Tax revenue plan falls apart

NORTH TOPSAIL BEACH - North Topsail Beach could be the only town that stands in the way of Onslow County's attempt to resolve issues surrounding its sales tax distributions.

The county switched last year from the population-based per capita method to the property-tax-based ad valorem method to distribute the county's sales tax revenue to each of its municipalities. Jacksonville took a financial hit when that happened, but the new method of distribution was a windfall for some of the smaller municipalities - particularly the beach towns.

Representatives from the county municipalities met with Onslow County commissioners last week to see if they could work out a compromise that would minimize the impact of the ad valorem distribution on Jacksonville and still benefit smaller towns.

The compromise came in the form of a proposed memorandum of understanding that would change the sales tax distribution to a 60/40 split between the two methods. The representatives agreed to bring the memorandum of understanding before their respective boards to vote on the issue.

Surf City and Holly Ridge town councils unanimously accepted the memorandum during Wednesday night meetings. North Topsail Beach, however, voted 4-1 to reject the memorandum with the stipulation that the town would consider a lump sum payment, not yet determined, to Jacksonville.

Holly Ridge Town Manager Tony Fann said that town's leaders had very little discussion before the vote was taken to accept the compromise.

"(The council) passed it unanimously because it was good for the county," Fann said. "I laid it all out on the table - and all the figures the finance officers had given us at the meeting, and they took the vote."

Fann also said the board felt it would help get legislation enacted that would give the county a third option in distributing sales tax in the future.

Surf City Mayor Zander Guy encouraged his town council to approve the memorandum.

"We knew it would come up again next year and would continue to put this burden on commissioners, so we felt like we needed to make some sort of compromise now that would hopefully heal the wounds," Guy said.

North Topsail Beach aldermen listened to Swansboro Mayor Scott Chadwick's appeal to them to accept the compromise at the start of its special meeting.

Chadwick discussed the importance of all the small towns' standing together and of supporting the commissioners who fought and put their elected office on the line for the ad valorem distribution. He also said accepting the compromise would help commissioners as they go forward to get the legislation they need for an alternative distribution.

After extensive discussion, the North Topsail board rejected the resolution but added the provision they would, as a gesture, offer a lump sum of money. They chose to leave the monetary figure open for discussion.

"Jacksonville has expenditure challenges and all kinds of things, but they're not alone," said Alderman Dan Tuman, who voted to reject the resolution. "I have a problem setting aside our needs, because we really haven't had our fair day, and people don't understand the magnitude of our problem."

Aldermen Robert Swantek, Dick Peters and Mayor Pro Tem Larry Hardison also voted to reject the memorandum.

"It's a little hard to swallow taking $505,000 out of the budget," Swantek said. "If Jacksonville were on the reverse side of this, they wouldn't even think about it."

Peters pointed out that the town had been turned down by the county when it asked for money from the tourism fund to help pay for a parking lot and bike path for the town last year.

Tuman said he voted no only because the monetary stipulation was added.

"I voted against it because I didn't think it should be tied to any