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HomeMy WebLinkAbout1995-02-28 Work Session on Consolidation e e - ..... ~MillNUTES' OF CONSOLIDATION WOR~SESSION FEBRUARY 28, 19.95 PAGE ;5'5<7 ASSEMBLY The New Hanover County Board of Commissioners held a joint Work Session with the Wilmington City Council on Tuesday, February 28, 1995, at 9:00 A.M. in the Madeline suite located on the UNC-W Campus, 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; Deputy County Manager, Andrew J. Atkinson; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Wilmington city councilmembers present were: Mayor Pro Tem, Katherine B. Moore; J. D. Causey; Michael Youngblood; Hamilton E. Hicks, Jr.; city Manager, Mary Gornto; city Attorney, Tom Pollard; and City Clerk, Penelope Spicer-Sidbury. Mayor Don Betz and Councilmembers Laura Padgett arrived late. Chairman Greer called the Board of County Commissioners to order. Mayor Pro Tem Moore, called the Wilmington City Council to order. Chairman Greer commented on the number of people attending the meeting and expressed appreciation to them for being interested and concerned about the proposed annexation and consolidation issue. He reported the County is concerned about the City's plan to annex, which is authorized under the North Carolina State Constitution for the purpose of permitting municipalities to provide services to areas in need of more services. In his opinion, the usefulness of this legislation is no longer needed, particularly in New Hane-rer County, since these services have been provided in many areas of the county. Hopefully, the City Council and Board of County Commissioners will be able to work out an agreement that will provide a cost-effective government that will be in the best interest of its citizens. Mayor Pro Tem Moore reported the major issue is whether to consider annexation or consolidation; therefore, as a starting point, it may be beneficial for the City to present its case for annexation. Councilman Rivenbark commented on hearing about consolidation and inquired as to whether the County had a plan. Concern was expressed for having no information on consolidation and the many problems that have to be addressed before the fall referendum, such as the law enforcement structure to be used under a consolidated government. The City has prepared an annexation plan that is clear and open to the public with a majority of Council Members supporting the plan. He, again, reiterated the need to see a plan before he could support consolidation. Councilman Youngblood recommended discussion of the following issues: (1) tax equity for City residents; (2) the overall economic health of the area; (3) continued growth; (4) the traditional roles of cities and counties; and (5) elimination of duplicated services. He reported on being interested in consolidation, which has been discussed since 1956, and stated a specific plan must be presented showing exactly how a consolidated government would operate before he could consider this form of government. commissioner Sisson reported, in his opinion, there are two issues, consolidation and money. Should there be two separate governmental entities dealing with services provided by those entities, or should these governmental entities be combined into one government. The Board of County Commissioners recently voted ... / MINUTES OF CONSOLIDATION WORK ,SESSION FEBRUARY 28, 1995 PAGE' 558. to proceed with a full consolidation of the two governments. Both governments have the responsibility to ensure taxpayers that regardless of what decision is reached, the form of government chosen will not be more expensive. He stated, for the record, he feels the governments should be consolidated. Mayor Pro Tem Moore commented on the failure of consolidation in the past and reported for the first time, she is hearing from City and County residents who prefer consolidation in lieu of annexation. At this point, both governing bodies must sit down and formulate a consolidation plan. She feels the only way to provide tax equity is under a consolidated government. o Councilman,Hicks reported an important issue to determine is which unit of government is best suited to provide urban-type services. He explained that he had no problem with considering consolidation, but before making ~a decision an outline must be prepared to show exactly how a unified government would be structured. The plan must be developed by the members of the Board of County Commissioners and members of the Wilmington City Council, not the staffs of both governments. In his opinion, the consolidation plan should show a significant savings to the taxpayers. If not, the two governments should not be consolidated. He requested both governing bodies to reach an agreement as to which government would be the best unit to provide urban-type services. Councilman Youngblood stated in order for him to support consolidation, a single tax rate structure would have to be established, which would mean some people would receive a tax increase and some people would receive a tax decrease. The general public must be informed and aware of the tax structure as the plan is developed. Also, the issue is not just about money, but about tax equity and the operation of an efficient government without any duplication of services. Again, consolidation is a good idea, but a specific plan must be formulated. o Further discussion was held on the development of a plan for a consolidated government. Chairman Greer recommended the preparation of a plan prepared and approved by both governments and presented to the voters to provide an opportunity for the citizens to decide if they want a consolidated government. He reported during the entire annexation process, he had not received a single call from a person in favor of annexation; therefore, it had been difficult for him to understand why the City continues to proceed with annexation. Mayor Pro Tem Moore stressed the 'importance of the County understanding that the City will have no choice but to proceed with annexation if a consolidation plan is not approved by the voters because of the present tax inequities. Vice-Chairman Mathews commented on receiving no calls in favor of annexation, but agreed with Councilman Hicks' recommendation for the preparation of an outline that would show the exact structure of a consolidated government. He also expressed disappointment that members of the city Council had not accepted the invitation extended by the County Planning Department to tour the county and see the actual growth that has occurred over the last five years. o commissioner Caster expressed strong support of a consolidated government, and stated if there are inequities in the distribution of taxes, this is not fair to the residents of the City. If consolidation is rej ected by the voters, then a plan must be developed to correct these tax inequi ties. However, in his opinion, consolidation of the two governments will correct the tax equity question, and it is time to say "yes" or "no". Also, when developing a plan, it must clearly reflect that levying a single e e e "Ill .... .,1!:fI .~-!,>. .. MINUTES OF CONSOLIDATION WORK SESSION FEBRUARY 28, 1995 PAGE 559 tax rate will probably increase taxes for residents living in the unincorporated County and decrease taxes for residents living in the City. Councilman Hicks emphasized the importance of the Commissioners understanding that if the City Council proceeds with a consolidation study this action should not be interpreted as the city backing away from its annexation plan. If consolidation fails, the City will move forward with the proposed annexation plan. Discussion was held on how to proceed with preparing a consolidation plan. It was agreed to use the Consolidation Plan of June 1985 as a starting point, and to include the beach communities in the process. Further discussion was held on the establishment of a single tax rate for the consolidated government with a separate tax rate for the beach communities if they decide not to participate in the consolidated government. Further discussion was held on the current tax inequities to the City taxpayers. Councilman Youngblood reported at the city Council's Retreat millions of dollars were identified annually that subsidize County operations, such as the sewer, engineering, planning, and Sheriff's Department. This is a tax inequity issue that must be corrected, not a criticism of the County. A lengthy discussion was held on the many services provided by the County to residents living within the City. Chairman Greer reported the County is responsible for operating the Department of Social Services, the Department of Aging, the Human Relations Department, County libraries, the Cape Fear Museum, the Cooperative Extension Services; jails, courts, schools, and emergency medical services. Many of these services are used largely by residents of the city. For example, 68% of calls for emergency medical services are for residents within the City; 70% of persons using nutrition and transportation programs live within the city; 66 2/3% of clients filing claims with the Human Relations Department live within the city; and one-third of persons using the Senior Center and RSVP Program live within the City. In his opinion, the City residents do receive services for their County tax dollars. councilman Rivenbark responded that City residents pay for those services. Mayor Pro Tem Moore commented on the key issue being the cost to each individual taxpayer, and stated, in her opinion, the only way to be fair to each taxpayer is through one separate tax rate under one government. Mayor Betz agreed with Councilman Moore and stated annexation essentially perpetuates the situation that has occurred today. Annexation will create a larger government for the City and the County will not become smaller. In his opinion, there is a window of opportunity for both governing bodies, and the time has come for both governm~nts to prepare a consolidation plan that can be presented to the voters. This job cannot be turned over to staff, who will desire to protect jobs and their turf; it must be done by the governing bodies. There should be a commitment by both governing bodies to prepare a joint plan, establish a date for presenting the plan to the voters, and a date for implementi~g the consolidated government, if approved by the voters. Commissioner Barone emphasized the importance of preparing a plan that will clearly define the plan of government and the cost to the taxpayers with the preparation of a projected figure on a single tax rate. Councilman Hicks, again, reiterated that he could not agree to place a consolidation plan on the ballot until an outline has been j M~NUTES OF CONSOLIDATION WORK SESSION FEBRUARY 28, 1995 PAGE ,560 developed to specifically outline the structure of the government. He requested city and County staffs to forward organizational charts of all City and County Departments to the Board of County commissioners and City councilmembers. Councilman function with infrastructure. resolved whether Padgett reported the City cannot continue to stagnant revenues and increased costs for In her opinion, the current inequities. must be through annexation or consolidation. o Discussion was held on the need to move as rapidly as possible with preparing a consolidation plan for voter consideration in October or November 1995 with a implementation date of July 1, 1996. _ Motion: Commissioner Barone MOVED, SECONDED by Commissioner Sisson to establish a Consolidation Study Committee composed of Councilmembers and Commissioners to prepare a consolidation plan to be approved by both governing bodies and presented to the voters in October 1995 with implementation of a consolidated government by July 1, 1996, if approved by the voters. Upon vote, the MOTION CARRIED UNANIMOUSLY. The Wil~ington City Council also voted to proceed with preparing a consolidation plan to be presented to the voters in the fall with an implementation date of July 1, 1996, contingent upon the fact that if the consolidation plan is rejected by the voters, the city will proceed with its current annexation plan. CONSOLIDATION WORK SESSION SCHEDULED FOR MARCH 20, 1995, AT 1:00 P.M.. After discussion, it was agreed to schedule the next Work Session on March 20, 1995, at 1:00 P.M. o Chairman Greer requested each Commissioner and Councilmember to read and review the 1985 Consolidation Plan prior to the Work Session. . ADJOURNMENT Chairman Greer adjourned the Work Session at 10:30 A.M. Respectfully submitted, ~F~:::~ Clerk to the Board o