1995-01-10 Work Session
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MINUTES OF WORK SESSION, JANUARY 10, 1995
PRESENTATION ON ANNEXATION BY THE CITY OF WILMINGTON
PAGE 467
ASSEMBLY
The New Hanover County Board of'Commissioners were invited to
attend a presentation by the city of Wilmington on Tuesday, January
10, 1995, at 12:30 P.M. in the Council Chambers of the city Hall,
102 North Third street, Wilmington, North Carolina.
Members present were: Commissioners Sandra Barone; William A.
Caster; william E. Sisson, Jr.; Vice-Chairman E. L. Mathews, Jr.;
Chairman Robert G. Greer; County Manager, Allen 0' Neal; County
Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F.
Harrell.
City Council Members
Tem Katherine B. Moore;
Hamilton E. Hicks, Jr.
present were: Mayor Don Betz; Mayor Pro
J. D. Causey; Michael Youngblood and
Mayor Don Betz called the meeting to order and announced that
Council Members, Charlie Rivenbark and Laura Padgett, were not able
to attend the meeting. He welcomed all elected officials present
from the towns of Carolina Beach, Kure Beach, Wrightsville Beach,
the New Hanover County Board of Commissioners, and Board of
Education Member, Allene C. Keith.
Mayor Betz requested the City Manager, Mary Gornto, to begin
the presentation.
city Manager Gornto commented on the urban growth that has
occurred in the County and reported this growth has created a need
for the city to initiate an annexation plan to develop a more
adequate and equitable city revenue structure. state policy
envisioned that urban services must be provided to urbanizing areas
adjacent to existing cities through the orderly consolidation of
such areas into the existing cities. Such consolidation through
annexation fosters city-county taxpayer equity, promotes greater
efficiency in the delivery of urban services, and enhances the city
revenue structure to finance needed infrastructure improvements.
After study and review, the City Council adopted a Resolution of
Intent to develop an annexation plan to cover a 27.44 square mile
area. She reported in an effort to better inform the elected
officials about the plan, members of the City Staff will make
presentations on key issues pertaining to the proposed annexation.
The following;presentations were made:
I. Urban Growth: The Director of Planning, Arcelia Wicker, Jr.
presented charts on the urban growth that is continuing in New
Hanover County at a record pace. He reported the proposed
annexation plan includes 27.44 square miles, 27,273 people, 11,364
housing units and 6,644.1 acres of undeveloped property. Under the
proposed plan, the City's population is estimateq to increase by
37,653 people under current zoning standards.
II. Infrastructure Investment: The City Engineer, W. Howard Wood,
and Director of Administrative Services, Susan G. Dankel reported
on the importance of infrastructure investment. Urban growth does
produce more jobs, restaurants, shopping, and access to
professional services; however, a greater level of investment is
required in community infrastructure such as streets, public
facilities, and utilities. Financing the necessary additional
infrastructure investment for the Wilmington urban area is the
responsibility of the city of Wilmington; therefore, the city must
have an adequate and fair revenue structure to meet these demands.
III. City Revenue 'Structure: Director of Finance, W. Brent McAbee
reported on the following revenue structure problems that have
prevented the City from undertaking the expanded program of
infrastructure investment necessitated by the continuing urban
growth ,in New Hanover County, including the area adjacent to the
city:
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MINUTES OF WORK SESSION, JANUARY 10, 1995 .
PRESENTATION ON ANNEXATION BY THE CITY OF WILMINGTON
PAGE 468
1. New Hanover County has selected the ad valorem method of
distribution for sales and intangible property taxes
among the several units of local government in the
County. If the population method had been selected, as
done in Wake, Durham, Cumberland, Gaston, Guilford, Pitt,
and Onslow counties, annual City revenue would be
increased by $2,686,695 for FY 1994-95.
2.
The city has a relatively high ratio of population to the
tax base, resulting in a per capita tax base that is 13%
lower than the average of the thirteen largest cities in
the state. If Wilmington had an average tax base,
property tax revenues would increase by $1,699,050 per
year, an amount equal to almost seven cents on the City's
current property tax rate of 58 cents. .
3. There is very little flexibility in the City's budget to
permit additional infrastructure funding without an
increase in property taxes. city per capita General Fund
expenditures of $611 are 11% less than the average of the
thirteen largest cities in the state.
4.
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The County has in recent years begun providing utility
and other urban services to areas beyond the City and
Town limits, the cost of which are financed from general
County revenues, including property and sales taxes.
Assuming the City taxpayers provide 31% of the total
County property tax revenue and that the following
$9,850,000 list of County services provided exclusively
for properties beyond city and Town limits is reasonably
accurate, the City taxpayers' share would be $3,053,500,
an amount equal to 12 cents on the city's property tax
rate. Regardless of what the need for urban services
might be in areas beyond corporate and town limits, the
use of Countywide revenues to finance them results in
"double taxation" for City and Town taxpayers and
seriously erodes their ability to finance the urban
services and additional infrastructure investment for
which they are responsible.
Exclusive services not Provided on a countywide Basis
County Sewer System
Sheriff's Department
County Planning
County Engineering
Administrative and Overhead
$4,100,000
4,000,000
526,000
423,000
801. 000
$9.850.000
Total
Only City taxpayers pay property taxes to finance urban
services and infrastructure investment provided by the
city of Wilmington, although many of the services and
facilities are enjoyed equally by those residing beyond
the city limits who pay no City property taxes. Annual
operating costs for programs benefiting the entire urban
area total $6,200,000, including downtown safety, urban
transit, public recreation, and street lighting.
Expenditures for a variety of capital projects that
benefit the entire urban area have totalled $40,000,000
during the last ten years. The cumulative effect of
these five revenue structure problems must be addressed
and mitigated in order to undertake the additional level
of infrastructure investment needed to properly serve the
wilmington urban area and New Hanover county.
IV. Taxpaver Equi tv: Assistant City Manager, William P. Whisnant,
reported all taxpayers, City, Town, County, rural and those in the
unincorporated urban area should pay their fair share of the cost
for providing local governmental services from which they benefit.
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MINUTES OF WORK SESSION, JANUARY 10, 1995
PRESENTATION ON ANNEXATION BY THE CITY OF WILMINGTON
PAGE 469
The current system is not fair for city of Wilmington taxpayers
because of the following reasons: (1) they are taxed by the
County for services not provided on a County-wide basis; and (2)
the City alone pays the cost of all city services and facilities
that benefit the entire urban community and county.
V. Annexation: City Manager Gornto reported annexation is the
principal means provided by the General Assembly for cities and
towns to address the problems associated with urban growth,
additional infrastructure investment, local governmental revenue
structure, and taxpayer equity. There are other ways in which
local government can be structured to address these problems,
including consolidation and the use of Special Service Districts;
however, these alternatives should not be considered if they do not
address the taxpayer equity issue.
After the presentations, a period of questions and answers
followed. The following comments of concern were voiced by
Chairman Greer, Vice-Chairman Mathews, and Commissioner Sisson
about statements made in the presentations: (1) County residents
'have not called requesting additional services, nor have they
,complained about the current level of services provided by the
:County; (2) disagreement with the double taxation issue; and (3)
't~e accuracy of some figures that were presented in the charts and
,~pr~sentations .
Chairman Greer informed the City Council that the Board of
County Commissioners would be responding to some of the items
,pr~sented. Also, the Commissioners very much desire to work with
,E:th~ City in providing a local government that will be cost-
effective and address the 'needs of the people.
The Mayor of Carolina Beach, Toni Loreti, expressed concern
for the Town of Carolina Beach sustaining a loss in sales tax
.revenue if the City proceeds with the proposed annexation.
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Mayor Betz encouraged all elected officials to forward
comments, and he reported the City will hold numerous public
meetings and hearings to receive comments on the proposed
annexation plan.
ADJOURNMENT
-, The meeting was adjourned at 1:40 P.M.
Respectfully submitted,
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Lucie F. Harrell
Clerk to the Board
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