June 2008 · Volume 90 · Number 5

Profile

Lane Bailey, ICMA-CM, is city manager of Lenoir, North Carolina.

It is shortly after 8 a.m., and Lane Bailey already is deep into a day that will stretch through the evening hours.

Having worked the phones—both regular and cellular—for more than an hour, Bailey, Lenoir, North Carolina’s city manager, has one department head in his second-floor office at city hall and another waiting to see him. The primary concerns on this morning are drought and water. A year-long dry snap [in 2007], which began in late spring and worsened throughout the summer and fall, has prompted another in a series of discussions between Bailey and Public Utilities Director Mack “Buddy” Edmisten about how to manage the situation.

As [the city of Lenoir is] the primary water provider for most of the county, both men understand the harshest of mandatory water restrictions could be on the horizon. The challenge is multifold. By conserving water, the valuable commodity still will be available if the drought persists. At the same time, conservation by the bulk of the city’s and county’s residents likely will mean lower revenues for a water operation that generates a positive cash flow each year.

And don’t forget about Google. The Internet search and applications giant, expected to come online soon, is forecast to use large quantities of water to cool its massive array of computer servers.

In other words, it’s just another Tuesday for Bailey, who has been Lenoir’s city manager for the past three and a half years. “Every day is different,” Bailey said. “And this is something that I enjoy doing.”

During Bailey’s tenure, Lenoir has fought to recover from the economic hardships created by the closure of several furniture plants. Aside from the economic devastation to working families, the city also experienced severe budget difficulties from the loss of tax revenues when the factories closed.

“[Former Lenoir city manager and Bailey Guiding Lenoir’s Future current councilman] Lewis Price said that the budget was really bad when I interviewed,” Bailey, 43, said. “And that realization came real quick when I arrived.”

Just how bad? The city’s undesignated fund balance had dipped below 11 percent and was being propped up through borrowing from the water department’s enterprise fund. According to the North Carolina Local Government Commission (LGC), counties and municipalities are advised to keep an undesignated fund balance of 8 percent in reserve. If left unchecked, Lenoir’s ability to borrow funds and its credit rating were in jeopardy.

The cure was not without pain. Staff positions were eliminated or left unfilled, and the city halted its curbside recycling service. But the measures have produced concrete results.

Bailey credits the department heads for doing more with less in changing the city’s fiscal fortunes. At a recent staff and council meeting, the city learned that its fund balance has pushed above 20 percent. Bailey wants it to reach 24 percent, which would represent three months of general fund revenues.

“We’ve done a good job turning that situation around,” Bailey said. “There are still some things we need to address.”

All in all, though, not bad for someone who was looking at law school while an undergraduate at Appalachian State University. But some second thoughts about law school, along with a conversation with fellow ASU student Jeff Emory (now the city manager of Lincolnton), pushed Bailey in a different direction.

“I was hearing stats that there were more people in law school than there were attorneys,” Bailey said. “I came back to get an MPA (Masters of Public Administration), and I never looked back.”

Members of the Lenoir City Council, Bailey’s bosses, laud his performance. “There is no one else I would rather have at the helm than Lane Bailey,” Councilman and former Mayor Pro Tem Todd Perdue said. “All you have to do is look at the downtown and the business that has been recruited.

“I just continue to be impressed with the breadth of Lane’s knowledge, be it water and sewer or grants and legislative-related issues. He just has a great grasp of things to be able to run a city.”

Added Councilman Price, who was Lenoir’s first city manager from 1964 to 1983, “I’ve got a good appreciation for what he has done and know what he has done. He’s a real good team player, and he’s developed a really good team. When Lane speaks, you know he means business.”

Lenoir Mayor David Barlow credits Bailey for following through on projects and initiatives. “His management style is to not let something sit and to not be passive,” said Barlow, who recently began his third term as mayor. “What I like about him is his vision and passion. He gets things done.

“He’s not afraid to suggest things and propose things. The council and I don’t always agree with him, but that’s his job to call them as he sees it. But I know that when I ask him to follow up on something, I can depend on him to do that. And that’s vitally important to me as mayor.”

Of course, Bailey does not get everything he requests. His proposed 4 cent property tax increase for the current budget year was nixed. And an examination of converting the fire and police departments to a single public safety office went nowhere. Bailey also regards the elimination of curbside recycling to be his biggest disappointment.

“I’ve got probably one of the best city councils in the state,” Bailey said. “It’s the best I’ve ever worked with. I think we respect one another. I’ve been doing this for 18 years and never voted on a budget. You have to respect anybody who volunteers for that.

“I’ll make mistakes, and I’ve made plenty. But I think you should take ownership of them.”

Bailey acknowledges that he is “very well-paid” with a base salary, along with an expense allowance, set by the city council. Lenoir almost didn’t get a shot at his services. In 2004, Bailey was about to be considered for the assistant city manager’s job in Fayetteville. But during a talk with Andy Lovingood, an engineer with McGill Associates, Bailey learned of the opening in Lenoir. He withdrew his name from the Fayetteville job and interviewed instead for the Lenoir post.

A key focal point of the past year and into the future for Bailey has been customer service. Previously, Bailey distributed copies of Jim Collins’ book “Good to Great,” and the council has visited Salisbury to see how its customer service has improved.

For his part in the effort, Bailey said he makes a point to return all phone calls, particularly those from residents, in a timely manner. “The citizens are our customers,” he said. “There’s a lot of good companies out there that don’t become great because they just want to stay good. We want to do better throughout the organization, and that starts with me.”

Prior to coming to Lenoir, Bailey served as city manager of King, a small community in Stokes County. He also spent seven years as the manager of Polk County. “I was one of the youngest (28 when he took the job) county managers in the state. I tell people when I left that I was one of the oldest,” Bailey quipped.

“He’s becoming more and more involved with the city,” Councilman Merlin Perry said. “I think he has grown with the city tremendously. I think he sees things that the community needs and wants.”

Bailey takes pride in the renovations that have been done in the downtown area, along with the successful recruitment of Google. “The better part of 2006 was spent on Google,” he said. “In talking with another city manager, he told me that getting to work on a project like that is a career thing.”

Bailey and his wife, Ruth, whom he met at Sunday School while living in Hendersonville, have two children, Brennan, 7, and Katherine, who will be 5 [in December]. Ruth recently completed her Master’s Degree from Liberty University in education, with a concentration in counseling.

“We just think this is a wonderful place to raise a family,” said Bailey. And being close to Bailey’s beloved ASU football team doesn’t hurt. Bailey’s office is a testament to his Appalachian State devotion, with posters and memorabilia adorning the walls and shelves. “Brennan is starting to go up with me to the games,” said Bailey, an avid runner who has competed in half marathons and triathlons. “Now his little sister wants to go too.”

As for the city’s future, Bailey hopes to continue Lenoir’s economic recovery. “We need to continue to focus on quality of life and how attractive this community is to outsiders,” he said. “That will be a big part of what drives the economic engine. We want people living here and working here.”

And as for his own future? Bailey said, “I’d like to stay around for awhile.”

—Paul Teague
Local News Editor
News-Topic
Lenoir, North Carolina

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