Tag Archives: budget

AffordableHousing, CarolinaNorth, ChapelHill, LocalPolitics, OrangeCounty, UNC

Chapel Hill’s First Budget Meeting of 2010

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I want to quickly respond to Chapel Hill Mayor Mark Kleinschmidt’s comments this evening.

First, spending $8-12M on the Lot #5 project, building luxury condos and enriching a private developer, is not the same as “protecting our Town’s infrastructure”.

The Lot #5 (West 140) project is discretionary – the push to keep it going is not based on sound economic fundamentals.

Putting Lot #5 on par with filling potholes or expanding the Library is a great political speaking point – but certainly not grounded in reality – suggestions otherwise does the public a disservice.

At the same time, other probable debt-related outlays aren’t included in the analysis. Mark suggesting the lump of general obligation (G.O.) debt covers the whole gamut of obligations minimizes the challenge before us.

Beyond that bit of misdirection, Mark knows (or should know) that our Town’s current reserves are low compared to historical reserves on a percentage basis.

That $1.9M increase Mark bandied about sounds big but isn’t considering the $55M hole we’re in. No matter how hard fought the battle to get that $1.9M last year, weighed against future operational and capital demands – like trying to expand the Library – the percentage improvement in overall reserves was slightly better than negligible and doesn’t position us any better to deal with MAJOR outlays (if you use a more reasonable debt ceiling).

To use the credit card example several Council members relied on this evening, there is a qualitative difference between the following two scenarios:
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ChapelHill, LocalPolitics

Easthom on Being a Good Councilmember

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Laurin, a sitting member of the current Council ruminates this evening on what makes a good Mayor and Councilmember.

Public service is not a right, but a privilege. Holding public office can be one of the most rewarding experiences in life. Being a good mayor or a good council member certainly comes by trial and error and by experience itself. The bottom line is to never lose sight of what drew you to the position in the first place.

Laurin, a one-termer (so far), is up for re-election with Mark Kleinschmidt, Ed Harrison and recent appointee James Merritt.

With elections almost 8 months off it appears that the jockeying for position has begun.

More from Laurin here.

CitizenWill, EconomicDevelopment, Ruminations

Northern Heads South

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Not a great day for local tech companies in RTP. Nortel (Northern Telecom) is shedding another 1,300 jobs in an effort to stay afloat.

I worked at Northern for nearly seven years (I started at Team10 for any old-timers out there). Back then it was an incredibly vibrant can-do company with a really nice and committed workforce.

In the late ’80’s, early ’90’s Northern had a lock on digital telephone switching equipment. Profits bulged as management got fat and sassy. Profligate spending on some rather ridiculous ego-driven projects became the norm.

Unfortunately, upper management’s vision couldn’t keep up with that of the folks cranking out telco gear. Their top-of-the-heap attitude blinded them to what could and eventually would happen. I remember meeting with the top-dogs in RTP in ’91 trying to convince them that one of Nortel’s bread-n-butter products, the DMS-10, would be replaced within years by cheap, rack-mounted computers using commodity components.

That day eventually came to pass finding Nortel poorly prepared. By that time, I had moved on to help bootstrap a couple startups.

The lessons of Nortel – especially what missteps to avoid – have stayed with me all these years. Those lessons aren’t particularly grounded in Nortel’s culture but are more reflective of common attitudes found in many institutions (“too big to fail” for one).

If the Council does follow up on my call for a Citizen’s Budget Board, I will volunteer and apply the lessons of Nortel, my successful entrepreneurial experience and my diligent efforts to help set the Town’s finances on a firm grounding to bear.

To any remaining Nortel folks that stumble on this entry – good luck and god-speed.