Wilmington leaders adopted a first reading of the city’s budget on Tuesday, which includes thousands of dollars in funding for local economic development initiatives and incentives.
The budget, which totals over $306 million, was adopted through a series of ordinances by the Wilmington City Council on Tuesday. It will come before the council for a second reading on June 17 and, if adopted, would go into effect on July 1. The budget includes a property tax rate of 28.25 cents per $100 in assessed value.
The proposed spending for the upcoming fiscal year includes economic incentives and support for ongoing service contracts and civic development partners.
The budget recommends allocating $185,000 toward economic incentives in the upcoming fiscal year, down from the $336,000 in adjusted funding from last year’s budget. The reduction primarily stems from the elimination of $135,000 in miscellaneous incentive spending.
The six entities set to receive economic incentives remain the same as last year. The funding allocated covers
incentive agreements the city has entered into in recent years to boost business and job growth.
The budget recommends
GE Vernova receive $50,000 in incentives, and
MegaCorp Logistics and Live Oak Bank receive $40,000 each. Wrightsville Beach Galleria is recommended to get $30,000.
Vantaca could receive $16,000, while
Port City Logistics could get $9,000 in incentive funding.
The cost of service contracts with the city’s economic driver partners climbed roughly $10,000 since last year’s budget, with total spending slated at just over $368,800. That includes an approximately $142,000 contract with the Wilmington Regional Film Commission, a just over $117,400 contract with Wilmington Business Development and more than $109,200 for a contract with Wilmington Downtown, Inc.
The budget also includes $150,000 in economic development contingency funds that can be used to cover “unforeseen funding requests” during the coming fiscal year.
Another $238,500 is allocated toward 11 economic development agencies with cultural and recreation draws. Funding ranges from $60,000 to $3,000 and includes the Arts Council, Genesis Block, YWCA Lower Cape Fear, Cucalorus Film Foundation and the Wilmington Children’s Museum, among others.
An initial iteration of the budget eliminated funding for the Downtown Business Alliance (DBA), but a $10,000 allocation was added during the council’s budget work session in late May. At a public hearing on the budget in May, DBA president Cheryl Hartsoe, of the Cotton Exchange and Chandler’s Wharf Shops, urged council members to continue funding for the group.
“Since 2007, the council has provided funds (to DBA) from the council contingency funds; the amount requested remains at $10,000 per year,” she said. “You can find what we can do with $10,000 in one year is incredible.”
Hartsoe said the funding helps support the organization, funding events and other initiatives the DBA puts on throughout the year.
New Hanover County leaders this week split on the next fiscal year budget, with two commissioners pushing for a revenue-neutral tax rate and two advocating for a tax rate of 33.9 cents per $100 assessed value. Board chair Bill Rivenbark opted not to vote on the budget at the board's meeting on Monday, saying he still had questions about the proposal.
