Town Manager Homer Dearmin explained that the reason for the higher fee has everything to do with the skyrocketing fuel costs. The garbage collection company that Walnut Cove contracts with has been forced to raise its prices due to the financial hardships of running the garbage trucks daily at the higher fuel rates. If the Town of Walnut Cove passed the entire cost down to town residents, the price would rise to $13 per month.
At a public town budget work session on May 30, only one Walnut Cove resident came out to hear the discussion between Dearmin, Mayor John Hodgkin, and the four town commissioners. When the proposed budget was presented at the regular monthly meeting on June 3, again the crowd was small with fewer than 10 townspeople present.
During the public comments section of the meeting, longtime Walnut Cove resident Nancy Duggins addressed the board. “I’m not trying to be a troublemaker,” she said, “but a concerned citizen.” In the three minutes allotted her, Duggins questioned the recent salary increase for Dearmin when he had only been fulltime for a few months. [Mayor Hodgkin later explained that the higher salary would bring his earnings up to par with managers in towns comparable to Walnut Cove.] It was also questioned why some town employees who live out of county are allowed to drive town vehicles back and forth to work.
Next, Duggins made it clear that she disagreed with paying someone monthly to get grants for the town. In her closing remarks, she pled with the board not to raise garbage or water/sewer fees, stating that “times are really hard.”
Later in the meeting during the public hearing on the budget, another longtime Walnut Cove resident, Sharon Conaway, took the microphone to make her concerns known. When told that she would be limited to four minutes, Conaway balked, saying that she had brought evidence of a North Carolina statute which states that public hearings are not subject to time limits. Town Attorney Kevin Berger advised the board to let her have her say, as it was unclear whether or not the town had ever actually adopted a limit on public hearings as they had on public comments.
Conaway read copious notes in which she had listed her troubles with the proposed budget. She stated that she feels there should be a limit on how many budget amendments can be passed in a year. In response, Dearmin later commented that since he feels the budget should be “a fluid document that flows throughout the year,” a limit on budget amendments would be very constricting.
Conaway also cited various instances where her budget calculations did not match those of Dearmin. She claimed to have found a $1,445 difference in amounts allotted for FICA, as well as discrepancies in the 401K rate and police department salaries. The fees paid for consultants to the town manager were also questioned.
In a later interview, Dearmin said that he had asked Conaway to e-mail him a copy of her concerns. She has since done so, and he has examined each of her charges. “Her concerns on these items [FICA underbudgeting and 401K discrepancies] are certainly valid,” he admitted. “The technical changes have since been made and do not affect the bottom line of the budget.”
Conaway’s questions about the police department salaries being underbudgeted are a different story, according to Dearmin. “I can’t see where that’s valid,” he said. His figures reflect the total salaries for the seven and a half fulltime employees in the police department as $187,131.08. The proposed budget allows $200,000 for the coming year, to take into account such things as merit pay increases in the spring and vacations.
Conaway’s concern with consulting fees is simply a difference of opinion. $1,500 is paid per month to All America for grant-writing, in-kind funding concerns, as well as consulting. Dearmin explained that the money paid has already resulted in thousands of dollars worth of grants above and beyond the monthly fee.
With regard to the proposed increase in garbage collection fees, Conaway told the board that, by law, the town is required to provide its citizens with garbage service. Dearmin later commented that Conaway’s point is valid, but that if the costs are rising, then that would technically mean property tax increases for the town to be able to provide its citizens with services. He feels that it is more logical to simply give the increase in the exact area of the problem rather than raise property taxes across the board.
In her address to the board, Conaway agreed with Duggins that town employees who live out of town should not drive town vehicles to and from work. In the same vein of fuel conservation, she advised the board to consider purchasing town vehicles that were more cost-effective than the Crown Victorias that have become standard.
When questioned, Dearmin explained that the officers who drive their patrol cars home are required to respond after hours to any situation that requires their supervision. Since they took over in interim capacity on January 7, 2008, these two officers have been called out after hours a total of 39 times.
Dearmin agreed with Conaway that fuel prices are a concern when it comes to what type of vehicles the police drive. However, he found through research that the other vehicles typically used for law enforcement in Stokes County—Chevy Impalas and Dodge Chargers—have a history of higher maintenance problems. “The Crown Vics have been better cars,” Dearmin stated.
Conaway’s final point of disagreement dealt with any future possibility of the board giving the town manager a contract of employment. She opined that the town manager should “walk in the shoes of other employees” who do not have a contract.
Dearmin’s response to this concern was that agreements between town managers and town boards “are becoming more and more standard.” He disagreed with her assessment that his position should be handled comparably with other town personnel positions, since he is technically the only town employee who is an employee of the board. The other town workers are employees of the town manager. Dearmin gave the example of how a town manager could easily be terminated just because the membership of the board changes, whereas a town secretary may have great job security.
Before she took her seat, Conaway stated, “I may be a Monday morning quarterback, but I am fast moving to first string.”
Mayor Hodgkin then spoke, “I think the board has been largely satisfied with the budget process and the fact that we don’t have to raise taxes.” Dearmin commented that he hated to pass on the garbage costs to consumers but that the town’s costs have truly increased. Town Commissioner Dr. Debbie Cowan raised the question of what would be done if rates continued to go up. Dearmin explained that the town has now locked into a rate with the contracted garbage service.
Commissioner Kim Lewis pointed out that Walnut Cove is already subsidizing over 40 percent of the garbage fee. “How long can the town go on absorbing the costs?” she asked.
Commissioner Lora Carter wondered if the board and staff wouldn’t like a few days to review what Conaway had pointed out. Dearmin said, “I appreciate her efforts. . .but there are some inaccuracies. . . I’m pleased with the budget. . . It’s hard to squeeze blood out of a turnip.”
At that time, Commissioner Polly Goolsby interjected her opinion that if a citizen has concerns, the board needs to address them. “We’re here to serve the citizens,” she spoke with feeling. “Even if nothing changes, we must look at it again. . .This is why we are here, to serve the citizens of this town. . .I will believe that as long as I live.”
A motion was made and carried for the board to reconvene after considering citizen comments before making a decision on the budget. The recessed meeting will be continued on Thursday, June 12, at 7 p.m. at the Walnut Cove Senior Citizens Center.



