State law change means tighter Wilmington budget

WILMINGTON, NC (WWAY) — The Wilmington City Council was talking budgets this morning, and with just over two months left to finalize next year’s plan, Mayor Bill Saffo said there are some tough decisions on the horizon.

One major obstacle facing the council is the huge hit the city took when the state cut the privilege license tax last July. The tax was in place to help regulate businesses in an area. The city would bring in between $10 and $100 per business in tax revenue. Additionally, large nationwide chains such as Wal-Mart or Target would pay taxes based on receipts.

Saffo said without that loss of revenue, the city’s budget would already be balanced.

“We lost $2.3 million in revenue with the states decision to eliminate privilege license taxes. Obviously we’re going to have to deal with that loss, which was significant for a city of our size. And so one of the budget priorities this year is of course the transportation bond that was voted on by the citizens of this community,” said Saffo.

Saffo said the council will be prioritizing and doing their best to make cuts and savings accordingly in the coming weeks.

“We gave pretty clear direction to the City Manager that our number one priority’s to implement the bond. Because those are the things that the citizens went to the polls and voted on. And then from there is all of the other things that people are asking for. We have to prioritize and think and feel what is the most important thereafter,” Saffo said.

The city budget must be balanced and passed by June 30.