Pender County officials hope the law will help change the region’s economic status as one of the best in North Carolina, especially with bustling Wilmington so close. is.
In 2022, Pender County received a Tier 3 ranking from the North Carolina Department of Commerce. This means she is one of 20 other counties that are “least hit” through the statewide ranking system. Other designations are Tier 1, 40 counties with “severe economic depression” and another 40 counties with Tier 2, “moderate economic depression”. The designation is required by state law and determines various state funding opportunities to support economic development.
Last year, Pender County leaders disagreed with Pender County being a Tier 3 county. In particular, New Hanover and Brunswick counties ranked Tier 2, which meant Pender counties were in better financial shape. But officials also said Pender was losing money as people went to Wilmington for services and shopping.
It was also noted that 75{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of the population works outside of Pender County.
County tiers within the state are based on average unemployment rate (4.55{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} for Pender), median household income ($60,044), population growth (3.87{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}), and adjusted per capita property tax base ($132,809). ) is calculated based on
Both Brunswick and New Hanover moved from Tier 2 to Tier 3 in the 2022 rankings. A report by the North Carolina Department of Commerce attributed Brunswick’s change to the county’s unemployment rate moving from his 11th place to 21st. The change for the new Hannover was also due to the unemployment rate rising from his 49th to 72nd.
On behalf of Pender County Cooperative Extension, North Carolina, Director Mark Seitz made several presentations on other additional considerations. He could increase county funding.
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“We’re losing a lot of income,” he told the commissioner, pointing out other economic factors. There are other counties affected as well.”
Population growth and employment numbers are major factors in the ranking. Seitz also noted the differences between the western Pender countryside and eastern Pender. Eastern Pender is close to Wilmington and is the habitat of Hampstead and Topsail Island.
“They don’t have the population density, family income, etc. over there compared to the east side of the county,” he said.
Add math
At a previous Pender County Commission meeting, District 16 Rep. Carson Smith said he was in favor of using pull factors to calculate tier status and was introducing legislation to include those factors. .
“This method of designating counties requires a lot of money and money,” says Smith. “We are Tier 3 so we miss a lot.”
2021 and beyond:On a ‘Tier 3’ Island: Pender County Officials Question State’s Area Economic Rankings
Smith, who, along with other sponsors of the bill, represents residents of Pender and Columbus counties, called on the state legislature to give rural areas different considerations. House Bill 870 requires that counties with more than 30{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of the county within a local census tract be automatically excluded from being ranked as one of the lowest counties. It was submitted in 2021 and sent to the committee for further review.
Smith submitted research and mathematics from Seitz and the Extension Authority to add further criteria to the formula. He said it would be submitted in 2023.
“It sounds great, hunky dolly and nice, but as you can imagine, there are 20 Tier 3 counties and 60 Tier 1 and Tier 2 counties. None of the counties want to be Tier 3.” he said. “If more than half of the House represents first- and second-tier counties, it’s very difficult when you’re trying to get more than half of the House to vote on something, especially.”
He also asked Pender’s commissioners to contact the North Carolina County Commissioners Association about the matter and help get the bill moved.
“But I think if you try to do it, you’re going to get the same kind of backlash that I did,” he said of the challenge.
Smith was not available for additional comment on the bill’s plans.
A formula that evaluates local and sales tax revenues and population gives Pender County a CTPF of 0.71. A CTPF less than 1 means the region is losing revenue.
Trade Area Acquisition (TAC), a measure of the county’s population of 65,146 multiplied by the CTPF, indicates that the county’s purchasing power exceeds 45,000, which is approximately 20,000 less than the actual number.
The percent market share shows that the county’s economy accounts for 0.43{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of the state’s total sales tax revenue. Market share percentage is determined by dividing TAC by the sum of TAC for all 100 NC counties.
Data shows that five counties account for nearly 40{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of the state’s market share. New Hanover he was fifth with 3.27{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}. The top four are Mecklenburg (14.87{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}), Wake (12.91{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}), Durham (4.91{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}) and Buncombe (3.52{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}).
Pender becomes a Tier 2 county when CTPF, TAC, and MS are added to the state’s formula for determining tier status. For those unfamiliar with the Cape Fear area, the issue may be difficult to understand, Smith said.
“But if you know the area, you know New Hanover and Brunswick have far more vibrant and healthier economies than we do. “It’s happening,” Smith said. I can’t say much better financially in the county.”
When presenting the plan to the commissioner, Smith said there should be a fair process in determining county economic development through tier status.
“But sometimes fairness doesn’t work if you have to vote for me, and it’s going to hurt your county.
