Winston-Salem City Council Insider

Tonight's meeting of the Winston-Salem City Council begins at 7 p.m. If you're worried about the roads and don't want go to City Hall to see the action unfold in person, watch it via streaming video here.

Typically, the best stuff is found in the consent agenda, which is approved without discussion unless a member of council pulls the item for discussion. That's certainly the case with a request from the Winston-Salem Chronicle for a $100,000 loan to finance the hiring of three new sales associates in support of the newspaper's "For Seniors Only!" publication.

The item was recommended by the finance committee last week without no discussion. Back story here.

Documents here, here and here.

Not everyone in the community is on board.

Chad Nance, editor of Camel City Dispatch (a friend and occasional partner of YES! Weekly) writes in a letter to the mayor and members of council:

"There are obvious ethical questions of having the very government that journalists are Constitutionally charged to watch having their hands on the chain. The fact that The Chronicle is beholden to the city of Winston-Salem will remove any credibility they ever had as an honest broker of news and information. It raises the question about someone with a media platform like [publisher] Mr. [Ernie] Pitt — a platform that would have the ability to damage political careers with a swipe of the pen — asking those very politicians for a handout."

UPDATE: City council voted unanimously to approve the loan to The Chronicle.

The council also voted in a split decision to approve an additional $400,000 loan for the Ogburn Station Shopping Center through the Revitalizing Urban Commercial Areas program even though previous loans have run into trouble related to a dispute between shopping center owner Danny Kim and tenant Bernetta Oakes.

Newly seated Winston-Salem City Council reshuffles committees

Vivian Burke was sworn in to her 13th term on Winston-Salem council

Mayor Allen Joines and eight members of Winston-Salem City Council — all but one of them veterans of the body — pledged new investment in infrastructure and a war on poverty as they took their seats for a new term after being sworn in.

And while the roster of the body reflected little turnover, a reshuffle of committee leadership as two council veterans stepped aside, signaled a fresh start for the council.

As chair of the finance committee, Councilwoman Wanda Merschel has been recognized by her colleagues for helping the city maintain the lowest tax and fee structure of any major city in the state through a succession of difficult budget years. Her retirement from council created a vacancy filled by Jeff MacIntosh, as the new representative of the Northwest Ward, but also created a leadership vacuum on the finance committee.

The council voted unanimously on the motion of Mayor Pro Tem Vivian Burke to appoint Robert Clark, a four-term Republican who represents the West Ward to chair the finance committee. The surprise was that the slate moved by Burke promoted Councilman James Taylor Jr. from vice-chair to chair of the public safety committee.

Robert Clark is the new chair of the finance committee.

"I have been the public safety chairman for 36 years," Burke said after the vote. The councilwoman, who has represented the Northeast Ward since 1977, added that she talked with her son, Judge Todd Burke, her campaign secretary, Naomi Jones, and her campaign manager, Wayne Patterson.

"I said, 'God has blessed me, and I'm not going to serve as chairman anymore,'" Burke recalled. "The mayor had made that recommendation that I would. And I called him and I said, 'I have something to say.' I said, 'I want to move away from being chairman of public safety.'... I feel that [Taylor] would do a good job. He is committed. I want you to know that it was a choice, and I think the city will be in good hands with James Taylor as our chairman."

Councilman Dan Besse will replace Clark as chair of the public works committee, and Councilwoman Molly Leight will replace Besse as chair of the general government committee. Besse said he requested the switch.

"I've had a particularly strong interest especially in our transportation infrastructure services ever since I've been on the council and wanted the opportunity to press forward in development on that end," said Besse, who is beginning his fourth term. "I thought I would have the strongest chance to do that as chairman of the public works committee."

James Taylor Jr. will chair the public safety committee.

Several council members are interested in putting a new bond issue before voters for a referendum next year. That includes Besse, who said he will push for funding for a streetcar system and intersection improvements, along with new sidewalks and bike lanes.

Clark said the city's roads and parks have been neglected because of budget constraints over recent years.

"I will be suggesting to this council that it is now time to seriously look at a general-obligation bond on a referendum," he said. "It has been 13-plus years since we've put a bond before voters and I think those resources are needed to get this city back to where it needs to be."

Joines said the new council needs to quickly put together a strategic plan and a capital improvement plan to prepare for a bond issue next year. The mayor, who has served three terms, has acknowledged the widening wealth gap in Winston-Salem over the course of his reelection campaign, and quickly pivoted to a gesture of economic reconciliation during his remarks.

"If Winston-Salem itself is to reach its full potential, we have to find a way to address the unacceptable levels of poverty in our city," the mayor said. "The poverty levels for families in our community were 21 percent last year, and 17 percent of our households qualify for food stamps. Certainly, educational attainment is a critical factor. For instance, the poverty rate for individuals with a bachelor's degree is only 5 percent, compared to 34 percent for individuals who do not finish high school. So dealing with this issue is certainly the right thing to do morally. But it's also the right thing to do because it affects us all and eventually becomes a burden on the taxpayer."

Dan Besse takes the helm of the public works committee.

Joines said that Councilman Derwin Montgomery, who represents the East Ward, and NC Sen. Earline Parmon have talked to him about the issue.

"So I propose that we create a poverty, work and opportunity task force to review the issues surrounding poverty, inventory the various programs in place now and to identify new programs that should be developed to address this issue," Joines said.

Leight, who has represented the South Ward since 2005, sketched similar contours in her remarks.

"I would like to see our city and council members not only continue our economic growth — the muscle of our city — but also put that growth to use for those amongst us who need the help the most: the hungry, the homeless, the have-nots," she said. "I pledge to direct my attention to the heart of our city, towards those poor and without homes and food, especially those children who go to school hungry. I also pledge to direct my attention towards quality-of-life issues — shall we call it the soul of our city. Those issues have had to take a back seat during the past few years. A quality city funds parks, libraries, museums, which in fact, in turn, become economic drivers for the city."

Councilman Denise D. Adams predicted "difficult decisions about taxes" to pay for raises for police officers and firefighters and to finance new infrastructure and quality-of-life initiatives. And consistent

Molly Leight is the new chair of general government.

with her reelection campaign, Adams pledged to widen the city's redevelopment focus from downtown to outlying residential areas.

"Everybody wants to come home to a nice community block where there might be a coffee shop, or there might be some small businesses, or there might be some areas where children and families can come to do recreational things — nice sidewalks, more bike trails and greenways, better paving," she said.

While many council members reflected on two or three terms, Burke's comments summed up a record 12 terms in office.

Burke said that with the help of Assistant City Manager Greg Turner she calculated that she has spent 3,320 hours in official meetings to handle council business, not even counting community meetings.

"Tell me that I'm not committed and dedicated," Burke said. "There's no debate."

The Northeast Ward councilwoman talked about how during her tenure on council she has watched an area of Hanes Mill Road transition from a tree canopy to retail development.

"And some of you might not like to hear about Wal-Mart," Burke said. "But I tell you — I told the constituents I represented: 'I cannot say no; this time I'm going to say yes.' And we put Wal-Mart there. It created so many job opportunities. It made for people to have better homes. So we are interested in economic development."

MacIntosh, as the sole new member of the council, credited his colleagues with helping the city retain its AAA bond rating and steering Winston-Salem through the recession.

Jeff MacIntosh is the newest member of council.

"I think we're on the verge of being able to do some really great things," he said.

Merschel did not attend her final council meeting because of an unexplained medical issue, but City Manager Lee Garrity read from a written statement received by e-mail. Merschel thanked staff, fellow council members, her husband, family and friends and her successor, but singled out fellow council member Burke for praise.

"A special thanks and congratulations to my longtime friend, Mayor Pro Tem Vivian Burke, on her historic election," Merschel said. "Her dedication to our community is legendary."

Council debates 'symbolic' pay raise during final budget discussions

Dan Besse (foreground) and Robert Clark debated a pay raise for themselves.

The Winston-Salem City Council finalized the fiscal year 2013-2014 budget this afternoon with only a few minor tweaks, including a tiered merit raise for employees and carving out additional grant money for the non-profit Creative Corridors for public-engagement activities as the ordinance moves to a final vote on Monday.

Having achieved consensus on big items such as the tax rate, bond funds for street maintenance and personnel reductions, the drama moved into a piece of side-show theater between council members Dan Besse and Robert Clark — two members who are said to harbor designs on the mayor's seat when incumbent Allen Joines retires.

The jousting began when Besse announced that he objects to a 1.5-percent raise for council members, which all agree is largely symbolic. Council members currently receive a salary of $9,800, which equates to a raise of $140. 


Besse threatened to vote against the final budget if it includes the pay raise.

"I think the symbolism is terrible for us to take a salary increase in a year when we're increasing the tax rate," said Besse, a Democrat who represents the Southwest Ward.

"Even the one percent deserve a raise," quipped Clark, a Republican who represents the largely affluent West Ward.

"I'd love for Dan to vote against his Sunday bus service," Clark gleefully added, alluding to a budget provision to expand bus service to Sundays — a policy goal long sought by Besse, a staunch public transit advocate.

"In a year when we're cutting taxes — not the tax rate — you don't take percentages to the bank; you take dollars," Clark continued. "And the average person is giving us less dollars. That's what's known as a tax cut."

Clark's point alluded to the fact that while council is raising the actual tax rate, it will be below what is considered revenue neutral — the rate needed to make up for the loss of overall tax base in the recent revaluation. City Manager Lee Garrity has said that under the proposed budget about 70 percent of property owners will see their tax bills go down. 

But Besse said many of his constituents, even those with modest incomes, saw their property values rise, bucking the trends across the city. He said he wasn't going to set himself and other council members up for criticism.

"If it stays in the finance committee's recommended budget, I will make an amendment to take it out," Besse warned, "and we'll see who votes yea or nay."

Mayor Pro Tem Vivian Burke chided her two colleagues: "This is why America's in the condition it's in."

The most substantive change made by the finance committee was a tiered scheduled for performance raises, providing a 3-percent raise for "top performers," a 2-percent raise for "strong performers" and a 1.5-percent raise for "solid performers," based on the recommendation of supervisors. 

Funds for the raises will cost an estimated $460,000, to be financed through privilege license fees on internet sweepstakes parlors and a salary fund.

"I can tell you where the top performers are based on the phone calls I get," said Councilwoman Wanda Merschel, who chairs the finance committee. "That's in sanitation. Sanitation [services] can make or break a council member." 

Council members passed on several opportunities to cut spending, particularly in the areas of grant-making and travel for city employees.

Merschel noted that the city funds both Piedmont Triad Regional Council and Piedmont Triad Partnership, adding that she finds the allocations somewhat redundant and would favor granting the money solely to the partnership.

Councilwoman Molly Leight, the council liaison to the regional council, defended the agency.

"They do all sorts of workforce development, they do weatherization," she said. "They do a lot of aging services. They do extraordinary good work."

Clark interjected, "You mention training. Forsyth Tech trains, the schools train. The Urban League does workforce development training."

Merschel said she ultimately defers to Leight on the matter, and the council members moved on without making any changes.

Council also scrutinized travel funds for the water and information systems departments. The city has budgeted $66,890 for the water department and $56,130 for information systems.

Garrity said that the information systems department could make do with about 30 percent less money for travel, but that the money is needed so that water department employees can travel within the state to take classes required to maintain their certifications. He acknowledged that information systems employees travel nationally to what he termed "destination" cities for conferences.

Councilman Derwin Montgomery set up a save for the funds by alluding to Winston-Salem's recognition by the Center for Digital Government for 11 years running as being among the 10 most technology-advance cities of its size.

"Does anyone find the irony in travel for IS?" Merschel asked. "Okay, if we think that's key for keeping our digital city awards...."

By their silence, Merschel's colleagues indicated they had no stomach for cutting the funds.

The council also reviewed spending on grants to nonprofits engaged in arts, science, culture and community development activities. The city manager's proposed budget includes $2.2 million for dozens of agencies, with the exception of two organizations: Creative Corridors and the Institute for Dismantling Racism.

Creative Corridors, which has marshaled community involvement in an effort to raise the aesthetic quality of major roadways around downtown, requested $15,000 for community engagement and fundraising work. 

At the urging of members Montgomery and James Taylor, the council amended the budget to accommodate Creative Corridor's request. The request will be funded by reducing grants to the remaining agencies. Merschel elicited an acknowledgement from Creative Corridors Executive Director Russell DuBois that the funds will be a one-time grant.

Burke was the first to speak up for the Institute for Dismantling Racism, which is requesting $60,000.

"There's still racism in this city," she observed, while professing to "not even know who this group is."

Deputy City Manager Derwick Paige explained that staff decided not to include funding for the Institute for Dismantling Racism in the budget because of concerns by the Winston-Salem Human Relations Commission. He said the funding request was initially submitted to the human relations commission, adding that the commission voted against it because of concerns about a conflict of interest considering that a member of the commission is one of the founders of the Institute for Dismantling Racism. 

Council members agreed by consensus to not fund the Institute for Dismantling Racism through the annual budget up for adoption on Monday, but rather to direct Garrity as city manager to review the human relations department budget and see if there are adequate funds to execute a contract with the nonprofit. Besse, Leight and Taylor all vocalized support for the idea.

Citizens United resolution moves closer to vote by Winston-Salem council

Tony Ndege of Occupy Winston-Salem urges members of the general government committee to approve a resolution calling on Congress to overturn the 2010 Supreme Court decision in Citizens United v. Federal Election Commission. 

The Winston-Salem City Council will consider a resolution next Monday calling on Congress to amend the US Constitution to establish that "only human beings, not corporations, are endowed with constitutional rights protected by the First Amendment" and that "money is not speech under the First Amendment and therefore regulating political contributions and spending is not equivalent to limiting political speech."


The resolution was approved by a 3-1 vote tonight by the general government committee following an amendment moved by Councilwoman Denise D. Adams to strike a reference to the US Supreme Court declaring "corporations to be persons" in the 2010 Citizens United v. Federal Election Commission decision, based on an objection by Councilman Dan Besse that the statement was not factually accurate.

Councilman James Taylor Jr., who brought the original resolution to council at the urging of Occupy Winston-Salem, reluctantly agreed to the amendment. The amended resolution passed with support from Taylor, Adams and Councilwoman Molly Leight, while Besse voted against it. 

City Attorney Angela Carmon concurred with Besse's reading of the Citizens United decision.

"I don't believe the decision declared corporations to be persons," she said. "I believe it declared corporations to be entitled to the same First Amendment protections as natural persons."

After the meeting, Besse circulated an alternative resolution stating that the Supreme Court's rulings "that unlimited spending by non-candidates in efforts to influence the outcome of an election cannot be regulated" and that corporations cannot be regulated as a class distinct from natural persons should be overturned.

City Attorney Angela Carmon told council members that amendments from the floor at next Monday's meeting are permissible. But Montgomery warned that his colleagues should be cautious about entertaining amendments lest the consensus around the resolution unravel and the matter wind up getting sent back to committee. 

"I believe we should send a clear message to the federal judicial branch to let them know that elections should not and will not be bought in this country, in this state and even in this city," Taylor said. "There are hundreds upon hundreds of cities all across the country that stand with us. It isn't just me presenting this. I represent some people who are here today, who I believe are going to speak. This is a grassroots movement. It isn't just us. There are hundreds of cities across the country, and even cities in this state that have approved the resolution calling for an amendment to the Citizens United decision. Those major cities in North Carolina are Greensboro, Durham, Raleigh, Chapel Hill, Asheville and Greenville."

Kim Porter of Occupy Winston-Salem said about a thousand Winston-Salem residents have signed a petition supporting the resolution, including NC Sen. Earline Parmon, NC Rep. Ed Hanes Jr., Winston-Salem NAACP President Wayne Patterson and former Councilman Larry Little, and 300 other North Carolinians from outside of the city also signed on.  

"When you give money free speech, you give corporations a much larger megaphone than, say, I could," said Adam Price, a resolution supporter who said he is currently homeless. "I don't have as much money. What does my voice count in a democratic system where my voice should count if I don't have as much free speech as the next guy. If we turn money into a form of free speech, then we now have a higher system of the amount of free speech than each person will be able to attain in their lifetime. I'm not going to be a millionaire -- I'm not going to say that -- but I'm probably not going to be a millionaire. But if money is free speech, then that millionaire has a million more free speeches than I do. One man, one vote, and if you support that -- support that democratic view of one man, one vote, you'll push this. Let's do this. Let's take it from the ground up. City Hall to Supreme Court. Let's do it. Come on, guys."

Besse has long opposed the resolution, arguing to colleagues that it is not an appropriate area for city council to get involved and that denying corporations the rights of personhood could have the unintended consequence of preventing groups of people from coming together to advance their interests.

"I voted against the resolution because I don't like the way it handled the corporate personhood issue and because it fails to address some of the problems in the Citizens United decision," he said after the meeting. "I think that Move to Amend and other groups like them take the wrong tack on the Citizens United case. It addresses a related issue and fails to address the fundamental issues of the Citizens United decision. I expect to discuss the alternative resolution that I drafted for the city council on Monday evening and simply lay out the option. I think for those who want this it's best to tell them: 'If you want to see Citizens United overturned, this is a better call. I told my fellow council members we would bring it to a resolution next Monday night one way or another. Whether I'm on the winning side or not doesn't really matter to me."

Tony Ndege of Occupy Winston-Salem indicated that he was satisfied overall with the committee's handling of the resolution.


"I'm happy that this is moving along," he said. "I am very unhappy that the wording on 'corporate personhood' has been struck, but I'm happy that the language about moving to amend was left in. Whether or not they agree or disagree, the idea that the original intent of the First Amendment, with the Fourteenth Amendment and with the Bill of Rights were for natural persons -- that is the essential argument. And it also boils down to whether or not we choose to stand on the side of corporate power or on the side of people."

Winston-Salem council members quiet about decision on Kalvin Michael Smith

The Winston-Salem City Council unceremoniously dropped any consideration of asking the federal courts to grant Kalvin Michael Smith (background) a new trial on Monday, as reported by the Winston-Salem Journal.

City leaders say they will release a statement on Friday that, as Mayor Allen Joines put it, “will lay out the specifics of the reasoning.”

Speculation has abounded that the council's decision to not intervene with the courts is based on concern that it might incur financial liability because a motion on Smith's behalf could be interpreted as an admission of wrongdoing. Joines declined to comment on that matter in an interview yesterday.

In a letter to city council on July 27, the co-chairs of the Silk Plant Forest Truth Committee wrote, "We would respectfully point out, however, that to the extent potential civil liability is a factor being weighed, the council's actions or inaction may impact matters for better or worse. Some attorneys have publicly suggested that embracing the truth and bringing it to the court's attention via an amicus curiae brief in the instant case may mitigate the city's potential liability."

The city's decision comes on the heels of an Aug. 3 filing by the NC Justice Department asking a federal court to deny a motion by the Silk Plant Forest Truth Committee to appear as a “friend of the court.” Boiled down from legalese, the committee’s motion essentially asked US District Court Judge Catherine Eagles to consider an opinion by consultant Chris Swecker that Smith deserves a new trial because all the jury did not hear all the evidence and some of the evidence presented was not accurate. The state argued that Swecker’s report “is simply irrelevant.”

The report contains the opinions of Mr. Swecker concerning the evidence and investigation in the case for which petitioner was convicted and sentenced. Particularly notable is Mr. Swecker’s opinion that justice dictates a new trial. Mr. Swecker is in essence and erroneously giving an opinion regarding a determination that is solely within this court’s province.

The filing merely identifies Swecker as “an individual,” omitting to mention that he is a retired assistant FBI director with extensive experience in law enforcement. The omission of any reference to Swecker’s professional background and dismissal of his opinion is odd considering that Attorney General Roy Cooper commissioned Swecker and another retired FBI agent to audit the State Bureau of Investigation. (Swecker found that the bureau “withheld or distorted evidence in more than 200 cases at the expense of potentially innocent men and women,” the News & Observer reported.) 

Noelle Talley, a spokeswoman, said the NC Justice Department would decline to comment due to the pending nature of the litigation. 

Swecker said today that the NC Justice Department’s characterization of his involvement in the case as “erroneously” indicates a disagreement with his opinion itself rather than an objection to his expressing opinion. 

“The jury didn’t see everything, and some of what it saw was not correct,” Swecker said. “If you weight it out, I think I came down on the side of he deserves a new trial so that the jury can hear all the evidence that’s relevant and hear the accurate evidence — get it all out there. By no means am I saying that Kalvin Michael Smith is guilty or innocent.” 

The Winston-Salem City Council’s sudden disinterest in intervening in the Smith case is also odd, considering that a majority of members professed heartfelt concern for justice only last month. 

Councilman James Taylor Jr., who represents the Southeast Ward, is the only member of council who has publicly dissented from the majority decision rendered on Monday. 

“I personally believe that we should file an amicus brief, and I’ll be happy to do what I can personally to ensure that justice is served as a private citizen,” Taylor said this morning. 

Councilman Derwin Montgomery, who represents the East Ward, has reportedly said he will issue an individual statement tomorrow, alongside the official statement representing the majority of council. 

When the council first discussed the possibility of requesting that the federal court grant Smith a new trial in July, a majority of council members indicated they were supportive. 

Taylor and Montgomery both said they thought the city should file an amicus brief. Councilwoman Molly Leight also indicated support. 

“There comes a time when we must do what is just and right,” North Ward Councilwoman Denise D. Adams said at the time. “We have to use our political will to always right injustice.” 

Mayor Pro Tem Vivian Burke said, “We want justice, that’s all. And want this community to move forward.” 

Council members Wanda Merschel, Robert Clark and Dan Besse, who respectively represent the city’s northwest, west and southwest wards, appeared to be the least sympathetic to the idea of filing an amicus brief. Merschel merely said that the city needed closure and that the council looked forward to consulting with the city attorney. Clark said the council needed more information. And Besse was not heard from. 

The mayor votes only in the event of a tie on the eight-member council. The decision of a majority of council members to not intervene in the case indicates a defection of at least one of the four members who initially expressed support for taking a stand for justice but who have not publicly stated their position since the decision was made on Monday. 

I have calls in to Leight, Adams, Burke and Montgomery, but so far have not heard a response. Clark said on the advice of City Attorney Angela Carmon he would not comment on his personal position on the matter. 

“I certainly provided them legal advice, and as they indicated they decided not to [file an amicus brief] based on my legal advice,” Carmon said. 

The city attorney also said the city has not consulted with either the Forsyth County District Attorney or the NC Justice Department on the decision. Talley confirmed that the NC Justice Department has not advised the city on filing an amicus brief. 

“It’s ultimately the city council’s decision based on the legal advice of their attorney,” Carmon said. “Their opinion as to what the city council should do is not germane to the decision that they have to make.” 

The possible involvement of the district attorney's office was raiised as a concern in the letter from the Silk Plant Forest Truth Committee.

"As is well known, the FCDA's office is recused from the pending litigation because the petition alleges transgression by that office as well as by the WSPD," the letter reads. "Consequently, we would be troubled to see the city generate civil liability for itself if indeed it was consulting the FCDA's office regarding if, how, or to what degree the city accurately informs the federal court of what the city now knows in this matter."

Six Winston-Salem council members oppose voter ID legislation

From a statement issued today by Winston-Salem City Council members Vivian Burke, Denise D. Adams, Dan Besse, Molly Leight, Derwin Montgomery and James Taylor Jr.:

We the undersigned urge members of our local legislative delegation to oppose HB 351 and similar efforts to require photo identification as a prerequisite of voting.

There are an estimated 500,000 North Carolina citizens presently registered as active voters in our state who lack a current driver's license or other photo identity car.

These voters are disproportionately people of color, the elderly and low-income citizens. For example, African-Americans are about 22% of all registered voters in North Carolina, but are estimated to be 32% of the registered voters who do not have a current photo ID. The racially discriminatory effect of voter photo ID requirements would be flagrant.

Voters without a current driver's license would face extra expense and time to obtain an alternative ID as required by the terms of HB 351. In effect, the requirement would amount to a "poll tax" with disproportionate impact on the poor, elderly and disabled.

Mayor Allen Joines and council members Robert Clark and Wanda Merschel did not sign the statement.

The Forsyth County Commission voted 4-3 to endorse the bill last month.

Besse writes in an e-mail to members of the Forsyth County delegation to the General Assembly: "It is the tradition of our city council not to debate as official city statements policy resolutions which are not directly related to city business. However, several of us as individuals are concerned that the recent vote by a narrow majority of the Forsyth County Board of Commissioners in support of HB 351 may have left our legislative delegation with a misimpression that that proposal enjoys broader support among local elected officials.

Winston-Salem proposes tax increase, deep cuts in budget

Winston-Salem City Manager Lee Garrity is proposing a tax rate hike of three-quarters of a penny per $100 of valuation, and a series of deep cuts in city programs that will slash the city’s overall budget by $10.4 million. In a presentation to Winston-Salem City Council, Garrity outlined the proposed budget, which raises the property tax rate from 46.75 cents per $100 valuation to 47.75 cents per $100 valuation — a measure that is projected to raise $1.6 million in additional revenue.

Garrity cited a number of economic factors related to the current recession as the reason for the tax hike and budget cuts. Sales tax is expected to decrease by 1 percent this year, and the city’s property tax base is expected to decrease by 1 percent as well. Also, the city must increase its contributions to state and local employee plans. All these budget factors add up to an $8.5 million between revenue and expenses in the $362.4 million budget, Garrity said.

To close the gap, Garrity is proposing the modest tax increase, the elimination of 37 city jobs, a freeze on pay increase for city employees, a deferment of city equipment purchases and an increase in fees on waste collection, parking and recreation activities. Under the proposal, the city will also reduce its contributions to nonprofit community agencies.

“My proposal attempts to minimize the pain of budget adjustments by spreading the impact,” Garrity said in a formal statement.

The city’s finance committee will hold a budget workshop on Thursday at 4 p.m. at City Hall in Room 230. Budget meetings will also be held at City Hall on June 14 beginning at 5 p.m. The Winston-Salem City Council will hold a public hearing on the budget on June 21 at 7 p.m. in council chambers. The city council is expected to adopt a budget after the hearing.

— Keith T. Barber