2003-06-12 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
BUDGET WORK SESSION, JUNE 12, 2003PAGE 642
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on Thursday, June 12, 2003,
at 5:00 p.m. in Room 501 of the New Hanover County Administration Building, Wilmington, North Carolina.
Members present were: Vice-Chairman Robert G. Greer; Commissioner Julia Boseman; Commissioner William
A. Caster; Commissioner Nancy H. Pritchett; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and
Clerk to the Board, Lucie F. Harrell.
Chairman Davis was absent due to a conflict in his schedule.
Vice-Chairman Greer called the meeting to order and requested County Manager O’Neal to begin the
presentation.
County Manager O’Neal informed the Board that the following two items will be presented on the June 16, 2003
Consent Agenda and stated if the Board approves these items, the FY 2003-2004 budget figures will have to be changed.
Since the budget is being adopted at the same meeting, Staff has already adjusted the figures in the recommended budget.
•Two additional positions for the Vice & Narcotics Unit at a cost of $168,394
•A Revaluation Coordinator position for the Tax Department at a cost of $53,904 per year
Vice-Chairman Greer expressed appreciation to County Manager O’Neal for informing the Board about the two
items. He requested the Board to begin the Work Session by commenting on the items previously discussed at the May
29, 2003 Budget Work Session and Public Hearing held on June 2, 2003, so Staff can prepare budget ordinances to be
adopted at the June 16, 2003 meeting of the Board.
Vice-Chairman Greer stated that Chairman Davis requested him to ask the Board to consider the following
funding recommendations: (1) additional funding to the schools in the amount of $1,000,000; (2) reopening branch
libraries on Friday at an additional cost of $60,000; (3) appropriate funding to Dreams in the amount of $5,000 since
no funding was recommended in the proposed budget; and (4) support of the $200,000 appropriation for Airlie Gardens
as recommended in the proposed budget.
Vice-Chairman Greer advised that he was in favor of funding the following items: (1) reopening branch
libraries on Friday; (2) additional funding for the Carousel Center in the amount of $10,000; (3) appropriate $3,000 to
the Port, Waterway and Beach Commission since no funding was recommended in the budget; (4) additional funding
to the Cape Fear Council of Governments in the amount of $10,000; (5) additional funding to the schools in the amount
of $1,000,000; and (6) use any remaining revenue to reduce the amount of money removed from the County’s Fund
Balance.
In further discussion, Commissioner Boseman advised that she could not support the $200,000 recommended
for Airlie Gardens. She stated that she was in favor of providing an additional $1,000,000 to the schools and reopening
the branch libraries on Friday. She commented on Staff’s projected increase of approximately $2.5 million in the
County’s Fund Balance for FY 2003-2004 and recommended reducing the tax rate by at least one cent to provide some
relief to the taxpayers.
Vice-Chairman Greer strongly objected to reducing the tax rate in difficult economic times and stressed the
importance of preserving the County’s Fund Balance to protect the bond ratings to maintain a strong financial position.
He stated that it would be foolish to cut the tax rate and place the County in a bind for the next fiscal year.
County Manager O’Neal urged the Board to leave the tax rate at 69 cents and said that preserving the Fund
Balance will allow the County to maintain its current bond ratings. The County
is financially sound and reducing the tax rate will probably undo the efforts made to increase the Fund Balance over the
past two years.
Commissioner Pritchett agreed with County Manager O’Neal and stated that she could not support a cut in the
tax rate because a sufficient reserve must be in place to operate the County in case of a disaster or hurricane. She also
noted that she was in favor of additional funding for the schools, opening the branch libraries on Friday, additional
funding for the Carousel Center, and additional funding for Cape Fear Community College. She stated that she was not
in favor of funding Dreams because it would not be fair to other cultural agencies when funding was only appropriated
to non-county health and human service agencies.
Commissioner Caster spoke in favor of reducing the property tax rate by at least one cent to provide relief to
the taxpayers. He stated that he was in favor of additional funding for the Carousel Center, additional funding for the
Cape Fear Council of Governments, funding for the Ports, Waterway and Beach Commission, funding for the New
Hanover Soil and Water Conservation District, funding for Cape Fear Community College and additional funding for
the schools if this money was not removed from the County’s fund balance.
County Manager O’Neal again requested the Board to allow the tax rate to remain unchanged and stated if the
tax rate is reduced, it will probably have to be increased the next fiscal year to keep up with growth and continue to
provide quality services. He informed the Board that Staff has virtually cut every non-county agency, and a budget has
been prepared without a tax increase. He commented on being confused about the direction given to Staff said that
whatever the Board decides to do regarding the tax rate, the budget will be prepared accordingly.
Commissioner Caster stated that during his years of service as a County Commissioner, the budget has
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
BUDGET WORK SESSION, JUNE 12, 2003PAGE 643
continued to grow, the tax rate continues to increase, and the Schools never seem to have enough money. If this trend
continues, persons on fixed incomes will not be able to live and survive in New Hanover County. The time has come
for the Commissioners to limit the growth in the budget and provide some form of relief to the taxpayers. He urged the
Board to consider reducing the tax rate by one cent.
A lengthy discussion was held on the good news about the County receiving the one-time funding in the amount
of $1,000,000 as the federal government’s share for Medicaid. Commissioner Boseman expressed concern for the
Medical Center receiving less in Medicaid reimbursements under the new policy and stated that the County could be
approached by the hospital for financial assistance if these funds are not received.
Discussion was held on the proposed two-cent tax increase for the Fire Service District. Commissioner Pritchett
advised that she was comfortable with the proposed tax increase because of the following needs: (1) replacement of self-
contained breathing equipment; (2) placement of career personnel in all fire stations; and (3) establishment of a reserve
account to replace old fire trucks and other equipment.
Commissioner Boseman advised that she could not support increasing the fire tax by two cents when the City
of Wilmington will continue to annex areas of the unincorporated county.
Commissioner Caster stated that he could not support increasing the fire tax by two cents, but he would support
replacing the self-contained breathing equipment. He commented on the City continuing to annex and stated that a
consolidated City/County fire service would be better for all citizens.
Finance Director Shell informed the Board that when the City annexes an area, it reduces the County’s ability
to levy a tax for that district, which decreases revenue received by the Fire Service District. The tax increase is needed
to maintain the same level of fire service being provided to citizens living in the unincorporated county.
Vice-Chairman Greer asked if any member of the Board would like to discuss any other items.
Hearing no further comments, Vice-Chairman Greer asked County Manager O’Neal if he would like to
comment.
County Manager O’Neal advised that the budget ordinances would be prepared as discussed and presented to
the Board on June 16, 2003. He expressed appreciation to the Commissioners for taking time to discuss the budget
issues.
Vice-Chairman Greer adjourned the meeting at 6:15 p.m.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board