1995-02-28 Work Session on Consolidation
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~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.
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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
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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.
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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.
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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.
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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
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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
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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.
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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.
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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,
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Clerk to the Board
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