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Thursday, March 28, 2024

County tax increase imminent 

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A tax increase is not necessary in the recommended county budget for the 2014-15 fiscal year but New Hanover County Manager Chris Coudriet alerted Commissioners that a decision to slash services or bump taxes is unavoidable in the following fiscal year.

Coudriet said during a May 19 meeting county debt service is outpacing growth in the tax base, requiring a 5 cent increase from the current tax rate of 55.4 cents per $100 before the 2015-16 fiscal year begins July 1, 2015.

Coudriet noted the board could choose to implement the increase in the 2014-15 budget.

Top debt obligations include voter-approved bonds in 2006 and 2008 for the parks and recreation department and Cape Fear Community College, with debt service for the bonds totaling $11.9 million, equal to the county’s discretionary spending. The county’s debt service on the bonds will be satisfied in 2035.

While the county economy shows signs of recovery and general government spending is down, Coudriet said the tax base is slow to reflect the gains.

In fact, the tax base has shrunk since the 2006 bond was approved.

“We were at a high of some $34 billion. Our assessed base today is $29 billion and it has remained flat now in effect for three straight years,” Coudriet said.

Even with a 5 cent increase, Coudriet said the county’s tax rate would remain competitive compared to peers like Wake, Forsyth, Guilford and Mecklenburg counties.

Priorities in the $327 million recommended budget include education, public safety, economic development and effective county government.

A $67.9 million public education allocation, up $3.2 million, would fund repairs, increased per-pupil spending and a 2-percent pay raise tacked to the 8 percent supplement currently afforded to county teachers.

Creation of 17 new positions would benefit health and human services and fire services. Coudriet said nine new positions in fire services will ensure a baseline level of staffing.

The 2014-15 budget requests the first of three $50,000 annual installments to Wilmington Business Development to implement recommendations from the Pathways to Prosperity report, prepared by Garner Economics and presented to the board in April.

The budget also features a 2 percent raise for the 1,600 county employees with acceptable performance evaluations. The pay raise would be effective Oct. 1.

Increased spending is offset by cuts, including a 2 percent decrease in health and human services and a 7 percent dip in the county landfill’s tipping fee from $59 to $55 per ton.

A public hearing prior to budget approval is planned for June 2. The suggested budget is available on the county’s website, www.nhcgov.com.

Chairman Woody White encouraged citizens to participate in the budget process and suggested focusing on substantial elements like debt obligations.

“It would be helpful for the community as a whole to ask questions and grapple with the fact that our debt has expanded exponentially in the last eight years,” White said.

The board is slated to vote on the budget June 16. The new fiscal year begins July 1.

Waste Hauling Proposals

Commissioners also heard presentations by Waste Management and Waste Industries, bidders on the county’s November 2013 vote to request proposals to haul county waste to outside sites.

The presentations responded to an offer extended by White during an April 21 work session, when financial analyses of the proposals failed to impress board members.

Both bidders defended their offers. Waste Industries president and chief executive officer Ven Poole presented numbers suggesting the county tipping fee is too expensive, pegging an appropriate fee around $40 per ton.

White requested the staff look into Poole’s numbers and report on the difference so he could make an informed decision.

Improvements pending approval by the N.C. Department of Environment and Natural Resources could boost the county landfill’s lifespan to 60 years.

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