2007-06-14 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION, JUNE 14, 2007 PAGE 119
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Thursday, June 14, 2007,
at 2:40 p.m. in Conference Room 601 at the New Hanover County Government Center, 230 Government Center Drive,
Wilmington, North Carolina.
Members present were: Chairman William A. Caster; Vice-Chairman Robert G. Greer; Commissioner Ted
Davis, Jr.; Commissioner William A. Kopp, Jr.; Commissioner Nancy H. Pritchett; County Attorney Wanda M. Copley;
Clerk to the Board Sheila L. Schult and County Manager Bruce Shell.
Others present were: Budget Director Cam Griffin; Senior Budget Analyst Norma Troutman; Budget Analyst
Donna Seal; Special Projects Officer Amy Akin; Finance Director Avril Pinder; Assistant County Manager Andre?
Mallette; Assistant County Manager Patricia Melvin and Assistant County Manager Dave Weaver.
Chairman Caster called the meeting to order and requested County Manager Bruce Shell and Budget Director
Cam Griffin to make the staff presentation.
Budget Director Griffin reported that the original budget presented by County Manager Shell included a tax rate
of 42.75 cents; 2.75 cents above revenue neutral. This tax rate would include using $6 million of Fund Balance leaving
the County?s Fund Balance slightly above the 16.67% county-imposed minimum.
Budget Director Griffin reported that in response to budget work sessions held individually with the
Commissioners, County Manager Shell is recommending a tax of 42 cents; a cut of 0.75 cent from the original
recommendation.
Chairman Caster requested direction from the Board on how they would like to proceed.
General Fund FY
After brief discussion, the consensus of the Board was to review and reach consensus on the
07-08 Recommended Budget
list submitted by Budget Director Cam Griffin.
General Fund FY 07-08 Recommended Budget
Budget Director Cam Griffin presented the as follows:
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Expenditure adjustments in the amount of $1,055,870
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Expenditure decreases in the amount of $3,978,445
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Expenditure increases in the amount of $154,215
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Recommended expenditures with a tax rate of 42 cents in the amount of $273,740,975
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Recommended revenue with a tax rate of 42.75 cents in the amount of $276,509,335
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Revenue adjustments in the amount of $1,136,871
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Revenue decreases in the amount of $4,538,231
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Revenue increases in the amount of $623,000
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Recommended revenue with a tax rate of 42 cents in the amount of $273,740,975
Expenditure decreases in the amount of $3,978,445 include:
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Reduction to Sheriff?s Office in the amount of $503,450 and $35,000.
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Election?s Contracted Services (offset addition of position) in the amount of $39,200.
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IT software in the amount of $50,000.
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Start-up funds for IT projects including Homebuilders in the amount of $600,000
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Department of Social Services renovations in the amount of $125,000.
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Airlie Gardens renovations in the amount of $250,000.
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Contribution to New Hanover County Schools to 7.1% above adopted, using $500,000 from Lottery Funds,
in the amount of $1,668,327.
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Animal Control Officer position in the amount of $26,640.
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Funding for radios in the amount of $250,000.
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Human Resources Director position in the amount of $111,604.
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Property Management positions (2) in the amount of $93,871.
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IT positions (2) in the amount of $125,353.
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Funding for Cape Fear Museum Master Plan in the amount of $100,000; the Museum will receive $50,000.
Revenue decreases in the amount of $4,528,231 include:
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Reduce tax rate by .75 cent.
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Decrease Fund Balance appropriation from $6 million to $4.8 million.
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Eliminate transfer from Southeastern Mental Health Center in the amount of $700,000.
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Reduce Inspections Department revenue due to not charging City of Wilmington for inspections in the
amount of $123,000.
Revenue increases in the amount of $623,000 include:
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ABC revenue donated by ABC Board for public safety in the amount of $500,000.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION, JUNE 14, 2007 PAGE 120
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Increase in percentage rate charged municipalities in collecting taxes to make up for decrease in the
Inspections Department revenues in the amount of $123,000.
Budget Director Griffin reported that $15 million was cut from the Recommended Budget to decrease the tax
rate from 42.75 cents to 42 cents. The use of Fund Balance was reduced from $6 million to $4.8 million.
Commissioner Pritchett stated that she would like to see a token amount be included in the budget for non-
profits so that when they apply for grants they will be able to report that they have County support.
Commissioner Davis stated that it is a misconception that growth pays for itself and recommended a tax rate of
41.65 cents using the originally recommended $6 million from Fund Balance.
Budget Director Griffin reported that at the tax rate of 42.75 cents property owners with an increase in property
values of 63% or less will not see an increase in property taxes.
After discussion, the following expenditure increases were approved by consensus to remain in the FY 07-08
Recommended Budget:
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Board of Elections? position will be added but cost will be absorbed in the amount of $39,200 in overtime
and contractual services savings.
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Match for District Attorney/Federal Drug Cases. Second year of a two year grant in the amount of
$30,015.
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Contribution to Cameron Museum in the amount of $50,000.
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Contribution to Cape Fear Literacy Council in the amount of $5,000.
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Contribution to the Carousel Center, amount increased by $5,000 for a total of $20,000.
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Contribution to the Food Bank in the amount of $5,000.
Budget Director Griffin reported that County Manager Shell is recommending a Fire Services District tax of
Fire Services District FY
4.75 cents; a cut of 0.25 cent from the original recommendation of 5 cents and presented the
07-08 Recommended Budget
as follows:
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Recommended expenditures with a tax rate of 5 cents in the amount of $8,286,027.
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Expenditure decrease in the amount of $310,464 (fund Murrayville Fire Station for three months instead of
one year).
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Recommended expenditures with a tax rate of 4.75 cents in the amount of $7,975,563.
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Recommended revenue with a tax rate of 5 cents in the amount of $8,286,027.
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Revenue decrease from Ad Valorem Tax in the amount of $310,464.
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Recommended revenue with a tax rate of 4.75 cents in the amount $7,975,563.
Chairman Caster recommended a General Fund tax rate of 40.6 cents and a Fire Services District Tax rate of 5
cents.
After discussion, the general consensus of the Board was to direct Staff to present a recommended General
Fund FY 07-08 Budget with a tax rate of 42 cents and Fire Services District FY 07-08 Budget with a tax rate of 5 cents
for consideration at their June 18, 2007 meeting.
Hearing no further comments, Chairman Caster adjourned the meeting at 4:20 p.m.
Respectfully submitted,
Sheila L. Schult
Clerk to the Board