BY MIKE FUHRMAN

All indicators point to continued economic growth in the City of Statesville during the next 18 months as a result of new industrial and residential development.

That was the message that City Manager Ron Smith and senior managers delivered to the City Council during this week’s two-day budget retreat.

“The developments continue to roll in,” Smith said. “There has been some slow down (elsewhere), but we’re not seeing it.”

In addition to several large industrial projects, the city has about 7,000 residential units in the development pipeline, including 1,000 newly permitted units. Those housing developments, predominantly single-family homes, will be necessary as the city’s population increases by nearly 10,000 residents to 40,000 by the end of the decade, Smith said.

That growth, the city manager said, will require investments in water and sewer and electric infrastructure as well as sanitation, police and fire services.

Chief Financial Officer Tim Carr told council members that he projected property tax revenues and sales tax revenues — and investment income — for the current fiscal year to exceed budget by as much as $3 million.

“We’re going to have a banner year compared to what we budgeted,” he said.

Spurred by the recent countywide revaluation, the city’s property tax revenues are expected to top $24.8 million this fiscal year, while the city’s share of sales tax revenues is forecast to increase to $14.9 million.

While Carr expects the economy to remain strong and the city’s primary revenue streams to grow in 2024-2025, he also cautioned council that debt service would increase by $1.3 million as the new fire station comes online and the sanitation division takes delivery of a new truck. Inflationary pressures will also increase the cost of city operations, he said.

The CFO did express some concern that revenues and profits from electric utilities are expected to decline this fiscal year and next. But those projections did not include a 5 percent wholesale price cut by Duke Energy, which could add about $2 million to the department’s bottom line.

Water & Sewer revenues, as well as income generated by the Statesville Regional Airport and Statesville Civic, continue to increase, Carr said.

Passing Costs on to Developers

While the council does not take official action during its budget retreats, council members agreed by consensus on several courses of action.

Following a report by Interim Electric Utilities Director Cody Reis, the council directed staff to craft policy changes that will result in some infrastructure development costs being passed on to residential developers.

Installing new power lines, transformers and other equipment in the Wallace Springs subdivision, for example, cost the city about $750,000, excluding labor, Reis told council.

“Essentially, existing customers are subsidizing these costs,” Reis explained. “We’re not collecting anything until the meters are energized.”

Under the proposed policy change, developers would be required to pay for those costs as part of the permitting process. That change would bring the city in line with the policies of other major utilities, including Duke Power, Reis said.

Councilman Steve Johnson expressed his concern that developers would pass the costs — estimated at $4,000 per home — on to buyers, which would further drive up the cost of housing.

The new policy, if approved by council, could take effect on July 1, 2024.

No Appetite for a Bond Referendum

While reviewing a long list of proposed capital improvement requests, council decided against exploring a multi-million bond referendum.

The total cost of the projects identified by staff is $23,750,000.

Among the staff requests are funding for a swimming pool ($3.6 million), greenway repairs and improvements ($500,000), land acquisition for future parks ($1 million), McClure Park improvements ($750,000), Kimbrough Park improvements ($350,000), Bentley Center Renovation ($400,000), City Hall roof replacement ($2 million), additional lights ($400,000) and turf for one field at Statesville Soccer Park ($1 million), fire engine replacement ($1.5 million), and replace Fire Station 2 ($9.5 million).

Council members subsequently ranked the major projects. City staff will compile the results of those efforts and report back to the council.

Upgrades, Staff Attorney for SPD

As long as the city has sufficient funds, council expressed support for purchasing new Tasers, body cameras and in-car camera equipment for the Statesville Police Department. The videos would be uploaded into a server that is easily accessible by the District Attorney’s Office.

The equipment, provided by Axon, would cost $608,000 the first year and then $520,000 each of the next four years.

The city has been awarded a federal grant in the amount of $410,000, which would offset some of the cost.

Council also expressed support for SPD Chief David Onley’s request to hire a full-time staff attorney.

Change to Municipal Elections

In an effort to increase voter turnout, council members agreed to move council elections from October to November, starting in 2025.

Only 608 voters — 6.5 percent of those eligible — participated in the most recent municipal election. Ward 1 had 249 voters, Ward 4 had 232 voters and Ward 6 only 127.

Based on historic data, staff predicted moving the election from October to November would at least double voter turnout.

Council members also decided to eventually split up the races for the at-large seats, starting next year.

During that year, they proposed that the top vote-getter win a four-year term. The winner of the second seat would win a two-year term and then that seat would be on the ballot again in 2027 for a four-year term.