“We are constantly seeking grants and other revenue sources to leverage the investment Mecklenburg County citizens make to Public Transit through the dedicated sales tax,” said Carolyn Flowers, CATS CEO. “These two grants will assist us in reducing operational expenses.” CATS has been awarded over $28.5 million this year in state and Federal Grants.
The Bus Canopy Solar PVS/Charging Project is part of the Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER II) program. The $1.0 million award will be used at the CATS South Tryon Bus Facility which includes nine bus canopies in the middle of the lot that provide shade for the vehicles and allow the buses to cool quicker when going into service.
These canopies will be the site of 2,268 solar PV panels which could generate up to 50.5 megawatt hours of power each month and approximately 12 percent of the annual electric use at this facility.
CATS also received $421,580 for the Clean Fuels Bus and Bus Facilities Program. This grant award will be used to purchase more efficient and light weight Special Transportation Service (STS) vehicles as identified as part of CATS’ 2007-2012 Countywide Transit Services Plan.
CATS will replace five older, less efficient STS vehicles in the fleet with five new vehicles that emit 56 percent less carbon dioxide, get more miles per gallon, only require preventative maintenance every 10,000 miles and have an increased lifespan up to 7 years and 200,000 miles.
To learn more about CATS and its services, call 704-336-RIDE or visit us on the web at www.ridetransit.org.
The Charlotte City Council narrowly agreed Monday night to take $25 million in federal money to begin the first 1.5 miles of its planned streetcar route.
The 6-5 council vote came after more than three hours of passionate debate from residents and the council. It also survived a last-minute effort to defer the issue until a later meeting.
Supporters said the streetcar would spur development along its eventual 10 miles and would provide another transportation option.
But opponents argued the city can't afford the project now, and that the streetcar would eat up money that could be used on other community needs.
Voting in favor of accepting the federal grant were Democrats Jason Burgess, Patrick Cannon, Nancy Carter, David Howard, Patsy Kinsey and James Mitchell.
Voting no were Republicans Warren Cooksey, Andy Dulin and Edwin Peacock, plus Democrats Michael Barnes and Warren Turner.
The first $37 million, 1.5-mile segment would run from Time Warner Cable Arena in uptown to Presbyterian Hospital in the Elizabeth area, with six stops or stations along the way. Construction will start within 18 months, and the city wants to have the streetcar up and running by 2014.
In addition to the federal money, the city will spend $12 million from three of its capital funds for the streetcar.
But that only covers construction. The first leg is also expected to carry a $1.5 million annual operating bill.
The Charlotte Area Transit System has said it can't cover the tab, pushing the costs to the city. Officials there haven't said how they would pay for the operating costs, only that the money would likely come from the city's general fund.
The lack of operating money fueled some of Monday's opposition to the streetcar. Many speakers said the community has more pressing needs, including crime-fighting and schools.
"Just because ... you vote against accepting that grant, it doesn't mean you don't believe in mass transportation," said Tariq Bokhari. "It just might mean that this expenditure doesn't make sense with our current priorities."
But other speakers said investing in the streetcar will pave the way for more development in the future, particularly in east and west Charlotte.
The city has proposed building a 10-mile streetcar line from the Rosa Parks Transit Center on Beatties Ford Road near Interstate 85 to Eastland Mall, via Trade Street uptown.
Malcolm Graham, a special assistant to the president of Johnson C. Smith University and a state senator, urged the council to "not make a decision for today, but to make a decision for tomorrow."
"Invest in our community the same way many on council who sat in those chairs before invested in our community," he said.
Comments from council largely mirrored that of citizens who packed the chamber.
Many council members who voted against the grant money lamented that the city had not identified a way to pay for the operating costs.
They also worried that moving ahead with the streetcar meant the city was pushing aside previously announced plans to extend the Lynx light rail line to the University City area, as well as commuter rail to the northern Mecklenburg towns.
Other council members argued they weren't sidestepping those projects but were taking advantage of federal money that's become available.
Under the Bush administration, federal transit money wasn't available for streetcars. That changed under the Obama administration, and earlier this month, Charlotte was among the cities awarded $130 million in streetcar grants.
Leaders have said they plan to keep looking for more money to help pay for the rest of the project, though they said they likely would only be able to build 2- or 3-mile segments at a time.
The entire 10-mile stretch could cost about $500 million.
A budget battle appears to be brewing at Charlotte City Hall over the proposed Streetcar Project.
The cost of the first mile and a half of the streetcar track through uptown is expected to cost $37 million. The plan is to spend at least $12 million from the city budget on the project. A Federal Grant would pay for the rest.
But now some council members are asking if the money could be used to create Jobs by improving Charlotte's roads instead.
(Beware: The contents of this post are one of the reasons why North Carolina officials, including some Charlotte City Council Members are working hard behind the scenes to get rid of me.)
This is nothing more than a Mayoral Legacy, Vote Buying Scheme and he's taking money out of these necessary City Fund budgets to make his dream a reality:
1) Business Corridor Revitalization, 2) Economic 3) Development and Smart Growth.
In addition this foolish Spending spree will cause Property Taxes to increase because the Federal Gov't will only give $25 Million to help finance it.
When asked about creating Jobs last night Foxx actually mocked the issue by speaking with disdain not compassion in his voice for Charlotte's unemployed:
"You know I've heard over and over again about Jobs, Jobs, Jobs".
So he's going to take money from the City's Business Corridor Revitalization Fund allocated to help create Jobs in Lower Income areas to finance a Democrat Vote Buying, 1.5 mile traveling Streetcar.
Here are 7 reasons why Charlotte doesn't need a Streetcar right now:
a) Charlotte's population is less than 1 Million citizens because due to problems with Bank of America and High Unemployment (11%) people are leaving like crazy.
b) Charlotte already has a Mass Public Transportation system with a Light Rail line, City Buses and Street Trolleys.
c) I don't care how much Foxx spins this Streetcar issue it will NOT spur long term Job Growth for the Charlotte-Mecklenburg Region!
d) The Streetcar Foxx is spending $500M to develop will in fact travel the SAME places Charlotte's City Buses already travel.
e) Instead of using this money to extend Charlotte's Light Rail line as promised by Foxx while campaigning and during his tenure on the Charlotte City Council, he's using these Funds to buy Votes from East/West Charlotte citizens.
f) If Charlotte City Officials (including Foxx a former City Council Member) were serious about this Streetcar why didn't they start it 5 years ago when Charlotte's Economy was booming?
g) Foxx is also going to more than likely personally benefit from this transaction because of his connections with Design Line Intl.
(Foxx is an Attorney for Design Line Intl, a company which manufactures Hybrid City Buses for the City of Charlotte.)
Now do you understand why Charlotte City Officials should NOT be wasting $500 Million a Streetcar project at this time.
I'm not opposed to expanding Charlotte's Mass Public Transportation System.
I'm only opposed to Waste for Political Gain disguised as expanding Charlotte's Mass Public Transportation System.
Mayor Foxx thinks he's so slick and so "highly intelligent" he can continue fooling Charlotte Constituents.
Corrupt Former Baltimore Mayor Sheila Dixon thought so too.
It happened in Baltimore where disgraced Mayor Shelia Dixon hiked taxes on city parking lots by 18 percent in order to provide "Free" bus service via buses from Mayor Anthony Foxx’s DesignLine International bus-builder. This is what Charlotte has to look forward to — tax hikes, waste, and corruption.
As I've stated several times previously you can thank your friendly neighborhood newspaper the Charlotte Observer(community nickname: "Charlotte Disturber") for this bit of loveliness.
WARNING: Going forward don't just listen to Foxx's words, watch his actions!
Foxes are extremely sly, cunning animals.
Keep reading for more details on how Mayor Anthony Foxx plans to "improve Charlotte's Transportation system" with Taxpayer money.
Please vote responsibly during the 2010 Midterm elections, 2011 (when Foxx's term ends) and in 2012 (next Presidential bid).
Charlotte is going to ask the federal government for $25million to help build a streetcar line uptown.
The City Council voted 7-4 Monday night to apply for a grant that would pay for much of a 1.5-mile line from the Charlotte Transportation Center to Presbyterian Hospital on Hawthorne Drive in the Elizabeth neighborhood.
If successful, the city would need to spend at least $12 million of its own money to finish construction.
Republicans Andy Dulin, Warren Cooskey and Edwin Peacock voted against seeking the grant, along with Democrat Warren Turner.
The Charlotte Area Transit System's long-term transit plan calls for a 10-mile streetcar line from Beatties Ford Road to Eastland Mall via uptown. The line's entire cost has been estimated at between $450 and $500 million - roughly the same cost as the Lynx light-rail line from uptown south to I-485.
The challenge has been finding money to pay for it.
CATS doesn't have the money. The Federal Transit Administration has historically not funded streetcars, though the Obama administration recently changed that rule and released some money for streetcars. The maximum one city could receive is $25 million.
"For every local dollar that goes into the grant, we get two federal dollars back," said Charlotte Mayor Anthony Foxx, a Democrat whose campaigned for mayor last year advocated a streetcar line.
Cooksey and Dulin held a news conference Monday afternoon to voice their opposition to the line.
Dulin said seeking the federal grant would send "mixed messages" to Washington as to which transit project is most important to Charlotte. Regional plans call for a commuter rail line north to the Lake Norman area and for extending the Lynx light-rail line from uptown northeast to University City.
The city of Charlotte stepped up its streetcar quest two years ago.
The service would begin at the Charlotte Transportation Center near the Time Warner Cable Arena. It would go south down Trade Street and link with streetcar tracks already in place on Elizabeth Avenue to Presbyterian Hospital.
The line would have a small loop around the arena to tie into the light-rail tracks. That would allow streetcars to be stored at the light-rail maintenance facility south of the New Bern light-rail station.
"This is a step in the right direction - we have already invested taxpayer dollars in it," said Democratic council member Patrick Cannon, referring to the streetcar tracks installed on Elizabeth Avenue.
The city estimates it would handle 950 trips a day based on bus ridership on the segment today. By comparison, the multicar, 9.6-mile Lynx handles 14,000-15,000 passenger trips a day.
One downside to the starter streetcar line is that it wouldn't replace any existing routes. That means the Charlotte Area Transit System would continue to operate existing service like the Gold Rush, and someone - either CATS or the city - would have to pay for the streetcar's estimated $1.5 million annual operating cost.
Assistant City Manager Jim Schumacher said it's unknown whether CATS or the city would pay for the operating costs.
The $37 million cost also doesn't include buying new trolleys. One option is to use three replica streetcars that the non-profit Charlotte Trolley uses through South End.
"We don't have to buy cars," said Mayor Pro Tem Susan Burgess, a Democrat who voted to seek the grant. "That buys us time. Everything is coming together."
City Manager Curt Walton has identified $24 million that could be used for the streetcar. He has proposed spending $2.5million set aside for engineering and design of the streetcar. He also has tapped $10.5 million set aside for economic development, $4 million from "smart growth" funds and $7 million from a business corridor revitalization fund.
The city has the money to take a first step in building its proposed streetcar project. It should use it.
Tonight the Charlotte City Council is to decide whether to apply for a $25 million federal grant for a $37 million project that would build 1.5 miles of its proposed 10-mile streetcar line. The city would have to find $12 million for its share.
City staff suggested pulling the $12 million from among four different pools of city money. The council's Transportation Committee recommends using three of those pools: $2.5 million in unspent streetcar planning money, a $4 million "Smart Growth" revolving fund and $5.5 million from $10.5 million set aside in debt capacity for economic development projects. Because the streetcar is a council priority, and because the money appears to be available, it's likely the council will opt to apply for the grant.
Whether the city will win the federal grant, of course, isn't known. City staff said they're optimistic, however.
The council must also decide whether to apply for another federal grant for a $15 million project to add hybrid electric "Sprinter" buses and increase the frequency along Central Avenue and Beatties Ford Road routes. Similar buses are already being used to run to the airport from the uptown Transportation Center. This would mean a rider could get on a "Sprinter" on Central and ride clear to the airport. The Charlotte Area Transit System already has the money needed to pay its share of the project. As we said last week, that should be a no-brainer.
The streetcar question is trickier and more political. The full route would eventually run from Beatties Ford Road at Interstate 85 through uptown and out Central Avenue to Eastland Mall. The section under consideration goes from Presbyterian Hospital to the Transportation Center uptown. Tracks and some of the wiring have already been installed between the hospital and Kings Drive, and the city already owns three faux-historic streetcars.
Last year the council's Republicans voted against the streetcar planning money, objecting to spending money on a project with no revenue source. And last week, council member Warren Cooksey pointed out that the $12 million might be better spent on other needs such as sidewalks and bike lanes.
Democrats, many of whom represent neighborhoods where the streetcar would run, are more enthusiastic about its potential to lure development. Mayor Anthony Foxx has said repeatedly the streetcar would likely be built in small segments - as other cities such as Portland, Ore., have done.
Some people don't think the streetcar is a good idea to start with. Some people think any transit spending is wasteful. We disagree.
The need for good public transit will only grow stronger as the city grows, traffic worsens, gas prices rise and the city struggles to escape its auto-generated ozone pollution problem.
Now, it appears, the city might get $25 million in unexpected federal money. It would be smart to take advantage of it.
Democratic mayoral candidate Anthony Foxx said Thursday he wouldn't raise property taxes to pay for a streetcar, despite his vote to move ahead with the project and suggestions from city staff that a hike may be needed.
"We aren't proposing or considering any increase in property taxes, and now would be a terrible time to think of that," he told the Observer. "I will not raise property taxes for the streetcar."
The streetcar and property tax issues came up when Foxx and Republican John Lassiter spoke to a luncheon of the Charlotte Regional Mortgage Lenders Association at the Myers Park Country Club.
Lassiter has also opposed property tax increases.
The rivals, both at-large city council members, were on opposite sides last month when council Democrats overrode Mayor Pat McCrory's veto of $4.5 million to start design work on the line.
The project, which would run from Johnson C. Smith University through uptown to Eastland Mall, would cost over $450 million. It's unclear where the money would come from.
"I could not promise to build something I didn't know how to pay for," Lassiter told the mortgage group.
Foxx defended his vote. He said the line would bring economic development to neighborhoods that need it. One study showed new development could generate $112million in new property taxes over 20 years.
"The future of our city is dependent on making every part ... a great place to live in," he told the group.
On Monday the city staff outlined ways to pay for the line to the council's Transportation Committee, which Foxx chairs. One option called for creating a special taxing district along the line and enacting a 4-cent tax hike for every $100 of taxable value. Another called for a citywide tax increase of 2 cents.
The city's current tax rate is 45.86cents.
"By supporting the streetcar, I'm not committing myself to a property tax increase," Foxx said later.
During the meeting, he defended his vote for a 2006 city budget that raised property taxes 9 percent - the first increase in at least a decade. Lassiter voted against the budget.
Foxx said the tax hike helped pay for the 70 new officers the police chief requested, more than in the no-new-tax budget supported by Lassiter and McCrory. It also brought in money for new roads and neighborhood improvements.
He suggested that without the tax hike, Charlotte's crime rate might not have gone down. Police say it's down 20percent from a year ago.
"You can't out a price on (a) family's sense of safety, put a value on the life saved because we had the additional police officers," he told the group.
Lassiter has criticized "unnecessary and unmanaged government spending" that he says had nothing to do with police, roads or neighborhoods.
Thursday he alluded to this year's General Assembly actions that raised the state sales tax by a penny and enacted surcharges of 2 percent or 3percent on some taxpayers. He told the mortgage lenders that he'll keep taxes down.
"We're in a high-taxed city in a high-taxed state," he said. "We've got to right the ship."
Just finished an interview with Charlotte budget director Ruffin Hall (NOT Ruffin Poole, just in case you're confused by the Ruffins), to find where in the budget this $12 million was hiding. What $12 million? See yesterday's post. Or read on.
Of course, it isn't really hiding. The city staff is pointing to a variety of city funds (listed in the city budget) that still have money in them, funds set aside for just this sort of thing: a project that arises unexpectedly for which elected officials would like to find money.
In this instance, the city is considering whether to set aside $12 million, which it would spend if it gets a $25 million federal grant. The $37 million total would build a 1.5-mile first segment of a proposed 10-mile streetcar line. The City Council is to vote Monday on whether to apply for that grant (plus another one that would add hybrid electric buses). If the city can't find/isn't willing to spend the $12 million there's no point in applying for the grant. Here's a quick rundown of the $12 million:
First, it is capital expense money.
That's a separate, $803 million budget apart from the overall $1 billion operating budget that pays for things such as police officers and garbage collection. (You may or may not like the idea of spending the $12 million but it isn't money that could be used to hire more police.) Remember, too, the airport and the water/sewer departments, while counted in the budget, are self-sustaining "enterprise funds." (Also here's the perennial reminder: The city doesn't pay for schools, parks and recreation, welfare, mental health facilities or a variety of other needs paid by the county or state.)
- $2.5 million in streetcar planning funds. Last summer, in a controversial vote, the City Council allocated $8 million for streetcar planning and engineering. The contract came in for less, and $2.5 million is available. You can find it on page 166 of the city budget. Here's a link. This comes from a pot of money called PAYGO (pay as you go). This budget year the city put roughly $96 million into this fund, which is spent for things like transit maintenance, street improvements, roof replacements, etc.
- $10.5 million in reserve for economic development initiatives. This isn't PAYGO money. It's money set aside to repay debt the city might choose to take on. The council's transportation committee members Thursday said they'd use $5.5 million of this fund. Look on page 163 of the budget.
- $ 7 million in business corridor revitalization funds. These, too are PAYGO funds, as yet unspent. The committee didn't want to do this.
- $4 million in Smart Growth fund. That brings us to a multimillion "Smart Growth" fund, which the committee recommends using as part of the needed $12 million. Many folks wonder: The city just has $4 million sitting around that we didn't know about? I asked Hall. It turns out the money isn't just sitting around in some secret account. It's been used to help with transit-oriented development along South Boulevard.
Hall said it's a revolving fund (i.e., the city replenishes it with money the fund itself generates) that the council hasn't put money into for years. Because it doesn't get money allocated to it, it's not a line item on the budget. It would be on the city's financial statement, he said. Here's a link to that. I ran out of time to do more than a search for "Smart Growth" which turned up nothing. (Other writing deadlines loom larger and larger as I type this.)
Hall said the Smart Growth fund was used, for instance, when the city spent money for its proposed Scaleybark transit oriented development project. When the city sold the land to a developer (the project is stuck in the recession and is delayed), the money went back into this fund. I have a call in to Economic Development director Tom Flynn, in whose department Hall said, the fund sits. Hall didn't know whether taking $4 million would drain the fund.
Update: Flynn just called. He says that when Scaleybark Partners, the developer, repays the city in February the Smart Growth fund will have $4 million in it. It was set up as a revolving fund 9 or 10 years ago, he said, to be used for projects of that sort.
Bottom line: Money is fungible. A smart city manager will always keep things flexible enough so he or she can find funds for projects the elected officials want - or for things that arise unexpectedly midyear. I want managers who can do that. At the same time, I think the public (and elected officials) are owed more transparency about how much money is sitting, awaiting expenditure. It's smart to have some reserve money. It's also smart, if you're a council member, to know just what your reserve money is and where it lives in your budget.
CATS said the streetcar line planned between Beatties Ford Road and Eastland Mall would cost about $372 million. It would open in two parts. The first part would open in 2018 and the rest would open in 2023.
Many people along the proposed line are pressuring officials to build it sooner. As a result, city leaders are looking at ways to pay for it sooner. They asked CATS to look into other other funding options to build the line now, like new taxes for people who own property along the line or even projects that aren't built yet along the stretch.
Charlotte council member Nancy Carter said, "It's crucial for us. It's moving people. This is public transit."
People voted for the half-cent sales tax for projects like this and, transit officials said, that'll cover part of the tab, but not all of it.
It happened in Baltimore where disgraced Mayor Shelia Dixon hiked taxes on city parking lots by 18 percent in order to provide "Free" bus service via buses from Mayor Anthony Foxx’s DesignLine International bus-builder. This is what Charlotte has to look forward to — tax hikes, waste, and corruption.
Last year I warned all of you gullible, straight ticket voting, Charlotte Observer fooled, blind citizens that (new) Mayor Anthony Foxx and the Charlotte City Council were going to sneak another Property Tax Hike on us in the name of "Modern Transportation".
How else do you think the City is going to pay for this wasteful, East/West Charlotte, Democrat voting buying "Streetcar Named Desire" scam in a looming Recession?
If this project cost almost $500M and the Feds will only give Charlotte about $25M, where did you dummies think that other $475M was going to come from?
The city has the money to take a first step in building its proposed streetcar project. It should use it.
Tonight the Charlotte City Council is to decide whether to apply for a $25 million federal grant for a $37 million project that would build 1.5 miles of its proposed 10-mile streetcar line. The city would have to find $12 million for its share.
City staff suggested pulling the $12 million from among four different pools of city money. The council's Transportation Committee recommends using three of those pools: $2.5 million in unspent streetcar planning money, a $4 million "Smart Growth" revolving fund and $5.5 million from $10.5 million set aside in debt capacity for economic development projects. Because the streetcar is a council priority, and because the money appears to be available, it's likely the council will opt to apply for the grant.
Whether the city will win the federal grant, of course, isn't known. City staff said they're optimistic, however.
The council must also decide whether to apply for another federal grant for a $15 million project to add hybrid electric "Sprinter" buses and increase the frequency along Central Avenue and Beatties Ford Road routes. Similar buses are already being used to run to the airport from the uptown Transportation Center. This would mean a rider could get on a "Sprinter" on Central and ride clear to the airport. The Charlotte Area Transit System already has the money needed to pay its share of the project. As we said last week, that should be a no-brainer.
The streetcar question is trickier and more political. The full route would eventually run from Beatties Ford Road at Interstate 85 through uptown and out Central Avenue to Eastland Mall. The section under consideration goes from Presbyterian Hospital to the Transportation Center uptown. Tracks and some of the wiring have already been installed between the hospital and Kings Drive, and the city already owns three faux-historic streetcars.
Last year the council's Republicans voted against the streetcar planning money, objecting to spending money on a project with no revenue source. And last week, council member Warren Cooksey pointed out that the $12 million might be better spent on other needs such as sidewalks and bike lanes.
Democrats, many of whom represent neighborhoods where the streetcar would run, are more enthusiastic about its potential to lure development. Mayor Anthony Foxx has said repeatedly the streetcar would likely be built in small segments - as other cities such as Portland, Ore., have done.
Some people don't think the streetcar is a good idea to start with. Some people think any transit spending is wasteful. We disagree.
The need for good public transit will only grow stronger as the city grows, traffic worsens, gas prices rise and the city struggles to escape its auto-generated ozone pollution problem.
Now, it appears, the city might get $25 million in unexpected federal money. It would be smart to take advantage of it.
Democratic mayoral candidate Anthony Foxx said Thursday he wouldn't raise property taxes to pay for a streetcar, despite his vote to move ahead with the project and suggestions from city staff that a hike may be needed.
"We aren't proposing or considering any increase in property taxes, and now would be a terrible time to think of that," he told the Observer. "I will not raise property taxes for the streetcar."
The streetcar and property tax issues came up when Foxx and Republican John Lassiter spoke to a luncheon of the Charlotte Regional Mortgage Lenders Association at the Myers Park Country Club.
Lassiter has also opposed property tax increases.
The rivals, both at-large city council members, were on opposite sides last month when council Democrats overrode Mayor Pat McCrory's veto of $4.5 million to start design work on the line.
The project, which would run from Johnson C. Smith University through uptown to Eastland Mall, would cost over $450 million. It's unclear where the money would come from.
"I could not promise to build something I didn't know how to pay for," Lassiter told the mortgage group.
Foxx defended his vote. He said the line would bring economic development to neighborhoods that need it. One study showed new development could generate $112million in new property taxes over 20 years.
"The future of our city is dependent on making every part ... a great place to live in," he told the group.
On Monday the city staff outlined ways to pay for the line to the council's Transportation Committee, which Foxx chairs. One option called for creating a special taxing district along the line and enacting a 4-cent tax hike for every $100 of taxable value. Another called for a citywide tax increase of 2 cents.
The city's current tax rate is 45.86cents.
"By supporting the streetcar, I'm not committing myself to a property tax increase," Foxx said later.
During the meeting, he defended his vote for a 2006 city budget that raised property taxes 9 percent - the first increase in at least a decade. Lassiter voted against the budget.
Foxx said the tax hike helped pay for the 70 new officers the police chief requested, more than in the no-new-tax budget supported by Lassiter and McCrory. It also brought in money for new roads and neighborhood improvements.
He suggested that without the tax hike, Charlotte's crime rate might not have gone down. Police say it's down 20percent from a year ago.
"You can't out a price on (a) family's sense of safety, put a value on the life saved because we had the additional police officers," he told the group.
Lassiter has criticized "unnecessary and unmanaged government spending" that he says had nothing to do with police, roads or neighborhoods.
Thursday he alluded to this year's General Assembly actions that raised the state sales tax by a penny and enacted surcharges of 2 percent or 3percent on some taxpayers. He told the mortgage lenders that he'll keep taxes down.
"We're in a high-taxed city in a high-taxed state," he said. "We've got to right the ship."
Just finished an interview with Charlotte budget director Ruffin Hall (NOT Ruffin Poole, just in case you're confused by the Ruffins), to find where in the budget this $12 million was hiding. What $12 million? See yesterday's post. Or read on.
Of course, it isn't really hiding. The city staff is pointing to a variety of city funds (listed in the city budget) that still have money in them, funds set aside for just this sort of thing: a project that arises unexpectedly for which elected officials would like to find money.
In this instance, the city is considering whether to set aside $12 million, which it would spend if it gets a $25 million federal grant. The $37 million total would build a 1.5-mile first segment of a proposed 10-mile streetcar line. The City Council is to vote Monday on whether to apply for that grant (plus another one that would add hybrid electric buses). If the city can't find/isn't willing to spend the $12 million there's no point in applying for the grant. Here's a quick rundown of the $12 million:
First, it is capital expense money.
That's a separate, $803 million budget apart from the overall $1 billion operating budget that pays for things such as police officers and garbage collection. (You may or may not like the idea of spending the $12 million but it isn't money that could be used to hire more police.) Remember, too, the airport and the water/sewer departments, while counted in the budget, are self-sustaining "enterprise funds." (Also here's the perennial reminder: The city doesn't pay for schools, parks and recreation, welfare, mental health facilities or a variety of other needs paid by the county or state.)
- $2.5 million in streetcar planning funds. Last summer, in a controversial vote, the City Council allocated $8 million for streetcar planning and engineering. The contract came in for less, and $2.5 million is available. You can find it on page 166 of the city budget. Here's a link. This comes from a pot of money called PAYGO (pay as you go). This budget year the city put roughly $96 million into this fund, which is spent for things like transit maintenance, street improvements, roof replacements, etc.
- $10.5 million in reserve for economic development initiatives. This isn't PAYGO money. It's money set aside to repay debt the city might choose to take on. The council's transportation committee members Thursday said they'd use $5.5 million of this fund. Look on page 163 of the budget.
- $ 7 million in business corridor revitalization funds. These, too are PAYGO funds, as yet unspent. The committee didn't want to do this.
- $4 million in Smart Growth fund. That brings us to a multimillion "Smart Growth" fund, which the committee recommends using as part of the needed $12 million. Many folks wonder: The city just has $4 million sitting around that we didn't know about? I asked Hall. It turns out the money isn't just sitting around in some secret account. It's been used to help with transit-oriented development along South Boulevard.
Hall said it's a revolving fund (i.e., the city replenishes it with money the fund itself generates) that the council hasn't put money into for years. Because it doesn't get money allocated to it, it's not a line item on the budget. It would be on the city's financial statement, he said. Here's a link to that. I ran out of time to do more than a search for "Smart Growth" which turned up nothing. (Other writing deadlines loom larger and larger as I type this.)
Hall said the Smart Growth fund was used, for instance, when the city spent money for its proposed Scaleybark transit oriented development project. When the city sold the land to a developer (the project is stuck in the recession and is delayed), the money went back into this fund. I have a call in to Economic Development director Tom Flynn, in whose department Hall said, the fund sits. Hall didn't know whether taking $4 million would drain the fund.
Update: Flynn just called. He says that when Scaleybark Partners, the developer, repays the city in February the Smart Growth fund will have $4 million in it. It was set up as a revolving fund 9 or 10 years ago, he said, to be used for projects of that sort.
Bottom line: Money is fungible. A smart city manager will always keep things flexible enough so he or she can find funds for projects the elected officials want - or for things that arise unexpectedly midyear. I want managers who can do that. At the same time, I think the public (and elected officials) are owed more transparency about how much money is sitting, awaiting expenditure. It's smart to have some reserve money. It's also smart, if you're a council member, to know just what your reserve money is and where it lives in your budget.
A proposed streetcar line could be operating in three years under a plan presented Thursday to city leaders.
City council's transportation committee voted 3-2 to recommend applying for a $24.9 million federal grant to help fund the construction of a 1.5-mile rail line from the Transportation Center on Trade Street to Presbyterian Hospital in Elizabeth.
The full council is expected to vote on the proposed grant application at their meeting on Monday.
Charlotte would contribute $12 million toward the estimated $37 million cost of extending the existing train tracks on Elizabeth Avenue and the installation of electrical cables needed to power the system.
Passengers would be carried by three trolleys already in Charlotte.
Money already allocated for a streetcar engineering study and funds set aside for economic development projects could cover the city's portion of the cost, according to information presented to committee members Thursday afternoon.
The transit project would be the first segment of a planned 10-mile streetcar line from Beatties Ford Road, near I-85, to Eastland Mall.
About 950 daily riders are projected for the line between the Transportation Center and Elizabeth. The estimated annual cost for operating the trolleys is $1.5 million.
Construction of the initial 1.5-mile segment would involve the closing of streets, a thought that concerns business owners on Elizabeth Avenue.
A half-mile of the street was shut down for nearly two years as rail lines were installed and utility lines were upgraded. The road reopened in August, but not before several storefronts were shuttered.
"It was a pure nightmare," said Maria Amvrazis, co-owner of Athenian Corner Grill, a restaurant which opened after construction was completed. "All of the businesses here were crying."
Amvrazis said she wanted a promise from city leaders that the work on a streetcar line would not injure her business.
"Reassure us that there will not be any crazy closings like it was," she said.
CATS said the streetcar line planned between Beatties Ford Road and Eastland Mall would cost about $372 million. It would open in two parts. The first part would open in 2018 and the rest would open in 2023.
Many people along the proposed line are pressuring officials to build it sooner. As a result, city leaders are looking at ways to pay for it sooner. They asked CATS to look into other other funding options to build the line now, like new taxes for people who own property along the line or even projects that aren't built yet along the stretch.
Charlotte council member Nancy Carter said, "It's crucial for us. It's moving people. This is public transit."
People voted for the half-cent sales tax for projects like this and, transit officials said, that'll cover part of the tab, but not all of it.
A fledgling Charlotte hybrid bus manufacturer which has done business with the city has a new in-house attorney: Charlotte Mayor Anthony Foxx.
Foxx started doing legal work for DesignLine International in March, when Foxx was an attorney with Hunton & Williams. Foxx said the bus maker asked him to become its attorney, and that he has been careful about any conflicts between his public office and private job.
Foxx said on Monday that DesignLine hasn't talked with him about lobbying other cities for the manufacturer, and lobbying isn't in his job description. Many of DesignLine's potential clients are governments, who might buy the buses for their airports or transit systems. The company has contracts with Baltimore and New York.
"That's not in the job description," said Foxx, who became the city's first Democratic mayor in 22 years earlier this month. "No one has talked to me about that."
Foxx said he'll be handling any litigation for the firm as well as personnel issues.
Foxx said he recused himself last spring when the Charlotte City Council had a vote concerning the bus maker. He said he has talked with Charlotte City Attorney Mac McCarley to make sure "it won't be an issue."
Charlotte's mayor is not a full-time position, and past mayors have had other jobs. Pat McCrory, Foxx's predecessor, worked as a manager at Duke Energy, though he worked a reduced schedule. McCrory quit his Duke job when he ran for governor in 2008.
Foxx said he worked a reduced schedule at Hunton & Williams since he was elected to council in 2005. Foxx said his new job will better fit with his schedule.
"There's no question that when you are practicing law in a law firm your production is tied to your time," Foxx said. He said his new job will place a premium on his judgment and skills.
"I have more flexibility over my day," he said.
Foxx has also supported some of the city's green-energy initiatives, and one of his first acts as mayor was to sign a U.S. Conference of Mayors climate-protection agreement.
Charlotte City Council member Edwin Peacock, a Republican, said he doesn't have a problem with Foxx's new job. But he said the mayor will have to be careful if DesignLine has business before the city.
Charlotte/Douglas International Airport has had two DesignLine hybrids for two years, and may buy additional ones from the same company if its receives grant funding to help pay for the higher purchase price.
Aviation director Jerry Orr said the DesignLine hybrids cost about $500,000 - more than $200,000 more than a regular diesel bus.
"If we get the grant, we get the buses," Orr said.
One of the Charlotte/Douglas buses is featured on the manufacturer's Web site. Orr reports to City Manager Curt Walton.
The Charlotte Area Transit System doesn't own any DesignLine buses but is also considering buying the firm's hybrids, if it receives grant funding.
DesignLine chief executive Brad Glosson and his father moved the company headquarters to Charlotte from New Zealand three years ago.
The company headquarters is a 100,000 square-foot plant in southwest Charlotte.
Beyond issues like streetcars and taxes, Charlotte's two mayoral candidates disagree about something more fundamental - the nature of the job they're trying to win.
Is it part-time or full-time?
The city's top job pays part-time wages and is, on paper at least, part-time in its demands. But Democrat Anthony Foxx says it's time to recognize the realities of what it takes to lead a growing city.
"It is a full-time job," he said Friday. He doesn't want to receive a full-time salary, but said any successor should have the option.
Republican John Lassiter, on the other hand, would be comfortable as a part-time mayor. The election is Nov. 3.
"I've found I can do a lot of things in a very focused way without having to be a full-time mayor," he said. "I don't think I have to significantly change my allocation of time to still be the kind of mayor Charlotte needs."
Charlotte is one of the largest cities in the country with a council-manager form of government, where the mayor and council make policy but a professional manager runs day-to-day operations.
Few are suggesting Charlotte go the way of cities such as New York or Chicago, which have so-called "strong mayor" formats where the mayor runs the government. That kind of government is not even possible under current N.C. law. Nor, according to some, is it even desirable.
Charlotte already has arguably the most powerful mayor in the state; it is the only big city where the mayor can veto city council decisions.
But that hasn't stopped the debate over how active a mayor needs to be.
McCrory: It's a full-time job
Incumbent Republican Mayor Pat McCrory, who is stepping down after 14 years, has been the closest to a full-time mayor as Charlotte has had. For years he had a full-time job with Duke Energy, though his schedule with the company was not clear.
Like Foxx, he calls the mayor's job full-time.
"It just means a person has two jobs," he said. "It's a second full-time job with unpredictable hours."
In one week, McCrory's public calendar included nearly 24 hours of meetings and other public appearances. That didn't include staff meetings or time he spends in national roles, with the U.S. Conference of Mayors or a U.S. Homeland Security committee.
McCrory also took leadership positions with two national mayors' organizations.
McCrory said the job has changed since he was first elected in 1995.
When he ran for re-election two years ago, for example, he cast himself as a crisis manager, handling floods, emergencies and evacuees from Hurricane Katrina. He called it the "Giuliani effect" - the post-9-11 appeal of a strong mayor.
"The difference that's occurred with me," he says, "is the mayor has become the chief spokesman and lobbyist for the city."
Juggling schedules
Foxx said he would take the job beyond that.
"Mayor McCrory has put a lot of his energy into the economic development side and selling Charlotte elsewhere," he said. "We're going to have to be able to keep doing that, and sell Charlotte to Charlotteans to encourage and tap the can-do spirit of this community."
Foxx, a lawyer, said he began a part-time schedule at the Hunton & Williams law firm when he was first elected to council in 2005. He said he would continue a similar schedule if elected mayor, a job that pays $39,900 a year in salary and expenses.
Lassiter, who runs his own legal staffing firm with offices in two states, said he would continue to juggle his job with his public role, as he's done over six years on the council and 11 years on the school board. Doing that, he said, "keeps you connected to real people and real problems."
Before McCrory, Charlotte mayors juggled the office with full-time jobs. Richard Vinroot practiced law. Sue Myrick helped run an advertising firm; Harvey Gantt worked as an architect. Eddie Knox was a lawyer.
Before them all, John Belk led Charlotte from 1969 to 1977 and ran a chain of department stores.
"I don't think you'd have the people of caliber that have offered to run for mayor going back as far as I remember were it a full-time job," said Vinroot. "They wouldn't have done it. I think we've had good civic leadership because they could do it and still be part of their business or run their business."
How many terms?
Foxx said he would serve no more than four terms.
Lassiter has suggested he'd serve no more than three terms, just as he has on council and before that on the school board.
Unlike Foxx, he doesn't think Charlotte needs a full-time mayor.
"If we had a full-time mayor," he told a group last spring, "neither Anthony nor I would probably be running today."
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