Unbelievable Breakdown of Wilmington Proposed Budget

City Council constantly telling us that they are only funding "core services"; and that a tax increase is necessary for such. However, the proposed budget for 2010-11 tells a very different story. Chock full of payoffs to friends, outside agency giveaways, and unexplainable spending increases - this budget covers far more than "core services":

• 2.75% increase over current budget
• General fund increase of 4.4%; or $3.5M
• Includes a 3.75 cent property tax increase
• Reasons for budget problems attributed to:
• • County tax error
  • Economic downturn
  • State’s overall condition; retention of 2/3 beer and wine revenues
  • Continues losses in revenue include a reduction in sales tax projections of 5% or $700,000
• Reasons for tax increase:
• • Sales tax revenues short
  • Powell Bill revenues anticipated to decrease 6%
  • Investment earning projections reduced 66%
  • These 3 sources declined $4.4M
• Methods used to balance the budget:
• • Use of fund balance
  • Tax increase
  • Elimination of unfilled vacant positions
  • Reductions in service delivery
  • Adjustments to employee health benefits
  • Capital project delays
  • Quote from proposed budget supporting document: “Over the last 2 years city employees have lost an average of $4600 each as a result of these cuts”
• Quote: Recommended budget will affect citizens, employees, & other stakeholders” every group is being asked to sacrifice by the City Manager
• Tax increase equates to a $6.3M increase
• Blame voters for Parks Bond Referendum of 2006; but say that the improvements were “much needed” (are these “much needed”?)
• • Baseball/Softball fields at Olsen Park
  • Natatorium/Northside Splash
  • Land purchases
  • Tennis courts at Empie Park
• TAXPAYER HANDOUTS
• • Cape Fear Future – of which the Mayor’s campaign manager, Louise McColl, plays a crucial leadership role - $20K
  • City has ongoing contracts with Wilmington Film Commission, Wilmington Industrial Development, Wilmington Downtown, Inc. – that require
    INCREASES in city support
  • WID - $80,496 – however gets $50K in a separate fund as a payoff for attracting GE Nuclear Division – total payoff: $250,000 (5 year total)
  • WDI - $70,000
  • Wilmington Film Commission - $110,000
  • Cucalorus Film Festival - $10,000
  • Total of $1M in giveaways to outside agencies
• 11% of total budget is DEBT SERVICE
• Other tax increases
• • Solid Waste & Stormwater fee increases 2% and 4% respectively
  • Parking meter rate increases $.25 per hour
  • Golf course fee increases
• Spending
• • Convention center fund increased $3.3M to over $6.1M
  • Fleet maintenance over $6.1M
  • Debt service fund over $18.2M
  • Environmental services $11.8M to $12.2M (10% of total budget)
  • Economic & community development increased $6.4M to $8.4M
  • Sundry items increased $6.1M to $11.1M (9% of total budget)
  • City council misc. expenditures increased $185K to $190K
  • City clerk expenditures increased $177K to $180K

Economic Incentives:
$125,000 to CELLCO