Wilmington City Council approved an ordinance establishing tax and water/sewer stabilization funds Thursday.
The legislation passed with a vote of ten in favor, one present and two absent.
City Council member Bud Freel introduced the ordinance. He says the funds could smooth the burden of tax increases in the future.
“In a future year if we need some funds to balance the budget, as opposed to just looking at increasing taxes on our residents, we could look at this tax stabilization fund and maybe take some funds from there,” he said. “It might not wipe away completely a tax increase but it might reduce the amount.”
Freel says the previously-termed undesignated general fund balance will become the new tax stabilization fund. Money will go into the stabilization fund during budget surplus years.
The ordinance also creates an operation and management reserve within the water/sewer fund, which would provide funding in the event of adverse economic conditions or a public emergency affecting water or sewer.
Council also passed ethics legislation recommended by the city's Ethics Commission with a vote of ten 'yes,' three absent.
