Saturday, May 31, 2008

FAQs (also SAQs, OAQs and NRATQIJMTUs*)

*Frequently Asked Questions
Sometimes Asked Questions
Questions Asked Once and
Nobody Really Asked These Questions, I Just Made Them Up
.

Q: How went the 5/27 budget public hearing?
A: It went. After 4 speakers, the board voted to close it. That’s that. No more addressing the board in public about the largest tax increase in the triangle.

Q: What do you mean? The public is allowed to comment on anything, right? It’s on the agenda every 4th Tuesday.
A: There is one public comment restriction – speakers will not discuss matters which are the subject of public hearings.

Q: Nobody told me my taxes are going up and now I’m finding out I don’t get to address the board. Oh great.
A: I’m sorry, you must phrase in the form of a question.

Q: What is…… nobody told me my taxes are going up and now I’m finding out I don’t get to address the board?
A: Correct, select again.

Q: So I have no options for weighing in on this tax increase?
A: You can call individual board members, because your elected board values public input. Phone numbers are on the town website. Or you can email them as a group at MayorandCommissioners@ci.morrisville.nc.us There will be an election in 2009. But that’s two tax bills from now.

Q: Why do you keep saying our tax increase is the largest in the Triangle? Our tax rate isn’t the highest.
A: No, our tax rate isn’t the highest. But there’s no reason why our tax rate can’t be very close to revenue neutral or 37 cents per $100 of value. The staff proposal is 19% higher or .4396

Q: What does that mean for me?
A: It depends which property you own. Do this: go to Wake County Real Estate Data search page. Enter your address (or name) and click. Look in the bottom right corner of the page with your property information. That’s your new valuation. Multiply this number by .4396 and divide by 100. That’s your Morrisville tax bill if the proposed budget passes. (You’ll also have Wake county taxes, new rate something like .5340) Next, compare your 2008 taxes with last year’s. From that same page, click the “Tax Bill” tab then click on your 2007 account. The left most column shows your 2007 valuation. Multiply that number by .4677 (last year’s tax rate) and divide by 100. How’d you do? Oh, wait. This is an A box and I asked a Q. Sorry. Look at the two numbers side by side. If you want to get the % change, divide 2008 tax amount by 2007 tax amount and subtract 1.

Q: I’m not good with all this math. Can’t I just wait until I get the bill?
A: Yes. But only if you like surprises.

Q: Where can I see a comparison of local revenue neutral rates?
A: (click graphic for larger view)


Rolesville, Garner, Fuquay and Holly Springs tax payers should send a note of thanks to their town staff and board members. All 4 are proposing a revenue neutral tax rate. Cary’s adding less than a penny. Morrisville? We win the Visine award for interpreting “get the red out” as “please raise our taxes.” (Graphic credit goes to Town of Cary and my DH.)

Q: Is it true Apex is building a new combination public safety building for $2M?
A: Yes

Q: Well then how come Morrisville’s new fire station will cost $3M?
A: Here’s something you won’t hear from your ‘Tis blogger often – Beats me. Maybe ours will be 50% better?

Q: How come you don't want Morrisville to have a downtown?
A: I think a downtown is a swell idea. But I don't think the Town of Morrisville belongs in the development business. We have neither the money nor legislative authority to buy up property for other than narrowly defined public purposes.

Q: Do you ever have anything good to say about Morrisville?
A: Yes.

Q: Well?
A: I honestly believe Morrisville, heart of the triangle with clogged arteries, is a delightful town. Our Parks and Rec department is a good one. Dedicated staff are in the process of making sure our annual Day at the Park (June 14th) will be a not-to-be-missed fun time for all. The town manager’s 2004 special census was a smart move. Our police and fire departments are top notch. But we need to address other issues, ones that are of importance to our residents – a reasonable tax rate, critical road improvements, responsible growth, a local government that is open and transparent. Responsive elected officials would also be ever so lovely.

Q: What’s for dinner?
A: Another FAQ for which I have no answer.

Monday, May 26, 2008

No Time Like the Present

Tuesday - May 27 6:30 PM
100 Town Hall Dr
Public Hearings
  • 2009 Budget - proposed tax rate of .4396 or 19% above revenue neutral*

  • Change in election method from districts to all At-Large representation

Three minute time limit per speaker. Speak now or throw your tax bill across the room later this year. Your call.



*For comparison: Cary is considering a rate 2% above revenue neutral, Wake Forest discussions also start at 2% above rn, Holly Springs will likely set their rate at .415. That's their calculated revenue neutral with no proposed increase. Holly Springs: 0% above revenue neutral. Morrisville 19% above. What's up with that?

Wednesday, May 21, 2008

Public Hearings (or what to do with 3 minutes on a Tuesday night in Morrisville)

Public hearings. Probably ought to be called public talkings because these are scheduled opportunities for the public to talk, but not necessarily times when town officials listen. Sometimes at public talkings, our elected officials do listen but they don’t agree. In that case, we would call these 4th Tuesday opportunities public why-did-I-bothers.

No matter what we call them, they are an important and valuable part of the governmental process, a sort of don’t-just-sit-there-do-something that takes 3 minutes plus travel time. Ok, ok, traveling within Morrisville can be a real time drain. But there’s a payoff: invest 3 minutes (plus travel) and your name and opinion become a part of the official Morrisville public record. What a deal, right? But wait! There’s more! Get your like minded friends to do the same, and, who knows? Our tax rate might get lowered, road improvements might move to the top of the spending list, growth might pay for itself. Probably not. But one can hope.

Next public hearings/talkings/why-did-I-bothers are scheduled for Tuesday May 27, 2008 at town hall. You can view all six here. Of particular interest:

  1. The proposal to change Morrisville elections from district representation to an all At-Large process is a fascinating one. Presently, four of six representatives must reside in a particular district. The other two can live anywhere. (Anywhere in Morrisville. Not anywhere, anywhere. That wouldn’t make sense.) Here’s the current district map . All Morrisville voters have the opportunity to cast ballots for all races, regardless of the voter’s district of residence. Wanna run for the District 2 seat in 2009? The way things are now, you have to reside in District 2. But you have to campaign town wide, not just in District 2, because while there is a district residence requirement to run, there isn’t a district residence requirement to vote. If the process changes, out goes the residence requirement. If three seats are up for grabs, the top 3 vote getters get them. If all 3 reside in District 2, then so be it. The will of the people and all. The potential problem: some elected officials are, um, gosh, what’s that phrase? Oh, yes. SELF SERVING. Stack a board with elected officials all residing in a single area of town and that district could end up with all the marbles. Need some marbles and don’t live in the marble district? Bummer. You can always attend a board meeting on any 4th Tuesday of the month. That’s when there is another 3 minute opportunity to speak. On the agenda it’s labeled “Public Comments.”

    and
  2. FY 2009 Operating Budget (ie, your tax dollars and how they are spent) Taxes are going up, service levels aren’t. ‘Nough said.

Tuesday, May 27 100 Town Hall Dr with overflow parking available at the Chamber Building down the street. Fun begins at 6:30 registration available night of. 3 minutes to say what's on your mind. If you decide to skip, you'll never know if you missed a 3 minute public why-did-I-bother or a 3 minute chance to affect our tax rate.

Thursday, May 15, 2008

Whaddya mean you spent your lunch money at the 7-Eleven?

No, no, not me. I always spent my lunch money on lunch.

As I remember it, we used to get lunch money every Monday for the coming week. 75 cents bought some kind of casserole, a vegetable, maybe a half cup of ice cream with a flat wooden thing that looked nothing like a spoon but was called one anyway. The food wasn't great, it wasn't awful, but compared to $3.75 all at one time, well.... it's easy enough to see how one might spend $3.75 on things other than a casserole with instant mashed potatoes on top. Especially if one could get replacement lunch money by blaming an anonymous mean kid for swiping Monday's $3.75.

So what's this have to do with Morrisville? Surely we don't need a tax increase because lunch money was spent on other than lunch.

In 2004, by a 4,062 to 896 vote, Morrisville residents approved a $5.7M General Obligation bond referendum that went something like this:

Shall the order adopted on July 26, 2004 authorizing not exceeding $5,700,000 PUBLIC SAFETY FACILITIES BONDS of the Town of Morrisville, North Carolina for the purposes of providing funds, with any other available funds, for acquiring, constructing and equipping police station and fire station facilities, including, without limitation, the acquisition of any necessary equipment and furnishings, all to provide public safety services within and without the corporate limits of said Town, be approved?

Ok, that's clear. $5.7M for combined police and fire stations and whatever else was needed to equip them. Chairs and maybe some communication gadgets and special garage door openers and such. Get our firefighters out of the old, in-the-way station #1 near the RR tracks. All good. All good. Counting on fingers here.... 2005, 2006, 2007, and a bit. 3 1/2 years. Miss the grand opening for the new public safety facility did you?

Well...... the design for the combined facility was higher than $5.7M. A lot higher. So the town used the bond money to buy the Stewart Engineering Bldg on Town Hall Dr instead. It's right next to what used to be the police station and adjacent to the Chamber of Commerce. No more Stewart Engineering. The space has been converted into a Public-Safety-Planning-Engineering-Inspections HQ. (Morrisville has skilled planners, we do, we do. But I wouldn't expect them to respond to a 911 call.) There's no room for any fire trucks or firefighters at PSPEI HQ. Fire station #1 is still old and in the way and now the money's been spent. Oops. Reckon we can tell people a big mean kid took it and we need some more?

No to the first part (that would be dishonest) and apparently yes to the second. That's one of the reasons your taxes are going up. A new fire station will run somewhere in the neighborhood of $3M. Ouch.

Tuesday, May 13, 2008

But the N&O says Cary Tax Rate to Rise Slightly, too

Well.... that headline wasn't quite right. Cary's current property tax rate is 42 cents per $100 valuation. Their revenue neutral rate is 32.38 cents. Cary's proposed rate? 33 cents. It's been awhile, but my less than greater than lessons from early public school education are ones learned and retained. 33 cents is less than 42 cents. Cary's tax RATE is dropping. But what's important to tax payers is the tax bill. In Cary, that bill will rise slightly for most tax payers due to increases in property values. Still, it's a conservative increase. To Cary staff goes the credit.

Now back to Morrisville's .44 tax rate and that hypothetical $300,000 home.....

Morrisville tax bill on a $300k residence: $1318.80
Cary tax bill on a $300k residence: $990.00
DIFFERENCE: $328.80 or 33% more to call Morrisville home

Heart of the Triangle with clogged arteries. And now heartburn. A 33% difference in property taxes between Morrisville and Cary is significant.

Morrisville has grown at an average 8.6% per year for the last 8 years. We grew. We are growing. And now so are our property tax bills. Growth pays for itself? Not even with fuzzy logic.

Saturday, May 10, 2008

Revenue What? I just want to know how much it costs to live in Morrisville

About this time each year, our Morrisville staff and elected board comes up with a budget for the coming fiscal year. This year they've taken a different approach.... decide on a tax rate first, tied to a Long Range Financial Plan and consider the budget second. Novel approach, that one. With the recent property revaluations it gets..... interesting. And pricey for most Morrisville residents. In short:

Revenue neutral is the rate that would bring in the same amount of revenue as before the new assessment, plus a bit extra for growth. Morrisville has decided that rate (also known as the ad valorem rate) is .3692 per $100 of valuation. Here's the math for a property that jumped in value from $217,400 to $300,000:

$300,000 x .3692 / 100 = $1107.60

At revenue neutral, your Morrisville tax bill would be $1107.60.

But we're not talking about applying a revenue neutral rate. We're not talking about revenue neutral + a few pennies to make up for an expected decrease in sales tax revenue. Morrisville staff proposed, and Morrisville leaders agreed to set a tax rate of .4396 or 19% above revenue neutral. Ouch.

Back to the hypothetical $300,000 property and yes, you may use a calculator:

$300,000 x .4396 / 100 = $1318.80

At the rate agreed to on April 22, your Morrisville tax bill now comes to $1318.80. An additional $211. But wait, there's more.....

Before the revaluation, that $300,000 property was valued at $217,400. The tax rate applied last year was .4677:

$217,400 x .4677 / 100 = $1016.78

So..... last year's Morrisville tax bill: $1016.78
this year's Morrisville tax bill: $1318.80
DIFFERENCE: $302.02

The town needs additional revenue to hire a real estate specialist and fix roads, right? Well, no to the real estate specialist and yes to the road improvements. But the extra $302.02 you'll pay doesn't fix much. Morrisville Carpenter Rd at Progress Energy site. That's it.

So where's the extra money going? Hard to say. Budget discussions are yet to come. The big ticket item - a new fire station. The one that was supposed to be built using funds from the 2004 $5.7 million voter approved bond. Stay tuned......