The New Hanover County Board of Commissioners approved an election-year tax hike over the objections of two board members after county officials were able to bring down the total raise in property tax from an earlier approval.
On Monday’s 3-2 vote, the board approved a modified version of the original budget proposal, which dropped the property tax increase to 4.9 cents per $100 of assessed value, down from the 5.5 cent increase proposed by county staff in May, setting the tax rate at 62.3 cents. The increase will bring in approximately $14.8 million in new revenue for the county, all of which is slated to pay for bond initiatives approved by voters over the course of the past decade.
Commissioners Beth Dawson, Jonathan Barfield Jr. and Rob Zapple all voted for the budget, with Commissioners Woody White and Skip Watkins opposing it. The majority defended the budget, calling it a responsible measure to meet the increasing costs associated with the county’s capital projects.
“This is a balanced, prudent and responsible budget,” said board chair Beth Dawson, a Republican who broke with the other members of her party on the board. “It found ways to offer additional services that we are required to offer, that citizens need and that meets the demands of our population growth.”
Neither White nor Watkins commented before the vote. Afterwards, White said that while he and Watkins looked for areas for budget savings, the board’s leadership rejected those proposals.
“The board’s leadership set the wrong tone for staff, that raising taxes was acceptable and necessary,” White said, pointing out that the tax hike would likely be an issue in the upcoming election for three board seats. “We won’t see any changes until we see changes in the leadership.”
Barfield, a Democrat, the only board member voting in favor of the budget, will face re-election this November. Zapple’s term continues two more years and Dawson lost in the February Republican primary. Zapple said the tax hike was needed to meet the debt obligations for nearly $340 million in borrowing since 2008.
“There is no such thing as free money,” he said. “It’s time to act responsibly and to pay the bills.”
A Republican candidate for the board of commissioners, financial adviser Patricia Kusek, watched the vote from the gallery, saying the public needed to be better educated about the consequences of public bonds. Kusek also questioned whether all of the proposed staffing increases were necessary.
“You can’t continue to say yes to everything or everybody,” Kusek said. “Different commissioners staked out what they wanted to fund in this budget. That’s the problem with this board of commissioners.”
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