2010-03-24 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
SPECIAL MEETING,MARCH 24,2010 PAGE 780
ASSEMBLY
The New Hanover County Board of Commissioners held a special meeting on Wednesday, March 24,
2010, at 9:00 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street
Wilmington,North Carolina.
Members present were Chairman Jason R. Thompson; Vice-Chairman Jonathan Barfield, Jr.;
Commissioner William A. Caster; Commissioner Ted Davis, Jr.; Commissioner Robert G. Greer; County Attorney
Wanda M. Copley;Deputy Clerk to the Board Teresa P.Elmore; and County Manager Bruce T. Shell.
ADOPTION OF REVISED RESOLUTION ESTABLISHING A PUBLIC HEARING FOR THE
CONSIDERATION OF A TEMPORARY MORATORIUM ON CYBER-SWEEPSTAKES GAMING
WITHIN UNINCORPORATED NEW HANOVER COUNTY ON MARCH 24,2010
Assistant County Manager Chris Coudriet reported that at the March 15, 2010 regular meeting, staff
requested the Board call for a temporary cyber-sweepstakes moratorium. The staff presentation suggested an April
6, 2010 public hearing. However,the Board reached consensus for an earlier date and directed staff to advertise for
a March 24, 2010 public hearing. Staff is now requesting modification to the resolution calling for the public
hearing. For the record and the Board's consideration,he requested the Board adopt another resolution that modifies
the date to March 24,2010.
Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Caster, to adopt a revised resolution
establishing a public hearing for the consideration of a temporary moratorium on cyber-sweepstakes gaming within
unincorporated New Hanover County on March 24,2010. Upon vote,the MOTION CARRIED UNANIMOUSLY.
A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book
XXXIII,Page 7.1.
PUBLIC HEARING AND ADOPTION OF ORDINANCE ESTABLISHING A SIXTY-DAY
MORATORIUM ON EXPANSION OF CYBER-SWEEPSTAKES GAMING WITHIN
UNINCORPORATED NEW HANOVER COUNTY
Chairman Thompson opened the public hearing and requested staff to make the presentation.
Planning and Inspections Department Director Chris O'Keefe presented the request for a sixty-day
moratorium ordinance on expansion of cyber-sweepstakes gaming. The moratorium is necessary because of the
influx of the casino-like establishments that attract people to play games to win money. Currently nine cyber-
sweepstakes gaming establishments have opened in the unincorporated area of the County with four businesses
pending inspection permits, which have been held up pending the Board's decision for the moratorium. There may
be other locations that have opened without needing building permits or zoning approval.
• Some impacts associated with cyber-sweepstakes,which may impact public health, safety or welfare:
• Incompatibility with surrounding land uses
• Blight in appearance
• Litter
• Traffic and parking(30-40 machines per location)
• Property values
• Gambling addiction
• Crime(transactions of large amounts of cash)
• Proliferation of the use in general
• Many of these impacts can be addressed through amendments to the Zoning Ordinance:
• Operational standards(hours of operation,parking requirements,addiction component)
• Location and design standards(parking,proliferation of use,traffic issues)
• What a moratorium will do:
• Allow time to develop an appropriate ordinance
• Assure protection of public health, safety and welfare
• Moratorium Timeline:
• March 24,2010—Moratorium enacted by ordinance
• April 1,2010—Planning Board consideration
• May 3,2010—Board of Commissioners consideration
• May 23, 2010—Expiration of Moratorium(if not upon earlier adoption of ordinance)
Director O'Keefe recommended adoption of the ordinance establishing a sixty-day moratorium on
expansion of cyber-sweepstakes gaming within unincorporated New Hanover County to allow creation of
regulations for the protection of the public health, safety, and welfare of our citizens and visitors from any negative
impacts which may result from the proliferation of these establishments.
Chairman Thompson asked if anyone from the public wished to speak in favor of or opposition to the
request.
Lynette Miller, a resident of the Castle Hayne area and owner of a cyber-sweepstakes site at 17th and
Market Streets, stated she understood the need for the regulations,but she had spent thousands of dollars and a lot of
time to open up another location. She requested the Board to allow her to proceed with getting her permits for her
new location. No problems or issues have occurred with her patrons or the community at the other location.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
SPECIAL MEETING,MARCH 24,2010 PAGE 781
Jim Arlart, a resident and business owner in the Middle Sound community, spoke in favor of the
moratorium and requested stringent controls in locating the establishments away from churches, schools, and day
care facilities.
There being no further comments, Chairman Thompson closed the public hearing.
In response to Board questions regarding the legality of the moratorium, County Attorney Wanda Copley
advised that Legal staff had prepared the appropriate language in the ordinance to defend the County against any
legal challenges. County Inspections is processing four permits at this time.
Chairman Thompson requested direction from the Board.
Motion: Commissioner Caster MOVED, SECONDED by Commissioner Davis, to adopt an Ordinance
establishing a sixty-day moratorium on expansion of cyber-sweepstakes gaming establishments within
unincorporated New Hanover County. Upon vote, the MOTION CARRIED 4 to 1. Commissioner Greer voted in
opposition saying he felt those who have made an investment in opening a new business and abide by current
regulations should be allowed to finish their permit process.
A copy of the ordinance is hereby incorporated as part of the minutes and is contained in Exhibit Book
VIII,Page 7.2.
WORK SESSION FOR 2010-2011 BUDGET
County Manager Bruce Shell gave a brief review of the budget gap provided to the Board during the
Budget Work Session on March 15, 2010. As a result of that meeting, some departments have been notified of the
potential impact of no additional revenues which may affect the operations of their departments. New Hanover
County Schools was informed that the County might have additional cuts for the schools. Cape Fear Community
College was informed that if the tax rate was not increased, the County might need to limit the amount of school
bonds to be sold in the coming years. The Sheriff was notified of a potential cut of$1 million for the Sheriff's
Department. Other anticipated reductions would be in maintenance of buildings and purchases of computers and
vehicles.
Although the budgets have been lean with no increases for the past few years, Staff will prepare the budget
as instructed by the Board. Adjustments for the gap in the budget will require either increases in revenue or further
reductions in expenditures. Additionally, the impact of the State budget is unknown and the County may not know
until after the budget is adopted.
Chairman Thompson led the discussion on whether to increase revenues or decrease expenditures pointing
out the three categories of funding:
• Discretionary Services with discretionary funding levels
• Mandated Service with mandated funding levels
• Mandated Service with discretionary funding levels
Items of Discussion Impacting the Budget:
• Mandated programs by federal and state government affecting the budget:
• Department of Social Services and Mental Health programs
• Probation and parole programs
• State retirement program(currently 4.9%mandated match with 6%employee participation)
• Tax Rate—lower than comparable counties in the state:
• Effective rate 43.88 cent,actual 45.25
• The number of beach homes/vacation homes that the County collects taxes with little or no impact
on services
• Quality of life programs important in recruiting new businesses to the area
■ Must keep museums, schools, and parks to attract families
• Importance of the 1/4 cent sales tax referendum equating to$5 million for the current fiscal year:
• Paid by all residents and visitors to the area
• Failed referendum will result in possible 8-12%reductions
• Tax increase needed to cover CFCC and Parks bond debt of $3,064,000 for FY2010-2011 equates to
approximately one cent:
• CFCC bonds for Union Station= $70 million
■ Requires$4.4 million for FY2011-2012
• Alternative: Sell$7 million to reimburse expenses
• Debt Service(interest only)_ $280,000
• Postpone$90 million CFCC bonds for 1 to 2 years
• Sell$3.850 million to reimburse expenses and debt service = $344,575
• County's portion of Parks bonds capped off until economy improves
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
SPECIAL MEETING,MARCH 24,2010 PAGE 782
• Sale of County properties for revenue source:
o Battle Park(close proximity to Veterans Park)
■ Parks Advisory Board recommended to sale for funding of other park needs
0 98 acres adjacent to the jail for jail expansion
o Portion of Airlie Gardens (excludes area adjacent to Bradley Creek funded by Clean Water Trust
Fund)
• Commissioner Davis suggested gap reductions of$11,356,000:
• Passing of referendum=$5,000,000 revenue
• Employee Furlough=$3,000,000 reduction in expenditures
• One cent property tax for bonded debt=$3,300,000 Revenue
• Chairman Thompson suggested gap reductions:
o No funding for any outside agencies plus 12%reduction in budget of discretionary programs:
• Cooperative Extension
• Library
• Parks
• Airlie Gardens
• Cape Fear Museum
• Exclusions: NHCTV,Wellness Program,Roadside Trash Pick-up Program
• Vice-Chairman Barfield supported raising property taxes in order to keep the current level of services and
quality of life programs
• Commissioner Caster opposed any property tax increase
• Commissioner Greer suggested waiting to determine the outcome of the Solid Waste Management
proposals before determining property tax increases or reductions in expenditures:
o Sale of WASTEC facility a viable option
• Keep employee furloughs in budget for reduction in expenditures:
• Supported by Commissioners Caster,Davis and Greer
• Opposed by Chairman Thompson and Vice-Chairman Barfield
Chairman Thompson directed staff to prepare two budgets: 1) using the assumption that the quarter-cent
sales tax referendum passes and a property tax increase of one cent is approved for bonded debt; and 2) using the
assumption that the quarter-cent sales tax referendum fails and a property tax increase of one cent is approved for
bonded debt.
• Pending factors:
• Local Options 1/4 cent sales tax referendum on May 4, 2010
• Solid Waste Management Plan
■ Proposals scheduled for April 19,2010 Regular Meeting
• Property tax increase for CFCC and Parks Bonded Debt
■ Option to postpone sale of bonds one to two years
• Budget gap options of increases in revenues and/or reductions in expenditures
■ Harsh cuts are anticipated
Break: Chairman Thompson called a five minute break at 11:25 a.m.
Discussion of Revaluation Schedule
County Manager Shell said that the revaluation of property is scheduled for FY2010-2011 and the Tax
Department is positioned to move forward with the revaluation process. However, the cost to hire the temporary
employees to perform the work will be $500,000, and has not been included in the budget gap. He recommended
delaying the revaluation until the County has recovered from its current revenue problems.
In discussion, the Commissioners agreed that the County did not have the funds to perform the valuation
and that a revaluation at this time would not benefit the majority of the property owners. With changes in property
value, a revenue neutral budget may result in a tax increase for the average taxpayer.
Consensus: The Commissioners agreed to postpone the revaluation for one year due to the extra cost of$500,000
in a year that no funds are available and not included in the budget gap.
BEACH RENOURISHMENT FUNDING DISCUSSION
Chairman Thompson announced that due to time constraints, the discussion of funding for the beach
renourishment project has been postponed until the Regular Meeting of April 6,2010.
ADJOURNMENT
There being no further business, Chairman Thompson adjourned the meeting at 11:45 a.m.
Respectfully submitted,
Teresa P.Elmore
Deputy Clerk to the Board