Deal’s failure frustrates Jacksonville

An apparent agreement on how to distribute sales tax revenue among Onslow County municipalities has collapsed, and Jacksonville officials are not very happy about it.

A week ago, a workshop with the Onslow County Board of Commissioners and representatives of the county's municipalities produced a memorandum of understanding that proposed a 60/40 distribution method for the 2008-09 fiscal year.

Instead of a population-based method - that worked to Jacksonville's favor - or the property value-based method put in place last year - that favored the beach communities - the proposed method would divide 60 percent of the money based on property values and 40 percent on per capita.

But while town boards in Holly Ridge and Surf City signed off on the deal Wednesday night, North Topsail's Board of Aldermen sank it with a 4-1 vote against it.

As a result, the ad valorem system remains in place, much to the chagrin of the Jacksonville City Council, which voted to approve the memorandum Thursday night.

"I believe it was wrong for North Topsail Beach, and it is obvious that they didn't want to work together," Councilwoman Reva Sullivan said. "If we have all the other municipalities on board, and they are the only ones against it, then it is not bringing unity to the county."

North Topsail's vote also included a stipulation that he would consider a lump sum payment, to be determined later, to Jacksonville.

But that bothered Jacksonville Mayor Sammy Phillips because, he said, North Topsail Beach representatives had an opportunity at last week's meeting to discuss that as an option but didn't.

"It seemed that everyone in the county thought that (the 60/40 plan) was a good move," he said. "We are disappointed by (North Topsail Beach's) decision."

Phillips said the decision the commissioners made in changing its sales tax revenue distribution method last year - and, by default, remaining with that method this year - was wrong. Now that the opportunity to mitigate it some is virtually off the table, everyone is back to square one, he said.

"I am still against the ad valorem method, because it only promotes tax wars; and the 60/40 split would have been fair," Councilman Michael Lazar said.

"It is disappointing that we can't find a compromise."

Councilwoman Alva Williams said the agreement would have been at least workable for the coming year.

"It looks like North Topsail wants all the pie and this is a fine mess that the chairman of the board, Lionell Midgett, created," she said. "He denied all citizens of this county the right to discuss what everyone wanted, and now look where we are at."

Council members Jerome Willingham, Fannie Coleman and Randy Thomas could not be immediately reached for comment.

Contact city and county government reporter Heather Gale at hgale@freedomenc.com or 910-219-8464. Visit jdnews.com to comment on this report.