NEW BERN BOARD OF ALDERMEN BUDGET WORK SESSION OF 16 APRIL 2013

CCTA WATCHDOG REPORT FOR NEW BERN BOARD OF ALDERMEN BUDGET WORK SESSION OF 16 APRIL 2013

Alderman Taylor opened the work session by extending condolences and requesting the Board, audience members & the public offer the same for the victims and families of the Boston Marathon terrorist bombing as well as the race participants, the residents and the city of Boston, MA. He asked for 30 seconds of silent expression of sympathies.

The purpose of tonight's meeting is to discuss appropriation requests not considered contractual in nature.

Prior to this meeting, each organization desiring funding was required to file paperwork including their request, financial reports and tax returns. Two organizations that requested and received funds last fiscal year, Allies for Cherry Point and the Highway 17 Association, will now be categorized and funded under a new budget line item labeled "Lobbying".

At the Feb 16, 2013 BOA Retreat, the Board had discussed funding only those organizations who had been so awarded last fiscal year as well as capping the funding amounts to these groups at the current grant level.

1. Craven Arts Council: Awarded last FY2013 = $4,123. Asking for FY2014 = $10,000. Their paperwork states the basis for this request is to fund the hiring of one employee by Sep 2013 for a period of one year, which is stipulated by another grant they receive, the "Main Street Solutions Grant". The Arts Council believes the money they earn from the sales generated from their expanded gift shop will eventually provide this amount requested this year of the City in the future.

Carol Tokarski, Executive Director, and Jim Bisbee (catalyst for the Empty Bowls fundraiser) made the presentations on behalf of Craven Arts Council. Mr. Bisbee stated their request would be made in two parts: (1) request the Board provide direction and help plan and implement a public arts policy that states the philosophy for including the arts within the community, identifies display locations, develops criteria for acceptance of projects/performances, outlines info needed in writing proposals, and identifies avenues to reassign art that is to be recycled out of public display in order to encourage and ensure the public's participation in the arts and be inclusive of all the city's diverse communities, provide aesthetics throughout the City and partner with the City to establish, illustrate and promote the New Bern brand as an eastern NC cultural center; and (2) request funds and present the purposes the funds were to be used for. Ms Tokarski stated they would need the money to help with renovations for their new building they expect to move into by Sep 2013 and to grow to make New Bern the cultural destination it can be. They are running a $240,000 budget. Last year's surplus of only $3,000 was the lowest they've ever had. The Board was excited to work with the Arts Council to convene a diverse task force to accommodate visual and performance arts especially to showcase the huge talent within the City. Ald Kinsey suggested the Council finds ways to incorporate the City's history with their community projects. Ms. Tokarski stated that was one of the Council's goals with their neighborhood art projects.

Just one example of this type project is the Dominican Artists Mural Project adventure that the Arts Council took on with the aid of the City. This mural project had a powerful effect of bringing together a diversity of neighborhoods and cultures with the idea of helping a neighborhood working to reinvent itself. The Council is anticipating working on a similar project this year for the Renaissance Gateway of Duffyfield. Alderman White remarked that as the schools were cutting arts programs, which he felt were very important to both student and community, perhaps this City-Council task force would help in making up for that cut and eventually serve as a catalyst for reinstituting arts within the schools. All the Board members agreed.

2. Friends of the Firemen's Museum: Awarded last FY2013 = $41,225. Asking for FY2014 = $50,000. Their paperwork states no purpose for the requested funds.

Bill Frederick, Chairman, made the presentation. Mr. Frederick gave a brief history of the development of the museum. He stated that its uniqueness was that that the City owned everything in it and that people in the past had the foresight to save all the now-valuable antiquities. The reason the Museum was legally made into a LLC was to allow it to submit grant requests and receive their funds. Over the recent years, appx $300,000 has been raised and spent to allow the Museum to arrive at the progress it has to date. The Friends will use the City grant to finish the new building. He gave an expensing of the remaining finishing touches to be procured along with their costs. All items cost in the tens of thousands of dollars each. In the next six weeks, the Friends will conduct a capital fund drive. The museum needs about $200K more for them to open within the next six months. Alderman Taylor expressed a desire to see more featuring of the African-American firemen. Both Alderman Bengel and Mr. Frederick stated the museum Board as well as a Ms. Mary Peterkin had extensively researched that part of the history, specifically the George Street Negro Company. In fact, Ms. Peterkin had sent out requests for information, artifacts or photographs to all parts of that community in order to include that very important part of the NBFD and the City's history, but it had produced few results. Ald. Bengel says the Museum welcomes any assistance to that end that Ald Taylor can provide. The Friends have been able to dedicate half of the building to house the historical documents/photos/artifacts to showcase the 1922 fire. There is an interactive display that shows the addresses within the Duffyfield community of the residents displaced as a result of that fire event. Aldermen Bengel, Bucher and Outlaw have served on the Board as well as participated in many activities and projects that have gotten to Fire Museum to its present state.

3. Greater Duffyfield Residents Council: Awarded last FY2013 = $10,000. Asking for FY2014 = $10,000. The Greater Duffyfield Residents Council (GDRC) is an organized effort between residents, concerned citizens, faith-based institutions, youth, businesses, public agencies, and law enforcement. GDRC is committed to building an environmentally, socially, economically, and culturally sound community. Their paperwork states the purposes of their request to be further improvement of the ('K' Street) Community Garden, increasing the educational components of and city-wide participation in, the DUFFEST, and to support National Night Out Activities. (Reporter's note: no other city Community Watch neighborhood has solicited funding for National Night Out Activities as of this date. Perhaps we may later learn that other neighborhoods request funding from other City budget sources such as the Community Development pot of $3,454.00 or their respective alderman's ward appropriation pot of $1,000.00 per.) The chairman states that this Council is not a 501(c)3, therefore they have not submitted a tax return per the City's requirements.

Jamara Wallace, Chair, made the presentation along with Master Gardener Jennifer Knight, who lends her services via Faith Connections, and Mr. Elijah Brown, the Home Ownership and Investment Worthiness Chairperson.

The Council's flagship project was the expansion of the Community Garden into a Phase 2 co-op. Ms. Jennifer Knight gave a detailed brief on this successful and expanding garden. The Council has been working with the staff from the City Public Works Dept to mitigate the flooding issues by designing plans for a rain garden and a plot to grow a native NC 'Carolina Gold' rice garden. This rain garden will also provide a reservoir during drought events. There are also plans to carve out space to design as a meditation garden. It is working with the cooperative extension to hold cooking demos using the garden's produce. Part of the City grant will be used to purchase a sign announcing and describing the Phase 2. The Community Garden's purpose is to promote a healthy lifestyle and eating habits. Produce from the garden was used to feed the artists from the Craven Arts Council when they were creating the Dominican Artists Mural Project. The Council's plans for the garden's future are to promulgate fruit trees and a build a covered shelter.

A second component of the organization is the PALS Initiatives (Positive Attitude & Leadership) which include the City-wide National Night Out participation by the residents and their Community Watch groups, housing ownership workshops and a bully-free back to school program and message to reach the demographics that most need it. The goal of the housing workshops is to entice people to invest in the Duffyfield Community then assist them or other potential residents in becoming educated in saving for and purchasing the real estate, then maintaining their home. The coordinator, Mr. Elijah Brown, stated he works with Habitat for Humanity, Neuse River Development Council, HUD, and the City's Sue Steinhauser, Community Development Coordinator, in order to help people of his community find decent housing. He also coordinates with other city property owners to recycle building materials that are cast off from their home improvements or constructions in order to help community residents either build dwellings or make repairs to current structures.

The third most important activity of the Council is the putting on of the DuffFest. Although she did not speak, Ms. Nanette Cobb was present in her current capacity as DuffFest Coordinator. She has also served as the Coordinator for the last 2 years. Last May 12, 2012, the festival hosted 4,000 attendees. The purpose of the festival is not only to offer pleasurable activities but it hosts educational booths addressing various issues such as healthcare screenings and preparing children for school. It wishes to attempt to move this year to the Broad Street corridor to entice broader city participation.

The aldermen said they were impressed with the presentation. The main concerns of Alderman Outlaw and Bengel are that the Council used a check register copy of their debits & credits vice a typical budget allocation statement. They would like to see a breakdown of how the City grant money was used last year and for this year. Mr. Wallace volunteers that while they submitted a 2013 budget to the City Manager prior to this work session, he sees that not all Board members have one this evening. Ald Taylor states he has a copy. Mr. Wallace says he can make a copy for them from his after the meeting. Ald Taylor says the Council is not trying to hide anything then begins to explain how last year's $10,000 grant was spent: $3,500 went to the Residents Council and $6,500 was used to put on DuffFest, which will be $200 to $300 over-budget. The Community Garden expense comes out of the Residents Council funds. $8,896 of the City grant was spent last year. Cash contributions toward the Council totaled $4,415 and there was $13,290 worth of in-kind contributions. Ald. Taylor goes on to say "that's $7 thousand dollars over what the Council asked for. Therefore, the Residents Council is putting work into this. We're not just coming to the City for a handout; you see we're working too." Ald Bucher is concerned that they need to find a signature fund raising event vice working so hard for so little on many small fund raising events. Mr. Wallace responds that they've hired a Public Relations person to hopefully help develop such.

At the very end of tonight's work session, and in response to Ald. Outlaw's critique of the Council's recordkeeping practices, Ald. Taylor reveals that the Community Development Council (CDC) will no longer be the CPA for the Greater Duffyfield Residents Council as of June 30, 2013. They are currently seeking a new CPA.

4. Swiss Bear Downtown Development Corp.: Awarded last FY2013 = $45,348. Asking for FY2014 = $50,000. Their paperwork states no intended purpose for the money to be used.

Susan Moffat-Thomas, Executive Director, and Bob Mattocks, Chairman, and Cindy Turco of the Executive Committee were present to make the presentation. Mr. Mattocks noted city staff by name who were serving on Swiss Bear's Board: Jeff Ruggieri (Dir Development Services), Mike Epperson (NB City Mgr), Ald. Bengel, and Public Works Dept Dir Mark Stephens.

He stated that this year, emphasis had been put on ensuring the sustainability of the organization after Susan Moffat Thomas is gone, in areas of leadership and financial security. Like most non-profits they are currently operating in a deficit. In planning for the future, they have updated the by-laws over the past 6 months. It has solicited an expert advisor from NC State University, at no cost. (Should the public desire more detailed info, this action was chronicled in the NB Sun Journal on 3-21-13 at this linkhttp://www.newbernsj.com/news/business/ncsu-professor-advises-swiss-bear-board-on-sustainability-plan-1.115367). Mr. Mattocks mentions that not only is their annual Mum Fest a major fundraiser for the Swiss Bear, but the festival also provides a venue for other non-profits to conduct fundraising through setting up their booths. Two months ago at the Gateway Renaissance meeting, the recreating of the historic fountain project at the intersection of Pollock and Queen streets was mentioned as the possibility of the opening endeavor for the Gateway Plan. Swiss Bear is highly interested in assisting the City in making that project a reality. All the City needs to do is tell Swiss what parts of the plan it wishes them to execute. Also, in an effort to help the City with the Wayfinding Signs project, Swiss Bear has invited Hugh Overholt and the DoT to partner with Swiss Bear on this, as they have access to special funds that may be available to assist in the execution of this project.

Ms. Moffat-Thomas states the Swiss Bear views their organization as a partner of the City. As such, it is working with the City in the branding New Bern activities. She says she and the group are excited about the Gateway Renaissance Plan and sees opportunities for common projects to help the City realize the Plan, specifically mentioning turning the old Days Inn Motel into an empowerment center. She continues, "New Bern is one of the most successful revitalization examples in the State. One can't expect local government to take care of everything. Swiss Bear and others are working together with local government, and has all the talent of individuals in different organizations which allows New Bern to accomplish so much together with the City in the 35 years of our being here. We are recognized throughout the State for this model and the success it brings. Ald Kinsey asks Ms. Moffat-Thomas if Swiss Bear has given any thoughts toward helping other local organizations with the techniques of successful fundraising as they have demonstrated so successfully how it is done. She responds that they are happy to share whatever services that are helpful to those organizations and to the City. In response to Ald Kinsey's question regarding new projects, Ms. Moffat-Thomas outlines some of the new attractions coming to Mum Fest, such as a California Pogo Stick demo team, a Pirate Ship, and a Bicycle Riding Group which raises money for cancer research wants to end their tour in New Bern at the Mum Fest. The NB Mall wants to get involved with incorporating a judged Art Show & Contest, in addition to continuing to provide parking for shuttle services to the festival.

City Mgr Epperson interjects some levity by saying that "the City wants to make sure before discussion goes further, that the City says 'yes' to accepting Swiss Bear's offer to procuring the Gateway Fountain".

It should be noted that all groups were afforded about the same amount of time for their presentations, approximately 40 minutes each. The final portion of the work session was devoted to the Board's discussion of making public and transparent the decisions made at its Feb 16, 2013 Retreat regarding the special appropriations line item. Unfortunately they spend about 5 minutes talking about these plans while the Swiss Bear Corp is still present at the conference table, which lends to some awkwardness & Swiss Bear questioning whether they need to be present for these deliberations. Mayor Bettis apologizes, thanks the group for their presentation and generosity of partnering activities and the Swiss Bear members depart.

The Board continues with City Mgr Epperson saying that for all who are watching or listening, there's a place or opportunity for anyone to participate. The requirements that the groups expressed a need for this year are more than what was in the budget in the past. The only group that was increased last year was the Greater Duffyfield Residents Council. The City has current funding levels to provide for this evening's requests, but needs the Board's direction as to what they wish for the exact awards to be, taking into considerations their discussions at the Retreat.

Mayor Bettis asks if the Board is going to doing an in-depth discussion of the appropriate level of and justifications for its funding awards now, at this work session. Mr. Epperson reminds the Board of the future budget meetings' dates and distinguishes whether these next 3 meetings are for overview, planning or final presentation. He also offers the significant fact that "the City has a $1.7 million gap, but obviously we will present you a balanced budget". He states that the first Board budget workshop on May 21st @ 6 pm will be spent on special appropriations and the second workshop on May 23r @ 6 pm will be devoted to the general fund items. Ald Kinsey has a question on whether the Board wants the Highway 17 Association and the Allies for Cherry Point's Tomorrow (ACT) to come before them and make their presentations for funding requests. Ald Bengel reminds that the Board had decided to look at those two differently. Mr. Epperson says those presentations may be offered or not at the Board's discretion. Mayor Bettis says they should give the special appropriations organizations from tonight a lot of thought which they deserve. He says "the Board's policy discussions and deliberations should be spoken in public". Mr. Epperson reminds the Board that at the Retreat they said that Hwy 17 Association and ACT were to be removed to another line item and you have their materials but they're not required to appear before you. Ald Outlaw asks if Epperson or others are going to make the public aware that the Hwy 17 Association and ACT are under a different budget category. If so, then Epperson should explain the reasons for that on the City 3 TV PEG channel. Mr. Epperson explains that since they serve a different purpose they are considered as advocating or lobbying groups. The decision was to treat them differently so that's why they were not invited to be present tonight. Ald Outlaw says he remembers previously talking at last year's budget meetings about how private groups can often do things better than the city. The City can't duplicate the efforts and activities of either Hwy 17 or ACT, which is why the City needs them. Ald Bucher says 6 - 8 months ago he "found himself on the ACT legislative committee" and all chuckle. "I attended my first meeting this week". He agrees with Ald Outlaw. He continues, saying "I don't know of a more important group or purpose right now to support. The new Obama budget calls for a BRAC and we need to be prepared. South Carolina is ahead of NC in funding. SC already has $200,000 in their budget, there's zero in the NC state budget. There will be bases closed". He finds that strange in light of the fact that NC has many more military bases than SC. Mayor Bettis offers that the reason SC is ahead of NC in fundraising is because Charleston suffered a BRAC; they learned their lessons so they prepared this time. Ald Bucher says, "NC has far more bases at stake. It's the economic engine in our state". Ald Bengel says she agrees with the Board's proposal to have these two groups separated out of special appropriations. Mayor Bettis tells the others, "Look at this budget", then asks, "Are these the dollars numbers we want city staff to go forward with?" Ald Outlaw says "we volunteered to offer an audit of the Fire Museum. Tonight, tax exempt organizations that gave tax returns is a good check and balance. I have mixed feelings in going much further tonight. I would still like to see an audit on all the organizations. DuffFest concerns me a little because they didn't offer a beginning and ending balance. I realize it's new and hasn't been around as long. Plus, checks are being written under the City for a significant period of time. If it's (the DuffFest) moved to Queen or Broad (streets) the $10,000 can be justified. I have concerns with the accounting of the Duffyfield group."

Ald. Bengel states she really wants to take the time to digest all the information they've heard tonight. She asks Epperson if his recommended budget is for last year's figures. City Mgr Epperson says 'yes'. Ald Bengel says again that she wants to digest tonight's information. Ald. White says, that as he told Ald Bucher earlier, since the dollar amount asked for by ACT is $14,200, he wants to talk about ACT at some point. Ald. Bucher reiterates that the City gave ACT $4,123 last year and this year they want $14,200. He explains that ACT came up with that number based on the population counts of each local town in its proximity that the base impacts. The ACT has also solicited the counties to contribute. Ald Bengel asked how the county figures were calculated. Ald Bucher responded the population numbers for the towns were subtracted from the counties' recorded population data. He says that all of ACT's budget is derived strictly from donations. In order to accomplish the appropriate Washington DC lobbying to ensure success they need a strong budget. Each town was assigned an amount to donate based on a percentage of the $200,000 required ACT budget multiplied by their population. He says they should talk about this vital funding to the ACT when the Board members are fresh and not 2 ½ hours into a meeting. Ald Kinsey says careful deliberations are important for all the organizations, that the Board members must consider their presentations and the numbers they're asking for. He just wants the public to understand the basis for their decisions and the processes undertaken to make the City budget and to decide on amounts to award. Mayor Bettis asks, "Are you okay with Mr. Epperson's numbers?" Ald Kinsey says he is fine with last year's numbers going to the organizations. He thinks the $14,200 for ACT is justified. Ald Taylor addresses Ald Outlaw and wishes him to understand that as of June 30, 2013 the CDC will no longer be the fiscal agent for Duffyfield Residents Council, they are looking for another CPA. City Mgr Epperson calls on Finance Dept Dir Fiachetti to make any comments - he says he has none at this time.

5. Adjourn at 8:36 pm.

Rhonda Taylor
CCTA Watchdog for New Bern