl?ae:ltem&t:lPM'Note&id=RgAA" ' 312412011
Voters Have Turned the Spigot Off
Voters Have Turned the Spigot Off
Sent: Monday, March t4,20LL7:02PMTo! David Blust; Nathan Miller; Vince Gable
By Gary D. RobertsonAssociated Press
Related Links
. Ar!! q lei Ro u n d Up_qf ele c!i_o_l _qpy_eta ge_ ( N ov. 3, 2 0 1 0 )r Article: Guilford voters reject sales tax increase again (Nov. 2, 2010)
RALEIGH (AP) - North Carolina voters have turned off the spigot for new local sales taxes.
Continue ReadingAdvertisement I Advertise with U-s
Referenda to increase the sales tax by a quarter-penny were defeated in all 14 counties where thequestion was on the ballot Tuesday, according to complete, unofficial election results. The sweepended a run of sales tax approvals over the past year, when voters in nine of 11 counties agreed toraise the tax rate most consumers pay at retail stores to B percent.
The "no" vote Tuesday reached more than 70 percent in seven of the counties. In CherokeeCounty, 83 percent voted no. The narrowest margins were in Guilford and Orange counties, wherethe opposition won 51 percent of the vote.
The defeats came on a night when Republicans swept into power at the legislature. The GOP
benefited from tea party voters who have opposed higher taxes and supported less government'
"It's obvious that voters don't believe government should be rewarded with more money," said
Dallas Woodhouse, director of the state chapter of the conservative-leaning Americans forProsperity, which had been working to galvanize tea party supporters over the past year.
The General Assembly gave counties the authority in 2007 to hike the taxes on sales or land
transactions as a way for commissioners to raise revenue without raising property taxes.Commissioners must first hold a referendum - and win voter approval - before the higher taxescan occur.
In Person County, where 79 percent opposed the sales tax referendum, commission ChairmanJohnny Lunsford speculated that voters there and elsewhere didn't understand clearly the reasonsbehind an additional quarter-penny tax. Commission members said the extra revenues - about
$675,000 annually - would have gone to build and operate a new county recreation and seniorcenter. A similar referendum failed in Person in 2008'
"When you say tax, the red flag goes up and they don't just want any more taxation," saidLunsford, who was defeated Tuesday after 16 years on the commission. If citizens want improvedservices, he added, "tax money will have to come from someplace. We're going to have get it fromthe property taxes or we are going to have to get it from sales taxes."
Commissioners in at least three counties - Guilford, Harnett and Columbus - have placed thesales tax question on the ballot three times since 2007.
Page I or /.
https://mail.watgov.org/owa/tempexport(d,watgov.orgl?ae:Item&t:IPM.Note&id:RgAA.. . 312412011
woodhouse said Americans for prosperity would ask the GoP-led General Assembly to either repeal
the 2007 county taxing authority o, r"quir" changes to how the questions are presented to voters'
The referenda should be held during general eleclions, when the most people will likely vote, and
require a waiting period in counties-where the tax increase is defeated before the question can be
offered again - perhaps five years, Woodhouse said'
Voters Have Turned the SPigot Off Page /. ot z
proponents attributed the run of sales tax approvals over the past year to voters unwilling to see
local services cut further after two recession-blighted budget years'
Sales tax referenda were also defeated Tuesday inClay, Montgomery and Yadkin counties, according
The quarter-cent referenda has been approved in 17 counties but defeated on riearly 60 other
o..u.ionr, according to data from the North Carolina Association of County Commissioners'
Alamance, Alleghany, Bladen, Caswell, Chowan,
to election officials'
https://mail.watgov.org/owa/tempexport@,walgov.otgl?ae:Item&t:IPM.Note&id:RgAA" ' 3l24l20|I
Tuesday, March 15, 2011 B:08 AM
Nathan
I am receiving information that makes me think that people are assuming that they will
be able to asli questions : rTloF€ like the press conference.
And, I have heard that Deal is for the sates tax if it is for education' And, it is said that
reducing the debt as you guys are promising will reduce burden to reduce education
budget. so, now people a-re'thinking that you guys are disguising a sales tax for
education behind the guise of debt reduction'
That brings me to the reason for the public hearing:'Is it going to be about the
education budget or the resolution for hold a sales tax referendum to reduce debt?
In the past, commissioners held separate public hearings during the budget process for
the different departments and services. Are you going to allow this public hearing to
become a hearing about the education budget or are you going to adhere to the
subject?
Deborah Greene
Deborah Greene
Public Hearing Procedure
Nathan MillerSent ltems
To:-
Deborah
I have heard that the schools are coming out in force as well. It is my plan to limit
the discussion as much as possible to the pros and cons of the tax itself. Of course
since we mentioned that the purpose is the reduction of debt I believe thatdiscussion will be in order, I'm going to attempt to keep everyone on subject.
Nathan
Miller & Johnson, PLLC
P.O. Box 49766 West King StreetBoone, NC 28607
Actions
Tuesday, March 15, 2011 B:23 AM
THE TRAP WAS SPRIING AND WE ARE iN IT! Page 1 of2
THE TRAP WAS SPRUNG AND WE ARE IN IT!
Sent: Tuesday, March 15,2011 10:59 PM
To: David BlusU Nathan Miller; Vince Gable;
--Dear All,I attended the County Commission hearing on the proposed tax referendum this aftemoon, and it was a
sad affair!
The large room was full, and the speakers were many. The audience and the speakers were primarilyfrom thi Watauga schools establishment--teachers, assistants, vice principals, principals, counselors, etc'
There were a few conservative souls there, but not many. Conservative speakers were fewer still, maybe
three or four. Liberal speakers were legion.
The commissioners were all present--Democrats and Republicans.
It soon became clear that the subject was NOT a tax increase to pay off the the County debt; rather, it was
about a tax for the teachers. At first it was all very confusing. I could not understand how a proposed tax
to pay off the debt became a tax for the teaching establishment'
Not one of the commissioners--not even the Republican Commissioners--brought the discussion back in
focus ITHIS IS A TAX TO PAY OFF THE DEBT]. The liberal teachers had field day withlittle opposition from the audience lDeborah Greene and Gail Bedell were the lone exceptions to speak]
When I got home I started to think how we got ourselves in such a pickle.
I want this to be a short email, so let me tell you how I think we got in such a mess in bullet form:
--Primary responsibility lies with the Republican majority on the County Board--Miller, Blust and Gable;
it was they who chose to fight over again a fight that we had already fought and won. Deborah Greene
made clear in her presentation that a iax is noi needed since we have idle properties worth at least $14
million that should be sold, and we also have avery large bank account amounting to some $20 million.
--Most likely it was the Democratic minority that led the Republicans into the trap-not willing to accept
the verdict of the good people of Watauga as expressed in the original referendum of last August'
--But is it really atrap? You be the judge. I invite you to read a letter to the editor in the Watauga
Democrat [\3-Marci 201U written by Pam Williamson who is one of the two or three bigwigs in the
Democratic Party. I will provide you with some relevant excerpts from Williamson's letter:
https://mail.watgov.orglowa/tempexport(Ewatgov.orgl?ae=Item&t:IPM.Note&id:RgAA.. . 312412011
THE TRAP WAS SPRTING AND WE ARE IN IT!
,,Did the Republican Commissioners lcnow when they ranfor offit" that there would be a need to increase
the sales tax, and simply tett us otherwise to get eleited, or dti the Republicanl simply have no idea what
they were tailktng aboui......We Democrats foind a way to balance the budget for the last three years
wiihout doing simething like this." Now i ask you why did we need a referendum to increase taxes to
pay off the dibt when aicording to the Top Democrat there is no debt? So, the political campaign was
declared startedon 13 March U/eam Williamson, in a heartbeat. [You have to admire a real political pro
even if she is the Devil incarnate!1 The Democrats who incurred the debt are now saying thatJhere-was
no debt on their watch even as they prevail on the Republican Commissioners to sponsor a referendum on
a tax increase. So much for the rpirit of .ooperation. Are you ladies and gentlemen beginning to smell a
rat AND A NIGHTMARE?
--Now, what about all these teachers who swamped what little Republican/Conservative presence_there
was at tonight's meeting? How did they happerto be there, and why were they all upset? Why should
teachers bJso riled up 6y a tax referendum tirat is meant to pay off the debt? After all, no one has made a
connection between the ieferendum and teachers. Hold on a minute...someone did make a connection;
something in the back of my mind told me that I had heard/read a connection being made between the tax
referendum and teachers before. Therefore, I went back to my back issues of the Watauga Democrat, and
lo and behold there it was, an article from our very own Media Committe in the 13 March issue. Here is
a quote: "Thefiscal realities are numbing, The Schoot noql4 informed the Com-missioners that if Gov'
pirdue,s cosi shifting budget passes, Witauga County will be obligated to fund certain line items which
in the past were paiifo, iy ti" State. Suchbudget manipulation by the Governor could result in the loss
of 70 ieachers,positibrr,', Now, I do not know who really penned this article, but it does carry the name
of the Media Committee of the Republican Parfy.
--What has happened here is that the Republican Commissioners made the first blunder, and the Media
Committee aggavatedthe blunder *any-fotd. As the saying goes: "With friends like these who needs
enemies"!
--Ladies and Gentlemen, welcome to your nightmare! I will prognosticate that the referendum will be
held, and it will pass this time. It will pass because Republicans /Conservatives will be split between
those who have become apathetic--theie are only so many times that you can fight the same fight;--those
who favor the tax--after ail if our own Republican Commissioners favor it, it can't be bad some
Republicans will say; and those who will vote against it, as Republicals should. The Democrats,
however, you can bli will vote for the tax increJse overwhelmingly! Republicans will bear the brunt of it
because ihey will have done the Democrats' dirty work. Come this fall we will again lose the Boone
Town Council. Come 2012, we will lose the County Board!
--WE HAVE MET THE ENEMY, AND IT IS US
--Over and out from a former member of the Republican Parfy'
Nate Di Cola
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e9
https://mail.watgov.org/owa/tempe xport(d,watgov.orgl?ae:ltem&t:lPM.Note&id:RgAA.. . 312412011
THE TRAP WAS SPRI.ING AND WE ARE IN IT!
THE TRAP WAS SPRUNG AND WE ARE IN IT!
Page I of I
ffi Actions
Tuesday, March 15, 2011 11:33 PM
To: David Blust;
Ladies and Gentlemen,THIS JUST IN:Our very dearest Commissioners did see the tight and the truth without my assistance. They
took a vote to rescind the idea of a tax referendum. ..."YE SHALL SEEK THE TRUTH,AND THE TRUTH SHALL SET YOU FREE''! A
We are proud of you.
I know that my long email was a waste of time, but not entirely. You would do me a greal
favor by reading it. Maybe additional bells will ring in your ears that might assist you infuture battles that are sure to come.
This will be a very bad night for Pam Williamson!
a just reinstituted member of the Republican Party,From
l0nre
Nathan Miller; Vince Gable;;F-r
https://mail.watgov.org lowa/tempexport@,watgov.orgl?ae:ltem&a:Preview&t:lPM.Conv... 312412011
Victory--snatched from the jaws....
Victory--snatched from the jaws....gail bedell ffilSent: Wednesday, March 16, 2011 2:22 AM
To: David Blust; Nathan Miller; Vince GableCc:
Hey guys--You're the warriors!! David isn't the only one who slew a giant! (same God though!)
Wow was I surprised when I woke up at2 a.m. trying to compose a letter to the editor and read e-mails
explaining the boomerang that went on after we all left the courtroom.
If you really want to enjoy the victory, go to http://blog.wataugawatch.netland read about it in the
words of the conspirators.
Thanks for battling for all of us!
Gail
Page t or t
https://mail.watgov.org lowa/tempexport(D,watgov.orgl?ae:Item&t:IPM.Note&id:RgAA.. . 312412011
Thank you! !
Thank you!!
Page I ot I
SandaCooperffiSent: Wednesday, March 16,2011 9:24 AM
To: David Blust; Nathan Miller; Vince Gable
Cc:
Good for you all! When we left the courthouse, we said theam thrilled that you held a line and wouldn't be bullied andwhich seems to be in short suPPlY,
Thank you!l
Sanda
hearing might backfire. No sooner said than done. I
railroaded. lnis is the kind of leadership we need and
https://mail.watgov.org [email protected]?ae=Item&t=IPM.Note&id:RgAA.. . 312512011
County Commissioner Letter
County Commissioner LetterffiSenh Friday, March 18, 2011 7:35 AM
To: ffi;VinceGableCc:
Vince:twilt be out of pockef todoy ond will not be home untilearly tonight.tf the Medio Teom rs finished ond sends fhe resu/fs to you today, ond you are hoppywith it, go oheod ond introduce yoursetf to fhese emoiloddress (below) ond ottochthe Word document. Let them know the importonce of explaining your position os thotof the three conservo tive commissioners, ond osk thot fhey pvblish your letter af fheir
eor/iesf convenience. Send individuotty to eoch of them, except for the two to the Wot.
Democrof newspopen send to both Tom Mayer ond Sondro Shook ond osk to bepublished on the "Opin'ton" poge or front page. a
Iwovld colleoch ond tet them know you senf them the document to be pub/ished.
of f i ce @ bl ow i n g ro c ke t. c o mo n no @high co u ntry press. comt emn s ye L @ wg t q ygiq demgerc t . c o- msh o_o_k @ w o f -q a g o d e m Q g r o I,c o mfrank@
lf needed, I con be reoched on my cetlulor phone f. lf not, iust leove amessoge ond when lturn it on, I'llreturn the call.
Ihonks for ollof your good work.
Don Bo/ster
Page 1 ot'l
https://mail.watgov.org/owa/tempexport(@watgov.orgl?ae:Item&t=IPM.Note&id:RgAA.' . 3l25DAll
Letter From Watauga County Commissioner Vince Gable
Letter From Watauga County Commissioner Vince GablemSent: Sunday, March 20,2011 7:38 PM
Tor [email protected]; [email protected]; [email protected]; Vince Gable March 2011.d0c (25 KB)
Tom ond Sondro:
Page I ol I
Attoched is o /etter fo be published in your eor/iest issue of the Wotougo Democratnewspoper outhored by Wotaugo Country Commrssioner Vince Goble.
Mr. Goble would osk fhof you publish fhr's in your newspop er to explain the issuesurrounding the controversy of fhe recenf county so/es tox referendum proposo/. Ihisreflecfs the thoughf presented by the three new commissioners
Thonkyou,
Donold Bo/sterMedia Committee Chairmon, Watougo County GOP
https://mail.watgov.orglowa/tempexport@,watgov.org/?ae:ltem&t:IPM.Note&id=RgAA.. . 3l25l20Il
Letter from Watauga County Commissioner Vince Gable
Letter from Watauga County Commissioner Vince GableffiSent: Sunday, March 20, 20tL7:43 PM
To: [email protected]: Vince GableAttachments: Vince Gable March 2011.doc (25 KB)
Page I ot I
Ken ond Anno:
Attoched is o leffer fo be pub/ished in your eor/iest rssue of the High Countrypress newspop er outhored by Watougo Country Commissioner Vince Goble.
Mr. Goble would osk thof you publish fhis in your newspop er to exploin the issue
surrounding the controversy of fhe recen t counfy so/es fox ref erendum proposo/. Ihis
reflecfs the thoughfs presenfed by the fhree new commissioners.
Thonkyou,
Donold Bo/sferMedia Committee Chairmon, Wataugo County GOP
https://mail.watgov.org lowa/tempexport(Ewat gov.orgl?ae:Item&t:lPM.Note&id:RgAA'. . 312512011
Letter from Watauga County Commissioner Vince Gable
Lefter from Watauga County Commissioner Vince Gableffi
Sunday, March 20, 20tl 7:46 PM
fra [email protected] Gable
Page 1 of1
Sent:To:Cc:Attachments: Vince Gable March 2011'doc (25 KB)
Fronk:
Attoched is o /effer to be pub/ished in your eor/iest issue of the MountoinIimes newspop er outhored bV Wotaugo Country Commr'ssioner Vince Goble.
Mr. Goble would osk fhof you publish fhis in your newspoper to exp/oin fhe issue
surrounding the controversy of fhe recent counfy so/es tax referendum proposol. Ihis
reflecfs the thoughts presented by the three new commissioners.
Thonkyou,
Donold Bo/sferMedio Committee Chairmon, Watauga County GOP
https://mail.watgov.org/owa/tempexport(d,watgov.orgl?ae:Item&t:IPM.Note&id:RgAA.. . 3l25l20ll
Letter from Watauga County Commissioner Vince Gable
Letter from Watauga County Commissioner Vince Gable
-
Sunday, March 20, 20tL7:49 PM
offi ce@blowing rocket.comVince Gable
Attachmentsr Vince Gable March 2011.doc (25 KB)
Deor Sir or Madom:
Attoched is o /efter to be published in your eor/iesf issue of the BlowingRocket newspop er outhored by Wotougo Country Commissioner Vince Gob/e.
Mr. Gable would osk thof you publish fhis in your newspop er to exploin the issue
surrounding the controversy of the recent county soles foxreferendum proposo/. Ihis
reflecfs the thoughfs presented by the three new commissioners.
Thankyou,
Donold BolsferMedio Committee Choirmon, Wotouga County GOP
Page I ot I
Sent:To:Cc:
https://mail.watgov.org lowa/tempexport@,watgov.org/?ae=Item&t:IPM.Note&id:RgAA.. . 312512011
March 20,2077
The question of a tax increase dominated my campaign for County Commissioner. My steadfast answer
was, I will not vote for any tax increase unless as a last resort. I also stated any such increase would go to
reducing our debt and should expire in 3 years or less. l'm still committed to this principle.
At the County Commissioner's Pre-Budget Retreat on February 25 - 26, we heard from many county
agencies, which were all requesting funding. The most significant funding request came from the
Watauga County School Board for a $t million increase above their current budget. All the agencies,
including education, presented compelling arguments.
During this same time, Governor Perdue published her proposed budget for the state' lt contained
provisions for numerous unfunded mandates to the counties. The state has historically provided funding
for teacher's worker's compensation insurance, school bus ptfl'chases, road maintenance, and many
other programs. The Governor's proposed budget would shift these burdens to the counties. Such
action would devastate Watauga County's ability to maintain basic services. Because the state budget
will not be signed until July, the county had very little time to prepare a prudent budgetary response to
impending cost increases.
The question has been raised why money from the County's Emergency Fund has not been applied to
this year's budget in dealing with the current revenue shortfall. The state requires every county to
maintain an emergency balance of 8% of the budget, though strongly suggests counties maintain a 25% -
30% balance. Watauga County is fortunate to have a healthy Emergency Fund balance. With that said,
approximately 20% of our general budget, 5g.S million, goes to service our debt - principal and interest.
ln four years, providing no new county debt is added, this choking debt service will drop to just over 56
million per year, as some of our debt obligations will have been paid. The County's Fund Balance must
provide a safety net to cover our obligations until such debt reduction is realized. lt would be reckless
and irresponsible to raid the Emergency Fund, with complete disregard for the future, to balance this
year's budget.
With the County's staggering obligations and the Governor's cost-shifting budget in mind, we choose to
take a proactive stand. Our options were substantial cuts to the budget, a property tax increase, a sales
tax in6ease, raiding the Emergency Fund, or some combination of these. Planning for the worst, though
hoping for the best, we pursued the most fair and prudent course of action by proposing budget cuts
and exploring the sales tax option.
Time constraints caused us to act when we did. The Commission passed a resolution to consider a sales
tax referendum and held a public hearing on the issue. Our resolution stated any tax increase, if
necessary, would be used to retire the debt, and must be reviewed by the Commission in 3 years' We
are very much aware that once enacted, monies derived from a sales tax increase could be used for any
purpose the Commission deemed appropriate, To protect citizens from wayward spending, we added
specific language to the resolution, declaring revenue generated from the sales tax would be used
exclusively to reduce County debt.
Prior to the public hearing on the referendum, I spoke with state legislators who assured me counties
would not be forced to shoulder the burden of balancing the state budget -Governor Perdue's
attempted budget manipulation would not prevail, With this understanding, I entered the public
hearing convinced a tax referendum would no longer be necessary. Many of those attending the public
hearing were concerned about county funding for education. ln light of changing events in Raleigh, I feel
the Commission will be able to both balance the budget and protect education without a sales tax
increase.
My fellow conservative Commissioners and I will balance this year's budget and provide for the essential
county services. We will make necessary cuts and responsibly manage the Emergency Fund. Our duty
extends to allcitizens and county employees; to them we are solemn and firm in our commitment.
Vince Gable
Watauga County Commissioner
Re: Letter from Watauga County Commissioner Vince GableGSent: Wednesday, March 23,20tL 6:54 PM
To: VinceGable; FCc:
Vince ond Medio Team:Vince s letter wos pub/ished on the Opinion poge of today's Wotouga Democrot os dido letter to the editor on the subjecf of tox referendum from Deborah Greene. Ihesegave "good press" fo the new county commission ond some bod press for Jim Deol,lwillbe froveling out of sfofe until Soturdoy.Don
rElr
RE: Jim Deal's pals in the Republican party Page 1 of 1
RE: Jim Deal's pals in the Republican party
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Sent: Wednesday, March 23,20LL 12:19 PM
To: vince.gableffi
Mr. Gable:
you and your Boc colleagues need to refuse to be influenced by Jim Deal's pals within the Republican party lt is
apparentihat your letter vias edited by powerful Deal friends in the Republican establishment
you, Mr. Gable, Mr. Blust, and Mr. Miller need to accept the fact that there are powerful Deal fans in
tne nepuoric.n'.o*ritt"6i rno you need to tell them to butt out. other Republicans of common sense have
known this sad ract toi-velr's. ini! ir the majoi reason why so many former Republicans have changed their
registration to Unaffiliated.
yes, you can balance the budget by usilg monies from tl.e fund batances. Obviously, Deal is thinking of
iiiirg oacx tne eoi iiiiiiiisnii, andfre wants to continue pis spending agenda with as much money
as possib/e.
Are you man enough to stop Jim Deal and his ptans to help himsetf and his pals at our expense?
Stop trying to please the sold-out Republican committees and friends of Deal. Make the determination to be real
,.,,'"n .no iay no to gris inianeliscat policy that benefits the powerful few at the expense of everyone else'
lf you are otfended by this or anything else I say, then make the most of it'
Karen Carter
https://mail.watgov.org lowa/tempexporr(d,watgov.orgl?ae:Item&t=IPM'Note&id:RgAA.. . 312412011