Elections surprise insiders "I think the Re publican Party in Chowan County is here to stay." — Republican party SEE BELOW "The more peo ple who are in vested in the elec tion, the better." — Democrat party chair Martha Badger Wednesday, November 12, 2008 Sales tax hike nixed in election Failed sales tax vote equates to a one-cent realty tax increase By Vernon Fueston Contributing Writer . Chowan’s county commissioners are ’ feeling increased pressure after last week’s stunning defeat of a hike in the county’s r sales tax rate. ’ Not only will they have to replace the an ticipated $125,000 in rev enue the tax would have r generated, but they will have to balance next year’s county budget in the face , of growing voter displea sure over tax hikes. County Manager Peter > Rascoe said things will , get interesting this spring Rascoe ■ as the commissioners try to balance the budget with $881,000 in new debt payments coming due for the first time. 1 Those annual payments will cover loans for the new public safety center and the library renovations. New troubles looming ; Rascoe said that’s when commissioners will once again face the options of cutting services or raising taxes. Without the sales tax increase, he said that leaves the property tax as the only real possibility for new revenue. But Rascoe said it’s ironic that voters, angry at the prospect of further property taxes, . voted down the sales tax increase. He said one rea son the increase was pro posed was to spread the burden to non-property r owners. Rascoe said the money the county will do with out following the mea- Cole sure’s defeat is equal to a one-cent increase in the property tax rate. He said one source of revenue the com missioners had been counting on was land transfer fees. Those are drying up right now as real estate activity slows. Without increases in revenue from either 1 a sales tax increase or land transfer fees, Rascoe said the commissioner’s choices 1 will be few. Battle of priorities “The bottom line is that $125,000 (frqm the proposed sales tax increase) has got to be made up somewhere,” Rascoe said. “The only other place, really, is the ad valorem (property) tax.” Rascoe said that while commissioners will choose between cutting services and raising revenue, proposed cuts in services have met with fierce opposition. Taxpayers have already absorbed an un popular six-cent increase in property taxes. Kenny Goodwin, just reelected to the com mission, said they don’t appear ready for See SALES TAX, Page A2 ► 6 mu "89076 44 44813' ©2006 The Chowan Herald All Rights 0 Reserved A Salute Above, Jacqueline and Hallie White pause a mo ment by the U.S. Marine monument to honor friends and family mem bers who served in Iraq including one who died there. Speakers for the Veter an's Day event included Dale Wright, American Le gion Post 40 commander. Rev. Thomas Biggs and Holmes JROTC director George A. Nelson. EARLINE WHITE/THE CHOWAN HERALD Incumbents take office, to some residents’surprise By Vernon Fueston Contributing Writer Politicians and campaign workers were stunned Nov. 4 as they watched several developments scroll down the elections office’s com puter. “We were in the elec tions office watching the screen,” Bob Steinburg, county Republican chair man said. “Others were watching over at the old courthouse. “Several of the people came running over from the courthouse and they were shocked. The just couldn’t believe it, just blown away. “I told Marty Badger, the Democratic chairman, about Earl Willis losing to Ralph Cole. She just pumped her arm in the air and shouted, ‘Yes!’” Following the loss of $20 million in reserve funds and the surprise insolven cy of Chowan’s once cash flush county government, the victory of any incum bent was assumed by many to be nearly impossible. But both incumbents on the ballot were returned to office by handy margins. “I’m very discouraged by the race between Cole and Earl Willis. Willis campaigned hard, knocking on every door... Cole didn’t even campaign. He wasn’t even at the candidate’s forum. ” — Bob Steinburg Reading the tea leaves To some, it seemed the victories of Ralph Cole, Sr. and Kenny Goodwin were best explained by Barack Obama’s very wide coat tails. After all, Demo crats across the state were sweeping the competition aside as voters selected straight party tickets. But that didn’t explain wins by Republicans Keith Nixon and Eddy Goodwin. Nixon beat his Democrat ic challenger, John Mitch ener, by a tight margin in a race where straight ticket voting should have given Mitchener the edge. Goodwin won by a wide margin against the unaf filiated Gwendolyn Brown. Brown was running with the endorsement of the Democratic leadership. Vote of confidence? Public outrage at the county’s financial woes had weighed so heavily on Ralph Cole, the commis sion’s chairman, that he described himself as “down and despondent.” Cole suspended his campaign when the crisis came to light. He had even told friends and family he might not serve if elected. But after winning with 66.5 percent of the vote, he said refusing to serve would be a “slap in the face” to those who backed him. Kenny Goodwin said he wanted to thank the vot ers for their support after a rough few months. “It was nice to know people still believe in me,” he said. But county Republican chairman Bob Steinburg said two other factors were at work in the Democrats’ • success: straight ticket vot ing and Barack Obama. He said he was at a loss to oth erwise explain a win like See ELECTION, Page A2 ► Council looks for answers Council questions if town is liable for partial repayment of $242,000 By Rebecca Bunch Staff Writer Edenton officials were busy Monday trying to determine if the town is on the hook fob part of a $242,000 debt allegedly incurred by the Edenton-Chowan Development Corp. Richard Bunch, execu tive director of the ECDC, and current County Man ager Peter Rascoe, said they had no idea what the money was used for. But former County Manager Cliff Copeland said that the funds were paid to Capstrat, a lobby ing firm hired to help se cure funds for community projects. Edenton Mayor Roland Vaughan said in a prepared statement that Copeland was not authorized by the ECDC to enter into any con tract with the lobbying firm. Copeland said he had done “nothing wrong” in disbursing the funds. He added that the county received a “great return” on the.in vestment. “I would ask the public to look at the ben efits” derived, he said. Copeland said Tuesday that at the time in question, he believed the town and county — both of which fund the ECDC — were going to jointly retain the lobbyists. He said that town officials later declined to participate and that at that point, it became the county’s responsibility. Copeland said he “made a mistake” in attributing the debt to the ECDC. “I want to make it clear,” he added, “the mayor and Anne-Marie had no role with re gard to this contract whatsoever.” The corporation owes Chowan County the money, according to a 2007 audit. Vaughan said in his prepared statement Tuesday it is not hue that the ECDC owes the county that money Councilman Steve Biggs expressed concern at Monday night’s council meeting that the town could owe half. “There’s no other way to put it except I was PO’d,” Biggs said, of his reaction to learning the news. ■ Biggs, who advocates open government, said he is frustrated because he can’t get answers -" to questions citizens are asking. Town Manager Anne-Marie Knighton said Monday night that former County Manager Cliff Copeland had spoken with her about the possibility of the town using those services too. But, Knighton said, she told Copeland the town could not afford the expense at the time. Capstrat, Copeland said, later helped Chow an County obtain $10-million in federal funds for a new law enforcement center and an addi tional $1.5 million to purchase an instrument landing system for the Northeast Regional Airport in Edenton. ; ' ‘ Vaughan said Monday night he plans to con duct his own independent investigation into the matter. Vaughan also chairs the ECDC. “I am confused, I am embarrassed, because this occurred on our watch,” Vaughan said. “I’m at a loss for answers right now,” he add ed. “But we will find out” what happened.

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