Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
Issue link: https://www.epageflip.net/i/783372
12 UCW FEBRUARY 8-14, 2017 WWW.UPANDCOMINGWEEKLY.COM NEWS Cumberland County government has never experienced what it's about to go through — raising taxes to offset a loss of usually reliable tax revenue. Tax administrator Joe Utley says the value of the county's tax base of $18,780 billion has declined by half a billion dollars, or 2.9 percent, since 2016. That represents more than $4 million in lost money. Utley said tax notices were mailed Jan. 31. Property taxes represent only about one-half of annual general fund revenues needed to operate county government. The loss will be offset by an increase in sales and motor vehicle taxes, which are up. The County Board of Commissioners Finance Committee got the bad news last week. "it's not good but could have been much worse," said committee chairman Marshall Faircloth. County Manager Amy Cannon has said over the past several months that our community has not bounced back from the great recession in 2008 as other cities have. Asked about that, Faircloth gave a one-word answer: "jobs." What he meant, of course, is lack of jobs. Faircloth pointed to the unavailability of mortgage money over the last eight or nine years. While residential property values are down, the worth of commercial properties is up — shopping centers by 11 percent, mini-storage warehouses by 12 percent and vacant commercial land by 13 percent. Contrast that with a crash in the value of local condominiums whose value is off by 31 percent from last year. Single family residential values are down by about 5 percent. Approximately 72 percent of the tax base comes from residential properties and 28 percent is from commercial and industrial, said Utley. "Sixty-two percent of properties had an assessed value reduction," said Utley. County commissioners would have to raise the tax rate by two cents from the current 74 cents per $100 of property valuation to make up the $4 million loss. What does all of this mean for the taxpayer? Responses are mixed: Faircloth, who is a certified public accountant by profession, believes even most homeowners will painlessly absorb a two-cent tax rate increase. For those who suffered a loss of worth, a tax increase will make up the difference to achieve revenue neutrality. The tax rate would have to go up slightly to bring in the same amount of money to operate county government at current levels. For her part, Cannon is not so optimistic. "The best thing we can do is develop some options for the board to consider," Cannon said. "That could include reducing our expenditures, which may lead to a reduction in county services." The total assessed value for the City of Fayetteville dropped about 3.5 percent overall. Residential values were down $604 million (7.2 percent) but commercial values increased $169 million (4.2 percent). A boost in the tax rate would be needed for the city to earn the same amount of revenue it now does. Hope Mills got by almost unscathed with less than a 1 percent loss. Spring Lake's properties lost about 1.5 percent of their value. Cumberland County Tax Base Spirals Downward by JEFF THOMPSON There's a danger to you and your family in Cumberland County, and it's not going anywhere. It's not crime, 100+ degree heat indexes, or the Zika virus. The danger is underinsured drivers. I know, it's not exactly the apocalypse, but let me explain. North Carolina law requires drivers to have liability insurance. This insurance pays for damages caused by the "at- fault" driver in a collision. At a minimum, everyone is required to have what is called "30/60/25" limits. If an at-fault driver only has the minimum, that means there is $30,000 to cover the injury or death of one person, $60,000 to cover the injury or death of two or more people, and $25,000 to cover property damages. That's it! In many accidents, the minimum is just not enough. Where there is a serious injury or fatality, it doesn't come close. Did you know that the drivers of city- owned vehicles performing a traditional government function, like picking up garbage, are immune from suit? In the past, the City of Fayetteville hasn't waived this immunity. This means that although the city drivers have liability insurance, it is never used because the at-fault city drivers can't be sued. These city drivers and their city vehicles are effectively uninsured. To make matters worse, many citizens who drive in Fayetteville have no insurance. This is a fact. As an assistant district attorney, I watched people pour into Cumberland County Courtroom 2C on Fridays and routinely have their tickets for no insurance dropped if they brought in a certificate that said they'd since gotten coverage. No harm, no foul, right? Wrong. As an attorney, I too often have to tell severely injured people that even though the accident was clearly the other person's fault, they will not be fully compensated for their injuries because that person wasn't insured or had minimal coverage. Now that we know the problem, let me give you the solution: "UM/ UIM" coverage "UM," or "uninsured motorist" coverage protects you if you are hit by an uninsured driver. "UIM", or "underinsured motorist" coverage protects you if you are hit by a driver with insurance limits too low to fully compensate you or your family. UM/UIM coverage is often inexpensive. For a few more dollars a month, you can eliminate a substantial risk to you and your family. Add or increase your UM/UIM limits through your insurance agent or company. Protect yourself and your family. Auto Insurance Coverage Is Worth a Second Look by MATT RICHARDSON JEFF THOMPSON , Senior News Reporter. COMMENTS? news@upandcomingweekly. com. 910.484.6200. While residential property values are down, the worth of commercial properties is up — shopping centers by 11 percent, mini-storage warehouses by 12 percent and vacant commercial land by 13 percent. LEGALLY SPEAKING Many citizens who drive in Fayetteville have no insurance. MATT RICHARDSON, Attorney. COMMENTS? Editor@upandcomin- gweekly.com. 910.484.6200.