Local News - May 2002

City, county send message to Raleigh

By ALICE SMITH, LTN Staff Writer

May 24, 2002 - Still smarting from the loss of $600,000 this year, the Lincolnton City Council Wednesday unanimously passed a resolution designed to protect local revenues from being held up in state coffers.

The Lincoln County Board of Commissioners also passed the resolution at their Monday meeting. The county saw around $612,000 usurped.

“I think it’s a real good thing,” Commission Chairman Jerry Cochrane said Monday. “Too bad it wasn’t passed years ago.”

The North Carolina Association of County Commissioners and the North Carolina League of Municipalities are spearheading the effort.

The resolution restricts the authority of a Governor to withhold local revenues.

If the legislation is adopted and passed at the 2002 session, it will restrict the Governor from withholding local revenues.

The groups will also seek a constitutional amendment to accomplish the same goal.

“Hopefully the General Assembly will help us out,” County Manager Stan Kiser said. “I have a problem with him (the Governor) balancing his books on our backs.”

This action comes as a result of the reimbursements for repealed local taxes and state collected local revenues being withheld from municipalities this year.

“I have serious doubts we’ll ever see that money,” City Manager Jeff Emory said. “What we’re fighting for is next year’s.”

If money is withheld in 2002-2003, the city stands to lose $1.2 million.

Emory also told the council that the proposed 2002-2003 budget had decreased by $100,000, due to a 12 percent decrease in county health insurance premiums.

Emory said Gov. Easley has indicated that local governments will have the to levy a half-cent sales tax this July, instead of July 1, 2003.

Commissioners here have already adopted the resolution to levy the tax. Emory said he doesn’t know when the city would start to receive proceeds.

The state budget does not propose to cut or alter utility franchise taxes.

“The Governor can do whatever he wants,” Emory said. “He’s proposing we get our franchise tax.”

Emory was positive about the coming year’s budget, saying capital spending has been reduced to the lowest level in years.

“I continue to feel very good about this budget,” he said. “I’m pleased we haven’t had to take the drastic measures that other (counties) have.”

Emory apologized for the lack of new programs in the proposed budget, and pointed out that the year had been very hard.

Council members expressed support.

“It (the budget) reflects good spending habits and a good staff that’s put their minds to helping us at difficult times,” Councilman Les Cloninger said.

© 2001 Lincoln Times-News  

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