By Elisabeth Strillacci

SPENCER — A budget proposal from Spencer Town Manager Peter Franzese that was presented at the end of May included a two-cent increase in taxes and a new position, but did not include the pay increases for staff recommended following a pay study earlier this year.

In a long and emotional debate Tuesday night, the Board of Aldermen ended up passing a 2.55-cent increase, but eliminated the new position, choosing instead to put it toward raising salaries.

There had initially been a plan, and a hope, to raise salaries for town staff, but because revenues coming in, for Spencer and every other community across Rowan County, have become so strained, those pay study increases were put on hold and instead, a small, flat increase was proposed.

The town has been working for years to build up a full parks and recreation program, including establishing just this year a volunteer Parks and Recreation Advisory Board, and the final step in that plan was the creation of an active living coordinator position. The salary and benefits for that position were included in the initial proposed budget from Franzese, following the direction from the board.

However, in recent months, both the police and fire departments have experienced heavy loss of staff because current salaries are not competitive, and employees with young families have chosen to take other jobs nearby that pay more. Both Fire Chief Michael Lanning and Police Chief Michael File have been concerned about that loss not only of staff, but of the related loss of coverage.

Removing the new position, along with a few minor other tweaks including a reduction in the small stipend board members receive, would be enough to allow the tax increase to instead cover an incremental implementation of the full pay study salary raises. And it would provide increases for staff across the board, not just first responders.

But at least two board members, Rashid Muhammad and Andrew Howe, said they could not vote for any tax increase, regardless.

“We talk about supporting our front-line workers, but we also talk about not increasing taxes,” said board member Erin Moody. “That’s just not possible. The math does not add up.”

Howe pointed out that in initial budget discussions, the ideas started out “one million dollars over revenue, and we got it down to an increase of $77,000, which is a substantial reduction and the salary study we had done shows us the increases the market calls for. We know costs and salaries have increased. But we simply cannot afford it. The math really does not add up.”

Howe made an initial motion to deny the budget as proposed and then rework the proposal for consideration, and that motion passed, but then the conversation continued about what adjustments to make.

Howe and Muhammad asked if there was nowhere else Franzese and staff and fellow board members could cut. Moody and board member Steve Miller both noted that the manager would need specific direction from the board on what to cut, that they both believed he and staff had worked to reduce everything they could.

Howe agreed, calling it a “bread and water year,” but Moody stood by her position, saying “to support front line workers with a livable wage, so they can go to the grocery store and buy what they need, but say no to a tax increase — we can’t do both. And our staff, that we have worked to build and who have helped get us to where we are, they deserve a living wage. We do not live in a bubble. The world evolves.”

Moody and Miller were in agreement that the town should put the new position on hold for at least a year, and instead fund the salary increases to help Spencer hold on to those staff members.

But board members Patricia Sledge and Mayor Pro Tim Patti Secreast were not yet prepared to give up on the new role.

“We have been working to build up our parks and trails and we need someone to take on management of those amenities, including scheduling events and managing potential fees that could bring income for the town,” said Sledge. “The position is the culmination of this whole process, and we have candidates that we have interviewed that are great people. If we’re going to make people mad about a tax increase, maybe we should just go on and make them really mad. And keep both the increases and the position in the budget.” She said as a taxpayer herself, she would be willing to pay for both.

Secreast agreed.

“I know it will be tough for a few years, but it will even out,” Secreast said.

“Look at all the development we have coming,” said Sledge. “I know it’s not here yet but I have every confidence that it will be completed.” She then listed a number of towns across the county whose revenues have increased because of annexation or development, and said Spencer’s bottom line will also increase when new construction is complete and new businesses are up and running.

But those numbers are not yet countable.

“We believe we will see roughly a five- to 10-percent increase in revenue in the coming years,” said Franzese. But those revenues are not yet in existence.

“Unfortunately, there is what is known as a fixed operational floor,” said Howe. “If there was any additional “fluff,” and I don’t think there is, we could cut it. But I think we are kind of at that floor. At some point, we have to take a pause and let revenues catch up. And if we can’t give people already here what they need and deserve, I just can’t vote to add a hypothetical position for someone not even here yet.”

Miller moved to amend the prosed budget to eliminate the new active living coordinator position and four other small items and replace it with the salary study increases that would be implemented incrementally starting July 1 and completing in March of 2026. Moody seconded it.

In the first round of votes, it failed by a four-to-two vote. Conversation carried on, with Moody and Miller working to convince the rest of the board that this year, any increase needs to go toward the people who are currently working for the town, before more take jobs elsewhere. And eventually it worked. Miller submitted the motion a second time and it passed, four to two, with Howe and Muhammad voting no. Secreast, Moody, Miller and Sledge voted in favor. Mayor Jonathan Williams was not at the meeting.

“I know it was harder than usual this year, but we did it,” said Secreast after three hours. “And I want to thank everyone for remaining calm and discussing this professionally and with courtesy.”

In attendance during the meeting were numerous police officers and fire fighters, who were waiting to see if the board would support their needs, but other town staff were there as well. And every department offered thanks to the board for their support.

“On behalf of me and my department I thank you,” said File. “I believe this will stop the hemorrhage. When we got to the point of having days where we didn’t have 24-hour coverage, I was really concerned, but I believe this will get us back on track.”

“Speaking for my staff, we were very concerned about what fire protection would have looked like,” added Lanning. They had reached a point where for two days out of a week, coverage would have been non-existent. “I am relieved and grateful for the support.”

Finance officer Heather Kann and Public Works Director Joel Taylor also offered their thanks during their monthly reports.

At one point, the board considered ending the meeting with recommendations to Franzese but without a vote, but Franzese noted that a budget has to be passed by the end of the fiscal year, June 30, and postponing a vote would make the timing tight.

“We do what we do because we love it, all of us,” said Franzese, who said he would follow the directions the board offered. “It’s a long game, and we’re in it together. Some times are good, and some times are bad, but we do this as one.”

“We could stay on this hamster wheel, but I think we all know where we stand,” said Moody before the final vote. “I think we might just be putting this vote off because we are uncomfortable, but I am also uncomfortable getting closer and closer to July.”

“The town runs on its staff, and that needs to be the priority,” said Miller.

Under the approved budget, taxes will increase to 63.05 cents from a current rate of 60.5 cents per $100, effective July 1.