City looks at raising fees
By Rochelle Moore
Published in News on May 25, 2016 12:14 PM
Motorists and business owners could be looking at new fees in the coming year in the city of Goldsboro's proposed 2016-17 budget.
A new motor vehicle registration tax is being considered to help pay for new street construction or other repaving needs, and a new business registration fee will pay the estimated cost for the city to maintain a list of businesses in Goldsboro.
The N.C. General Assembly approved an increase in the amount of vehicle taxes municipalities can levy, from $5 to as much as $30, starting July 1. City officials are considering a $10 annual fee that is being earmarked for paving dirt streets, said Scott Stevens, city manager.
"Cities have had the authority to do at least $5 before," Stevens said. "That authority has now been extended to $30.
"The council has indicated an interest in doing the $10 per vehicle, and that's estimated to generate right around $270,000. It's new for Goldsboro."
Stevens said that the annual revenue could be shifted to service the debt on a proposed $10 million bond referendum that could be on the November ballot.
City officials have started the process of seeking bond referendum approval from the Local Government Commission, said Kaye Scott, Goldsboro finance director.
The bond, if approved by voters, would provide $7 million toward dirt street construction and street resurfacing, and $3 million would be used to accelerate the development of the multi-sports complex, on Oak Forest Road. The complex is a partnership project between the city and Seymour Johnson Air Force Base.
"Bond or no bond, we'll do some street repaving next year," Stevens said.
"The $270,000 generated from the vehicle licensing tax is going to be put back into the streets, either in resurfacing or the new construction of streets, paving of the dirt streets."
BUSINESS REGISTRATIONS
A new business registration fee of $20 each year is also proposed in an effort to offset the cost of city staff maintaining a list of businesses operating in Goldsboro, Stevens said. The fee is not designed to replace revenue collected from privilege license fees, which the legislature eliminated statewide in July 2015, he said.
Privilege licensing fees collected from businesses previously provided the city with more than $500,000 in annual revenue, Scott said.
The collection of privilege license fees provided the city with a list of city businesses, a state-mandated process that's required to continue, Stevens said.
The annual $20 business registration fee will generate close to $50,000 each year, an amount expected to pay the city's cost of keeping a current list of city businesses.
INSPECTION FEE
The city budget also proposes a new $20 water backflow device inspection fee for business owners interested in having city staff complete the inspection. Currently, business operators are allowed to hire plumbers to complete annual inspections. Starting July 1, businesses will be able to continue hiring plumbers or city staff.
Jose Martinez, Goldsboro public works director, is preparing to present the new program to the city council, which includes the addition of a new employee in the public works department.
The system integrity technician is included in the city's proposed budget. The post is being budgeted at a cost of $44,677, which includes a starting salary of $33,563 and benefits, Scott said.
Backflow inspection fees are estimated to generate $45,000 in annual revenue, an amount expected to cover the cost of the new employee and inspection process.
The inspections are intended to protect the city's water system from contamination and other problems, Stevens said.
"It's keeping our water safe," Martinez said.