2008-06-04 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
398
BUDGET WORK SESSION OF JUNE 4, 2008 PAGE
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Wednesday, June 4,
2008, at 10:10 a.m. in the Conference Room 601 of the New Hanover County Government Center, 230 Government
Center Drive, Wilmington, NC.
Members present were: Chairman Robert G. Greer; Vice-Chairman William A. Caster; Commissioner
William A. Kopp; Commissioner Nancy H. Pritchett; County Attorney Wanda M. Copley; Clerk to the Board Sheila
L. Schult; and County Manager Bruce T. Shell.
Others present were: Assistant County Manager Dave Weaver; Assistant County Manager Andre? Mallette;
Assistant County Manager Chris Coudriet; Finance Director Avril Pinder; Budget Director Cam Griffin; Senior
Budget Analyst Beth Schrader; and Budget Analyst Donna Seal.
Chairman Greer called the meeting to order and requested County Manager Bruce Shell make the staff
presentation.
Commissioner Ted Davis, Jr. arrived at 10:22 a.m.
County Manager Bruce Shell reported that the FY08-09 Recommended Budget has been balanced with a
45.5 cents tax rate. The 3.5 cents above the FY07-08 tax rate of 42 cents is necessary to fund increased debt service
and correct the error in the tax base. The value of a penny is $3.3 million.
County Manager Shell presented the report how New Hanover County tax rate compares to other NC
Counties (population group 150,001 to 200,000):
County Population 2007-08 Actual Tax Rate 2007-08 Effective Tax Rate
Gaston 200,000 0.8400 $0.8137
Johnston 155,000 0.7800 $0.6962
Union 180,000 0.7111 $0.5975
Cabarrus 160,000 0.6300 $0.5666
Davidson 160,000 0.5400 $0.5400
Catawba 155,000 0.5350 $0.5229
Onslow 155,000 0.5030 $0.4495
New Hanover 185,000 0.4200 $0.4075
In response to Board questions, staff clarified that the effective tax rate is adjusted based on the revaluation
cycle.
County Manager Shell highlighted the following impact a tax increase will have on homeowners:
Value of Home Tax Increase Annual Impact Monthly Impact
$200,000 1 cent $20 $1.67
3.5 cents $70 $5.83
4 cents $80 $6.67
$250,000 1 cent $25 $2.08
3.5 cents $88 $7.29
4 cents $100 $8.33
In response to the Budget Public Hearing held on June 2, 2008, County Manager Shell and Budget Director
Cam Griffin presented the list of non-county agency contributions that were requested and the recommended
amounts.
After a question and answer period and discussion, the consensus of the Board was to revise the following
amounts for non-county agencies from the recommended amount:
?
Blue Ribbon Commission (Youth Violence) ? add funding in the amount of $5,000 with the caveat that
funds will not be issued until all other funding is secured.
?
Ten Year Plan to End Homelessness ? add funding in the amount of $50,000 with the program to be
re-evaluated in FY09-10.
?
Cape Fear River Assembly ? withdraw funding in the amount of $8,571 and contact the Cape Fear
Public Utility Authority suggesting that it would be appropriate for them to fund this organization.
?
Southeastern Economic Development ? additional funding in the amount of $1,764. Staff is to
compile grant information for evaluation of the value of the funding.
In response to Board questions, County Manager Shell and Budget Director Griffin reported that the
proposed Environmental Management tip fee of $54 is a $5 increase over the FY07-08 rate. The breakdown of the
fee is as follows:
?
$2 is for the state-imposed surcharge on solid waste. The County will be required to collect this fee on
behalf of the State.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
399
BUDGET WORK SESSION OF JUNE 4, 2008 PAGE
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$3 is to fund the Landfill Gas Project ? will produce revenue in future budget years from sale of
Methane and carbon credits.
After Board discussion, the consensus of the Board is to implement the $2 fee to coincide with the State?s
date of July 1, 2008. An act to delay the effective date to January 1, 2009 is currently before the General Assembly.
In response to Board questions, County Manager Shell and Finance Director Avril Pinder clarified the
following breakdown on the increase in debt service:
?
$2,675,299 ? bond debt; equates to .81 cent
?
$992,422 ? installment debt; equates to .304 cent
?
Total of increase in debt service in the amount of $3,667,721; equates to a total of 1.1 cents
?
Additional expense in the amount of $300,000 for parks bond operating expense; equates to .1 cent
In response to Board questions, County Manager Shell reported that the General Fund Expenditure
Comparison is as follows:
?
Adopted FY07-08 budget in the amount of $273,720,975; Amended FY07-08 budget in the amount of
$283,255,021
?
Recommended FY08-09 budget in the amount of $272,898,043
County Manager Shell highlighted that the Recommended FY08-09 budget is less than the Adopted or
Amended FY07-08 budgets.
In discussion of the tax rate, Commissioner Kopp stated that he was not in favor of increasing positions
except for two appraiser positions for the Tax Department. He also requested that as part of the budget ordinance he
would like a letter verifying the amount of the tax base and signed by the Tax Administrator, Finance Director and
County Manager.
Commissioner Davis stated that he was not in favor of a tax increase.
Chairman Greer stated he was not in favor of a tax increase, but would vote for the increase as
recommended by the County Manager.
In closing, County Manager Shell reported that 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 12:00 p.m.
Respectfully submitted,
Sheila L. Schult
Clerk to the Board