EDC studying 'equality' of local contributions

By Rose Hooper

The committee was formed to answer a concern by the town of Dillsboro that "each municipality is not meeting its obligations."

Since the EDC was formed in 1992, it has followed a premise that economic development would require equal financial support and per capita assessment from each municipality. However, the Village of Forest Hills, incorporated in 1997, was not part of that original agreement, which reads that each member provide support "in-so-far as their individual fiscal budgets will allow."

This fiscal year, both Webster and Forest Hills contributed $500 each to the EDC. For Webster, with a tax rate of 4 cents per $100 valuation and a population of 487, that amounts to $1.02 per person. For Forest Hills, with a tax rate of 10 cents per $100 valuation and a population of 345, it amounts to $1.45 per person.

"In Dillsboro, we contribute $16.80 per person, and so does the town of Sylva," said Dillsboro's EDC representative, Herb Nolan. This year's EDC budget shows Dillsboro's (population 170) contribution at $2,000, with Sylva's (population 2,326) at $38,000."

Nolan told the EDC, "It has become apparent that evasion of this financial commitment is made easily possible by just not including enough in a municipality's tax rate, so their budget does not allow them to meet their obligation.

"Dillsboro and Sylva, along with Jackson County, have met their obligation since the EDC was formed," Nolan continued. "Other municipalities appear hesitant to tax their citizens to do likewise. This creates a most unfair burden on some and though minor, a reduction in funds required for the EDC to operate."

Nolan contended that if the municipalities do not meet their financial obligation, they should not have voting rights in the EDC.

Forest Hills has a general operating budget of $27,600. "We're a new village, and we haven't been operating nearly as long as Dillsboro," Village Mayor Irene Hooper said. "Plus, they have the revenue that we don't." With a 2000-01 budget of $12,755, Webster would need to contribute $8,181 to the EDC, according to Nolan's calculations.

"While the Webster Town Board supports the goals of the EDC, at this time we feel we are within the rules of their bylaws. I don't think our residents would support a tax increase of 260 percent, which is Mr. Nolan's estimate, in order to meet the obligation he expects," said Webster Mayor Steve Gray.

Both Hooper and Gray point out that their citizens already contribute to the EDC through county allotment. This year, the county contributed $150,000 to the EDC, even though the organization now operates as a separate unit from the county.

EDC Chairman Tom McClure appointed members Jay Coward, Wendy Cagle and Mark Leonard to review the bylaws on this issue. Monday night Coward reported that although that committee had met once, it did not have any recommendations for the board at this time.

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