2008-05-15 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION OF MAY 15, 2008 PAGE 367
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Thursday, May 15,
2008, 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 Robert G. Greer; Vice-Chairman William A. Caster; Commissioner Ted
Davis, Jr.; Commissioner William A. Kopp; Commissioner Nancy H. Pritchett; County Attorney Wanda M. Copley;
Deputy Clerk to the Board Teresa P. Elmore; and County Manager Bruce T. Shell.
Chairman Greer called the meeting to order for the purpose of discussing the Recommended FY 2008-2009
Budget. He said that the Board should give further direction to staff for the final budget.
The Board reviewed and discussed the following components of the Recommended Budget.
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Tax rate of 45.5 cents, an increase of 3.5 cents above FY07-08
2 cents to correct error of FY07-08 tax base
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1.4 cents for bond debt, installment debt, and parks operation
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Costs associated for parks operation on bond projects - $ .3 million
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Increases in bond debt includes
NHC Schools $2.5 million
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Parks $ .9 million
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Jail land purchase (installment) $ .5 million
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Anticipated revenue reductions
Sales tax - $4.4 million
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Inspections revenue - Permits $2 million
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Register of Deeds - $560,000
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Contingencies - $.7 million recommended
Increase due to uncertainty of economic conditions
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Possible changes imposed by State
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14 new positions are recommended
5 positions for Parks: 4 Ground Maintenance Workers and 1 Trades Supervisor to provide services
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in the expanding park system. Positions are funded for six months.
2 Residential Appraisers (4 positions previously added for revaluation process)
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6 positions will generate revenue to cover all or part of the cost of the positions
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The Environmental Management Fund - $54 tipping fee ($5 per ton increase)
Pass-through of a $2/ton mandatory state-imposed surcharge on solid waste
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Maintenance and repair of equipment at WASTEC
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Provide $1 million for the landfill gas project (reclamation and sale of methane and associated
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carbon credits)
Debt service on WASTEC facility decreased $2.2 million
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Expenditures for the Landfill increased $2.2 million
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$2.1 million construction of cell 6D
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$.1 million installment debt for replacement scrapper pan
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Public Schools: 3% Increase - $2.6 million
$65.7 million school operating expenses
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$21.4 million in debt service
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Cape Fear Community College Funding
$6.2 million ? operations
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$4 million - debt service
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Special Fire Service District Fund ? no increase in the 5 cents Tax Rate
Estimated fund balance of $1.4 million
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5 new positions for Murrayville Fire Station (approximately in 6 months)
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Purchase of one 2,100 gallon tanker truck and one rescue squad
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Installment debt on a second 2,100 gallon tanker truck
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Fire hydrant program reduced to cover other expenditures
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Medicaid - 3-year phase-out
County required to reimburse municipalities
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A negative salary adjustment factor of $1.7 million for unfilled positions
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Computer replacement program will be continued
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$.3 million to continue multi-year vehicle replacement program
Benefit of better fuel economy
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In discussion of the tax rate, Commissioner Kopp stated that he was not in favor of a tax increase, but
would support a 3-cent tax increase.
Commissioner Pritchett stated that she supported the recommended budget plus an increase of ¼ to ½ cent
for the Sheriff?s Department. She felt that failures in the radio communication system necessitate replacement for
the safety of deputies and the public.
Commissioner Davis stated that he was not in favor of a tax increase. Although taxpayers voted in support
of both school and parks bond referendums, he did not want to increase taxes for those on fixed incomes. He
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
BUDGET WORK SESSION OF MAY 15, 2008 PAGE 368
believed an increase of at least one cent was needed.
Chairman Greer stated he was not in favor of a tax increase, but would vote to increase taxes by 3.5 cent as
recommended by the County Manager.
County Manager Shell proposed to hold a Budget Work Session on Wednesday, June 4, 2008, after the
Board had an opportunity to hear comments and requests from the Public Hearing on June 2, 2008. The Budget is
scheduled to be adopted at the June 16, 2008 Board meeting.
ADJOURNMENT
There being no further business, Chairman Greer adjourned the meeting at 4:10 p.m.
Respectfully submitted,
Teresa P. Elmore
Deputy Clerk to the Board