Public Facilities Update and Referendum
On July 23, 2019 board of commissioners took the next step in the public facilities process and held a public hearing for setting the special bond referendum to be placed on the ballot on November 5, 2019.
Two adoptions will be targeted during the August 13, 2019 board meeting:
1. Putting the bond on the ballot
2. The bond amount, which is $14 million.
Finance Director, Piet Swart noted that the tax rate equivalent for servicing the $14 million bond amount is 3.5 pennies. However, considering funds already set aside for debt service by the Town and the timing of the debt issuance, Swart indicated that the increase would likely be 2 pennies. If Continuum (the Town-owned Cable Company formerly called ‘MIConnection’) is sold (the sale is not a forgone conclusion because the Town does not yet have a contract and selling the cable company also requires citizen support via a referendum in order to sell the asset) and if the $1m subsidy we currently pay toward Continuum debt is applied to public facilities GO Bond debt service, the tax rate would be flat (29 pennis which is 1/2 penny above revenue neutral).
The overall cost of the public facilities including the acquisition of 251 South Street financed by a 20-year loan plus funds already set aside is $17.05 million.
8 Concerns:
- The potential for a marketing-centric vs. citizen-centered education approach to the referendum.
- Lack of citizen’ buy-in’ about the design and location of what will serve as the new town hall.
- Fire facilities will require an estimated additional cost of $4 million in 5-10 years.
- The ongoing topic of affordability and cost of living in Davidson due to tax increases.
- Unanswered question of what will become of the Sloane House and the Pump House real estate, currently accommodating staff that will be moved to the new facility.
- A clear space analysis of all Town-owned real estate is unavailable at this time i.e. how long will this solution last before we need more space?
- The fact that $15 million in GO Bonds approved by the voters in 2017 have not been issued and the issuance of some or all of this amount will likely result in the need for additional taxes.
- Speculative “mixing in” of possible available funds acquired through the elimination of the Continuum subsidy with the tax rate impact. ‘Counting our chickens before they hatch’ in believing that that Continuum will be definitely be sold ‘muddy the water’ having one referendum relying on the another. If Continuum is not sold for any reason, then citizens will be still be saddled with $1M in debt service for that, plus 3.5 pennies on top of that, plus potential tax increase for 2017 GO Bonds.
Listing “concerns” without discussing what the town will do without if the bond issue is not approved is unhelpful. To address just two issues, unquestionably the South Street solution to the Town Government’s obvious present and future space needs is a godsend that spares South Main Street from disfigurement, and the need for the fire facilities is clear, at least to me. Save Davidson needs to take an overall position on the bond issue, and in my judgment a recommendation “Against” would be irresponsible.
While Save Davidson is able to propose solutions during public input, only the Town staff, elected officials, and the task force are in the position to synthesize ideas from public and push them forward. The notion that some town staff, the planning department for example, using less centralized office space such as perpetually vacant office space at the circles at 30 (even if it’s temporary while we figure out a better solution and get police and fire space deficiencies handled) has been suggested but has not been explored that we know of. Also, commissioner Sitton has offered the notion of utilizing historical properties as Davidson College does and as the Town is currently doing with the Sloane House; currently being used by some staff such as economic development and Town attorney and the Pump House for Parks & Recreation.
If the Bond issue isn’t approved, the Town will simply defer the public facilities referendum for another few years and we would be fine. The Town has not been on solid financial footing since acquiring Continuum in 2007.
Ignoring the vote of the citizens related to the 2017 GO BONDS is wrong. It is government thinking they know better than the governed.
Pushing the referendum before the finalization of the Continuum sale is not real bright either.