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
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©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.