County postpones property revaluation

Source: Greater Wilmington Business Journal, March 24, 2010 As part of the countyÃÔ budget work session today, the county commissioners agreed not to go forward with a planned property revaluation. Instead, the commissioners agreed to wait another year. The revaluation was scheduled to occur this year and go into effect in January 2011 as part of a four-year revaluation process. But the county is mandated only to do a property revaluation every 8 years and the commissioners thought the $500,000 to complete the revaluation was too much with budget cuts looming. Current budget projections did not include the $500,000. Chairman Jason Thompson said that it was not prudent when the county was facing an estimated $13 million shortfall with property values also decreasing. Ÿe can hold off a year, he said. But Thompson made sure to emphasize that even with a property revaluation, taxes would not necessarily decrease. The tax rate would need to be readjusted to make the sure the county remains ÅÓevenue neutral. That means if some property values go down, some will pay the same price while some may pay less or more. The rate adjusts to keep the revenue neutral. Å¥onÃÕ think the reveal reduces your taxes, thatÃÔ not how it happens, Thompson told the commissioners and audience. But a possibility is that the commissioners could raise the property tax rate in the future to make up for this yearÃÔ budget shortfall. That would not depend on the revaluation, but would be a general increase. For most of the work session, commissioners batted back and forth possible places to cut to make up the projected $13 million shortfall in 2010-2011 budget. Commissioners emphasized repeatedly the need for voters to approve the ?¼ cent sales tax in May to keep funding to the programs they want. ŪtÃÔ a great way to allow everyone to share that burden, itÃÔ more of a broad-based tax, Barfield said. The sales tax would be shared by tourists and other residents who come into the county to shop and would raise the tax from 7.75 percent to 8 percent with more than 5 percent of those funds going to the state. Not all of the commissioners would agree on a definite property tax increase. Other options presented included selling Battle Creek Park near Monkey Junction, parsing off Airlie Gardens or selling some of the 90 plus acres near the jail. No firm estimates on the propertyÃÔ values were offered. Also considered was saving money from not issuing all of the Cape Fear Community College bonds or park bonds for a savings of about $3.6 million next year. The commissioners agreed to wait until May for a final decision to give staff more direction, to see if the sales tax passes, after the county commissioner primaries and for proposals to be heard on the landfill and waste management which are expected in April. Commissioner Bobby Greer thought that some savings could come from there. Also, after a presentation by Davis about keeping in furlough days for county employees and possibly cutting money for the school system, that furloughs should be considered for another year to save funds. Ū know weÃÍl be in a better financial position, I donÃÕ know when but I have faith that we will, Davis said. Chairman Thompson suggested cutting all support to outside agencies and eliminating other programs from the discretionary funds except for New Hanover County Television, the wellness program and roadside trash pick-up with a 12 percent cut to the cooperative extension, library, parks, Airlie Gardens and the museum for a savings of $5 million. No matter the choices, Barfield urged the commissioners to make the tough choices and show leadership. ŵhe public elected us to make tough decisions. And itÃÔ up to us to say weÃÓe cutting ÁÙ, y and z not staff, Barfield said. Å¢s leaders we have to be visionary and not just look at the things we see today.