By GG King, Blowing Rock
Intent. It is hard to tell, sometimes, the difference between misinformation which may be unintentional and disinformation for which intent is clear. After doing some investigating, I want to take exception to several things Hunt Broyhill said publicly during his quest to be elected to The Blowing Rock Town Council. You will have to decide for yourself if they rise to the level of misinformation or disinformation.
My investigation includes a review of:
Town budgets from 2019 to current year
A review of the Blowing Rock Town Audit Report dated June 30,2022
A review of the September 14,2022 First Tryon Advisors presentation to Town Council
Two telephone conversations with former Town Manager Shane Fox to be sure I was accurately interpreting the information I was reviewing.
For the record, like Broyhill, I have served as an officer and Executive for a multi-billion-dollar company, served on a number of charitable boards, and currently serve on the audit committees of two for-profit companies with $500 million in annual revenue.
By way of disclosure, I do not belong to the Blowing Rock Civic Association. I do not disagree with some of this group’s positions. I do disagree with their methods and manner at times. I am not registered to vote in Watauga County, and I am not a member of the Blowing Rock Country Club. My wife and I have owned a home in Blowing Rock for 20 years and I pay both County and Town property taxes.
Hunt Broyhill’s campaign mailer says” the Blowing Rock Town Council needs to do a better job representing you:” He then offers the following in support of his belief:
1. The Town budget “Ballooned to over $16.8 million from $10.8 million in 4 years alone”
Fact: There are at least 3 causes for this. Much like the Perfect Storm, your Council had to deal with back-to-back issues. These include A) a required accounting practice implemented to show the gross revenue from sales tax sent to the Town from Watauga County of $2.4 million and a similarly required entry for the $1.7 million in monies returned to Watauga County per the ad valorem agreement between the Town and County. The net is the same, but the numbers appear larger. Broyhill should have known this. B) added police and police cruisers and equipment, 911 dispatcher and paramedic were added to the payroll some at the request of Blowing Rock Civic Association as they pushed for noise reduction on 321 and better EMS time service. C) during the pandemic like other municipalities, Blowing Rock adjusted minimum base wages to retain the trained and qualified employee base that serves the Town.
If these are things Broyhill would have voted against he should say so for voters to know specifically how he would have prevented the budget from “Ballooning” over 60%.
2. His mailer said, “The Town Manager identified more than $40 million in debt in infrastructure improvements.” At the Candidate Forum Broyhill made the same statement and added “in the next few years.”
Fact: The First Tryon Advisors presentation outlines exactly what those infrastructure needs are and exactly how much money is required and where it can come from. Over the ten years 2021-2031 the need for both General Fund Projects and Water/Sewer infrastructure totals $20,017,000 accounting for the $4,800,000 Federal Grant.
That is quite a difference between the paid advisors’ $20 million and Broyhill’s $40 million. Broyhill should be asked to account for why his number is so much greater than what the financial advisors show in their report.
3. Broyhill’s mailer says, “This is in addition to the $19 million debt that we are currently financing.” At the Candidate Forum Broyhill added the Town was paid $2 million in debt service payments last year.
Fact: The 2022 Audit report shows the total debt service payment was $1,331,323 of which $1 million was to pay down principle. That leaves an interest payment of $331,323 on loan obligations with interest rates averaging 2.05%-2.2%. Debt is necessary for most municipalities to finance new police cars and utility trucks…and even land purchased from Barry Buxton along 321 for future parking needs.
Fact: The First Tryon Report Appendix lists the following:
19 General Fund Obligations…$10,715,918
10 Water/Sewer Obligations…$ 3,139,603
29 Total Outstanding Debt……$13,855,521
Eighteen (18) of these obligations will be paid by October 2025. If it is okay for Broyhill to say the Town budget “Ballooned over 60% in 4 years alone”, it would be equally appropriate to say Broyhill Exaggerated and Stretched the debt situation by 73% or more at the Candidate Forum and on his campaign advertisement.
4. “Projects such as burying the utility lines is a want not a need.”
Fact: on the list of General Fund Needs that make up part of the $20 million (not $40 million Broyhill claims) there are $6.5 million of projects that relate to Parks and Recreation. Including nearly $500,000 for Broyhill Park and $1.5 million for Davant Field, $1.25 million for The American Legion Building. There are 10 Parks and Recreation Projects listed. Some would say these projects help define the character of the town and are quality of life projects for residents. Are these “wants or needs”? Perhaps Broyhill would like to explain before the election.
Of the 6 Captial Improvement Projects listed under General Fund needs, one is the $1,075,000 land purchase from Barry Buxton for land along 321 presumably for future parking. The remainder of the General Fund Project is road and sidewalks and total only $2.7 million for the 10 years 2021-2031.
Water/Sewer 10-year infrastructure needs are $15,666,000 less the $4,800,000 Federal Grant. The Debt need for the balance is $10,866,000.
I presume Broyhill understands these are “needs” to use his term. Certainly the $1.2 million for self-reading water meters will ultimately save money on the salary and benefits side of the budget.
5. Broyhill’s mailer goes on to say “The Blowing Rock Town Council must do a better job on prioritizing capital spending. I am the Voice of Reason, and I can help…”
From the evidence I can gather it looks like the Town Council has done a respectable job of managing and identifying priorities and needs. The Legal Debt Limit for Blowing Rock is $129 million. We have less than $14 million in debt…a position of envy among most municipalities.
My advice to voters is to not allow yourselves to be led to believe a story that says” The Sky is Falling” and “I’m here to Save the Day.” Do some investigating of your own or talk to the Council representatives who are not running for office about the statements being made. I’m sure the reports I’ve mentioned are in the public domain.
Finally, ask yourself why Broyhill might exaggerate the numbers. If he does that to get elected, what might he tell you after he’s elected?
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