1993-01-29 Budget Work Session
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MINUTES OF BUDGET WORK SESSION, JANUARY 29, 1993
PAGE 298
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget
Work Session on Friday, January 29, 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.
The following presentations were presented:
-History and Review of Tax Rates, Expenditures and Valuations: A
10-year history of tax rates was presented. Discussion was held on
prior revaluations and the State Statute requiring revaluation of
real property every eight years. Further discussion was held on
more frequent revaluations with the following pros and cons
presented:
Pros:
-More current values for tax purposes.
-If State appraised each year, the county will be more in line
with these valuations
-Impact on taxpayers would not ,be so great if performed,on a
4-year basis instead of every 8 years.
Cons:
-Public does not like property tax revaluations.
-The impact on senior citizens depending on where values rise.
Discussion was held on counties who are performing 4-year
revaluations and if they are satisfied with the early revaluation.
Staff was requested to pursue this matter.
-Process for Issuing Bonds: A list of steps for issuance and sale
of bonds was presented. Emphasis was placed on the importance of
informing the public on the total cost of a bond issue not just the
amount of the bond issue.
-Review of Current User Fees and Intergovernmental Revenues by
Department:
User Fees: These fees represent 6.9% of County revenues. A
list was presented of all County Departments that charge user
fees for services provided to the public. The following
directives were given to staff:
-Data reflecting how user fees are budgeted as income
versus their use and if extra funds are left-over.
-A list of any user fees that have been abolished.
Intergovernmental Revenue: This revenue is passed from the
Federal or State governments to local governments. Human
Services Departments receive the largest amount of
intergovernmental revenue to fund their programs. A breakdown
of the revenue received by each County Department was
presented. Discussion was held on mandated human services
programs and escalating costs. The following directives were
given to Staff:
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MINUTES OF BUDGET WORK SESSION, JANUARY 29, 1993
PAGE 299
-A list of programs that have reached their caps and the
amount of increases.
-A list of budget amendments that have increased'
departmental budgets for this fiscal year.
-Investigation of enabling legislation that will allow
more flexibility in shifting of intergovernmental revenue
passed to local governments from the federal and state
governments. For example, more funds should be received
for counties that are continuing to grow with more human
service needs and mandated programs versus counties who
are stagnant and with no growth populations.
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Alternative Revenue Sources:
sources were presented:
The following alternative revenue
Land Transfer Tax: A chart was presented on real estate sales
and funds that would be generated from the Land Transfer Tax.
Construction Excise Tax: A one-time fee charged for new
construction. To ensure the availability of affordable
housing for low to middle income families, the first 1,200
square feet could be exempt. The tax could be collected as
follows: (1) upon issuance of the building permit; (2) upon
issuance of the certificate of Occupancy; or (3) when the
house is actually occupied by the new owner. Charts were
shown on generation of revenue from this tax. The following
directive was given to staff:
-Furnish additional information from other local governments
who are implementing the construction excise tax, listing
advantages and disadvantages.
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Room Occupancy Tax: A chart was presented on revenues
generated from the Room Occupancy Tax reflecting revenue
growth from 1990/91 - 1992/93 and the distribution of 75% for
beach renourishment and 25% for tourism. An additional 1%
increase of this tax will generate $501,734. Discussion was
held on the possibility of increasing this tax by 1% with
enabling legislation that will allow the County to use these
funds for other needs.
Prepared Food and Beverage Tax: A chart was presented on
gross retail sales from food and beverages. No figures are
available on the amount of revenue that would be generated.
Human Services Allocation Advisory Committee: This committee
was appointed for the purpose of advising the Board of County
Commissioners on the most effective utilization of funds from
the state's community Based Alternatives Program and County
General Fund dollars to address human service needs.
County Manager O'Neal presented the following parameters for
the 1993-94 Budget:
-Continued review of vacant positions.
-Departments have been directed to review all departmental
programs to determine if they are enti tlement, mandatory,
supported by non-County funds, or partially funded by non-
County funds.
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-Departments have been directed to rank the programs in order
of importance and review ways to increase departmental review.
-operating expenses are not permitted to exceed the adopted
amount for FY 1992-93.
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MINUTES OF BUDGET WORK SESSION, JANUARY 29, 1993
PAGE 300
-Departments are permitted to show separate items they would
request in their budgets if they were permitted to exceed the
adopted amount.
-If new positions are requested the department is required to
include how it plans to fund the position.
-Non-Human Services outside agencies have been directed that
they cannot request more than the current level of funding and
that every effort should be made to request less.
-Human Services outside agencies were only told the funding
levels for FY 1992-93.
County Manager 0' Neal requested directives from the
Commissioners for development of the FY 1993-94 Budget. The
current budget increased only 3.9%, which is below the percentage
of inflation. Downsizing will continue; however, in order to
provide the level of services and programs now being rendered to
the pUblic, additional funds will be required.
commissioner Barone recommended preparing the FY 1993-94
Budget without a tax increase.
county Manager O'Neal stated if services are reduced and
departments and/or programs eliminated, the budget can be prepared
without a tax increase. This is a decision that must be made by
the Board of County Commissioners.
After further discussion, it was agreed that budget directives
will be further discussed at the regular meeting on Monday,
February 1, 1993.
The Work Session was adjourned at 12:30 P.M.
Respectfully submitted,
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Lucie F. Harrell
Clerk to the Board
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