1998-05-28 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26
BUDGET WORK SESSION, MAY 28, 1998 PAGE 502
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on
Thursday, May 28, 1998, at 7:30 a.m. in Room 501 of the New Hanover County Administration
Building, 320 Chestnut Street, Wilmington, North Carolina.
Members present were: Commissioners Buzz Birzenieks; Ted Davis, Jr.; Charles R. Howell;
Vice-Chairman Robert G. Greer; Chairman William A. Caster; County Manager, Allen O’Neal;
County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell.
Chairman Caster called the meeting to order.
DISCUSSION OF TAX RATE INCREASES
Budget Director, Cam Griffin, presented a chart reflecting the following increases in the tax
rate since 1991:
Year Increase Reason
FY 1993-942.5 centsEnvironmental Management Fund Transfer
FY 1994-95No change
FY 1995-961.5 centsDebt Service - Schools/CFCC
FY 1996-971.5 centsDebt Service - Schools/CFCC
FY 1997-982.0 centsDebt Service - Schools/CFCC and
increased operating costs of schools
After a lengthy discussion on increases in the tax rate, Chairman Caster stated he thought all
tax increases were related to the debt service, and he inquired as to the amount of debt service for
FY 1998-99.
Budget Director Griffin responded that the debt service for FY 1998-99 is approximately $6
million which represents 6 cents on the tax rate. Between FY 1995-96 and FY 1996-97, the
increased debt service would have been 2 cents; however, the tax rate was increased only 1.5 cents.
If the FY 1998-99 Budget is adopted with a 1 cent tax increase as suggested by the Board at the May
6, 1998, Budget Work Session, the debt service will not be covered. A tax increase of 1.2 cents
would be required to cover debt service.
Further discussion was held on the impact of annexation on the distribution of the sales tax.
Budget Director Griffin responded the County will suffer a loss of $79,264 for one quarter in FY
1998-99; however, in FY 1999-2000, the projected loss in the sales tax will be at least $300,000.
DISCUSSION OF FUNDING REQUESTS RECEIVED FROM OUTSIDE AGENCIES
AFTER THE BUDGET PROCESS
Budget Director Griffin presented the following funding requests that were received after the
budgetary process:
“Operation Ship-Shape” USS North Carolina Battleship:
The Board has been requested to fund
$75,000. An amount of $25,000 can be appropriated from the current budget with $50,000 budgeted
for FY 1998-99.
After discussion, the Board agreed to fund the entire $75,000 out of the current budget.
County Manager O’Neal advised a budget amendment would be prepared and presented at the June
1, 1998 meeting.
New Life Community Center:
The Board has been requested to approve funding in the amount of
$26,520. This agency provides a counseling service for indigent persons. The County Manager did
not recommend funding for this group. After discussion, the Board felt a request of this type should
be required to go through the regular budget process.
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26
BUDGET WORK SESSION, MAY 28, 1998 PAGE 503
Minimum Housing Real Estate Technician:
The City of Wilmington has requested the County to
pay one-half the cost of a Minimum Housing Real Estate Technician at a cost of $13,250. The
responsibilities of the position will be to perform title searches on tax delinquent properties, locate
and identify the property owners to encourage them to pay back taxes, and remove any minimum
housing code violations.
Deputy County Manager Atkinson requested the Board to consider funding half of the
position for two reasons: (1) to better coordinate the renovation efforts between the City and County;
and (2) eliminate or alleviate the problem of abandoned houses that serve as hang-out places for crack
dealers and prostitutes in the inner city. The assignment of one person to identify abandoned houses
and locate the owners will provide for better management of the program.
After discussion of illegal actions that occur in abandoned houses and the poor image of these
structures to persons visiting or passing through Wilmington, the Board agreed to fund half of the
position in the amount of $13,250.
Beaver Management Program:
After discussing the request to the N. C. General Assembly to
include New Hanover County in the Beaver Management Program, the Board agreed to include
$4,000 in the FY 1998-99 budget.
Council of Governments (COG) - Additional Funding Request:
Budget Director Griffin reported
the current year’s contribution to COG was $15,734, and the recommended funding in the FY 1998-
99 budget is the same. However, beginning in the next fiscal year, COG will allocate its operating
costs differently among member jurisdictions. This change has increased the County’s funding by
89%, or $13,993 broken down as follows:
Base Fee$ 300
Dues 5,760
Aging program 15,561 (grant match)
EMS Program 8,116 (grant match)
Total $29,727
Staff recommends additional funding in the amount of $5,878 for the Aging Program with the
Medical Center determining if COG should continue to provide the EMS Program.
After discussion of the assistance provided by COG to adjoining counties, the Board agreed
to appropriate additional funding in the amount of $5,878.
Skate Park:
Discussion was held on funding earmarked in the amount of $25,000 for the Skate Park.
Commissioner Birzenieks spoke on receiving a call from a citizen who inquired as to whether private
funds had been raised for the proposed park.
County Manager O’Neal advised that approximately $30,000 had been raised from the private
sector. The City of Wilmington will be appropriating $75,000 in the FY 1998-99 budget. He
reminded the Board that the City did not request the funding and advised one reason for the delay in
starting the project was the plan had to be re-designed and improved.
Vice-Chairman Greer expressed concern for the delay and suggested establishing a time frame
for the project if funding is committed.
County Manager O’Neal recommended allocating $25,000 in FY 1998-99 with the stipulation
that if construction is not started within the next fiscal year, the funding will not be available.
After further discussion, the Board directed staff to allocate $25,000 in the FY 1998-99
budget for the Skate Park contingent upon construction beginning during the fiscal year.
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26
BUDGET WORK SESSION, MAY 28, 1998 PAGE 504
Public Radio:
Discussion was held on whether to support Public Radio. Chairman Caster spoke in
opposition to the funding request even though he personally supported the program.
Vice-Chairman Greer agreed with Chairman Caster and stated he felt taxpayers should not
be funding a radio station.
Commissioner Birzenieks spoke in favor of the funding request.
After further discussion of excellent financial management and the need for the County to
support the station, a majority of the Board directed staff to include funding in the amount of $6,000
for Public Radio.
800 MHZ System for EMS:
Deputy County Manager Atkinson stated that since the Medical Center
has agreed to take over the operation of EMS on July 1, 1998, Dr. Atkinson feels the County should
provide funding to place radios in the existing ambulances at a cost of $145,000 from the current
budget.
Consensus:
After discussion, the Board directed staff to move forward with placing radios in
existing ambulances. Funds are to be appropriated from the current budget.
Conference on Poverty, Inc:
Vice-Chairman Greer commented on the agency known as,
Conference on Poverty, Inc., and stated this group was working with electing counties regarding the
Work First Program. He read from a letter furnished by the group that reported New Hanover
County would receive funding in the amount of $1,367,837 if the County is approved by the N. C.
General Assembly to become an electing county.
Discussion followed on the need to verify the letter. The Board requested Vice-Chairman
Greer to verify this letter through the North Carolina Association of County Commissioners.
Commissioner Davis commented on the information presented by Mr. FitzGerald regarding
the savings that will be realized to the County by hiring the additional child protective worker
positions at the Department of Social Services, and he asked if the $500,000 reduction was
considered in the proposed budget for the Department of Social Services?
Budget Director Griffin explained that $500,000 would not be saved in one fiscal year. When
reviewing the FY 1998-99 budget for the Department of Social Services, this item was taken into
consideration.
County Manager O’Neal assured the Board that future budgets will take this item into
consideration.
Other Budget Items:
(1)The positions added for the New Hanover County Health Department in the amount of
$46,000 will be entirely grant funded.
(2)The City will reimburse the County $53,000 for use of detectives in the Crime Task Force
grant.
Discussion followed on the reduction in the tip fee from $34 to $28 per ton. Vice-Chairman
Greer asked why the tip fee had been reduced?
Assistant County Manager Weaver stated after discussing the tip fee with several haulers, he
was informed that $28 per ton was a competitive rate for disposal. From these conversations, staff
felt that trash would be carried out of New Hanover County if the tip fee was not reduced.
Vice-Chairman Greer advised that Randy Gainey, representing Waste Industries, and Chris
McKeithan, representing Waste Management, were members of the Solid Waste Advisory
Committee. These are major haulers and both of these individuals along with other committee
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26
BUDGET WORK SESSION, MAY 28, 1998 PAGE 505
members are trying to decide the best way to effectively manage solid waste disposal. The
Committee feels the tip fee should remain at $34 per ton until a final report and recommendation have
been presented.
County Manager O’Neal noted that staff decided to take a conservative stand when preparing
the budget for Environmental Management. If the Solid Waste Advisory Committee decides to
reduce the tip fee after the beginning of the fiscal year, the only action required would be adoption
of a resolution by the Board of County Commissioners. He emphasized the importance of deciding
on a figure so the City of Wilmington will have this information available when preparing the budget.
After further discussion, the Board concluded the tip fee should remain at $34 per ton until
the recommendations are presented to the board from the Solid Waste Advisory Committee.
A lengthy discussion was held on adopting the FY 1998-99 budget without a property tax
increase. County Manager O’Neal informed the Board that the following actions could be taken
without being detrimental to the County departments:
(1) Review and adjust capital projects
(2) Delay hiring new positions for six months
(3) Appropriate more fund balance
Chairman Caster objected to continued growth in County government and the increased
burden being placed on taxpayers. He asked when will this trend stop?
County Manager O’Neal stated the budgets presented over the past eight years are a reflection
of an increased demand for services. A majority of the increase has been for schools and the
Department of Social Services. From a percentage perspective, the operation of County government
has remained neutral and less than other departments, such as the Library and Museum. The tax base
has grown and hopefully will continue to grow; however, the significant increase has occurred in
residential development with very little change in the industrial tax base.
Commissioner Birzenieks spoke on the planned annexation by the City of Wilmington and
stated taxes will double for many homeowners. Citizens are expressing concern for not being able
to afford to live in New Hanover County if taxes continue to increase.
Chairman Caster advised that people who have moved into New Hanover County are
disappointed with annexation and continued increases in the tax rate. The housing in the County has
become exorbitant compared to other places. Some way, the County must more effectively control
the growth of County government. He requested the Board to consider adopting the FY 1998-99
budget without a tax increase.
ADJOURNMENT
Chairman Caster adjourned the Work Session at 10:20 a.m.
Respectfully submitted
Lucie F. Harrell
Clerk to the Board