Should members of the Goldsboro City Council fail to pass a proposed 3-cent property tax increase and a 15-percent water rate hike, the city would find itself in a dire situation, Finance Director Catherine Gwynn told the board during its budget work session Thursday afternoon.
But two council members — Brandi Matthews and newcomer Hiawatha Jones — remain opposed to the tax increase and Councilman Taj Polack joined them in dismissing the water rate hike, arguing that city residents should not have to shoulder the burden they say was created by the inaction of previous council members.
Public Utilities Director Mike Wagner warned the board that the city needs to invest the more than $2 million a rate hike would bring in to finance critical infrastructure needs. Failing to address those projects, he added, would, among other things, thwart development.
“We’re going to have to make an investment, probably next calendar year, in design of an expansion of the (water) plant. So, what can happen (should the water rate increase not happen), moratoriums could happen,” he said. “It could impair economic development — even a housing development. If a housing development wanted to come in and tie into the sewer system, we can’t do it because the flow path of the collection system to the plant cannot handle that flow.”
And Gwynn said the other consequences of inaction could be far worse.
“I just want to clarify, and I understand how difficult it is to make this decision because it impacts so many people, but I think it’s my job to ensure that I tell you that if you don’t pass some sort of rate increase, the (utility) fund is going to be insolvent in 2023, OK? I mean, insolvent. Can’t pay its bills,” she said. “Without that 15 percent, we’re looking at insolvency, so I think when we respond to the (Local Government Commission’s) letter about our plan — how we address not just the general fund because they are going have concerns about the utility fund — I just want you to understand that if you don’t have that increase, that is a significant financial effect.
“I’m not trying to scare you, but I’m just trying to be upfront with you. You cannot go into fund balance because you’re not going to have any fund balance to go into.”
No action on either hike was taken during the work session and the board will meet again Monday to continue its budget discussions. But five of the six council members — Mayor Chuck Allen is still on an indefinite medical leave as he continues to battle brain cancer — would have to vote “yes” for the measure to pass.
“That 15 percent enables that $2.6 million worth of work that’s going to be done in the upcoming year,” City Manager Tim Salmon said. “Much of which is critical.”
Councilman Gene Aycock said he took exception to claims made Monday by citizens about what they perceived as negligence on his part and that of longtime council members.
“I believe in doing everything that is responsible as far as handling our money for the city and while I wasn’t here Monday night, I did watch it somewhat and some of the accusations I heard angered me — angered me greatly. And I know they’re coming from one group,” he said. “That group, you know, I’m going to put it very bluntly. I went to an NAACP meeting one time at the Salvation Army a few years ago and their sole goal was to make sure that Bill Broadaway, David Ham, I, and the mayor were not reelected. Now, you look at that group and we’re all white. I, for one — again I should keep my mouth shut — but I resent (people saying) I have not done my job.
“You had your say. Go ahead and say it. But I’m not running for reelection. I’m not sitting up here and making a political speech. I’m not trying to please the people who vote for me. I’m trying to please my district. And in doing so, I feel like if I do that, I have served my purpose for the city of Goldsboro.”
And he warned his fellow board members that making the water rate hike a political issue was a mistake he believes they — and the city — will pay for down the road.
“What I’ve heard the last two sessions is, ‘Why didn’t we do this years ago? Why didn’t we take care of it?’ I’ve been accused and other council members have been accused of kicking the can down the road. Well, if we don’t do something, that’s what we’re doing now — kicking the can down the road,” he said. “It’s going to come to a point where certain council members won’t be on the board and then those of you who are are going to have to face reality. I want y’all to think about that. You’re going to face reality. You’ve heard the dire situation we’re going to be in. Do I hate doing it? Heck yeah. But do I know it’s a reality? Yes.”
