Commissioners spar over plan to pay street salaries from stormwater fund as board trims $2M in requests

Hope Mills town staff defended moving several street-maintenance salaries into the stormwater fund during a May 18 budget workshop, saying the shift is legal and a way to avoid raising property taxes.

The dispute centered on roughly $232,946 in salaries that the manager’s office proposes allocating to the stormwater fund rather than the general streets budget. Beth, the town’s stormwater/street operations lead, told commissioners the change reflects how some street-related duties are functionally stormwater work and that the funding is an allowable cost under the stormwater program. “They still will report to public works, but they can legally be paid out of the stormwater fund,” Beth said.

Commissioner Marley, among others, challenged that approach as a budget sleight-of-hand that reduces money for preventive maintenance. “We’re robbing from stormwater and we’re robbing from the PAL bill fund that the street department uses to make repairs,” Marley said, warning the shift could leave the town unable to address potholes, clogged drains or other routine upkeep. Several commissioners raised optics and transparency concerns, asking whether the move might prompt inquiries from the state auditor.

Finance director Brittany McLoren and manager Chancellor defended the mechanics and legality of the reallocation, and said many municipalities use similar funding structures. McLoren noted the budget presented to the board had already cut roughly $2 million in departmental requests to reach a balanced number and proposed quarterly financial reviews and tighter internal controls going forward.

Staff also described related stormwater line items: an advertising/education budget tied to NPDES permit requirements, a Cumberland County collection fee for stormwater billing, and a construction/repair contingency used for emergency pipe lining and repairs. Beth said part of the $185,000 construction-improvements line is a standing contingency for sudden failures and for pipe lining that reduces resident disruption.

The board did not adopt the budget at the meeting. Members agreed to reconvene for a June 1 workshop to examine contracts and position funding, hold a public hearing June 8, and consider formal adoption at the regular June 15 meeting. Several commissioners said they want clearer, line-by-line documentation before any final decision on reassigning salaries.

What’s next: the board will revisit the staffing and fund-shift proposals at the June 1 workshop and may revise the manager’s recommended allocation before any public hearing or adoption.

Attributions: Quotes and attributions in this report are taken from the workshop record and are attributed to the town’s stormwater lead (Beth), finance director Brittany McLoren, town manager Chancellor, and Commissioner Marley.