2001-06-14 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28
SPECIAL BUDGET MEETING, JUNE 14, 2001 PAGE 645
ASSEMBLY
The New Hanover County Board of Commissioners met in Special Session on Thursday, June
14, 2001, at 6:45 P.M. in the Assembly Room of the New Hanover County Courthouse, 24 North
Third Street, 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.
Chairman Davis called the meeting to order and advised that the Special Session had been
called to discuss the recommended FY 2001-2002 Budget.
County Manager O’Neal requested the Board to adopt a Budget Ordinance on Monday, June
18, 2001, in order to have a budget in place by the end of the fiscal year. He noted that some
counties have adopted interim budgets until a decision has been made by the N. C. General Assembly
regarding reimbursements of intangibles and inventory taxes; however, the recommended County
budget does include these reimbursements. He requested the Board to consider authorizing the
Chairman to write a letter to the Governor and local legislative delegation urging them to pay local
governments the promised reimbursement for intangibles and inventory taxes.
After a lengthy discussion on unfunded mandates, the Board authorized Chairman Davis to
write a letter as suggested by the County Manager.
DISCUSSION OF RECOMMENDED FY 2001-2002 BUDGET
Chairman Davis advised that once a tax rate is agreed upon by the Board, Staff can proceed
to prepare the FY 2001-2002 Budget. During the last Budget Work Session, discussion was held
on increasing the tax rate by 1.8 cents, 4 cents, 7.6 cents or 10 cents and no decision was made. He
commented on the need to move forward with the budget process and requested direction from the
Board.
Commissioner Pritchett expressed concern for requiring employees to take two days without
pay during the next fiscal year and suggested eliminating this item from the proposed budget. She
asked Budget Director Griffin if this would be possible under existing budget constraints.
Budget Director Griffin responded that the salary lag could be increased by $400,000 to
recoup the loss of revenue if the two-days without pay requirement is eliminated.
Vice-Chairman Greer disagreed with the request by Commissioner Pritchett and stated that
since the Pay and Classification Study cost approximately $5 million to implement, he would rather
request employees to take two days off without pay than increase the tax rate.
County Manager O’Neal informed the Board that if the tax rate is increased by 10 cents, more
funding can be provided to the schools, the two days without pay requirement can be eliminated, and
the Fund Balance could probably be increased by a minimal amount to maintain the current bond
ratings.
Commissioner Caster expressed concern for many of the budget challenges not being the fault
of County government. He noted that overcrowding in the jail was due to increased crime which is
driven by the drug problem that has not been resolved on the federal level. Counties continue to pay
more for Medicaid costs, and it appears that money is not the solution to correcting the problems with
education. All of these costs are shifted from the state and federal levels to the local level which in
turn falls on the property owners through increasing the ad valorem property tax that has become a
heavy burden for most citizens, particularly the elderly population.
Chairman Davis agreed and noted that counties cannot continue to fund mandated programs
for which they have no control without securing other sources of revenue such as a local option sales
tax.
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28
SPECIAL BUDGET MEETING, JUNE 14, 2001 PAGE 646
Commissioner Davis commented on the need to move forward with the budget process and
asked if any members of the Board were in favor of increasing the tax rate by 10 cents.
Commissioner Pritchett suggested a tax rate increase of 8 cents plus 1/4 of a cent for
elimination of the 2 days without pay and 1/4 of a cent for the Environmental Management Fund with
the remaining revenue generated given to the schools.
Vice-Chairman Greer asked how much money was needed for theWASTEC Facility in
addition to what had been included in the recommended budget for FY 2001-2002.
County Manager O’Neal explained that an additional $450,000 was needed.
After further discussion, Vice-Chairman Greer recommended leaving the tip fee at $32 per
ton, closing the incinerator at the end of the calendar year (December 31, 2001) and increasing the
tax rate by 8 cents to balance the budget. He noted that closing the incinerator would offset many
expenses that will have to be addressed during the FY 2002-2003 budget process.
County Manager O’Neal responded that if the incinerator is not closed immediately, there will
not be sufficient staff to operate the facility.
Vice-Chairman Greer suggested protecting the employees at WASTEC by placing them in
other positions.
County Manager O’Neal responded that no other positions exist within County government
for employees with their training and skills. He stated if a decision is made to close the incinerator,
it should be dismantled with the metal sold and the land cleared.
After a lengthy discussion on the pros and cons of closing the incinerator, Chairman Davis
asked if the Board would like to consider increasing the tax rate by 8 cents without closing the
incinerator. Commissioner Pritchett agreed with his suggestion.
After further discussion of the need to provide direction to the Staff, Chairman Davis asked
if the members of the Board could agree on a recommended tax increase.
After hearing no remarks, Chairman Davis commented on the anguish faced by all five County
Commissioners in trying to address the budget shortfall and stated it appears that no decision can be
reached tonight. He urged each Commissioner to review the recommended budget so a decision can
be made at the regular meeting scheduled for June 18, 2001.
ADJOURNMENT
Chairman Davis expressed appreciation to Staff for the time given to prepare the
recommended budget, and he called for a motion to adjourn the meeting.
Motion:
Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to adjourn the
meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Davis adjourned the meeting at 7:58 P.M.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board