1993-12-16 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION, DECEMBER 16, 1993
BOOK 23
PAGE 854
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget
Work Session on Thursday, December 16, 1993, at 10:30 A.M. in the
First Floor Assembly Room of the New Hanover County Administration
Building, 320 Chestnut Street, Wilmington, North Carolina.
Members present were: Commissioners Sandra Barone; William E.
Sisson, Jr.; vice-Chairman E. L. Mathews, Jr; Chairman Robert G.
Greer; County Manager, Allen O'Neal and Clerk to the Board, Lucie
F. Harrell.
Commissioner William A. Caster was absent.
Chairman Greer called the meeting to order.
County Manager O'Neal reported this is the last of six Budget
Work Sessions scheduled to present a functional analysis of all
County departments. He recommended scheduling another Budget Work
Session in January, 1994 to discuss critical issues, provide
direction to Staff for preparation of the FY 1994-95 Budget, and
consider implementation of recommendations from the strategic
planning process.
Consensus: After discussion, it was the consensus of the Board to
schedule a Budget Work Session on January 13, 1994, at 10:00 A.M.
in Room 501 of the County Administration Building after the 8:45
A.M. Staff Meeting.
Discussion was held on the need to schedule a Work Session for
discussion of solid waste collection in New Hanover County.
Consensus: It was the consensus of the Board to schedule a Work
Session on Thursday, January 6, 1994, at 8:45 A.M. in Room 501 of
the County Administration Building. Staff was directed to prepare
an agenda packet containing the available options for solid waste
collection in New Hanover County with this information being
forwarded to the Commissioners in advance of the scheduled Work
Session.
OVERVIEW OF ENVIRONMENTAL MANAGEMENT
The Environmental Management Fund is composed of the Waste-to-
Energy Facility (WASTEC), Administration, and Recycling. Budget
figures were presented on revenues and expenditures. Steam
production is up, and the new contract with Carolina Power & Light
Company should increase electric sales. The tip fee has been
reduced from $60 per ton to $25 per ton which has reduced projected
revenues by $3 million for the current fiscal year. This loss of
revenue will be a major budget issue.
Other items to consider during the budget process are as
follows:
This lS the first year that funds were transferred from the
General Fund into the Environmental Management Fund in the sum
of $1.48 million.
This is the second year that funds have been transferred from
the sales tax into the Environmental Management Fund in the
amount of approximately $1 million. This money was originally
earmarked for the Water & Sewer District.
The refunding of bonds for WASTEC will yield a $1.6 million
savings in the current fiscal year; however, the new debt service
from the issuance of Special Obligation Bonds will be approximately
$600,000 annually.
Operation and maintenance costs have been reduced at the
Waste-to-Energy Facility. The tip floor attendants have
contributed to the reduction in maintenance cost since many steel
and metal products are being removed from the pit. The projected
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION, DECEMBER 16, 1993
BOOK 23
PAGE 855
maintenance cost for the current year was $900,000; however, this
figure will drop to $585,000 for FY 1994-95. The maintenance plan
lS on schedule and the facility is operating much better.
Staff is examining the following options to address the severe
shortfall in tip fees:
1) Subsidize WASTEC from the General Fund until the Courts
determine if flow control is constitutional.
2) Increase the tax rate by approximately four cents to offset
the projected loss in tip fee revenues.
3) Seek trash from outside the County.
4) Establish a County Collection System: The following
variables will have to be considered if a County Collection
System is established:
Method of Payment: How will the haulers be paid?
Sinqle or
multiple
vendors?
Multiple
vendors?
Vendors: Do we want
What will happen to
single or
the small
Division of the County: How will the County be divided
into districts?
Contract: Do we negotiate or bid the contract for
collections?
Level of Services: Any contract negotiated should very
clearly define the pickup of yard waste, white goods, and
recyclable goods, in order to provide the same level of
service to County residents as currently being provided
to City residents.
Handlinq of Commercial Accounts: Firms hauling
commercial waste are located throughout the County;
therefore, it would be difficult to establish districts
for the haulers. Since commercial solid waste accounts
for 70% of waste disposal, some method should be
developed for handling commercial accounts.
Role of the City: The City and County should work
together jointly since the County has a Disposal System
in place and the City has a Collection System in place.
Chairman Greer stated, ln his opinion, if the County is to
establish a Collection System, this system should be administered
by the County. He suggested the following procedure:
1) Divide the County into areas and/or districts.
2) Contact the MIS Director to determine the cost to the
County for billing customers.
3) Negotiate with the haulers to determine the cost for
hauling in the designated areas including the pickup of yard
waste and recyclable materials.
4) Bill the haulers on the actual tons carried to the
incinerator.
Discussion was held on the importance of establishing a
commercial collection system since commercial waste accounts for
70% of solid waste disposal. Commissioner Sisson recommended
establishing a two-tier collection system, one for commercial
collection and one for residential collection. He reported the
City currently is not recycling commercial accounts unless the
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION, DECEMBER 16, 1993
BOOK 23
PAGE 856
volume is considered small enough to be picked up as a residential
customer.
Chairman Greer recommended offering a discount to commercial
businesses who recycle.
Commissioner Barone expressed concern for the small haulers
feeling they will be put out of business with implementation of a
County Collection System and suggested they be informed that the
Commissioners do not intentionally want to run any hauler out of
business.
County Manager O'Neal reported these details can be discussed
at the Work Session scheduled for January 6, 1994, and he
emphasized the importance of decisions being made if a County
Collection System is to be implemented by July 1, 1994.
OVERVIEW OF WATER & SEWER DISTRICT
The Water & Sewer District lS comprised of the following
components:
Water & Sewer Finance: This unit is funded out of the
Enterprise Fund and is closely associated with the Finance
Department for daily operational procedures and needs. The
Finance Director for the District is Julie Griffin, the
County's Deputy Finance Director.
Water & Sewer Enqineerinq: This unit is responsible for sewer
construction projects and is under the direction of the County
Engineer, Wyatt Blanchard.
Currently, there are 10,559 sewer customers; 81 water
customers; 81 sewer pump stations; 2 separate water systems; and
pending purchases that will provide for an additional 1,119 sewer
customers; 1,555 water customers; 14 pump stations; and 6 separate
water systems.
Sources of revenue are received from user fees; tap fees,
transfer of sales tax; appropriated fund balance and interest on
investment.
In summary, funds available for expansion are near depletion.
Approximately $150 million is needed to sewer the entire County and
$60 million is needed for a skeleton trunk system. Potential
revenue sources are as follows:
-District Tax
-Increase the tap fee (presently $200 per house)
-Increase impact fee (presently $375 per house)
-Increase monthly user fees
-Establish assessment fees
-Room Occupancy Tax
-Prepared Food and Beverage Tax
-Land Transfer Tax
-Construction Excise Tax
Discussion was held on the construction of a Northside Waste
Water Treatment Plant. Assistant County Manager, Dave Weaver,
reported in order to use a Northside Waste Water Treatment Plant,
the Ogden Interceptor will have to be constructed at an approximate
cost of $5 million. Concern was expressed for the lack of funds
available and the need to find revenue sources for this project.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION, DECEMBER 16, 1993
BOOK 23
PAGE 857
Discussion was held on the current duration of the building
boom. Commissioner Sisson stressed the importance of constructing
the sewer system in the northern part of the County as outlined in
the original plan before moving to other projects.
Discussion was held on satellite annexation by the City.
Commissioner Sisson inquired as to whether the City is actively
pursuing this type of annexation and expressed concern for this
being a way to resolve their financial situation?
County Manager O'Neal reported he is aware of thoughts about
areas that would be appropriate for the City to annex; however, he
does not feel the City is moving quickly to annex any part of the
unincorporated area of the County at this time. He stated he will
check into this matter and report back to the Board.
Chairman Greer commented on the County's sewer fee being lower
than other municipalities and recommended increasing the fee as
soon as possible.
Assistant County Manager, Dave Weaver, reported Staff will be
glad to prepare a recommendation.
STATUS REPORT ON THE FLEMINGTON LANDFILL
The County is still negotiating a draft Consent Decree with
EPA. The technical issues of future monitoring are close to being
settled with a 3-year monitoring period. The major issue is the
$400,000 being requested by EPA for reimbursement of their costs,
which will be shared by the eight defendants. It is hoped the
final amount will be less.
STATUS REPORT ON THE AIRPORT BURN PIT
It is felt that EPA will notify the County that the Consent
Decree must be signed or a unilateral Administrative Order will be
issued. The $727,000 must be paid by the four responsible parties
or this amount will greatly increase. Estimated cleanup costs
could amount to $3.6 million over a period of six years depending
on the required method and standards that must be reached.
ADJOURNMENT
Chairman Greer
excellent review of
meeting at 12:45 P.M.
expressed appreciation
the County departments
to
and
Staff for an
adj ourned the
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board