The Henderson City Council decided not to spend any of the proceeds from the sale of the Southerland Mill Property during its regular short meeting this past Monday evening.
Although the sale is still pending, the city anticipates closing the deal with North Carolina Rep. Bill Faison for $170,940 in early March.
City Manager Ray Griffin recommended to council members that $160,000 of the proceeds be used for a classification study, one-time employee pay incentive of $200, demolition of condemned housing, and a $40,000 contribution to the city’s fund balance.
The council did not consider funding recurring budgetary expenses such as the additional fire fighter position requested by Henderson Fire Chief Danny Wilkerson during the 2010 budget deliberations. That request was ultimately rejected by the council in the final 2010 budget.
Member Mike Inscoe commented that the city’s fiscal year 2011 budget will have several items that the 2010 budget did not include, such as the city’s share of the Economic Development Commission funding and a payment to the county for the new city hall. He also told member that retirement contributions will increase by 1% and that tax revenues may continue to fall. He recommended that the funds be kept in abeyance until the city gets closer to the budgeting process.
Ward 3 member Garry Daeke agreed, but said that the city should put some funds into demolition.
Council member Brenda Peace moved that a portion of the land sale proceeds be used for demolitions and the one-time employee incentive. That motion failed with only members Lonnie Davis and Peace voting in favor of it. A subsequent motion by Inscoe to hold the funds in abeyance until the budget is set passed with only Daeke opposed.