2011-08-15 Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
WORK SESSION,AUGUST 15,2011 PAGE 254
ASSEMBLY
The New Hanover County Board of Commissioners held a Work Session on Monday, August 15, 2011, at
12:56 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington,
NC.
Members present were: Chairman Jonathan Barfield, Jr.; Vice-Chairman Jason R. Thompson;
Commissioner Ted Davis, Jr.; Commissioner Richard G. Catlin; County Attorney Wanda M. Copley; Deputy Clerk
to the Board Kymberleigh G. Crowell; Clerk to the Board Sheila L. Schuh and Assistant County Managers Andre'
Mallette and Chris Coudriet;Budget Director Cam Griffin;and Finance Director Avril Pinder.
Commissioner Berger arrived at 1:00 p.m.
Chairman Barfield called the meeting to order and requested Budget Director Cam Griffin make the
Economic Development and Non-County Agency Funding presentations.
ECONOMIC DEVELOPMENT PRESENTATION
Budget Director Cam Griffin gave a brief overview of the County's economic development.
Current Efforts
1. Wilmington Industrial Development(Committee of 100)
• Funding for FYI 1-12 is$134,160.
• Current contract runs for five years through FYI 5-16.
2. Wilmington Regional Film Commission
• Funding for FYI 1-12 is$109,585.
• Current contract runs through FYI 5-16
3. Wilmington Downtown, Inc.
• Funding for FYI 1-12 is$50,000.
• Contract is for one year. Future funding is dependent on meeting certain benchmarks:
• Increase commercial occupancy of available space from currently 77%to a minimum of 82%.
• Recruit three new businesses from outside of the greater Wilmington metro area to the central
business district.
• Add 100 new jobs to new and existing businesses through the Wilmington Downtown, Inc.
loan program.
4. Southeastern Economic Development Commission(SEDC)
• Funding for FYI 1-12 Annual Membership Assessment is$20,267
5. Cape Fear Resource Conservation&Development
• Funding for FYI 1-12 is$2,430.
County Efforts
1. County Departments provide quality of life services,which are important to recruitment.
2. County Departments work with specific agencies to facilitate the relocation effort or provide
information to the economic development organizations.
3. CFCC provides training for organizations.
4. One-stop shop for Development Services.
Future Efforts
1. Regional Approach
2. Foreign Trade Zone
3. An amount of$271,086 is included in FYI 1-12 Adopted Budget for economic development efforts.
Future Measures of Success
1. Job Quality
2. Wealth Creation
3. Economic Diversification
4. Sustainability
5. Investment
6. New Jobs
7. Increase in Tax Base
8. Occupancy Rate
In response to Board questions, Budget Director Griffin stated that Wilmington Industrial Development
(WID) and Wilmington Regional Film Commission each have five-year contracts. Under the contract terms,both
are automatically renewed for successive terms of 5 years unless written notice of non-renewal is given no less than
12 months prior to the expiration date of the contract.
The Board held a brief discussion about the need to end multi-year contracts for all organizations receiving
New Hanover County funding. The preference would be to move towards a performance based contracts and for
organizations to make annual presentations to the Board. Staff was directed to notify the Board when multi-year
contracts are coming up for renewal.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
WORK SESSION,AUGUST 15,2011 PAGE 255
At the Board's request, WID Executive Director Scott Satterfield and WID Chairman Billy King gave a
brief overview of the organization's service provided to New Hanover County:
• A large amount of projects are related to international activity and clients are normally in portfolios for
three to five years.
• Wilmington Industrial Development is a 50106 Private Not for Profit Organization.
• Current Funding:
• Private-66%
• Contracts-34%(NHC represents 15%)
• 2006-2011: Private Membership Funding has increased 30%over this time period.
• 2015 Goal: 85%Private Funding for organization.
• NCSE 11 County Economic Development Comparison(based on 2010 population/2010-2011 County
Economic Development Organizations Funding):
• Of the 11 counties NHC ranks 11th with$0.66 per capita funding.
• Average for 11 county region is$2.44 per cap. With the largest being Bladen Co. at$4.69 per cap.
• WID's uses the SBA 504 Loan Program as outreach tool to the small business community:
• Current loan portfolio as of 6/27/11: 47 loans represent$48,890,153 total investment and 572 jobs.
• July 2006-June 2011:
• SBA 504 loan Funding of$12,510,000.
• Total Project Investment of$35,323,973.
• Created over 300 jobs.
• Since the start of the program in 1981 through June 2011:
• SBA 504 loan Funding of$61,026,000.
• Total Project Investment of$184,695,380.
• Created over 6,000 jobs.
• 37 Businesses that have received current or past SBA 504 financing were located in New Hanover
County.
In response to Board questions, Executive Director Satterfield and Chairman King stated WID would have
no issues working with the County to move to a performance measure based contract. Since clients are normally in
WID portfolios for a period of 3 —5 years,day-to-day may not be applicable.
The Board held a brief discussion regarding the annual funding assessment for the Southeastern Economic
Development Commission (SEDC). In response to questions, Budget Director Griffin explained that the primary
function of the Commission is to foster and promote economic development through planning, technical assistance,
and infrastructure grants through the Economic Development Administration (EDA) to create meaningful
employment opportunities for the citizens of southeastern North Carolina. According to the 2001-2010 EDA
Investment list, New Hanover County has not received any EDA investment funds. SEDC is an arm of the Federal
government. As of August 15, 2011, Budget Director Griffin stated the assessment funding is in the FYII-12
budget. The invoice has been received but funds have not been disbursed as she wanted to have discussion with the
Board before proceeding with the disbursement. There is no contract in place. The Board directed Budget Director
Griffin to request a SEDC representative attend the Board's September 6, 2011 meeting to provide additional
information and answer questions related to the benefit that New Hanover County receives from its membership in
the SEDC.
In response to Board questions, Wilmington Regional Film Commission Director Johnny Griffin stated the
Commission would have no issues working with the County to move to a performance-based contract. The
Commission currently provides an annual report to County. Over the past five years, $220 million has been spent in
the local economy with $44 million of that being spent in 2010. Results are measured by the amount of
expenditures that productions spend in the local economy. Jobs are not tracked as it is very difficult to do so in the
film industry and companies are not brought in to install infrastructure. Typically within the industry film impact is
measured just by direct dollars spent in the local economy, including local labor, goods and services, etcetera. The
County is provided with approved minutes and budgets.
Chairman Barfield requested Budget Director Griffin proceed with the non-county agency funding
presentation.
NON-COUNTY AGENCY FUNDING PRESENTATION
Budget Director Cam Griffin gave a brief overview of the County's non-county agency funding.
Outside Agencies
1. Non-profits can be funded to provide any public service that counties are legally permitted to use tax
payer dollars to fund.
2. New Hanover County has funded non profits for at least 30 years.
3. Funding for non-profits has decreased as economic conditions have deteriorated.
Current Process
1. Each agency is required to complete an application.
2. Each funded agency must contract with the County for the funding it receives.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
WORK SESSION,AUGUST 15,2011 PAGE 256
3. Financial reporting requirements are dependent on the amount of funding received.
Questions for the Future
1. What additional information would be helpful to Commissioners in making funding decisions?
2. Do you want to increase amount of grant funding that is available for non-profits?
3. How would you like to improve the funding process?
The Board held a brief discussion about the process for non-county agency funding with consensus that
subjectivity needs to be removed and a quantifying process put in place to assist in the decision process. One type
of system that is a possibility is a point system similar to the one used by the City of Wilmington and the
Community Development Block Grant system. Non-county agencies in the human services portion appear to have
taken the hardest hit from the economic development side. There are several good organizations that do not get
funded although they do a lot of good for community. Neither the State nor the counties are able to provide funding
to several non-county agencies and there is a concern that funding should not be given to some agencies. Narrowing
the broad scope of goals in the County's strategic plan and then utilizing said goals could assist the Board in non-
county agency funding decisions.
As with the economic development organizations, non-county agencies receiving funding need to agree to
certain performance metrics which should be part of the application and rating processes. Developing a new process
will take time in order to get reasonable expectations in place to assist the Board in deciding which organizations
will receive funding. Human service agencies need to be asked whether they are providing a mandated service for a
county department (i.e. Health, DSS) and what if any impact cutting their funding would have on their ability to
provide those services to the county departments. The Board directed staff to discuss with the Health and DSS
departments what impacts would be if cuts were made to human service programs that provide mandated services
for less money than government departments.
In response to questions,Director Griffin stated that staff will come back to the Board with a rating process
and application recommendations before the next budget cycle. Chairman Barfield thanked Budget Director Griffin
for her presentations and requested Finance Director Avril Pinder proceed with the debt service presentation.
DEBT SERVICE PRESENTATION
Finance Director Avril Pinder gave a brief overview of the County's debt service highlighting the
following:
• Existing Debt
• Future Debt Obligation
• Debt that is Paid Down in a Fiscal Year
The Board expressed concerns about the handling of WASTEC and being asked to approve borrowing
money for equipment. In response to questions, Assistant County Manager Chris Coudriet stated that to his
knowledge there is no current debt planned for WASTEC and if the Board elects to restart the facility it would be
with private sector investment and then we would pay for it; no debt is being incurred for waste to energy. The
administration made the decision to finance the required bailer for the recycling operation.
At the direction of the Board, Assistant County Manager Coudriet and Finance Director Pinder will review
and report back during the September 1, 2011 agenda review with a clear picture as to which money is being
realized in this department, what it costs the County per ton for trash, what is being received currently per ton for
trash,what is being done with extra funds,and how many new/extra items are being done or started since decision to
close WASTEC.
Discussion was held regarding not needing to issue bonded debt if taxes were not going to be raised to pay
for the issued debt. The largest source of debt increase is via the CFCC and Parks bonds. This will facilitate in the
Board understanding what could be delayed and could not be delayed and what will and will not be harmful as far as
potentially costing more in the future.
Chairman Barfield thanked Director Pinder for her information and requested the Debt Service presentation
be forwarded to the Board electronically.
Copies of the Debt Service presentation are hereby incorporated as part of the minutes and are contained in
Exhibit Book XXXIV,Page 14.
ADJOURNMENT
There being no further business, Chairman Barfield adjourned the meeting at 3:03 p.m.
Respectfully submitted,
Kymberleigh G. Crowell
Deputy Clerk to the Board