1993-01-15 Budget Work Session
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MINUTES OF BUDGET WORK SESSION, JANUARY 15, 1993
PAGE 276
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget
Work Session on Friday, January 15, 1993, at 10:00 A.M. in Room 501
of the New Hanover County Administration Building, 320 Chestnut
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 O'Neal; and Clerk
to the Board, Lucie F. Harrell.
Chairman Greer called the Work Session to order.
FINANCIAL REVIEW OF FY 1991-92
Finance Director, Andrew J. Atkinson, presented a financial
review of FY 1991-92 and outlined the following items:
General Governmental Revenues by Source
Revenue is generated from the following sources:
Taxes
Intergovernmental
Fees
Interest Earned
Other
72.4%
19.1%
6.5%
1. 7%
0.4%
General Governmental Expenditures by Function
Human Services
Education
Public Safety
General Government
Debt
Capital Projects
Cultural & Recreation
Economic & Physical Develop.
29.8%
24.8%
17.9%
12.3%
5.4%
3.6%
3.6%
2.6%
Discussion was held on tax revenues by source, property tax
levies and collections; legal debt margins; outstanding debt; fund
b?lance; and the working capital goals.
The 1993-94 Budget Projections were presented.
VICE-CHAIRMAN MATHEWS EXCUSED FROM WORK SESSION
Vice-Chairman Mathews excused himself from the Work Session at
10:45 A.M. due to a prior commitment.
Discussion was held on the issuance of bonds and the impact of
the fund balance on bond ratings. Further discussion was held on
the Water & Sewer District and the Waste-to-Energy Facility. It
was generally agreed that the County must continue to seek ways to
sell more steam and electricity at the Waste-to-Energy Facility.
Budget Director, Cam McAbee, commented on the upcoming budget
and reported on projected increases for Public Safety; Medicaid and
federal entitlement programs; schools; and Cape Fear Community
College. Discussion was held on the need for local governments to
strongly oppose implementation of federal and state mandated
programs with no funding provided. Concern was expressed for the
heavy burden being placed on local government and in turn, the
taxpayers of New Hanover County. It was concluded that some form of
cost control must be found for health and human services programs
being rendered.
The following alternate revenue sources were presented:
-Land Transfer Tax.
-Prepared Food Tax and Beverage Tax.
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MINUTES OF BUDGET WORK SESSION, JANUARY 15, 1993
PAGE 277
-Increase in the Room Occupancy Tax.
-Increase in user fees and charges for services.
-More frequent tax revaluations.
-One-cent tax increase generates $750,000 additional revenue.
In summary, there is a projected $4 million shortfall for FY
1993-94, which represents 6 cents on the tax rate. It should be
noted that General Government, Cultural and Recreation, and
Economic & Physical Development functions all have decreased
expenditure budgets between FY 1991-92 and FY 1992-93. These
budgets are to be submitted with no increase for FY 1993-94. The
current projected increase for Medicaid ranges from 17-40% and will
greatly impact the upcoming budget. Emphasis was placed on the
importance of including a 5% merit increase for employees since no
salary increases were incorporated in last year's budget.
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The Commissioners were informed that services rendered or
departments and/or programs will have to be eliminated if the tax
rate is not increased.
Discussion was held on the manner in which the state law
dictates "fair market value" for property tax appraisal. It was
agreed that more flexibility should be given to local governments.
After further discussion, it was concluded that each program
and service rendered should be completely reviewed to ensure that
County dollars spent are being used to render a needed service and
that these services are not being duplicated. Also, non-county
agencies are to be closely reviewed.
ADJOURNMENT
Chairman Greer expressed appreciation to staff for the
financial overview and adjourned the Work Session at 12:35 P.M.
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Respectfully submitted,
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Lucie F. Harrell
Clerk to the Board
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