2024-03-14 Budget Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36
BUDGET WORK SESSION, MARCH 14, 2024 PAGE 142
ASSEMBLY
The New Hanover County Board of Commissioners held a Budget Work Session on March 14, 2024 at 1:33
p.m. in Conference Rooms 138-139 at the New Hanover County Government Center, 230 Government Center Drive,
Wilmington, North Carolina.
Members present: Chair Bill Rivenbark; Vice-Chair LeAnn Pierce; Commissioner Jonathan Barfield, Jr.;
Commissioner Dane Scalise; and Commissioner Rob Zapple.
Staff present: County Manager Chris Coudriet; Clerk to the Board Kymberleigh G. Crowell; and County
Attorney K. Jordan Smith.
Chair Rivenbark called the Budget Work Session meeting to order stating the purpose is for the Board to
discuss Budget Priorities for the 2024-2025 Fiscal Year.
FISCAL YEAR (FY) 2024-2025 BUDGET WORK SESSION PRIORITIES DISCUSSION
County Manager Coudriet opened the meeting, stating that what is being presented today are department
requests. The information being shared is not what is being recommended in this part of the process.
Chief Financial Officer Eric Credle shared the following information concerning the FY 2024-2025 budget:
FY24-25 Budget Work Session:
Agenda:
Five year Capital Improvement Plan (CIP) - General Fund:
Enterprise and Special Revenue Funds: Stormwater Services, Recycling and Solid Waste, and
Fire Rescue
Opioid Settlement Funds
Five year CIP - General Fund:
General characteristics:
Fixed asset with a useful life greater than five years
Cost of $100,000 or more
Requires more than 12 months to complete
Process:
CIP Committee evaluates capital improvement project requests:
FY25-29 Capital Improvement Projects - General Fund:
Mr. Credle, in response to questions, stated that the County received a $3.7 million grant for the Robin
Hood facility, which should be received between May and July. The remaining portion is being funded by RHA Health
and Leading Into New Communities (LINC) and operational funding is supported through Trillium, so the County is
not accounting for any of those funds. The County will own the building, LINC will lease it from the County, and LINC
will sublease appropriate parts to RHA Health. Chief Facilities Officer Sara Warmuth responded to questions stating
that the Request for Qualifications (RFQ) process began in 2023. The design has taken about a year with all the
approvals needed through the state.
A brief discussion ensued regarding the Northside grocery store. Ms. Warmuth stated that the County will
own the facility on land donated by the City of Wilmington (City). Construction management will be managed by
County staff like other County projects. County Manager Coudriet stated in response to questions that the County’s
appropriation is limited to $2.5 million. Ms. Warmuth added that a contractor has not yet been selected and if the
forthcoming Memorandum of Understanding (MOU) receives Board approval, the RFQ will go out for the architect.
A brief discussion ensued regarding several other projects on the CIP. Due to state grant funding, Mr. Credle
stated that the Cape Fear Community College (CFCC) nursing facility renovations will be removed from the next CIP.
CFCC will receive the grant funds and pay the County for the building and the renovations. Ms. Warmuth stated that
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36
BUDGET WORK SESSION, MARCH 14, 2024 PAGE 143
the North Chase Library plans are akin to Pine Valley Library but will differentiate because of the site. Regarding the
Blue Clay Business Park, installation of the water and sewer lines along with the stormwater infrastructure is ongoing,
and work is slated to be completed in May. A site has not been identified for a senior resource center in the northern
part of the County.
FY25-29 Capital Improvement Projects - General Fund continued:
Discussion ensued regarding various park projects. Parks and Gardens Director Tara Duckworth stated a
water source has been identified for the Northeast Regional Park. However, extending water and sewer service
from/to the Blue Clay Business Park to the park will not be possible. The plan is to connect the park to water and
sewer services if it becomes available later. A brief discussion covered different trails and associated connections.
The County has been collaborating with the North Carolina Department of Transportation (NCDOT) to set up a traffic
signal outside Laney High School for the students crossing to go to McDonald's and to construct sidewalks. The design
phase for the North College Road Trail is underway and should wrap up by June 2024, with hopes to start
construction in fall 2024. This trail will stretch from the North Chase Library to the Gordon Road sidewalk. The South
College Road Trail will extend from the end of the City’s trail at College Road and 17th Street Extension to Monkey
Junction along College Road's west side. She reported that the County plans to apply for a grant for the South College
Road Trail through the Wilmington Metropolitan Planning Organization (WMPO) when the application period opens
in fall 2024. The Masonboro Loop Road Trail will continue from where the City’s trail stops at Trails End, extend to
Piner Road, and link up with the South College Road Trail.
A brief discussion covered the sale of the Holly Tree Racquet Club and the potential for the County and City
to acquire it to provide more pickleball courts. Ms. Duckworth stated the club’s courts are not in the best shape.
Discussion ensued about the potential improvements needed by the Holly Tree Racquet Club and the difference
between clay and hard courts. The staff reported that they have not conducted any analysis or held discussions with
the City about the club. County Manager Coudriet suggested that if increasing pickleball facilities is a priority for the
Board, it might be achievable through other ongoing projects. Ms. Duckworth reported that the County oversees 17
parks covering more than 1,600 acres with a team of about 70 staff members. Regarding debt service for parks, Mr.
Credle stated that a parks bond has not been considered. The plan does consider limited obligation bonds (LOBs) to
fund the parks throughout the CIP, which do not require voter approval.
County Engineer Tim Lowe presented the Stormwater Services performance report and rate update as
follows:
Stormwater Services performance report and rate update:
Background:
Established in December 2019 (FY20): the rate was calculated in 2018 and approved at
$5.65/month/equivalent residential unit (ERU)
Began operation in July 2020 (FY21): no fee was collected due to COVID-19, and work was
completed utilizing Emergency Watershed Protection (EWP) grant money resulting from
Hurricane Florence
Staff and equipment added in July 2021 (FY22): the $5.65 rate was partially offset due to
American Rescue Plan Act (ARPA) funds awarded to the County and as a result, the rate
that was collected was $1/month/ERU
Began full rate collection at $5.65/month/ERU in July 2022 (FY 2023)
Performance:
Maintenance:
More than 120 miles of ditches and creeks; anticipated to be over 150 miles at end
of fiscal year
More than 250 resident-generated maintenance projects have been completed
More than 900 citizen calls were responded to and investigated
Capital projects: more than 4,000 feet of pipe replaced and completed 13 CIP
Additional program improvements:
Watershed mapping:
Nearly 300 miles of streams, creeks, and ditches have been mapped:
Close to 50% of open channel infrastructure in the unincorporated County
Close to 200 miles of the mapped open channels are classified as eligible for
maintenance by New Hanover County. It is estimated that we have captured
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36
BUDGET WORK SESSION, MARCH 14, 2024 PAGE 144
approx. 67% of the open channel infrastructure eligible for maintenance by New
Hanover County.
Approximately 25 miles of pipe systems:
Estimated to be <10% of pipe that exists in the unincorporated County
Salesforce and asset essentials: transition from paper records to database records
integrated with GIS mapping tools for infrastructure, work order management, and
resident case management
Shift from reactive to proactive: developing preventative maintenance schedules,
developing CIP, and stream gauge program
Watershed planning:
Tributary watershed to Everette’s Creek (Hanover Pines and Country Place)
Acorn Branch (tributary to Smith Creek)
Pumpkin Creek (tributary to Prince George Creek)
Awarded grants:
EWP and Streamflow Rehabilitation Assistance Program (StRAP) funding through
coordination with County Soil and Water Conservation
Local Assistance for Stormwater Infrastructure Investments Program (LASII) funding
through the North Carolina Department of Environmental Quality (NCDEQ)
Identified infrastructure needs:
More than 80 pipe failures and ditch capacity/grading projects have been identified to
date. Projects are estimated at less than $25,000 in materials/supplies to complete the
project
More than 60 major capital improvement projects have been identified to date:
Projects will need engineering and permitting prior to construction
Average estimated project costs are $200,000
Staff expects the list to grow
Financial analysis:
Current estimated revenues = $4,242,585 (based on $5.65/month/ERU and 62,575 ERU’s)
White Road = $0.23/month/ERU increase (based on $840,000 borrowed from the General
Fund to be paid over a five year term)
Inflationary costs = $0.26/month/ERU increase beyond increase to account for the White
Road project:
Based on 2% inflation over five year period and 1.5% ERU growth
Barring unforeseen circumstances, $0.26 is intended to cover inflation until FY 2030
Lump sum increase, revenue numbers indicate FY 2025 estimated revenue:
FY25 Budget estimate - $4.4 million:
Discussion ensued regarding inflation. Mr. Credle stated that inflation is up 19.5% since 2021. Mr. Lowe
reported that the City’s stormwater fee is over $8 and there is a proposal for an increase of 1% with a recurring 1.5%
increase each year thereafter. A brief discussion ensued regarding future projects, the department’s capacity to
continue the much needed work, and the requested office renovation. Mr. Lowe stated that his staff is in the old
HVAC building on Division Drive. Ms. Warmuth confirmed that the existing building needs additional space for Mr.
Lowe’s team to work.
Recycling and Solid Waste Director Joe Suleyman presented the following information:
Recycling and Solid Waste:
Department overview:
The department has five divisions: landfill, household hazardous waste (HHW), recycling,
litter management, and administration
37/41 county employees (including one benefits-eligible part-time EE)
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36
BUDGET WORK SESSION, MARCH 14, 2024 PAGE 145
Managed 3,100 tons of recyclables, 400 tons of household hazardous waste, 4,450 tons
of scrap tires, and over 412,000 tons of municipal solid waste (MSW)
Award-winning compost, wastewater treatment, and household hazardous waste
programs
Department challenges:
Skyrocketing costs for cell construction, cell closure, and heavy equipment acquisitions.
Increases have been in the approximate 40% range
Population impact: current disposal rates reflect a 179% increase in tons and a 253%
increase in traffic count over ten years ago (FY13) and tipping fee waivers during that
same period increased by 950%
Tip fee waivers accounted for $706K in annual expenses, an additional $287K expense is
for county trash/recycling services, and in short, $993K (or $2.50 of the tip fee) goes
towards free services
Discussion ensued regarding tipping fee waivers and recycling. Mr. Suleyman reported organizations that
receive waivers include New Hanover County Schools (NHCS), any 501(c)(3) organization, County construction
projects, and the Azalea Festival. The County has not expanded eligibility for tipping fee waivers, and he offered to
provide a report on tipping fee waivers for the current year. He explained how recycling costs fluctuate like gas prices
and many costs involve the recycling processes. Due to market fluctuations, annual recycling revenue ranges from
$4,000 up to a cost of $20,000. Mr. Suleyman explained that 15% of his time is spent educating the public on recycling
and that it is a school district policy decision on whether there is recycling at school facilities. Ms. Warmuth stated
that the County does offer recycling at its facilities. Extensive discussion ensued regarding the remaining life of the
landfill. Mr. Suleyman reported on solutions being researched, noting that one is landfill mining and that the first
cell of the landfill is an area where the theory might be assessed. The County may be able to extend the landfill's life
by recovering metals and other materials, starting with mining the initial cell.
Department strengths:
Department is highly innovative; many of the department’s initiatives are used outside of
NHC as “best practices” when developing new regulations and initiatives
Experienced supervisory and technical staff, including talented Environmental Specialists,
and front-line employees are cross trained to increase operational flexibility, and develop
bench strength
Strong support from the local community for services offered
FY24 Tip Fee - $52/ton which includes a $2 state surcharge:
Recycling and Solid Waste - Capital Improvement projects:
FY25 projects are slated to be funded with transfers and reserve funds
Mr. Suleyman responded to questions regarding the recycling contract with Sonoco, stating that by statute
the County must go out to bid because it will have met the ten-year limit at the end of the current extension.
However, that does not preclude Sonoco from being the lowest bidder, potentially leading to a new contract. He
also discussed the disruption that will happen when a change is made.
FY25 Enhancement requests:
Staffing:
Benefits-eligible part-time employee (Environmental Technician)
Benefits-eligible part-time employee (Fiscal Support Technician/Weighmaster)
Capital equipment: waste shredder ($1.14 million)
Fee schedule revisions: safety vest charge, banned material charge, and tire disposal
charge increase
FY25 Budget summary:
Approximately $29 million annual budget
The current proposed budget is nearly balanced, with an anticipated surplus (based
on pending updates to insurance, interest revenue, salary & fringe adjustments, etc.)
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BUDGET WORK SESSION, MARCH 14, 2024 PAGE 146
No proposed tip fee increase: base tip fee maintained at $52.00/ton (including the
$2/ton solid waste tax)
Closure and post-closure:
Establish a stand-alone, restricted post-closure fund:
Currently, this approximately $75 million long-term liability is unfunded
Existing closure/post-closure fund is seeded with $1.14 million annually
Available funds are used to offset costs of closure projects
The “post-closure” period begins when the site no longer can accept waste
Zero revenue during the 30-year post-closure period
Options:
Discussion ensued regarding the closure/post-closure fund and ways to pay for closure/post-closure.
County Manager Coudriet stated that appropriating $2.5 million beginning in 2050 for closure/post-closure would
be attainable, although he is not prepared to make a recommendation either way. As to tip fee reductions, a
discussion ensued about how the last tip fee reduction did not affect the average citizen's trash bills, whereas the
$2 increase two years prior significantly increased them, mainly benefiting haulers. Regarding landfill gas collection,
the project is still in the site work phase. As to the revenue for the landfill gas project, there may be slight differences
per year as to the revenue. Unless the County radically changes the amount of trash it takes in each year or if the
composition of the waste changes dramatically, the revenue difference will be negligible from the projected amount.
Commissioner Scalise expressed his desire for the County to develop the closure/post-closure strategy sooner rather
than later. County Manager Coudriet agreed but noted that it did not need to be done before June 30, 2024.
Chief Donnie Hall of New Hanover County Fire Rescue presented the following information:
Fire Rescue FY25 Budget update:
FY24 adopted budget:
Total expenditures - $21.5 million
132 positions
Eight fire stations throughout the County
Provides fire protection and rescue services mainly in the unincorporated areas of New
Hanover County
FY25 tax rate - 7.25 cents:
No increase
Tax base estimate $19.9 billion – up from $19.4 billion
2.41% increase from FY24
Generates about $338,000 in additional revenue
FY25 estimated sales tax - $5.5 million (1% growth over FY24 Budget)
FY24 and FY25 budgets – Approximately $22-$23 million
Capital improvement:
There was a brief discussion regarding the County owned facilities. Chief Hall explained that long term
leases are in place for the facilities the County does not own, and they automatically renew each year. Vice-Chair
Pierce expressed concerns about the County not owning the stations. County Manager Coudriet suggested the
County could explore purchasing the stations if the Board desires. He noted most stations are appropriately located,
and a new Castle Hayne station is being constructed in the appropriate area. He further explained in response to
questions that LOBs would be used to issue debt for the projects that are part of the CIP, and the County is looking
at going to the Local Government Commission (LGC) to issue debt in the fall.
Mr. Credle and Chief Strategy Officer Jennifer Rigby presented the FY25 opioid settlement fund
recommendations from the committee:
Opioid Settlement Funds - Joint Elected Committee recommendation:
Result of lawsuits by state and local government versus responsible parties (distributors,
pharmacies, manufacturers)
NC allocation of settlement funds is 85% to local governments (Only two other states have a
percentage that high)
Settlements:
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BUDGET WORK SESSION, MARCH 14, 2024 PAGE 147
Wave 1 settlements – July 2021 – $26 billion:
Primarily distributors: McKesson, Cardinal Health, AmerisourceBergen
Allocations: New Hanover County - $18.7 million and City of Wilmington - $0.8 million
Payable over 18 years
Wave 2 settlements – December 2022 – $21 Billion:
Primarily pharmacies: CVS, Walgreens, Walmart
Allocations: New Hanover County - $15.2 million and City of Wilmington - $0.6 million
Payable over 15 years
Additional negotiations ongoing: McKinsey, Mallinckrodt, Endo, Purdue, Kroger
Potentially $3 million to the County/City
Payment schedules:
Projected cash flow:
FY25 Opioid Settlement Fund recommendations:
Mental Health and Substance Use Disorder Strategic Plan:
Data: 2021-2023:
Opioid Settlement Fund:
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Program/initiative: Tides, Inc.
Recommending organization: New Hanover County
Funding request: $350,000 recurring
Description: Tides, Inc., is a North Carolina non-profit corporation which was established
on October 10, 2017, and began operations in June 2018. The program offers New
Hanover County’s pregnant and newly postpartum women with opioid use disorder
(OUD) a coordinated system of care that treats their addiction, creates conditions for the
delivery of healthy babies, and helps keep the mother-baby dyad intact. The program
model reflects a collaborative community consortium where existing community partners
integrate their services to engage women in the recovery process. 121 women have been
admitted into the Tides program since its inception.
Outcome: Provide an intensive, residential and/or outpatient treatment program for
twenty-four (24) women with an opioid use disorder in New Hanover County, who are
pregnant, anticipating pregnancy or are newly- postpartum.
Opioid List B, Item E1 – Support treatment, recovery services and supports, and
prevention services for pregnant women – or women who could become pregnant – who
have OUD and any co-occurring SUD/MH conditions, and other measures to educate and
provide support to families affected by NAS.
Program/initiative: The Healing Place
Recommending organization: New Hanover County
Funding request: $1,186,250 (annual review)
Description: Provides low barrier non-medical detox, residential drug services, and
transitional recovery housing for individuals with OUD.
Outcome: 50 beds per day for clients with OUD.
Opioid List A, Item 3 – Recovery support services
Program/initiative: MedNorth
Recommending organization: New Hanover County
Funding request: $268,369
Description: Increase access to evidence-based treatment consistent with American
Society Addiction Medicine guidelines to provide services and treatment for adult Opioid
Use Disorder (OUD) individuals by ensuring timely access to treatment, assist with
outreach/engagement for new and hard-to-reach patients; provide naloxone supplies for
existing patients and community members; support for cost of suboxone for patients who
need assistance. This also includes a part-time peer support specialists and a part-time
psychiatric provider to provide the services.
Outcome: Provide MOUD services to 5-8 new clients/month
Opioid List A, Item 2 – Evidenced-based addiction treatment
Program/initiative: Face the Music/Recovery Unplugged
Recommending organization: New Hanover County
Funding request: $160,000 recurring for a total of $800,000 (5 years)
Description: $160,000 annually over five years, for a total of $800,000 to the Face the
Music Foundation. This dedicated funding will provide treatment for New Hanover
County residents with OUD at a Recovery Unplugged facility, such as, but not limited to,
the following treatment options: 30-Day Detox & Residential Treatment: $10,000 per
client; 3-6 Month Detox & Residential Treatment: $30,000 per client; Individual treatment
options will be determined based on the clinical/medical needs of the client.
Outcome: Approximately 15 clients for 30-day detox and residential treatment, or five
clients for 3–6-month detox and residential treatment, or a combination thereof.
Opioid List A, Item 2 – Evidenced-based addiction treatment
Ms. Rigby responded to questions confirming that the Face the Music/Recovery Unplugged program does
not have a physical location in New Hanover County, so those using the program would be sent to a facility where
the program is offered. In response to questions regarding detox capacity, County Manager Coudriet stated there is
insufficient capacity here. Compared to The Healing Place, County Manager Coudriet noted that there is no one
correct model as different people require different interventions. The Healing Place model is abstinence-based, long-
term, and very rigorous, and some people are not prepared to make that commitment. He added that the strategy
is to meet people where they are providing the services they are ready for, knowing that relapse is part of recovery.
Regarding the available funding, County Manager Coudriet stated that $3.2 million is available to be invested this
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BUDGET WORK SESSION, MARCH 14, 2024 PAGE 149
year. Over the next 18 years, the County will end up with over $36 million in opioid settlement funding alone. He
responded to questions stating that funding from the opioid settlement is unavailable for schools, but the County
has set aside $50 million in the Mental Health and Substance Use Fund. The County has more latitude regarding its
use, which would be a policy decision for the Board. Regarding residency requirements for accessing resources,
County Manager Coudriet stated that local facilities do not impose limitations, noting that at least 85% of The Healing
Place residents are from New Hanover County.
Program/initiative: Staff Capacity
Recommending organization: New Hanover County
Funding request: $92,000 recurring
Description: 50% of salary for new Strategy Analyst position; 20% of salary for Strategy
Data Analyst; 20% of salary for Strategy Manager
Outcome: This position will be responsible for supporting the implementation of strategic
initiatives from the proposal phase to the data collection and reporting phase of the
initiative. They will also be responsible for providing research and analysis of evidenced
based programs that are under consideration. This position will work closely with the
current Strategy Manager and current Strategy Data Analyst who will also be providing
support.
Opioid List A, Item 1 – Collaborative strategic planning
Ms. Rigby stated in response to questions that for staff capacity, the request is to hire one person and cover
20% of the salary for two existing employees. County Manager Coudriet added that this is being recommended but
has not yet been approved. An interlocal agreement between the County and City establishes the framework, but
neither entity is obligated to endorse the recommendation. If the Board approves the plan but the committee rejects
it, the Board can proceed independently, but the City would withdraw its portion of the funds allocated for the fiscal
year, which amounts to less than $100,000 for FY25. The committee will be meeting again before returning with a
recommendation. Reports from entities that were previously allotted funds are supposed to be received reflecting
how the funds were used, their successes, and the challenges they faced.
Total expenditures:
Mr. Credle concluded the presentation by updating the Board on the budget timeline. He stated that the
next meeting will be held on April 11, 2024.
FY25 Budget Timeline:
April 11 – General Fund Budget, NHCS, CFCC, Mental Health/Substance Use Fund
ADJOURNMENT
There being no further discussion, Chair Rivenbark adjourned the meeting at 4:03 p.m.
Respectfully submitted,
Kymberleigh G. Crowell
Clerk to the Board
Please note that the above minutes are not a verbatim record of the New Hanover County Board of Commissioners meeting. The entire proceedings
are available online at www.nhcgov.com.