City wants larger share of the pie; county says more discussion needed
When Wilmington Mayor Bill Saffo asked the New Hanover County Commissioners about the city getting a larger share of sales tax money, some at the table laughed.
After the room quieted down, Saffo reiterated his stance. “We’d like to just see more of it, that’s all,” Saffo said Thursday at a joint meeting between the city council and the commissioners.
Though the boards took no votes, the discussion ended with the indication that the issue will come up again.
Some Wilmington council members feel the current distribution slights the county’s largest municipality.
By law, the county’s board of commissioners can choose to divide up all of the sales tax proceeds generated in the county using one of two methods. One is based on the populations of the unincorporated area and each municipality, meaning Wilmington – with the most people – would get a larger share.
But New Hanover has chosen for years to distribute the proceeds based on the amount of property taxes levied by the county and the municipalities, which benefits the county’s coffers since its property tax revenues are greater than those in the city and the three beach towns.
“The city residents are paying more than their fair share,” said Councilman Kevin O’Grady.
While 80 percent of the sales occur inside the city, said Councilwoman Laura Padgett, the city only gets about 20 percent of the sales tax money.
To get it changed, they can only appeal to the county, she said. “We have no recourse to correct that inequity.”
Commissioner Rick Catlin said any change in the tax distribution would have a “very negative impact” on the beach towns, but he added that didn’t mean they couldn’t discuss it.
Councilmen sought to lay out their financial burdens and commissioners followed suit.
O’Grady said everyone uses city infrastructure.
“When they’re coming to work, they’re coming into the city,” he said. Even non-city residents use services like trash, fire or police, he said, “And that’s fine, but we’ve got to make some adjustment in the revenue.”
Commissioner Jonathan Barfield, who lives in the city, said he still uses county services, such as the library or Health Department.
“I think we both shoulder and share this burden together,” he said.
City residents pay equally for those services, O’Grady responded. Padgett said the county gets state and federal funds to provide some services.
Commissioner Jason Thompson, who served eight years on the city council, said he drank the same “Kool-Aid” when he served in the council.
“You guys are totally ignoring all the mandates the county has to pay for,” Thompson said, citing social services and subsidies for teachers.
At first, it seemed the discussion would lead to an impasse. Thompson said the parties wouldn’t come to an agreement on changing the sales tax.
It could be done, said Councilman Neil Anderson, though he conceded it may not be palatable to county leaders.
“We owe it to the citizens to discuss it,” Catlin said. “I don’t want to leave this meeting saying we don’t agree because I don’t have all the facts.”
Commissioners Chairman Ted Davis pointed out the county board will start fresh with three new members after the November election. He asked who would keep the discussion going.
“Let’s just make sure it’s not going to drop through the crack,” he said.
Ultimately, they directed the city and county managers to get them more facts on the tax issue, which could be brought back before another joint meeting in the future.
In other business, the officials discussed annexation and development.
Davis, the chairman of the county commissioners, said noncontiguous annexation can end up with pockets of different jurisdictions.
“Which makes it kind of like a satellite city territory,” Davis said.
Rivenbark said that the city has always followed state law, which allows voluntary annexation within three miles of city borders.
Davis reiterated that he personally dislikes noncontinuous annexation as it “makes satellite pockets.”
Rivenbark said county leaders seemed to want to freeze the corporate limits.
“Second,” shot back Commissioner Jason Thompson, facetiously asking if it was motion.
Rivenbark said, “Thank God we’ve had annexation to keep the city as healthy as it is.”
By Julian March
(StarNews Online)
Julian.March@StarNewsOnline.com
Published: Thursday, August 9, 2012 at 3:58 p.m.
