With expenditures outpacing revenue, New Hanover County commissioners asked staff to look at ways to keep the tax burden down while maintaining or increasing services in this year's budget. On Monday, a majority of commissioners agreed that goal had been accomplished.
For much of the budget negotiation process, the Board of Commissioners’ three Republican and two Democratic members have largely agreed on what the budget supported, but not how it was paid for. Republicans were adamantly against raising taxes from the start, and asked staff to look at other financial options to balance the budget, while Democrats pointed to the need to fix the county’s long-term revenue problem by raising taxes as they saw necessary.
Related: Here are the ‘one-time tools’ New Hanover County used to make this year’s recommended budget work
Details of the revenues and expenses in the adopted budget are slated for release in the coming weeks.
Based on the roughly $480-million recommended budget provided by County Manager Chris Coudriet, it’s expected to maintain the tax rate at 30.6 cents per $100 in property value by using over $11 million from a number of specialized accounts that the county maintains for various reasons, including the fund balance, a separate specialized fund that captures overflow from the fund balance, and other pools of money from capital projects. The budget proposal also includes about $13.6 million in borrowing.
Coudriet’s budget notes, ”these are one-time resources that help balance the budget,” adding that ‘one-time tools’ “do not address the longer-term relationship between recurring revenues and expenses.”
Commissioners’ thoughts
Republican vice-chair Dane Scalise, who had previously acknowledged concerns about tapping some of the county’s reserves, said he still felt there was an adequate financial buffer. He added that he believed economic improvements in the coming year, including increased sales tax revenue, would help the county balance the budget more easily in the future.
“It is my sincere belief that we're going to be able to level out on the way that we're structuring this budget into the next year, and that's a bit of a hope, it's a bit of a prayer, but I don't think it's unreasonable hope, it's not an unreasonable prayer, it's one that's based on believing in New Hanover County, and the growth that we are undergoing right now,” he said.
Republican Chair LeAnn Pierce thanked staff for their "creativeness," and noted the importance of avoiding a tax hike during difficult economic times.
“The easy fix is to just say, ‘we'll raise your taxes, that's the easy fix.’ The hard fix is to go back to the drawing board, which is what our staff and our commissioners have done to fully fund this budget,” Pierce said.
Republican Bill Rivenbark did not comment.
Democratic Commissioner Stephanie Walker was the lone dissent. She said she supported the funding priorities, but voiced concerns about using reserve funds and borrowing to balance the budget.
“We are the fifth lowest tax rate, as we have mentioned here a few times today. Right-sizing that rate is not a punishment, it is an honest answer, and is responsible governance,” Walker said. “There will be a reckoning, and some of us will still be sitting in these seats when it comes, and I just want to put my dissent on record today.”
Fellow Democrat Rob Zapple, who had previously voiced similar concerns, said he would support the budget.
“I have had my objections during the debate process over the last few months with this budget. It's never been about what we're funding, because I believe as a commission we are in line with each other as to what we want to have funded, especially now, with the revisions being layered in as well. My objections have always been about how it is being funded, and I know that we will be wrestling with the same issue next year,” Zapple said, adding that he shared Scalise’s hope that a ‘rising economic tide’ would make next year’s budget an easier lift.
The revisions Zapple cited include funding for a host of community organizations:
- $300,000 for the Community Justice Center, the non-profit headed by former District Attorney Ben David and initially funded by The Endowment
- $150,000 for the Arts Council of New Hanover County and City of Wilmington
- $30,000 for Thalian Hall, Legal Aid, and Cape Fear Habitat for Humanity
- $25,000 for the Alliance for Cape Fear Trees and the Wilmington Symphony Orchestra
- $20,000 for the Cameron Art Museum
Other budget highlights
The adopted budget includes $111.4 million for New Hanover County schools, including operating, capital, and Pre-K (which was cut last year after federal Covid funding ran out). The county includes school resource officers, nurses, and mental health therapists, along with the Elements and Too Good for Violence programs, to calculate total direct and indirect school funding at $143.4 million. In addition, the budget includes roughly $25.5 million for operations and debt service to Cape Fear Community College.
The budget provides $122.6 million for public safety, including $101 million to the New Hanover County Sheriff’s Office, which received roughly $900,000 to support three new positions and one-time equipment upgrades.
The county will tap several funds to put almost $90 million towards its five-year capital improvement plan, which includes multi-use trails on Carolina Beach Road, the Holly Shelter Business Park, fire station renovations at four sites, and more, according to the county.
The county’s Fire Service District will remain at 7.25 cents per $100 of property value, and the stormwater fee will stay at $6.14 monthly per residential unit. The landfill fee is increasing from $52 to $61 per ton to support cell closure and extending the landfill’s life.
Disclosure notice: Rob Zapple is a member of WHQR’s board of directors, which has no say in editorial decisions.
