The city’s budget for 2008-09 was passed by City Council on June 17. The city is grappling with a $6 million shortfall while also facing increased costs.

The 2008-09 budget includes a 2.25 cent tax adjustment to bring the city’s tax rate back to what it should have been following New Hanover County’s tax evaluation error and a 1-cent tax increase to help offset a $6 million budget deficit while funding services such as street maintenance and pay raises for city employees, as recommended in a pay study to bring salaries more in line with other cities.

City Manager Sterling Cheatham says the budget is very lean, but all basic services are still provided. He credited city employees for helping find ways to save in spite of significant funding shortfalls. “Our employees are trying very hard to find ways to do more with less and they are also putting off things they need in order to help keep our costs down,” said Cheatham. “They have been very creative and willing to sacrifice in this tight fiscal environment.”

Budget highlights:

• $6 million deficit caused by:
  • County tax rate error - $3.5 million 
  • Declining sales tax revenue - $1.5 million 
  • Declining interest revenue - $1 million
     
• Other pressures: 
  • Need to fund employee pay plan - $3.2 million 
  • Slowing economy coupled with increased cost of gas, energy
     
• The proposed tax rate would change from 30 cents to 33.25 cents per $100 valuation. At 33.25 cents, Wilmington would still have among the lowest tax rates of NC’s ten largest cities.
   
• The increase would cost the owner of a $250,000 home an additional $81 a year, or about $6.75 a month.
   
• The proposal includes $1 million for street maintenance and $2 million additional funding for the widening of Independence Boulevard from Shipyard Boulevard to Carolina Beach Road.
   
• $2 million additional funding is also proposed to update radios used by public safety in emergencies. The current radios are now obsolete and can’t be repaired and the upgraded radios are also needed to comply with Homeland Security recommendations.

Go to the City's Budget Page to view the FY 2008-09 Adopted Budget.

Read the Adopted Transmittal Letter outlining the budget process and changes made to the FY 2008-09 Recommended Budget.

 

 

Revenue and Expenditure Summary.

Total Budget Summary.