Friday, April 6, 2018

Bond Lawsuit Settlement Agreement Executed

"The Defendant stipulates that it is required to use the proceeds derived from the
sale of the general obligation bonds issued pursuant to the City of Asheville’s November 8, 2016 Referendum to pay capital costs (as determined under N.C. Gen. Stat. 159-48(h)) of projects consistent with the transportation, parks and reci‘eation, and housing purposes set forth in the bond ballots and authorized by the voters, and as otherwise required by law. The City further stipulates that it will likewise comply with the applicable provisions of The Local Government Budget and Fiscal Control Act codified at N.C. Gen. Stat. 159-7, et. seq." 

(Source: Signed and executed Settlement Agreement filed April 4, 2018)

Click this link to read the entire Executed Settlement Agreement

To read the full description about the Plaintiff's Offer to Settle, read our prior blog post:

What's Next?
It is up to City taxpayers to keep your City accountable!

Wednesday, April 4, 2018


April 4, 2018 | Asheville

Offer to Settle
Chris Peterson and Sidney Bach have offered to settle and dismiss their taxpayers' lawsuit filed December 2016 against the City's proposed bond borrowing of $74 million that would have to be guaranteed by City property taxes. As part of the agreement that would be filed into the Court record, the City is being requested to stipulate and agree that it will comply with the NC "Local Government Budget and Fiscal Control Act" which would restrict the City's use the monies from any of the bonds issued to pay only for those capital improvement projects specified in the November 2016 bond referenda and for no  other purposes whatsoever. The City would also have to establish and maintain a separate "debt fund" to in order to account for the bond funds raised and how they are spent.

Bond Use
In the past, City management with Council approval has allowed City taxpayer fund to be liberally transferred from one budgeted purpose to another without any question or accountability, all while increasing City Hall bureaucracy and operational costs by millions and millions of dollars. (Last year Peterson, a former City Council member, was escorted out of a City Council meeting after accusing the City administration and the City Council of running a "Ponzi scheme" on the backs of Asheville's taxpayers.)

Covering City Debt
Peterson and Bach, both Asheville residents and property taxpayers, believed that the City's voters had been unwittingly "led down the primrose path" by former City Manager, Gary Jackson with help from the City Council to buy a $74 million "Trojan Horse" that, in reality, would provide funding for the added millions of dollars in the City's bloated operating expenses. In short, an irresponsible local government"spending-spree" that was being threatened by a looming debt crisis caused by a City administration's uncontrolled "Champagne appetite on a beer budget."

Asheville's financial crisis finally surfaced and "raised its ugly head" at the recent City Council meeting on March 20, 2018 when its Chief Financial Officer, Barbara Whitehorn warned the Council of the City's current budget shortfall that is already many millions in the red. She indicated that the current City deficit will only worsen as City expenditures continue to exceed City income and that such a negative financial scenario would likely prevent the City from issuing any bonds, be they the
November 2016 Referenda bonds or any others. In spite of these dire warnings,the City Council members appeared to be oblivious to their own finance officer's dire warnings as they continued to discuss possible financing for their various "special projects" and "wish lists" .....not too unlike the Roman emperor Nero who is rumored to have "fiddled while Rome was burning ?

Peterson and Bach said that, with interest rates on the rise, they believed it would be in the taxpayers' best interests to attempt to resolve the lawsuit at this time in order to avoid increased property taxes that would be required to meet higher interest payments on the proposed bonds if and when issued by the City.

However, they still believe that the language used by the City on the bond referenda ballots was misleading because it only stated that additional property taxes "may" be levied to pay for interest and principal due on the bond issues even though the City Council's Bond Order Resolution clearly stated that additional property taxes "shall" be levied to pay for the bonds.

"O, What a tangled web we weave when first we practice to deceive."

Sir Walter Scott

Monday, March 19, 2018

"Low hanging fruit has all been picked" - Barbara Whitehorn, CFO, City of Asheville

Low Hanging Fruit... a course of action that can be undertaken quickly and easily as part of a wider range of changes or solutions to a problem: first pick the low-hanging fruit (

"The challenge lies in balancing the budget when the "low hanging fruit" has all been picked." 

Barbara Whitehorn, Chief Financial Officer, City of Asheville
March 20, 2018 Staff Report re: Operating Budget Worksession

And with that warning, the City kicks off this year's budget worksessions with the first session being held Tuesday, March 20th at 2pm. Why such a negative start? Because this year's budget has a deficit of almost $6 million, about 4 times the usual 1.5 million deficit.
"In total, the normal operating gap of about $1.5 million, combined with the unfunded and/or under-funded enhancements drives the $5.9 million budget gap"
Rose colored glasses
Why this warning when everything seemed so rosy last year? The City has seen unprecedented growth, an average of 30% higher property tax revaluations, continuously increasing fees and charges for stormwater, parking, building permits, and more.

Despite all of this it appears the City is preparing itself for a looming financial crisis - one that is set to increase year over year for the next five years, starting with the 2018-19 budget if cuts are not made.  If this keeps going, the 5 year forecast predicts a $28.5 million deficit if there is "sustained economic downturn" and at best a $2 million deficit if there is sustained economic boom.  Lacking any new sources of revenue, Ms. Whitehorn recommends...
"In the absence of new revenue, adding programs or projects to the operating budget requires an offsetting reduction which will require service reductions." 
In other words folks, you gotta cut something before you can add something.

The Cause 
According to the March 20th report the City implemented programs and projects last year for which it did NOT have full-year funding for and instead decided to kick that can down the road and address it in this year's budget.

Here's some of what is causing the problem:
  • Transit contract and additional transit service expansion
  • Additional FT benefitted employees and their ongoing costs 
  • The $500,000 paid out in February to employees in the City who were not making "market" rates.  (NOTE: we've asked for this list of employees, their names, titles and positions and amount of additional compensation and are waiting for the records to be produced). 
  • The new Office of Equity and Inclusion which costs $350,000 a year
  • The audit of police procedures and training which will cost between $200,000 and $400,000 plus ongoing costs to implement whatever they come up with.
  • AFD retirement city plan match
  • APD patrol improvements and realignment of districts
What is the City's low hanging fruit? 
In year's past the deficit is usually around 1.5 million.  The City is used to that and will then begin to identify efficiencies and savings.  Apparently, the City's budget department has exhausted all those efforts in this year's plan and is asking Council to go beyond the "easy effort" and make harder decisions.

Not mentioned but also contributing to the issue:
The City's 5 year capital improvement project budget has gone from $53 million to almost $200 million in FOUR short years. Much of those projects have been partially funded through City general funds and by debt for which the City will be paying for more than 30 years.

Remember RADTIP: And of course, there's RADTIP, the City's boondoggle on the River.  Just one week after last year's budget passed it was announced that the City was short $26 million - the shortage causing shock and awe by the City Council.

In short, this is a recession of the City's own making.  We haven't even considered the ongoing (and yet to be paid) cost of the properties taken for RADTIP or the lawsuit from the recent video leaked wherein Mr. Rush has now filed suit.  We haven't considered the ongoing maintenance costs of the City's $200 million development projects. We haven't considered the possibility of an economic downturn. Instead, we have created the perfect environment to lose our tenuous hold as we have to climb higher and higher than the low hanging fruit.

Cuts, changes or pretext?
Last year the "Million Dollar for the People" campaign began during the budget worksessions as Council struggled to find ways to cut the 1.5 million deficit.  In the end, a little was cut from each department while preserving certain additions such as the transit extension and money for APD. This year the City has to address a $6 million deficit.  What will it cut or is this simply pretext leading to a property tax rate increase on property owners?

Friday, March 9, 2018

Community Reactions, Concerns and Questions following Leaked Policy Bodycam Video

The City of Asheville held a community meeting Tuesday, March 6, 2018 to discuss the events surrounding the leaked video of the Asheville Police officer use of force against a jaywalker which was made public February 28, 2018.  Hundreds attended the event while it was also live streamed by local newstation, WLOS.  Since then the leaking of the video and the live stream community event, there have been numerous reactions across the community and nationally.

Here's a roundup of the events, reactions, questions and concerns so far:

APD were asked by City Council to take action against jaywalkers
Chad Nesbitt and reporter for Leicester Leader raises the issue that the APD were requested by Council and the Mayor back in 2014 to start taking action against jaywalkers due to the high number of pedestrian accidents in the City.  You can see the post below.  Does this justify the actions? Has the APD equally enforced this law? How many citations has it written for this?

Resign Resign Resign

Although City Police Chief has offered to resign if that's what the community wants, others feel that the City Manager, Gary Jackson, City Mayor Esther Manheimer, and the ADP Supervisor should also resign.   Some comments were wondering why Rush stayed quiet for so long. 

You can read the City Letter written and distributed by former councilman, Chris Peterson, on this website and the reactions there:

NextDoor Community chimes in

On the NextDoor community app, members also chimed in to the question posted, "Should the Mayor and Police Chief step down for the continued excuses? What does the community think and/or feel about the situation?"  Reactions went both ways with some saying the community shouldn't judge yet without all the details while others say the details have been released. 

Release of information - proper or improper? What are the boundaries?

Public but private personal information
March 8, 2018 - Joel Burgess, The Citizen-Times reporter who initially released the video incident also was at the jail when APD officer Chris Hickman, was released on March 8th  He obtained copies of the warrant and published those on the Citizen-Times website without redacting his personal information, including his address and social security number. Though the warrants are public information, should he have released those personal details?

Necessary but illegal release of Police Video 
March 9, 2018 - Carolina Public Press wrote an article addressing the concerns and legal issues surrounding the leaked policy bodycam video, noting it requires a court order to release such videos. You can read the article here: Restricted access to police beating video raises concerns about NC law

National Not-So-Positive Attention

While Asheville is known for its many accolades and top 10 listings in tourism publications, this is one story the City isn't proud of at it makes its way through national media.  Here are some of the headlines:

New York Times, "Outrage over footage of a police officer beating a black man in North Carolina."
CNN, "North Carolina police officer faces charges after beating, choking and tasing suspected jaywalker."
New York Daily News, "FBI now investigating North Carolina officer in jaywalking beating."

Thursday, March 8, 2018

City Letter #11

The Big Cover Up

For the last four years we have been reporting that our City Manager and current council have been steadily bankrupting our city. With this group leading our city we are headed for a train wreck on June 1, 2018. This is an important date to remember because the City budget will be presented and show that we are up to $40 million dollars in debt. Due to the bad council decisions RADTIP, Art Museum, Eagle Street, Transit System, Greenways, bike paths, stormwater, New Belgium, lawsuits, salaries and outside consultants.

We also reported that Gary Jackson ($280,000 salary) would be retiring in December which he did. What we did not know was that for the last six months our City Manager, the Mayor and his elitist staff have been covering up the brutal beating that took place in late August 2017 by a few police officers. It is our opinion that after the beating occurred the police chief alerted Gary Jackson knowing how explosive this issue would be. It is also our belief that within a few days Manheimer was also made aware. Jackson knew that he had to preserve his hefty retirement and passed the chief onto Assistant City Manager Dundas ($230,000 salary) knowing this could cost him his job. The Mayor ($55,000 salary) was also in the beginning of the re-election campaign and knew it would damage her chances and her candidates chances in the upcoming election. All the Mayor and Gary wanted was the issue to go away quietly and it was all about keeping their jobs and getting re-elected. After the incident Gary was going to do everything he could to keep his hefty retirement package. If this incident would have come out in August he would have been fired by Council.

The reason that Gary and the Mayor’s story make no sense is that our City government is run strictly by the City Manager. He hires, he fires, he’s over the police and he has complete control over our 190 million dollar budget. The only person he answers to is council and if 4 members vote to fire, you are gone unless you elect to retire on your own. When I served on Council protocol on an event as explosive as this would have been that the police chief would call Gary first and make him aware. She knew full well if she had not done this she would have been immediately fired. Next Gary would have immediately alerted the City Attorney Robin Currin. Then he would have called the Mayor. The Mayor would have then called for a special closed session for council on personnel matters. The matter would have been discussed in closed session and Jackson and Currin would then have advised council which legal direction they should take and when they should alert media and the community. Gary and the Mayor are trying to say the chief went to Dundas, the Assistant City Manager. There is no way that Dundas, newly placed on the job a few months as assistant city manager would not have told Jackson. We feel this was a massive coverup to protect jobs and get re-elected (and if not, then this was complete gross negligence and mismanagement). And when Gary moves far away the Mayor was going to blame the beating and the high deficit all on him.

Dundas says that when he heard about it he went to City Attorney Currin’s office and reported it. By the way Curren ($230,000 salary) was brought to Asheville by Mayor Manheimer. With Currin and Manheimer being such good friends it’s hard to believe she didn’t tell her friend the Mayor. Then you may ask where was Cathy Ball, Assistant City Manager #2 ($220,000 salary). Do you really think the public believes that these people didn’t know especially with Gary’s reputation of being a micro-manager.

There is no doubt that this was a massive cover up and we feel that the City Manager, Dundas, Cathy Ball, Robin Curren and the police chief and the City Mayor should all be fired. If we the voters are fouled accepting this political hogwash then shame on us. It’s time to clean our house.

Chris Peterson


LASTFIRSTPOSITIONSALARY (pre2017 Increase)Salary (after FY2017-18 Increase)Est'd FY2017-18 Fringe BenefitsTOTAL FY2017-18 COMPENSATION
JACKSON,GARYCity Manager190,452.78195,214.0065,153.00260,367.00
CURRIN,ROBINCity Attorney177,700.14182,142.0058,809.00240,951.00
BALL,CATHYAssistant City Manager165,099.05169,226.0049,952.00219,178.00
HOOPER,TAMARAPolice Chief160,463.75164,475.0047,104.00211,579.00
ROWE,MARGARETHuman Resources Director – started Jan 4, 2017137,500.00140,937.0041,941.00182,878.00
DUNDAS,JADEInterim Assistant City Manager134,582.50164,226.0049,552.00219,178.00
WHITEHORN,BARBARAFinance Director129,654.71132,896.0041,638.00174,534.00
FELDMAN,JONATHANChief Information Officer127,576.51130,765.0043,522.00174,287.00
PUTNAM,KENNETHTransportation Director126,224.15129,379.0035,772.00165,151.00
BURNETTE,SCOTTFire Chief121,050.82124,077.0030,164.00154,241.00
POWERS,SAMUELComm & Econ Dev Director118,481.59121,433.0033,387.00154,820.00
BAUMSTARK,JAMESDeputy Police Chief113,877.50116,724.0047,583.00164,307.00
SHULER,GREGORYPublic Works Director112,276.44115,083.0043,109.00158,192.00
AYERS,JAMESGeneral Services Director111,807.00114,602.0033,518.00148,120.00
WOOD,WADEDeputy Police Chief110,428.79116,724.0039,445.00156,169.00
SIMMONS,RODERICKParks & Rec Director110,272.11113,028.0050,353.00163,381.00
OKOLICHANY,TODDPlanning & Urban Design Director108,701.25111,418.0042,425.00153,843.00
WHITLOCK,KELLYDeputy Attorney102,489.75105,052.0027,659.00132,711.00
BUDZINSKI,CHRISTOPHERDeputy Fire Chief98,695.63101,163.0026,474.00127,637.00
MELTON,DAVIDWater Resources – Assistant Director98,348.75100,807.0030,246.00131,053.00

Tuesday, February 27, 2018

Asheville City begins budget discussions; proposing fees and charges to increase

The City held it's monthly Finance Committee meeting today, kicking off the budget work sessions to discuss the 2018-2019 city budget.   Essentially, new fees for events will be implemented and stormwater fees will increase for the 5th straight year:

Here's what they proposed for new fees and charges for the coming year:

Monday, November 6, 2017

Citizen-Times Declares Open Season on Dee Williams

Editorial displays paper’s antagonism

Late last week Asheville Unreported received separate but similar messages from two different sources: be on the lookout, they said, the Citizen-Times is going to do a very negative piece on city council candidate Dee Williams. It will be in the Sunday edition.

One of the sources is very close to the Citizen-Times organization. That, coupled with the paper’s backhanded coverage of Williams’ candidacy to date, prompted AU to take the unusual – but not unheard-of – step of actually reaching out to the Citizen-Times.

AC-T editor Katie Wadington was out of town; calls to her were routed, instead of to an assistant editor, to Brian Ponder, who according to the paper’s masthead has the interesting title of “Writing Coach.”

“This is the part where I assure you that AU, as a news vehicle itself, doesn't care what you write about whom, as long as it's true (the same, of course, applies to us) nor are we in the business of second-guessing our colleagues' timing or motives,” AU’s Roger McCredie told Ponder in an e-mail. “But when multiple readers ask us to look into something, I think we owe it to them to do so.

“So the questions at hand seem to be:

(a) is AC-T in fact preparing a pre-election piece of some sort on Williams; 
(b) whether you're planning to do any similar reporting on any of the other candidates; and 
(c) if not, why Williams, and why now?

“Please also know that I fully understand you are not obligated to respond to any of this and in fact that you are perfectly within your rights to tell me to go to hell at my earliest convenience. But I hope you'll be kind enough to humor me and give me just a yea or nay -- which will be the extent of what I relay to the enquiring minds,” McCredie concluded.

Two days later Ponder replied.

“Thanks for your email and sorry for the late reply. Joel Burgess is covering Asheville city elections for us, and I know he talks with each of the candidates when he is writing about them and their campaigns. Thanks for reaching out,” Ponder said.
So McCredie forwarded his conversation with Ponder to Burgess. “ Brian Ponder has handed off to you, so I'm just going to put the same questions to you that I did to him (see below). I am aware that you included Williams in your recent candidate profile piece,” McCredie said to Burgess, who covers local government matters for the paper.

No reply.

Citizen-Times Editorial Snideness

But on Sunday, Nov. 5, the Citizen Times’ editorial board presented its evaluation of the six candidates who are looking to fill the three open council seats. The pundits had positive things to say about each one, even those who clearly had not earned the paper’s official stamp of approval.

Except for the editorial’s blurb about Williams. Among the other wrapups, which ranged in tone from courteous to fawning, Williams’ was startling in its snideness.

In its entirety the Williams entry read:
Dee Williams is a perennial candidate who stresses racial justice and fighting gentrification. Williams has no doubt been a force of good in our community with a sharp mind and a willingness to roll up her sleeves. The only candidate who has registered with every party imaginable, her supporters admire her for being beholden only to the issues, and not to any political force.
However, Williams’ tendency to focus more on lauding her own accomplishments and offering sometimes convoluted criticisms of past leadership, rather than offering ideas or solutions for the future, has made it difficult to glean what solutions she offers exactly. We hope if Williams is elected, she will shift her focus toward our shared future and away from oppositional rhetoric”
All newspapers have opinions and at least in this case the Citizen-Times managed to reserve theirs for the editorial page instead of weaving it into what passes for their news content; AC-T even managed to show more finesse than usual by alternating some damning-with-faint-praise (“a force of good in our community with a sharp mind and a willingness to roll up her sleeves”) with Facebook-caliber snarkiness (“a perennial candidate … who has registered with every party imaginable”, “lauding her own accomplishments and offering sometimes convoluted criticisms of past leadership”, oppositional rhetoric”. Among the bland comments on the other candidates, the paper’s savaging of Williams sticks out like the proverbial sore thumb.

Similarly, in his own candidate wrapup earlier, reporter Burgess carefully played up Williams’ endorsement by the Green Party in a nonpartisan election and pointedly referred to a history of “controversy” surrounding the candidate. This, again, among otherwise positive candidate profiles.

So why the AC-T laser target on Williams’ forehead?
The most obvious answer appears to be a combination of blatant dislike combined with visceral fear. Williams represents a black Asheville that has seen itself displaced in favor of rampant development and gentrification since the 1980’s. She has proved herself indeed “beholden only to the issues, and not to any political force,” and that could be downright inconvenient on a council known for its cronyism and its better aversion to transparency.

Past political targets of the Citizen-Times

It appears the Citizen-Times is in the habit of writing negative pieces just before elections as it did last October when it wrote a rather disparaging article about then running incumbent, Mike Fryar, Buncombe County Commissioner. In that piece it ran with an alleged claim (which was never proven) by then Buncombe County Manager, that Mr. Fryar tried to hit her on the head with a phone. That article also went into great detail about how Mr. Fryar absorbed way too much time asking questions, so much time that Ms. Greene was unable to do her job.  However, a year later, it turns out Mr. Fryar was onto something when Ms. Greene suddenly retired in June along with her high-earning son for whom no one knows exactly what he did for the County.  And now, the Citizen-Times has published a novel about Ms. Wanda Greene and her bonuses and pay, trying to make up for their earlier mistakes.

And next to the Asheville Chamber of Commerce, the city government’s biggest cheerleader is the Asheville Citizen-Times.

Related articles about the Citizen-Times

In April of this year, Asheville Unreported ran a two-part series entitled “The Late, Great Citizen-Times. You can read this mini-series here:

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Latest News

Bond Lawsuit Settlement Agreement Executed

"The Defendant stipulates that it is required to use the proceeds derived from the sale of the general obligation bonds issued pursuan...