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Mr. Schilling said he appreciates Habitat's mission and what they are doing. Mr. Schilling said he has told Habitat that he could not support giving them the lots, but could support selling to them. He asked where the estimate of $1,100 in taxes came from. Mr. Higgins said that the taxes would actually be about $1,800 per year. He said the $1,100 figure was based on smaller size houses which were originally proposed. Mr. Schilling said the taxes would be closer to $1,900 a year to start and over $3,000 a year in five years. He said he is concerned about setting people up for failure and we need to take that into consideration. He said he does not think the project is viable in its current state and particular proposal. Mr. Caravati said he has no problem with the proposal for the 5th Street lot, but has concerns about the Holmes Avenue proposal and needs to put more time into it and to think more about how the houses fit on the lots. Dr. Brown said one issue is whether we should convey the lots for the purpose of affordable housing. He said he thinks we should as the need is there and it is not going to happen in the market. He said he thinks it is a good proposal and thinks we should support it. He said there are genuine neighborhood concerns, but Habitat has shown a willingness to design the houses in character with the neighborhood. Dr. Brown asked if it is Council's job to micromanage Habitat to assure their clients are properly assessed. He said Habitat has a long-term track record locally to make sure their home ownership works. He asked that Habitat make sure their design is compatible and says he supports the proposal. Mr. Lynch said he broadly agrees with Dr. Brown, and agrees with Mr. Schilling that he would like to see the City get some money back for the lots. He said he is not convinced we should ask for the assessed value, but perhaps half of that or $15,000 which could then be used for other housing. He said he shares the concern about the tax burden and expects that the assessments will continue to rise. He said Council has discussed lowering the tax rate. Responding to a question from Dr. Brown, Mr. Brown said the ordinance can be moved as presented and amended at the second reading. Mr. Lynch made a motion to move the ordinance as presented. He said he is happy to meet with the neighborhood to further discuss the proposal. Dr. Brown seconded the motion and the ordinance, and the ordinance entitled "AN ORDINANCE AUTHORIZING THE CONVEYANCE OF THREE (3) CITY- OWNED LOTS TO PIEDMONT HOUSING ALLIANCE" was offered and carried over to the next meeting for consideration. Mr. Schilling asked about whether the development will be impacted by the stream protection ordinance, and Mr. Higgins said that he does not know the extent to which it would, but if it does, they will have to comply with the ordinance. REPORT: SOCIAL SERVICES ADVISORY BOARD ANNUAL REPORT Ms. Cindy Fredrick, Chair of the Social Services Advisory Board, presented the Board's Annual Report. She said the Board is particularly proud of the Department's community partnerships. She said notable accomplishments over the past year include a decline in the foster care caseload and the welfare to work program which is one of the best in the state. She said the Department still faces considerable challenges, especially increasing caseloads. She said that the general relief and child day care assistance programs are not mandated programs, but the Board recommends that they be funded. Ms. Fredrick said that the Department served 10,000 people during the year, which brought in $40 million in non-local money. She said that for every $1 the City spends, $189 is received in state and federal funds. Responding to a question from Mr. Lynch, Mr. Robert Cox, Director of Social Services, said that the 1 - 189 ratio is for direct assistance.