Rolesville commissioners passed a controversial
resolution last week which could result in a free month's
worth of garbage collection for those who live within
town limits.
The resolution would take Rolesville's portion of
money collected from the county's upcoming half-cent
sales tax and distribute it to town residents, most
likely in the form of a skipped payment on their garbage
bills.
Commissioner Ronnie Currin, who suggested the
resolution, said that because the town was not
anticipating the money, "I feel it's a windfall. We
should give it back to the rightful owners."
The state kept a significant amount of money last year
instead of dispersing it to municipalities, leaving many
of them scrambling to make up the difference in their
yearly budgets.
As a result, the General Assembly in October gave
counties the option to impose a half-cent sales tax to
help make up for the shortfall.
Rolesville's portion of the sales tax would be
approximately $4,000, and Currin believes it would not
have a significant effect on the budget if it were added
to the town's coffers.
Commissioner Betty Whitaker said she was concerned
about promising to return money "before we have the cash
in hand."
Town Manager Don Dubay told commissioners the tax is
supposed to "make up for money that we were supposed to
receive." He reminded them that because the state
withheld money, the town was postponing the purchase of
things like a new patrol car for the police department.
Whatever Rolesville needs and can't buy now "will have
to be made up later," he said.
Dubay added that not all the money from the sales tax
will be returned to towns this fiscal year, and that
unexpected expenses like the mandated hazard mitigation
plan already have him searching for additional funds.
"It's a really tough year for any municipality right
now," and "next year it's going to be really nasty with
the state budget," he said. "It may be a nice gesture,
but we might need it."
Currin said that now is a difficult time for everyone
and that is "why it's the worst time to raise taxes."
"Some people out there are in a real crisis, needing a
job and a place to live," he added.
Commissioner Pat Wharton told Dubay she agreed with
everything he said and added that she does not want to
create a "revolving door" by reimbursing the $4,000 in
the form of paid garbage fees and then turning right
around and having to raise taxes.
Whitaker said, "In my opinion, it's too soon to make
this call."
Town Attorney Jonathan Koffa said if commissioners
wanted to return money to citizens, it needed to be done
in such a way that it would benefit everyone.
Eagles said if the town was hurting financially, it
should cut back on expenses everywhere and put any extra
money in reserve.
Currin said he helped approve the budget, "but I don't
see we're in real bad shape."
Whitaker reiterated that if commissioners weren't sure
about how much they were going to receive from the tax,
they should not be in favor of giving money away.
She pointed out that if the town does not receive as
much as commissioners thought it would, the balance of
the refund would have to be taken out of general funds.
Koffa asked, "You are not approving money you don't
have yet, are you?"
Commissioner Frank Hodge said the projected $4,000 to
$5,000 the town could receive from the half-cent sales
tax was not budgeted and "I don't believe (it) would
change our bond rating."
Wharton asked, "Why would we think about this in this
economic situation? When we were flying high, did we ever
give anything back? I can't believe one month of not
paying my garbage bill will make a difference in my
life."
Commissioner Frank Hodge said, "Maybe not, but to some
people it will."
Currin then made a motion to direct town staff to
determine the amount to be collected by the tax and
return it to the citizens in the form of a refund.
The motion was later amended to add the phrase "once
we receive the funds."
The resolution passed three to two with commissioners
Wharton and Whitaker voting against it.