Wendell News Outlet

In the Eastern Wake News on July 25, 2007, Mr. Bob Sams wrote a letter to the editor in which he sought to imply that a letter, written earlier by Mr. Glenn Harris, was really about excluding a specific class of society from the town of Wendell. Obviously, Mr. Harris’ letter was primarily about the various tax rates in different towns in Wake County, but he also alluded to diversity in housing. Mr. Sams took umbrage and wrote a letter to the editor in which, unfortunately, he unintentionally distorted some facts and concepts.

Let me attempt to clarify and adjust some statements made in Mr. Sams letter:

1 – In referring to various sources of tax revenues, Mr. Sams says “therefore, based on these facts, we already have broad diversity in the Wendell tax base”. Yes, we do have diversity in the sources of tax revenues, but in relation to Mr. Harris’ letter that is like comparing apples to oranges. Mr. Harris reference to diversity was comparing the tax revenues generated by less expensive houses to more expensive houses and not the total revenue source of the town. One is really not comparable with the other in this context.
The following quotes from the 2007-2008 Wendell budget appears to lend credence to Mr. Harris’ comments regarding housing diversity; “The majority of revenue growth will be in property taxes and sales taxes. The additional property tax revenues will be primarily from residential development” (emphasis added)

2 – Mr. Sams apparently felt is was necessary to inject a divisive tone of elitism into his letter when he said “In my opinion, the real issue Mr. Harris speaks to is who will be allowed to migrate into and settle permanently in the town of Wendell, not this play on the word diversity” What a jump; from how to maintain sufficient tax revenues to discrimination against lower income families. Does one necessarily infer the other?
Again, Mr. Sams is using the concept of diversity in the wrong context.

3 – By bringing in the housing problems Knightdale is currently facing, Mr. Sams injects more discrimination against “some members of our society existing on an income lower than the median”. Knightdale’s situation is concerned with restricting the number of affordable housing units that can be built in Knightdale, contrasted with having a greater number of more expensive houses built in Wendell. Perhaps Mr. Sams read too deeply into Mr. Harris’ letter.

4 – And finally, Mr. Sams comment “Let Wendell remember and honor its history and former leaders, and not prevent others from achieving the American dream”. If Wendell doesn’t reverse its current housing policy, wherein it encourages the building of lower priced housing, there won’t be a town left to honor nor the wherewithal to achieve the American dream. Think about it: more expensive houses pay more taxes which in turn pay for a greater share of the services provided by the town. If the town continues down its current path of encouraging lower priced housing that generate lower taxes where will that leave the town?

To substantiate my contention, I quote from the town of Wendell’s 2007-2008 Budget Message Conclusion; “While the proposed Fiscal Year 2007-2008 operating budget contains funding for many of the town’s needs, more needs exist than there are revenues in which to address those needs” (emphasis added) Why aren’t there enough revenues? Perhaps it has to do with the small house vs. large house tax base.

Now that some adjustments to Mr. Sams letter have been made, I would like to join him in his “hope to see open discussion of these and other divisive issues with the intent being reconciliation for the betterment of all.” That, I feel, can be brought about by examining the facts on the ground and not dealing in hyperbole and conjecture.

July 27, 2007

We are very close to victory in the NC General Assembly on a transfer tax, but we haven't crossed the finish line. We need your help! Please take a minute to call or email Wake senators and representatives TODAY. Ask them to support the budget deal that would allow Wake and other counties to hold a referendum on a real estate transfer tax. While WakeUP's priority has been a 1% real estate transfer tax, the budget deal between the House and Senate currently includes a 0.4 % transfer tax authority, and even this has been extremely controversial. News from the legislature is that the transfer tax is in, but it's tenuous. We still have to get both the House and Senate to vote FOR the budget WITH the transfer tax in it.

Not surprisingly, there's a last minute surge by the realtor's and developers' lobbies against this growth-paying-for-growth option at this web site. This desperate effort to intimidate our state legislators is about maintaining the two decade long head-lock the giant development industry has had on the legislature. Remember, the bill before the legislature gives YOU the right to vote in a referendum regarding the transfer tax. To learn more news details, click here.

We need your voice to help ensure that we can pay for schools, open space, transit and more to protect our quality of life as we grow rapidly, and to protect the economic vitality of Wake County. Please take a moment to write or call your State Senators and Representatives. If you know their name, their e-mail addresses all use the same format. For example, Vernon Malone is vernonm@ncleg.net If you don't know who represents you, click here to find out.
You can find a phone directory here.
Please write or call today as the vote on the budget, which includes the transfer tax, will be this weekend.

Thanks for all your help!

Karen Rindge, Chair, WakeUP Wake County

Stan Norwalk, Vice-chair, WakeUP Wake County

WakeUP Wake County
P.O. Box 6484
Raleigh, North Carolina 27628-6484

WakeUP Wake County is a non-partisan, citizens' group supporting well-planned, sustainable growth in Wake County, North Carolina. WakeUP was formed as a non-profit in 2006 by a group of concerned, civic-minded citizens who believe that growth is good, as long as it is planned to ensure a better future for our communities. Wake County is growing rapidly, with a population due to double in 20 years and 27 acres of land developed each day. Because this growth ultimately affects us all, WakeUP wants to ensure a bright future for ourselves and for those who come after us.

It has come to my attention that some residents of Wendell think the Wendell Community Coalition (WCC) is being too negative in its assessment of the town’s housing practices. Perhaps they are right. Why is the WCC speaking with such a negative fervor? Why are they speaking at all? For that matter, why is there a Wendell Community Coalition? Who needs it? The town of Wendell got along just fine without them! Have I summed it up for those of you who feel a dislike for the WCC? Well, rather than regurgitating the reams of negative statistical data that the WCC has put on the table, let’s stop for a minute, and consider the overall wellbeing of Wendell; for today and tomorrow.

Every town has an underlying spirit of cohesiveness and belonging, call it what you may, it’s there. Wendell certainly has this spirit and more. People have spent their entire lives in this town, basking in the glow of friendship and unity, until a disruptive entity called the WCC appeared, spewing negative information that disrupted the status quo. Unfortunately these facts, which cast a negative shadow over the town, tended to wound and insult those town residents who were reluctant to believe them. But, if you have read the facts and statistics and if, for the sake of our discussion, you accept them as true, which they are, where do we go from here?

There is nothing to be gained by placing blame on the past or current town administrations. Whatever circumstances brought us to this juncture took place, and here we are, with all our blemishes and shortfalls. Agonizing over what could have been will not change anything. Today we see and understand the problems; tomorrow we take the necessary steps to correct those problems.

This is where the WCC felt it could be of service to the community; by exposing a potentially serious financial shortfall that may be brought about by an imbalance of housing diversity within the town. You may not like the way the WCC handled this situation, but if you are following the apparent trend towards inexpensive housing, along with the insufficient tax revenues they yield, you must realize the gravity of the situation. If there is not enough money coming into your home to pay your bills, someone gets a part time job. If there is not enough money coming into Wendell’s coffers, they raise the taxes. It creates a never ending downward spiral; lower priced houses, higher taxes which lead to more lower priced houses with higher taxes.

If we want to retain what we have in Wendell, and perhaps make it better, we all have a part to play. Standing on the sidelines making negative comments doesn’t help, so step up, attend a meeting of the WCC; tell us what we are doing wrong and how you think it should be done. Show us the right way, from your prospective! We’re open to all suggestions and constructive criticism. If you don’t lead you’re destined to follow!

Will Money Suppress Reason

July 19, 2007

I am saddened and concerned with what's going on in the North Carolina Senate. Despite the realtor-developer lobby's expensive public relations campaign based on distortion and half truths, the Senate leadership had agreed to a compromise involving a 0.4% local option transfer tax (TT). (Down from the 1% WakeUP and others have proposed.) Even this small tax on all real estate transactions would result in new revenues statewide of $300 million to $400 million in the next fiscal year. It would pay-off ten-times that amount in bonds for badly needed schools and other infrastructure across the state without a property tax increase. In Wake it could generate $50 million annually - enough to fund bonds for about 17,000 new school seats (over two years worth), again without a property tax increase. The added revenue would free-up existing taxes for advancing the education of the next generation. Now our county property taxes are being overwhelmed by growth related new construction and major tax property tax increases are around the corner.

But at the 11th hour the compromise collapsed due to threats of retribution from the realtor-developer lobby.

Amazingly, the transfer tax is not dead. A strong defense has been mounted in the House. WakeUP believes this dispute is about more than a tax increase. For almost twenty years the development lobby has blocked similar attempts at alternative revenue sources involving development. A new compromise needs to be put together. You can help by letting senators in the Wake delegation know that you support the transfer tax.

Of the four Senators representing Wake only Senator Cowell janetc@ncleg.net has been a steadfast supporter. She has sponsored a bill including a TT. Please let her know you support her efforts.

For whatever reason, three of our Senators either have equivocated about the transfer tax or simply do not support it. They all have heard about the crisis facing our schools. They are Vernon Malone vernonm@ncleg.net; Richard Stevens richards@ncleg.net and Neal Hunt nealh@ncleg.net .

Neither Senator Malone nor Senator Stevens has taken a clear position. The time for equivocation and "better ways" is past. Senator Hunt tells us he will not support the TT. He has offered another approach involving a sales tax on services. That approach will be more contentious than the TT and may take years to implement. The crisis in our schools is NOW. We need their support NOW. Please keep your message brief and to the point. "I support the transfer tax and I vote." is sufficient. Please mention WakeUP. For anyone with an open mind, our common and repeated message will have an impact.

Stan Norwalk
Unpaid Citizen Advocate
Vice Chairman
WakeUP Wake County
Stann@nc.rr.com

Hot off the press - expose from Independent Weekly.

For more details from the WakeUP Forum of the realtor-developer activities click on this link.
WakeUP Wake County
P.O. Box 6484
Raleigh, North Carolina 27628-6484

WakeUP Wake County is a non-partisan, citizens' group supporting well-planned, sustainable growth in Wake County, North Carolina. WakeUP was formed as a non-profit in 2006 by a group of concerned, civic-minded citizens who believe that growth is good, as long as it is planned to ensure a better future for our communities. Wake County is growing rapidly, with a population due to double in 20 years and 27 acres of land developed each day. Because this growth ultimately affects us all, WakeUP wants to ensure a bright future for ourselves and for those who come after us.
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There is an article on page 1 of today's News and Observer titled

I noticed a recent Eastern Wake News article about Knightdale holding their property tax rate at .50 per $100 valuation.
That got me to thinking.
Most of us have been led to believe that Garner has the highest city tax rate at .575 per $100 valuation and that the tax rate for Wendell is only .54 per $100 valuation.
Technically speaking that may be correct when looking at the property tax rate chart at wakegov.com web site and/or listening to our city officials.
For those of you living in Wendell, look at your tax bill and you will notice that there is also a Fire District Tax added to your tax bill.
Wendell is the only city in Wake County that has a Fire District Tax Rate along with the City Tax Rate.
This fact has been confirmed by Ken McArtor, Wake County Revenue Department, Customer Response Center, 919-856-5400.

Therefore, the real tax rate for Wendell is .64 (also revealed in a recent N&O article) per $100 valuation and is 11% higher than Garner, 28% higher than Knightdale, 47% higher than Raleigh, 52% higher than Cary and 60% higher than Apex.

So I decided to do a few comparisons.
There is property on S. Selma Road in Wendell that currently has a tax value of $313,651.
In Wendell it will have a city tax bill of $2,007.37 which includes fire protection.
In Garner it would have a city tax bill of $1,803.49 which includes fire protection.
In Zebulon it would have a city tax bill of $1,725.08 which includes fire protection.
In Rolesville it would have a city tax bill of $1,615.30 which includes fire protection.
In Knightdale it would have a city tax bill of $1,568.25 which includes fire protection.
In Raleigh it would have a city tax bill of $1,364.38 which includes fire protection.
In Cary it would have a city tax bill of $1,317.33 which includes fire protection.
In Apex it would have a city tax bill of $1,254.60 which includes fire protection.

The county tax bill would be the same in each of the above examples.
As you can see, city tax bills vary considerably with Wendell having the highest tax bill by far.

So my the questions for our elected officials are:
What are we getting extra for this extra high tax?
Where is the "extra bang for our extra bucks"?
Why are tax bills highest in Wendell compared to the rest of Wake County?
If diversity (or lack of diversity) is a major part of our high tax rate, how do we create more diversity in Wendell's tax base?

Glenn Harris

I was thinking about the path the Wendell Community Coalition is following and what it hopes to accomplish. Then I started thinking about the fact, yes the fact, that Wendell is virtually invisible within Wake County. For example:

In Real Estate advertisements, where they have those little site maps, do you ever see Wendell? No, you see Rolesville, Knightdale and even Zebulon, but Wendell, no way! Guess this town doesn’t have any homes that people would be interested in buying.

When was the last time you read a positive article about Wendell in other than local papers? Seen something on TV? Something you could be proud of? Think about it, we don’t exist!

When people ask you where you live and you say Wendell, do they get a funny look on their faces? Do they say, Wendell, what’s out there?

This is a great town, with great people, who deserve the very best; who deserve to be looked upon with envy and respect. So, once again, what does the WCC hope to accomplish? I believe it’s trying to create a sense of pride; developing a town that has a future, a place people will want to live and raise their children.

Wendell is facing a tidal wave of humanity, no a tsunami of humanity, heading our way. It may not be evident this year, or next, but before you realize it we will be talking about Wendell with its population of 10000 or 15000 people. That’s where I believe the Wendell Community Coalition will have its greatest impact; on the character and future development of Wendell.

To accomplish these goals takes time and a lot of dedication to the cause. Are you willing to contribute your suggestions, comments and a few hours a month? If so, show up at the next meeting of the WCC; show the naysayer’s that there is an abundance of hope and determination within Wendell. Show them that their time is over and a new day is on the horizon!

Put Wendell back into Wake County! Become an activist! Stand up for yourself & the town!

Call on the Senate to Pass Transfer Tax

FOR IMMEDIATE RELEASE: July 9, 2007

CONTACT: Karen Rindge, Chair, WakeUP Wake County, 828-3833 or 637-4271

As budget negotiations move forward in the NC General Assembly, WakeUP Wake County calls upon Senate leaders to support enabling all North Carolina counties to have transfer tax authority. "The time has come for new growth-paying-for-growth options," said Karen Rindge, Chair, WakeUP Wake County. "The Senate should act now and support a transfer tax so counties can provide the schools, clean water, parks and transportation that will be needed to meet the needs of our fast-growing population."

"North Carolinians face a choice: either all homeowners' property taxes go up, or a transfer tax could be charged when real estate - commercial and residential - changes hands," said Rindge. Property taxes have long been the main source of funding for schools, but they aren't keeping up with significant increases in new construction costs and rapid growth. The Wake County school system is in a financial crisis due to the addition of 8,000 new students each year.

A 0.4 percent transfer tax, which has been under consideration, could generate about $400 million in 2008 in North Carolina. WakeUP advocates for a 1 percent transfer tax which would generate about $1 billion statewide. WakeUP recognizes that the growth challenges facing Wake, which is the 14th fastest growing county in the nation, are the same as many other North Carolina counties. Six NC counties already have a transfer tax.

Legislation introduced would permit counties to hold public referenda on supporting real estate transfer taxes and impact fees. WakeUP believes voters should decide how growth should be paid for. A recent News&Observer poll indicated 70% of Wake citizens support impact fees and significant public support for transfer tax as a means to pay for growth. The NC Realtors Association and the NC Homebuilders Association have spent over a half million dollars on a distorted ad campaign to prevent allowing voters to have their say. WakeUP believes that the voices of citizens and other local officials should be heard above the clamor of narrow business interests.

WakeUP Wake County
P.O. Box 6484
Raleigh, North Carolina 27628-6484

WakeUP Wake County is a non-partisan, citizens' group supporting well-planned, sustainable growth in Wake County, North Carolina. WakeUP was formed as a non-profit in 2006 by a group of concerned, civic-minded citizens who believe that growth is good, as long as it is planned to ensure a better future for our communities. Wake County is growing rapidly, with a population due to double in 20 years and 27 acres of land developed each day. Because this growth ultimately affects us all, WakeUP wants to ensure a bright future for ourselves and for those who come after us.

Many thanks to Mr. Sanderson for his informative dissertation on the financial calculations and thought process’ followed by developers and home builders in determining what size house to build. Though interesting in its’ content, Mr. Sanderson’s letter seemed to skim over the underlying message I was trying to convey in mine. Perhaps I missed the mark so let me be more specific.

Firstly, the quote from my letter was incomplete, it should have read as follows; “That (smaller lots) in turn will probably mean smaller, less expensive homes which will not generate sufficient taxes to pay for the greater portion of the services the town provides.” The underlying and worrisome thought of this statement is “less expensive homes”. Wendell depends primarily on property taxes for its income and more expensive homes will generate more property taxes than less expensive homes.

Simply put, as any family or business owner knows, your income, salary or profits, basically determines how much money you can reasonably spend and still stay solvent. The same principle applies to the town of Wendell, except their primary income is derived from property taxes levied on homes in the town. In Wendell this tax is currently .64 cents (.54 plus .10 Fire District Tax - Source: N&O 6-19-07) for every $100 of assessed valuation, the highest tax rate in Wake County. If Wendell were to maintain the proper ratio of expensive homes to less expensive homes, also known as housing diversity, the town budget should remain stable and be able to sustain itself without major tax increases or reduction in services. However if, as is the current situation, the town has a disproportionate number of less expensive homes in relation to more expensive homes, fiscal problems will surely follow.

Now, as to Mr. Sanderson’s statement, “The fact is that smaller lots mean larger houses” may be true in at least one upcoming sub-division in Wendell, Edgemont Landing with its 260 houses. They are offering a 3055 sq. ft., house for $189,990. If, for example, this house is assessed for about $159,591 (84% of selling price) then the tax revenues generated would be approximately $1021, not really an improvement from houses currently being built in the town. But, if that house sold for $300,000 or more, as it would in most other areas of Wake County, the tax revenues would be approximately $1613, or an additional $592 dollars. A good example of more expensive homes can be seen in Olde Wendell and Tanners Creek sub-divisions where the prices average $258,900 and $294,950 respectively. But they are built on larger half acre and acre sized lots.

So, does the “fact that smaller lots mean larger houses” really bode well for the town of Wendell? Where are these large houses and when are they coming? Will they be less expensive or more expensive? Currently there are about a dozen or more sub-divisions in the planning stages, or actually underway, in the town or its ETJ. Unfortunately most of these sub-divisions received zoning approval for smaller lots and will most likely have less expensive housing prices, if Edgemont Landing is any example. It appears, at this time, the trend toward lower priced housing continues unabated.

Yes, admittedly, I have taken one example of a larger house on a smaller lot to exemplify future housing in Wendell. Of course this is not necessarily true under all circumstances. But until Wendell establishes guidelines for developers and builders, such as Knightdale and Rolesville have done, laying out what is and what is not acceptable, my previous scenario may become the rule rather than the example.

Recently the News & Observer ran an article in which they listed the median home values (half are higher-half are lower) for the twelve municipalities in Wake County. Wendell was in eleventh position with a median home value of $94,351. Rolesville’s median home value was $174,149, a whopping $79,798 dollars more. If Rolesville can make it happen, why shouldn’t Wendell follow their lead? No need to re-invent the wheel!

Circumstances within our control are keeping Wendell down and unless someone, or some group, takes the lead and turns the town around I’m afraid it’s destined to remain the poor stepchild of Wake County!

From the Eastern Wake News: Click here to read the entire article.

People living near the Pepper Pointe subdivision aren’t happy with their proposed new neighbor.

From the Eastern Wake News: Click here to read the entire article

Wendell Planning Director Teresa Piner offered last week to work with commissioners to draft more specific language in a town ordinance that governs the resubmittal of rezoning requests that have been previously been denied by the town.

From N&O Backyard Buzz Blog: Click here to read the entire article.

Wendell attorney Harold Broadwell recently announced that he is running for mayor. The Knightdale native, who lives and works in Wendell, said several people approached him and asked him to run for office.