Newspapers / Daily Tar Heel (Chapel … / Oct. 20, 2008, edition 1 / Page 5
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Eerily (Tar Iwl Cities cut costs during crisis BY RACHEL GLOVER STAFF WRITER In the wake of a national econom ic crisis, N.C. cities are planning how best to negate its toll. Right now, they are pinpointing what could strain their budgets. Decreased tax revenues, higher inter est rates and increased unemploy ment up to 6.8 percent from 4.7 percent are their key challenges. “My guess is that this crisis will have a broad impact,” Kenan- Flagler Business School professor Steve Appold stated in an e-mail. Cities and businesses will find it hard to take out loans, likely making day-to-day operations and expansions problematic, Appold said. Decreased sales, income and property taxes will result in smaller revenues. Cities are considering energy conservation, pruning of capital expenses and freezes on hiring, while also crafting backup plans. “You can run, but you can’t hide because this is going to hit every body,” said Warren Wood, assistant city manager of Hickory. Slashing energy costs Hendersonville, Greensboro and Burlington are just a few of the cit ies looking to save money on energy and fuel costs. TAILGATE EDITION CAROLINA VS. BOSTON COLLEGE Chapel Hill’s Game Day Headquarters -O OPEN r Tl 10:00 AM L 57 M/ridms /mv Food, Drink & Carolina Blue Live Bluegrass Music From The Big Fat Gap ON THE FRONT LAWN OF THE CAROLINA INN jjp r" FORTUNE gO^ " jo^ Day one and you're part of the team Day one. IDs when you have the opportunity to.focus on your career, your life and your community. It's when ideas and opinions count. And it's MBl|ji|tlL when you're welcomed into an environment embracing 1 1 diversity and encouraging inclusiveness. From your very first day, we're committed to helping you achieve : I your potential. So, whether your career lies in assurance, tax. transaction or advisory services, shouldn't your day one be at Ernst & Young? What's next for your future? Visit ey.com/us/eyinsjqht and our Facebook page. EU Ernsts. Young Quality In Everything We Do “While we certainly anticipated higher energy costs, we probably didn’t go far enough in terms of the cost of gasoline and other fuels. That continues to be a moving target,” Jim Collins, spokesman for the city of Greensboro, stated in an e-mail. Greensboro also will try to reduce expenditures by 2 percent by stop ping out-of-state travel, reducing fuel usage and using energy effi ciently. Hendersonville is looking at fuel efficient vehicles to remove some of the burden of higher fuel costs, said Jim Rudisill, city finance director. And while consumers may try to conserve, revenue from state electric ity and gas taxes won’t change much because the state’s major power com panies are planning to increase their rates to offset consumption decreas es, a report from the N.C. League of Municipalities said. Fewer city improvements The league also encouraged cuts in spending and postponements of capital projects until the credit market stabilizes. Raleigh is postponing projects such as road resurfacing and roof repairs, which will save millions of dollars, said City Manager Russell Allen. Some cities had funding set aside for specific improvements. Burlington is one of those cities and it will continue with its proj ects, although they are looking at options for cutting costs, said city spokesman John Nixon. Asheville will reduce payments by $1.6 million with its plan for city infrastructure improvements, said Tony McDowell, budget manager. Managing personnel costs Cities also are planning to reduce their costs through hiring freezes, eliminating positions and consolidating responsibilities. McDowell said Asheville plans to eliminate 10 full-time posi tions, while cities such as Hickory and Raleigh froze their hiring. In Raleigh, all but vital public safety positions are frozen. Greensboro cut staff and froze hiring previously and can’t afford to do that again, said Johnson. Asheville is reducing nonessential training, and Burlington plans to combine staff positions and fill vacancies selectively. If fk .T i; * i M r ~ \u Visit Summer School for an application. Summer School, 134 E Franklin St., 2nd Floor "k 919-966-4364 “k summer.unc.edu News Crafting Plan B Cities also are trying to build up their savings and form contingency plans. “Thankfully, North Carolina has some of the most conservative regu lations in the nation in terms of local government investments,” Johnson said about Greensboro. “Asa result, we are in a good position in terms of day-to-day cash flow.” The league has advised cities to protect their savings by spread ing out investments and ensuring there is adequate collateral for investments. Johnson said Greensboro is on track to accumulate a healthy sav ings balance and improve its con tingency budget. Hendersonville also is comfortable because of a healthy fund balance and adequate cash reserves, Rudisill said. “Our goal is to maintain a healthy fund balance to get you through the tough times if need be,” he said. Contact the State & National Editor at stntdesk@unc.edu. CAROLINA ENTREPRENEURIAL INITIATIVE ii Applications are being accepted for i GRADUATE CERTIFICATE IN ENTREPRENEURSHIP 2008-2009 . * v . 1 UNC graduate students, post-docs and full-time faculty and staff can explore entrepreneurial opportunities in their disciplines or get help launching anew business or nonprofit. A range of curriculum options let you tailor the program to meet your interests and career goals in these areas: ► Commercial Entrepreneurship ► Social Entrepreneurship ► Artistic Entrepreneurship ► Life Sciences Entrepreneurship ► Public Health Entrepreneurship Apply by Nov. 3, 2008 Classes begin January 2009 www.unc.edu/cei/grad a unc „ 19 ■*- CAROLINA ENTREPRENEURIAL INITIATIVE Turning Ideas into Enterprises www.unc.edu/cei • cei@unc.edu MONDAY, OCTOBER 20, 2008 LIGHTS OUT i Tl , II fifegL • Hr DTH/ANDREW DYE A Chapel Hill police officer directs traffic Wednesday afternoon at the intersection of Franklin Street and Columbia Street. A substation failure caused outages in Chapel Hill and Carrboro, as well as on the University campus, and caused affected-area traffic lights to go dark. 5
Daily Tar Heel (Chapel Hill, N.C.)
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