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HomeMy WebLinkAbout2025-05-01 Agenda Review NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 AGENDA REVIEW, MAY 1, 2025 PAGE 502 ASSEMBLY The New Hanover County Board of Commissioners met on May 1, 2025, at 4:33 p.m. for Agenda Review in Conference Rooms 138-139 at the New Hanover County Government Center, 230 Government Center Drive, Wilmington, North Carolina. Members present: Chair Bill Rivenbark; Commissioner Dane Scalise; and Commissioner Stephanie A.C. Walker. Members absent: Commissioner Rob Zapple. Members absent: Vice-Chair LeAnn Pierce. Staff present: County Manager Chris Coudriet; Clerk to the Board Kymberleigh G. Crowell; and County Attorney K. Jordan Smith. Chair Rivenbark called the meeting to order, stating that the purpose is to review and discuss agenda items for the May 5, 2025 Regular Meeting. Consent Agenda Item #8: Second Reading: Amendments to Chapter 5 – Animals (Articles I & II) and Updates to the NHC Sheriff's Office Animal Services Unit Fee Schedule; Approved on the Regular Agenda at the First Reading on April 21, 2025. County Attorney Smith explained that, due to an oversight, the proposed Article I amendments were not included in the April 21st agenda packet. As a result, the item will be moved from the consent agenda to the regular agenda, with no action taken at this meeting. The item will have its first reading at the next meeting and be scheduled for a second reading and consideration on May 19, 2025. He noted that while the law allows certain revisions to ordinance text between readings, such changes are subject to specific limits. In response to questions, he clarified that no specific time limit is required between the first and second readings, though holding the second reading at the next scheduled meeting is standard practice, especially when criminal penalties are involved. Consent Agenda Item #10: First Reading: Approval of Solid Waste Franchise Agreement for Auteri Holding LLC Mobiledumps Wilmington. Landfill Manager Sam Hawes responded to questions, noting that, although the owner of the company lives in Hampstead, only waste from New Hanover County will be accepted. Consent Agenda Item #11: Approval of the Novant STEM Partnership Sponsorship of Cape Fear Museum's Science Matters Gallery. Commissioner Zapple requested that this be moved to the regular agenda, which was granted by Board consensus. Regular Agenda Item #15: Rezoning Request (Z25-04) - Request by Cindee Wolf with Design Solutions, applicant, on behalf of Terry Dean, Rita English, Justin Slack, and Martin Pollack, property owners, to rezone two parcels totaling approximately 1.94 acres located at 1609 and 1617 Middle Sound Loop Road from the R-20S, Residential district to a general use R-20, Residential district. In response to questions, Development Review Planner Ryan Beil confirmed that R-20 zoning allows performance residential development. He also clarified that ADUs are still limited to one bedroom unless they qualify as separate single-family homes, which count toward overall density. Planning and Land Use Director Rebekah Roth further clarified that increasing the number of bedrooms in an ADU beyond one would violate the ordinance. Regular Agenda Item #16: Text Amendment Request (TA25-01) - Request by Tammi Pitts, applicant, on behalf of Wilmington Lodge #343, Loyal Order of Moose, Inc., property owner, to amend Section 4.4.4 Standards for Specified Accessory Uses and Structures to allow RV and boat storage and RV camping as permitted accessory uses to Lodges, Fraternal, & Social Organizations with restrictions. In response to questions, Ms. Roth stated that in summer 2023 the Moose Lodge removed RVs that were onsite after staff informed the organization of the zoning violation. The current request seeks a text amendment to allow limited RV use under County regulations. Staff maintains the recommendation for denial, citing prior policy direction and concerns about mixing camping and lodging on a single parcel. Commissioner Scalise distinguished this case from a previous noncompliance issue, noting that the Moose Lodge has shown a willingness to follow the proper process. Senior Planner Zach Dickerson added that staff and the Planning Board remain concerned about enforcing operational limits and preventing long-term RV habitation. The applicant originally proposed a 14-day stay limit but later reduced it to seven (7) days, with a required stay ledger open to inspection. When asked about guests potentially circumventing the limit by briefly leaving and returning, staff acknowledged enforcement challenges and emphasized the preference for regulating site design over operations, given the difficulty of monitoring nonprofit or business activity. Staff also clarified that the applicant removed RV storage from the original proposal and that the current ordinance does not permit boat storage. ADDITIONAL ITEMS County Manager Coudriet introduced a demonstration of two updated budget tools developed by staff which will be shared via email and allow the Board to select different tax rates and view the resulting budget impacts, including changes to specific line items and contracted services. Budget Officer Amanda Kostusiak explained via the demonstration how to work within the updated tools, which include preset scenarios for various tax rates and identifies the corresponding budget adjustments needed to achieve each one. She added that the tool remains fully customizable, giving the Board the flexibility to adjust selections as needed. Ms. Kostusiak also presented a second file that breaks down all County expenses by department, including salaries and contracts. She reported on the file contents and noted that it includes a cross-referencing system that allows the Board to link line items to individual contracts with accompanying descriptions and justifications. Chief Financial Officer Eric Credle elaborated on the file’s structure, explaining that it includes last year’s adopted budget, NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 AGENDA REVIEW, MAY 1, 2025 PAGE 503 the recommended budget based on a $0.35 tax rate, and the corresponding dollar and percentage changes. He identified key budget drivers such as school funding and workforce housing and clarified that some apparent increases result from changes in fund allocation or labeling, not actual growth. The Board thanked staff for their work and noted that the tools improve clarity and support more informed budget discussions. County Manager Coudriet noted that staff worked with the County’s financial advisor, bond counsel, and the Local Government Commission (LGC) regarding the fund balance. Mr. Credle presented the following information based on that work:  Fund Balance:  Available Fund Balance Target is 18-21% of expenditures:  Percentage as of June 30, 2024: 18.2%  Minimum required by the LGC: 8%  Every 1% of Fund Balance is approximately $4 million ($73.6 million in total)  Fund Balance Policy established prior to creation of $300 Million Revenue Stabilization Fund (RSF)  RSF provides a unique strength to the County’s financial resources and may justify a lower Fund Balance  Potential opportunity to lower tax rate by using existing Fund Balance  1 cent of tax rate is approximately $8 million, meaning that 1 cent equals 2% of Fund Balance usage:  Over the next four years, the revaluation period with 1 cent per year is approximately 8% of Fund Balance usage  Staff analysis:  Per discussion with Financial Advisors (First Tryon):  Rating agencies do not directly factor in the RSF into their Fund Balance financial analysis because it is restricted:  RSF is an excellent contingency fund and is likely factored in qualitatively:  Provides comfort given coastal location  The County’s fund balance policy is in line with Rating Agency expectations and other Triple A rated peers  Reducing current Fund Balance levels may put pressure on the County’s Triple A bond rating  Staff Recommendation is to not use fund balance in this manner. County Manager Coudriet emphasized the critical role of the County’s fund balance policy in maintaining its double Triple A credit rating, noting that the County achieved this rating only after adopting the policy around 2013. While using fund balance remains an available policy option, he cautioned that doing so could put pressure on the credit rating, even if it does not guarantee a downgrade. He reiterated that the updated budget tools, particularly the lever sheet, give the Board full control over adjusting amounts to reach various tax rates. During a brief discussion, he noted the uniqueness of the County’s Revenue Stabilization Fund (RSF), explaining that few comparable models exist, which may limit its influence in credit risk assessments. He also highlighted the importance of the fund balance during Hurricane Florence, when it enabled the County to quickly remove debris and support local schools. Strong financial systems and accountability allowed the County to receive full reimbursement within 24 to 36 months. ADJOURNMENT There being no further discussion, Chair Rivenbark adjourned the meeting at 5:06 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.