Tag Archives: winston-salem

The Public Payroll

Back before the economy tanked not many people griped about what government employees made, likely because not many people viewed the jobs as particularly exciting nor well-paying.  Since the economy tanked the public has pulled a 180 thanks in part to the fact that just having a job is something to celebrate and also to the fact that many governments are facing tremendous budget pressures.  Now people are paying very close attention indeed to what government employees are being paid.

The Winston-Salem Journal has a story about the compensation of Winston-Salem's 91 highest paid employees which totals $8.5 million.  Here's an excerpt from the story:

As it turns out, 21 full-time employees make at least $100,000, according to the report of Budget Director Ben Rowe. Earning between $75,000 and $100,000 are 70 full-time employees, according to the report. The total salaries of those 91 employees are valued at about $8.5 million, according to Rowe. They’re lawyers, managers, supervisors, chiefs, coordinators and other top-brass employees.

Excluding those 91 employees from the proposed 1.5 percent merit pay increase would save about $150,000, according to the report.

Cutting that amount would be merely symbolic, Council Member Dan Besse said. Besse, who had asked about the possible savings during a budget meeting last week, said he wanted to know because he opposes the idea of raising salaries the same year that the property-tax rate will be increased…

“The question then becomes: What’s the right balance on things like salaries?” Besse said. “Tentatively, I’m trending toward considering that we can’t simply say, ‘No increase for anybody this year.’ It appears we’re starting to experience problems with recruiting and retaining people in certain positions, like police officers.”

Is it fair to exclude the top level employees from the merit pay increases that the rest of the employees would enjoy to save a symbolic $150,000? Isn't the better question whether or not they did their jobs well, and if they did do their jobs well shouldn't they be compensated appropriately?

It's understandable that people would want to freeze or reduce pay in the face of budget crunches and potential tax rate increases. You might be asking, "How is that any different from a company freezing pay or laying off people when their sales drop or the company is losing money?" Well, the comparison really isn't that simple. Government employees don't get to pick their customers; they have to serve everyone. They also don't have much control over the income side of the ledger since tax revenues are tax revenues. What they can control are expenses and how effectively they do their jobs. If they do that are they to be punished?

Here's another point from the story that should not be lost in the shuffle:

To make up for the $7 million loss, the city would have to increase the tax rate by about 10 percent to 54.25 cents for every $100 of assessed value from the current rate of 49.1 cents. Rather, Garrity has proposed raising the city’s tax rate about 8 percent, from 49.1 cents for every $100 of assessed value to 53 cents.

Because of the revaluation, a large majority of city property owners would actually receive a lower tax bill even if the council members approve the increase in tax rate.

So in other words the symbolic freeze of the highest paid city employees wages would come despite the fact that many taxpayers won't be paying any more in taxes than they did last year.  Five years ago when these folks were largely viewed as average bureaucrats you probably wouldn't have seen this kind of discussion, but now that times are tough those same folks are viewed as overpaid executives ripe for symbolic flagellation. Doesn't quite seem fair to them.

Freakonomics Dude in Camel City!

I might be one of a handful of people who will think this is exciting, but so what? Freakonomics coauthor Stephen Dubner is going to be playing a gig with his old band in Winston-Salem this week. From the Freakonomics blog:

A long time ago, I played in a rock band, called The Right Profile. It was a great deal of fun. We wound up getting a record deal with Arista…

But I quit the band about a year later. We were in the middle of making our first record. I decided I didn’t want to try to be a rock star after all, as much fun as it was. Writing suits me better.

I pretty much went cold turkey and have performed almost no music since then. But all these many years later, The Right Profile is set to ride again, if only for a few songs. We were asked to participate in a concert by the Vagabond Saints’ Society at a centennial celebration for the city of Winston-Salem, N.C., on Fri., May 7, from 7-10 pm.

I can’t wait. Winston-Salem has produced some amazing music over the years (the dB’sBen FoldsLet’s Active, the AlisonsDillon Fence, and many more), and it will be great fun to hear these guys again and crawl backwards into the time capsule. Also I can’t wait to play again with my bandmates Tim FlemingJeffrey Dean Foster, and Jon Wurster.

The date is actually May 10 and according to the centennial celebration website the  Vagabond Saints' Society show will be at 6th and Cherry. Should be a blast.

Winston-Salem Makes a Great Geezerville

Winston-Salem made the Forbes list of 25 Best Places to Retire in 2013. Here's what they wrote:

Pros: Low cost of living, median home price $129,000, moderate climate, college amenities (Wake Forest), high doctors per capita, high Milken Institute aging rank. Con: Crime.

Other North Carolina cities that made the list were Charlotte and Asheville.

Why No Trader Joe’s in GSO?

The Triad Business Journal explores why there won't be a Trader Joe's in Greensboro in the near future. In addition to all of the reasons cited in the article – Greensboro not being on TJ's 2-year plan, the attorney involved in the proposed project last year no longer being involved, and nothing happening on the development front – they might want to add that no one in Greensboro (that I know of) made a video to try and woo Trader Joe's. Some folks in Winston-Salem did a couple of years ago and now we have a TJ's in Thruway. So, folks in GSO here's a helpful hint from your neighbors in Camel City.

myWinston-Salem.com

The folks behind Winston-Salem-based Contract Web Development just announced the launch of  Cover Story Media, an online publishing company "that focuses on original content founded in reader engagement." One of their products is mywinston-salem.com and after taking a quick trip around the site I'd say it looks like a good new player in the local online content game.

Congrats to tennis buddy Alex Schenker and his team on their new venture. Here's a video they created for the launch.

Next Year’s Property Revaluation in Forsyth is Going to Be a Doozy

From Yes!Weekly's blog post on the proposed bond referendum that would pay for streetcars in Winston-Salem among other things:

Budget challenges faced by the city include an anticipated 11-percent decrease to the property tax base with revaluation next year, the loss of federal stimulus dollars for police salaries, increased fuel costs, and plans for the city to kick in more for employee salaries and healthcare benefits.

For all of these reasons, City Manager Lee Garrity told the city council’s finance committee this evening that he is recommending that there be no bond referendum this year.

“The latest numbers for the first quarter of this calendar year are very concerning,” he said. “Sales of houses are up, as you may have read, but the price versus assessed value is down. A house in Forsyth County right now on average is selling for 11 percent below tax value. What that means for us going into the year after next with the budget is pretty significant.” (Emphasis mine).

The last time we went through a revaluation in Forsyth we were in the midst of the financial meltdown and at the time I though revaluations would not accurately reflect the true value of a property because there hadn't been time for the sales comps to have an impact on the system. Literally nothing was selling at the time so the comps were all pre-meltdown, and thus I felt they were artificially inflated. Those comps are now in the system and as the city manager pointed out this revaluation is going to show a significant drop in values, which means that tax rates will be raised significantly.

Here's the funny thing – the size of the check each property owner will be sending is likely to be close to the same amount they sent this year. That's because from the city/county's perspective they need a certain amount of revenue to make their budget (note I'm not saying whether or not the budget itself is a good thing), so when property values go up the city council or county commission will leave the rate flat or even reduce it so they can say they reduced taxes. Obviously they didn't really reduce the dollars, just the tax rate. Nice, huh? When property values go down they have to raise the tax rate, but in reality the actual tax dollars isn't much at all compared to the previous budget year. That's when you'll hear the council members and commissioners talking about how they were able to minimize the tax dollars each property owner had to send them, not the increase in the tax rate. Actually, if you read the Yes! Weekly post you'll see that they're already doing this and who can blame them?

I've said it before and I'll say it again, I think the best way to do this is having an annual revaluation. It's the fairest system because it more accurately reflects property values at any given time, prevents property owners from seeing 10-20% changes in their property values all at once, and makes budgeting for the city and county a little steadier. 

Trader Joe’s Big Brother

I remember reading an article (I think in Wired magazine) years ago about the parent company for Trader Joe's, but I'd forgotten about it until I saw this Freakonomics post:

The company is called Aldi and, though I’d seen one or two of its stores in the past, I didn’t even know it was a grocery store. Then I read this very interesting Wall Street Journal piece about the company’s ambitious new plan for the U.S., which calls for 75 new stores this year. The article claims that Aldi is so good at selling cheap goods that WalMart couldn’t compete with it in Germany.

So, for those of you waiting with bated breath for Trader Joe's to announce a store opening in Winston-Salem or Greensboro, you can already shop at its big brother's stores.  Here's a handy-dandy list of locations for you.

Rumor Mill – Trader Joes to Winston-Salem?!

SueMo has shared something on Facebook that I pray is not wishful thinking or a cruel joke: Trader Joe's coming to Winston-Salem in early 2013.  Could it be?

Seriously this is a definition of a rumor – SueMo shared the status of a friend on Facebook who'd received a text from her friend that works at Trader Joe's and who'd told her that Winston-Salem was on the company's "store bulletin."  So don't get too excited yet, but maybe we'll get confirmation from something more official – like Twitter.

BTW, I was just checking out the website and it appears that there's a Trader Joe's on the same road as our oldest son's apartment in Charlotte.  I feel like a total idiot now that I know we've been within a stone's throw of the place and didn't even know it.  Guess we've got another reason to visit him!

National Track Event Coming to Winston-Salem

It appears that Winston-Salem is continuing to build on its recent success in bringing national events to the city:

Winston-Salem, North Carolina, beat Tulsa in a run-off to land the 2014 USATF National Masters Outdoor Championships, according to sources in St. Louis at the USATF annual meeting. “Outdoors it was a tie between Tulsa and Winston-Salem,” said my source. “Winston-Salem won on a close tie-breaker vote. Tulsa had an excellent presentation and had a well-thought-out plan. Definitely should be high on our future list of championship sites.” Wake Forest University will hold the meet — at Kentner Stadium. 

Smitty Gets Well Deserved Award

I've been fortunate to have had the opportunity to rub elbows with Jeff "Smitty" Smith, he of Smitty's Notes fame, on several occasions and I can tell you that he's one of the nicest, most generous people you'll ever meet.  Yesterday he received the Duke Energy Citizenship and Service Award at the Winston-Salem Chamber of Commerce's annual meeting, and I can't think of anyone more deserving. 

Congrats to Smitty and if you aren't already I highly recommend you become one of his regular readers.