City Council passes budget, property tax increase

Despite opposition from two members of the board, the Goldsboro City Council passed a $68.4 million spending plan during a special called meeting Friday evening. Councilwoman Brandi Matthews and Councilwoman Hiawatha Jones voted against the measure.

Noteworthy developments on the FY 2021-2022 budget include:

• The plan includes a 3-cent property tax increase that city officials said would add much-needed revenue to Goldsboro’s General Fund.

Earlier this month, the Local Government Commission told council members it has serious concerns about the city’s finances.

Finance Director Catherine Gwynn told the board that the commission wants to know what leaders intend to do to ensure financial solvency moving forward.

“As you know, your General Fund and your Utility Fund are your two giants in the room,” Gwynn said during a budget work session last week. “So, they had a lot of concerns. They want to know, because their bondholders want to know, ‘How are you going to sustain yourself?’”

City Manager Tim Salmon said a property tax hike would pad the General Fund, helping to alleviate some of the LGC’s concerns.

• A recommended 15-percent water rate increase was not included in the final budget, as Councilman Taj Polack, Matthews and Jones said, during a budget work session earlier this week, that they wouldn’t vote for it.

Salmon, as a result of the lack of a majority in favor of the water rate hike, used more than $2 million in American Rescue Plan funds to pay for critical infrastructure improvements recommended by Public Utilities Director Mike Wagner.

Had the City Manager not done so, Wagner warned inaction could “impair economic development — even a housing development.”

But money generated by the increase would not have simply paid for those projects that will now be funded by the ARP.

Gwynn warned that without additional revenue coming in, the Utility Fund would be “insolvent” in 2023.

“I mean insolvent. Can’t pay its bills,” Gwynn said during last week’s budget work session. “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 to 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.”

• Salmon, after Matthews suggested taxpayers should not have to pay for Military Affairs Committee memberships for council members and the mayor, slashed that $2,100 from the budget.

Matthews said her recommendation was not reflective of a lack of support for the military — and that she simply believes members of the board should pay their own way — but Mayor Pro Tem David Ham said he felt the move sends the wrong message to Seymour Johnson Air Force Base officials and local leaders who advocate for the base.

• The city decided not to fund Old Waynesborough Park.

The $20,000 allocated to the historic site in Salmon’s proposed budget was split among other agencies.

Polack, during last week’s work session, said he felt the money could be better spent within other organizations, including Rebuilding Broken Places and the Arts Council of Wayne County.

The following amounts will be given:

Literacy Connections: Requested $20,000; Will receive $11,000
Rebuilding Broken Places: Requested $18,047; Will receive $15,500
HGDC Community Crisis Center: Requested $25,000; Will receive $6,500
Boys & Girls Club: Requested $15,000; Will receive $15,500
Arts Council: Requested $25,000; Will receive $24,500
Wayne County Public Schools: Requested $27,400; Will receive $27,400
WAGES: Requested $20,000; Will receive $0
WATCH: Requested $25,000; Will receive $0
Wayne County Museum: Requested $15,000; Will receive $15,500
Communities in Schools: Requested $20,000; Will receive $15,500
Mental Health Association: Requested $12,000; Will receive $12,000
Old Waynesborough Park: Requested $20,000; Will receive $0
Goldsboro/Wayne Transportation: Requested $378,129; Will receive $303,129
Mephibosheth Project Inc.: Requested $5,000; Will receive $6,500
WISH: Requested $12,000; Will receive $11,000
Three In One Family Center: Requested $410,000; Will receive $0

• WiFi service will be extended along Center Street.

Matthews stressed the importance of funding the extension of WiFi to the end of Center Street, noting that many young people used city WiFi to complete school assignments during the pandemic. The Downtown Goldsboro Development Corporation was able to restructure its spending plan to ensure the project was included.

The council was scheduled to vote on the budget during its June 21 meeting, but Polack will not be able to attend the session and asked that it be done today instead.

The board will still meet Monday and is expected to discuss a process for replacing former Mayor Chuck Allen, who resigned earlier this week, citing declining health as he continues his battle with brain cancer.