A budget that Hamlet City Manager Marchell Adams David called “fiscally responsible and responsive to the growing needs of the community” was passed by the Hamlet City Council last night with a vote of four-to-one.

“While many entities in the county are compromising or limiting their services, making staff adjustments and decreasing benefits, I am happy to announce that the City of Hamlet has not had to employ such drastic measures,” said David. “The proposed budget maintains the current level of service and provides for an enhanced level of service in some areas.”

Jesse McQueen was the only council member in opposition to the proposed budget. In a statement read to the council, McQueen said he took issue with a “big part of the budget” — the money allocated for the Hamlet Depot Museum.

At a regular meeting on March 1, 2008 the council voted to finalize the acceptance of funds to outfit a museum in the Depot. McQueen was the only one to vote against the $500,000: 80 percent from federal enhancement funds, 10 percent from the North Carolina Department of Transportation (which ultimately controls how the grant is spent) and a 10 percent match from the city itself.

“It is my belief that the city would have been better served financially if we had turned this money down and allowed the National Railroad Museum and Hall of Fame to rent the space for their museum,” said McQueen. “This would have been a financial asset for the city instead of a financial liability.”

He listed the municipal expenses incurred due to the Depot: Utilities, maintenance, and the aforementioned match for grant funds - a combined total of $87,846 by McQueen’s calculations, with revenue from the depot totaling “$13,000 at best.” And, according to him, there also exists the possibility that the city will have to hire a new employee at the Depot.

“With these figures in mind, I can’t support this budget,” said McQueen. “I do, however, wish the city good luck with the museum.”

Because the vote last year was four to one, the city went ahead with the project and recently chose Synergy Designs of Tallahassee Florida to do the exhibit design work.

“I didn’t see where I could support the budget with that money in it when I didn’t support the original vote to accept the funds,” said McQueen on Wednesday, who added that voting against the entire budget was his way of speaking his conscience on the matter.

“There’s absolutely no way the budget could have been changed because they’re already spending the money,” he said.

“I am perplexed to see this coming up at the last minute, said Pat Preslar after adjournment Tuesday night.

“Me too,” added Council member Bill Bayless.

“I might not have mentioned it (at the retreat),” said McQueen Wednesday.

“I am not shocked,” said Mayor Jeff Smart after the meeting, in response to McQueen’s statement. He added that the city was obligated to follow DOT stipulations because the DOT provided 90 percent of the money for the project. “The main stipulation was that the City of Hamlet, as the owner, could not lease or rent the Depot (museum) to any other entity whereas the city would not have full control of the building. That’s why (the museum portion) is not rented out.”

In the end, the budget was approved - and so was an ordinance limiting the kind of organizations that can occupy buildings in the city’s central business district. That area includes the lower ends of Main Street and Hamlet Avenue.

Council members and the mayor praised municipal department heads for their frugal spending. While there are no provisions included in the budget for employee raises, the city continues to fund 100 percent of health, dental and life insurance for all full-time employees.

“I know a lot of you are doing without what you requested,” said Councilman Pat Preslar. “Just bear with us till we get back on track.”

Money from the general fund has been appropriated for a new garbage truck. Funds are also included for the 2009 municipal election.The mayor and other council members said they heard none of these comments from McQueen during the budget retreat earlier this year.

Congregate care facilities, group care facilities, churches, nursing and convalescent homes, orphanages and retreat centers will no longer be permitted in the central business district. But any such organizations already located downtown will be “grandfathered in.”

According to the mayor and council members - who unanimously approved the ordinance - the measure must be taken due to insufficient parking for such organizations. The amendment was also recommended by the Small Town Main Street group.

Under the new budget, an additional $5 was added to the base sewer service rate for customers who live outside the city limits only. That was the only fee increase in the budget.

The city was able to contribute to its capital reserve fund and, according to David, maintain a 34.5 percent fund balance - which exceeds the North Carolina Local Government Commission’s mandated 8 percent.