2001-04-10 Special Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28
JOINT MEETING WITH BOARD OF EDUCATION, APRIL 10, 2001PAGE 523
ASSEMBLY
The New Hanover County Board of Commissioners held a joint meeting with the New
Hanover County Board of Education on Tuesday, April 10, 2001 at 6:00 P.M. in the Cafetorium at
Bradley Creek Elementary School, 6211 Greenville Loop Road, Wilmington, North Carolina.
Members present were: Chairman Ted Davis, Jr; 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.
Other County Staff members present were: Cam Griffin, Budget Director; and Dave Weaver,
Assistant County Manager.
Board of Education members present were: Chairman Edward B. Higgins, Jr.; Vice-Chairman
Donald Hayes; Steve Bilzi; Jeanette Nichols; Maryann Nunnally; Andy Wells; Nancy Wigley;
Attorney Wayne Bullard; and Superintendent John Morris, Jr.
Other School Staff members present were: Dr. Norman Shearin, Deputy Superintendent;
George W. Hance, Jr., Assistant Superintendent; Dr. Al Lerch, Assistant Superintendent; Sandra
McClain, Assistant Superintendent; Mary Hazel Small, Finance Officer; Justine Lerch, Executive
Director of Elementary Education; Tony Lopatka, Executive Director of Secondary Education; and
Barbara Brigman, Staff.
Chairman Davis and Chairman Higgins called their respective boards to order.
DISCUSSION OF BUDGET REQUEST SUBMITTED BY THE BOARD OF EDUCATION
FOR NEW HANOVER COUNTY SCHOOLS
Chairman Higgins advised that he and Superintendent Morris met with Chairman Davis and
County Manager O’Neal to present a copy of the school budget requesting a funding appropriation
of $7.6 million for operations and $11 million for capital needs. He requested Ms. Nancy Wigley,
Chairman of the Finance Committee, to comment on the budget process.
Ms. Wigley spoke on the number of hours given by the Finance Committee to review the line
items requested by each school. After an extensive review by the Committee, all items requested in
the budget are needed to continue the quality of education being offered. The major expense is the
opening of new schools and the maintenance required to oversee all schools. The Committee felt
that funding should not be cut in the maintenance budget because of the progress made by this
department in maintaining and improving school buildings.
Ms. Wigley also spoke on understanding the position of the County with its many
responsibilities and funding shortfall for the FY 2001-2002 Budget, but stated the Finance Committee
feels the time had come for the School System to plead its case so the public and Commissioners will
recognize the true needs of the schools.
Mr. Steve Bilzi, a member of the Finance Committee, reported when preparing the school
budget, the Committee decided to use the philosophy of requesting the amount of funding needed in
lieu of not presenting the true needs. For many years capital needs have not been requested which
has resulted in buildings being neglected. The items requested in the FY 2001-2002 Budget are
needed and the public should be made aware of these needs. Unfunded mandates have increased.
For example, during the past four years Special Education needs have increased from $9.5 million to
$13 million with no state or federal funding. The Board of Education and Board of County
Commissioners must work together to seek funding sources for unfunded mandates.
Ms. Jeanette Nichols, a member of the Finance Committee, spoke on being a school teacher
and stated after teaching eight years in an educational cottage with no restrooms located a half block
from the school, it was difficult for her to cut items that truly provide a better educational setting for
the teacher and children. She stressed the importance of both boards working together to find a way
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28
JOINT MEETING WITH BOARD OF EDUCATION, APRIL 10, 2001PAGE 524
to be sure enough funding is received to educate students in a good learning environment.
Chairman Davis spoke on having a great deal of respect for Ms. Wigley and the members of
the Finance Committee and stated that in order to fully fund the schools, the property tax rate would
have to be increased by 11.6 cents. When trying to figure out how to raise additional revenue for
the schools and other County needs without increasing the property tax rate, it was decided that the
Board should request enabling legislation from the N. C. General Assembly to allow New Hanover
County to implement a one-cent local option sales tax. He stated that unfortunately, it does not
appear the members of the General Assembly will support an additional sales tax at the local level.
Chairman Davis noted that every Commissioner serving on the Board would like to do what
is best for the children, but he could not increase the property tax rate by 11.6 cents to fully fund the
school budget. He expressed concern for the property tax burden already placed on senior citizens
living on fixed incomes and stated that some other source of revenue must be found to provide
sufficient money to fund schools.
DISCUSSION OF REQUESTING ENABLING LEGISLATION FOR NEW HANOVER
COUNTY TO IMPLEMENT A ONE-CENT LOCAL OPTION SALES TAX AND
DISCUSSION OF LOBBYING EFFORTS
Chairman Higgins noted that for several years he had been an advocate of requesting the local
legislative delegation to introduce a bill to allow the County to implement a local option one-cent
sales tax, excluding food, to raise additional revenue for schools. If enabling legislation is approved,
the projected revenue generated from imposing a one-cent sales tax would be $14 to $18 million
annually.
Vice-Chairman Greer stated that most people do not recognize the pressure placed on County
governments with decisions made by the federal and state governments that negatively impact the
financial condition of counties. Reducing the class size is an example of an unfunded mandate that
requires construction of new schools with the cost shifted to counties and eventually to the taxpayers.
The N. C. Association of County Commissioners has recognized for a number of years that local
governments cannot continue to pay for unfunded mandates. The one-cent local option sales tax is
a revenue source that should be granted by the General Assembly; however, some issues regarding
the sales tax need to be addressed because currently the sales tax is shared between the local
governments and municipalities. By State Statute, the sales tax must be collected in two ways,
through a point-of-origin or by population. If a local option sales tax is implemented in the County,
the collection should be set up through the point-of-origin.
A lengthy discussion was held on preparing a resolution to present to the General Assembly.
Chairman Davis stressed the importance of specifically defining how the revenue generated from the
additional one-cent local option sales tax will be used as well as allowing the voters to approve
imposing the tax. He suggested preparing a draft resolution to request the local legislative delegation
to introduce and support a one-cent point-of-origin local option sales tax, excluding food, with a
sunset provision that will be used to increase funding for schools and reduce the property tax burden
now being placed on senior citizens.
After further discussion of the process to use, both boards agreed to request County Manager
O’Neal to draft a resolution requesting enabling legislation for New Hanover County to implement
a one-cent point-of-origin local option sales tax as recommended by Chairman Davis. The draft
resolution will be presented to the Commissioners at the Staff Meeting on Thursday, April 12, 2001,
so it can be discussed at the regular meeting of the Board scheduled for April 16, 2001.
Chairman Higgins spoke on the importance of lobbying for the one-cent local option sales tax
and stated that he and Vice-Chairman Don Hayes serve as the Legislative Committee for the Board
of Education. He suggested that Chairman Davis and another County Commissioner meet with the
Legislative Committee to decide on a lobbying strategy since it now appears that Senator Ballantine
and Representative McComas as well as Senator Soles have a more favorable view on supporting a
local option sales tax.
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28
JOINT MEETING WITH BOARD OF EDUCATION, APRIL 10, 2001PAGE 525
Mr. Wells reported that a letter was received from the State PTA Council informing the Board
of Education that this organization was supportive of a one-cent local option sales tax. He suggested
keeping this group in mind when lobbying the General Assembly for enabling legislation.
After further discussion, Chairman Davis was requested to meet with Chairman Higgins after
the April 16, 2001 meeting to review and discuss the draft resolution so both boards can lobby the
members of the General Assembly during Legislative Weekend to be held April 27-29, 2001 in
Wilmington, N. C.
DISCUSSION OF SCHOOL BOND REFERENDUM
Chairman Higgins reported that another bond issue will be needed by the School System
within the next two years. The Board of Education had originally planned to hold a school bond
referendum on October 9, 2001, but due to the economic situation at the state and local level, it was
felt the timing was not appropriate. This is a topic that needs to be discussed because the public and
County Commissioners should be aware of construction needs.
Chairman Higgins presented the following construction needs and stated the Board of
Education will be approaching the Board of County Commissioners about holding another
referendum:
•A new elementary school in the southern part of the county that can be located on the
Veterans Park Site.
•A new elementary school in the northern part of the county.
•A new middle school in the northern part of the county
•Renovations to Snipes Middle School.
• Gymnasium and auditorium facilities for Hoggard High School and Laney High School.
Vice-Chairman Greer asked Chairman Higgins if a bond referendum would be necessary if
New Hanover County is allowed to implement a one-cent local option sales tax.
Chairman Higgins responded that implementing an additional one-cent local option sales tax
would make a significant difference in revenue generated; however, it is important to note that new
schools will be needed regardless of what type of financing is used.
Discussion followed on the amount of money that could be saved if revenue generated from
the additional one-cent local option sales tax could be used to pay for new school construction. Vice-
Chairman Greer reported that if a new school was constructed at $20 million and financed through
a bond issue paid over a period of years, the total payback would be approximately $50 million
because of interest charges and bond payments. If the same facility had been paid by sales tax
revenue generated and set aside for new school construction, the total payback would be
approximately $22 million. This is representative of the amount of money that can be saved if New
Hanover County is granted authority to impose a one-cent additional sales tax.
County Manager O’Neal also noted that if a sales tax is dedicated to school construction, it
will assist the County in maintaining its excellent bond ratings.
ITEMS OF MUTUAL INTEREST
County Manager O’Neal expressed appreciation to the Board of Education and
Administrative Staff for receipt of the school budget request before the May 15 statutory deadline.
He advised that the format of the school budget had greatly improved which assists the County Staff
in preparing the annual budget.
Chairman Davis expressed appreciation to the Board of Education and Administrative Staff
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28
JOINT MEETING WITH BOARD OF EDUCATION, APRIL 10, 2001PAGE 526
for meeting with the Board of County Commissioners to discuss issues of importance. He
emphasized the need to keep an open line of communication so both boards can work together for
the betterment of children and all citizens living in New Hanover County.
Commissioner Caster requested a brief comment on how ballfields, streets, and new schools
will be named in Veterans Park.
Superintendent Morris explained that local veterans will continue to be involved with planning
the Opening Celebration of Veterans Park, naming streets, ballfields, and parks after other veterans
from the community. It is hoped that one day, students will be able to visit a Hall of Fame honoring
veterans from New Hanover County.
In closing, Chairman Higgins formally introduced the two new members appointed to the
Board of Education, Ms. Jeanette Nichols and Ms. Maryann Nunnally.
Chairman Davis also introduced the two new County Commissioners, Ms. Julia Boseman and
Ms. Nancy H. Pritchett.
NEXT JOINT MEETING SCHEDULED FOR JULY 31, 2001
After discussion, it was the consensus of both boards to schedule the next joint meeting on
July 31, 2001, 6:00 P.M. at Veterans Park. The name of the school will be announced at a later date.
Chairman Davis and Chairman Higgins adjourned their respective boards at 7:55 P.M.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board