Transcript Document

Linda T. Worth, County Manager
ANNUAL BUDGET SUBMISSION
In accordance with the Local Government
Budget and Fiscal Control Act, I submit to
the Board of County Commissioners the
recommended Fiscal Year 2009-10 Budget
for Warren County.
This proposed budget is respectfully
submitted as a working document.
Budget Components
 GENERAL FUND
 REVALUATION FUND
 E-911 FUND
 FIRE TAX DISTRICT FUND
 ENTERPRISE FUNDS
 Regional Water Fund
 Districts I, II, & III Water Funds
 Solid Waste Fund
BUDGETARY FACTORS IN FY 10
 The current economic recession fueled by record unemployment,
declining banking, manufacturing, and housing industries, coupled
with rising healthcare and prescription drug costs has had a substantial
effect on Warren County’s operating costs and revenue generation in
FY 09. The economic downturn is expected to continue through FY 10.
 In FY 10 we anticipate the following reductions in revenues from the
current year:
Investment Earnings -61.3%, Sales Taxes -23.7%,
Restricted/Unrestricted State Grants -11.4%,
Permits & Fees -21.3%, Sales & Services -6.5%,
Other Taxes & Licenses (Excise Tax) -50%
 Employee health insurance rates will increase 14.8% based on our
current health benefits package. Dental rates decreased -4.8%. The
increase in health insurance costs in FY 10 is estimated to be $254,443.
Factors cont’d.
MEDICAID
Effective FY 10, the State of NC will permanently
relieve counties of the Medicaid burden. However,
the trade-off is the anticipated loss in FY 10 of sales
tax revenues of $691,000 as part of the State’s
Medicaid Relief Plan.
We have budgeted $17,046 in Medicaid
spending to pay claims received after June 30th.
Factors cont’d
• Many local jurisdictions and the State of NC are
considering laying off and/or furloughing employees,
and/or implementing hiring freezes and salary
reductions to make-up for anticipated revenue deficits.
• Because of the uncertainty of meeting our revenue
projections, I am not proposing a cost of living
adjustment (COLA) and no position reclassifications or
salary upgrades for county employees. I urge the Board
to consider freezing salaries at their current levels in FY
10, excepting those positions that reclassify with
additional certifications, i.e. EMS positions progressing
from Basic to Intermediate and Paramedic levels.
Factors cont’d
•A third EMS crew (6 new positions) was
approved in the current year’s budget,
effective 1/1/09.
•In FY 10, we will incur a full year’s cost of
these additional staff , resulting in an increase
in Salaries & Fringes in the EMS budget of
$185,589.
Factors cont’d.
FUND BALANCE
- I am recommending that only a minimal amount of
undesignated fund balance be appropriated to help
balance the budget in the event revenues decline
greater than anticipated in FY 10. Undesignated fund
balance is the county’s only source of “rainy day”
emergency funds.
- Undesignated fund balance appropriated in the FY 10
proposed budget totals $1,153,615 as compared with
$1,963,466 in FY 09. This is a 41.2% reduction in the use
of undesignated fund balance.
REVENUE-NEUTRAL TAX RATE
 The revenue-neutral tax rate, as defined by G.S.
159-11(e) is the rate that is estimated to produce
revenue for the next fiscal year equal to the
revenue for the current fiscal year if no reappraisal
had occurred. The rate is then adjusted by a
growth factor equal to the average annual
percentage increase in the tax base due to
improvements since the last general reappraisal.
Revenue-Neutral Tax Rate cont’d
 The reappraisal produced a tax base of
$2,500,000,000 for Warren County.
 The tax levy for the current fiscal year is
$12,352,932, and the average growth factor
since the last general reappraisal is 3%
 The tax collection rate is 94%
Revenue-Neutral Tax Rate cont’d
 Using the formula mandated by state
law, the revenue-neutral tax rate for
Warren County is 50.9 cents or 51 cents
rounded to the nearest penny
Revenue- Neutral Tax Rate cont’d
Revenue-Neutral Tax Rate Calculation
FY 09 Ad Valorem Levy
Avg Tax Base Increase (3%)
94% Collection Rate Applied
Estimated Tax Levy – If No Reval
12,352,932
+370,588
12,723,520
_ x .94
11,960,109
Revenue-Neutral Tax Rate cont’d
Revenue-Neutral Tax Rate Calculation cont’d
Estimated Tax Base FY 10
2,500,000,000
Revenue-Neutral Tax Rate
x .509
12,725,000
94% Tax Collection Rate Applied
x .94
FY 10 Estimated Tax Levy
11,961,500 *
*There is a minimal difference in this levy amount and the amount on the
previous screen due to rounding the tax rate up 3 places
RECOMMENDED BUDGET
 A General Fund Budget of $27,944,986 with a proposed Tax Rate of
$.61/100 valuation. This recommended budget is 1% or $272,932 less than
the current year’s revised budget of $28,217,918.
 The tax rate is based upon an estimated assessed valuation of taxable
property of $2,500,000,000 and an estimated collection rate of 94%. As a
result of revaluation, the assessed valuation of taxable property increased
by $1,071,582,895 over last year’s valuation of $1,428,417,105.
 A penny on the tax rate equals $235,000 (last year’s one cent equivalent was
$134,271).
 The amount of undesignated fund balance applied to the General Fund is
$1,153,615 representing a decrease of 41.2% from the current year’s
$1,963,466 appropriation.
TAX BASE & AD VALOREM TAXES
Year
Tax Base
Coll
Rate
Ad Valorem
%
Taxes
Change
2009-10
$2,500,000,000
94%
$14,335,000
+16%
2008-09
$1,428,417,105
94%
$12,352,932
+11%
2007-08
$1,373,481,578
94.5% $11,109,683
+5%
2006-07
$1,338,403,806
94.5% $10,624,236
REVENUE COMPARISON
%
Change
FY 08-09
(Revised)
FY 09-10
(Requested)
12,352,932
14,335,000
+16%
Investment Earnings
Other Taxes & Licenses
Sales Taxes
310,000
100,000
2,911,000
120,000
50,000
2,220,000
-61.3%
-50%
-23.7%
Sales & Services
Permits & Fees
Restricted/Unrestricted (Grants)
1,967,811
287,975
5,445,166
1,839,000
226,540
4,824,147
-6.5%
-21.3%
-11.4%
Fund Balance Appropriated
2,156,324
1,468,115
-32%
Other Revenue
2,686,710
2,862,184
+6%
28,217,918
27,944,986
-1%
REVENUES
Ad Valorem Taxes
TOTAL ALL REVENUES
EXPENDITURE COMPARISON
%
Change
FY 08-09
(Revised)
FY 09-10
(Requested)
Dept. of Social Services
Health (Home Hlth/Mental Hlth)
Sheriff/Central Communications
6,752,529
3,259,708
2,587,240
5,413,344
3,159,796
2,888,913
-20%
-3%
+10%
Detention
Emergency Medical Services
Emergency Services
Fire/Rescue
Warren County Schools
Vance-Granville Com College
1,145,089
1,351,355
202,075
281,700
4,000,517
180,112
1,183,380
1,660,439
665,267
286,700
4,057,251
180,112
-3%
+23%
+229%
+2%
+1.4%
0%
Debt Service
Insurance & Fringes
Transfers to Other Funds
Contingency
2,106,086
358,996
71,224
140,780
2,174,442
371,696
50,000
30,000
+3.2%
+3.5%
-29.8%
-27%
5,837,489
28,217,918
5,777,124
27,944,986
-1%
-1%
EXPENDITURES
All Other Expenditures
TOTAL ALL EXPENDITURES
PROPOSED NEW EXPENDITURES
VEHICLES
- 5 replacement vehicles in Sheriff’s Dept. - $132,750 (vehicle costs + equipment)
- 2 new vehicles in the Sheriff’s Dept. for 2 new positions - $96,640 (vehicle cost
+ equipment)
- 1 replacement vehicle in DSS - $25,838
- 1 used vehicle - $10,500 in Buildings & Grounds Dept.
- 1 Ambulance Remount - $73,200 (vehicle cost + equipment)
NEW OR REVISED POSITIONS
- 1 Full-Time Housekeeper in Buildings & Grounds (Effective 1/1/10) - $13,460
- 50% to 100% Administrative Assistant II in HR Department - $16,369
- 80% to 100% Library Clerk - $6,169
- Deputy Sheriff Investigator Sgt – Narcotics in Sheriff’s Dept. - $59,801
(Salary/Fringes, Equipment, Uniforms, Gas/Vehicle Expense)
- Deputy Sheriff Investigator – Narcotics in Sheriff’s Dept. - $55,428
(Salary/Fringes, Equipment, Uniforms, Gas/Vehicle Expense)
PROPOSED NEW EXPENDITURES (Cont’d)
- Fire Radio System Repairs - $500,000 (Installment Purchase Loan) in
Emergency Services Dept.
- Accessibility Renovations to Mental Health Building that currently houses Tax
Administration & Finance Offices - $70,000 (Installment Purchase Loan) in
Building & Grounds Dept.
- Renovations to Old Library to House Tax Administration - $59,000
(Installment Purchase Loan) in Buildings & Grounds Dept.
- Sewer System Repairs at Detention Center -$25,000 in Buildings & Grounds
- EMS Capital Equipment - $60,000 (Cardiac Support Pumps)
- Buildings & Grounds Capital Equipment - $21,000 (Tractor/Backhoe)
- NEW DEBT SERVICE
Fire Radio Repairs P & I - $61,554
Old Library Renovations P & I - $6,570
Mental Health Building Renovation P & I – 7,794
Armory Renovation P&I - $24,622
New Tech School - $62,348
PROPOSED NEW EXPENDITURES (Cont’d)
WARREN COUNTY SENIOR CENTER
The future of Warren County’s Senior Center has been in limbo in FY 09 as we
worked with the Kerr-Tar COG to keep the Center open. It has become clear
the only viable option to keep the Center open is to bring it under the County’s
umbrella of services. I am recommending the Board consider making the
Warren County Senior Center a Department of County Government in FY 10.
A departmental budget of $333,266 is recommended that will be supported by
grants in the amount of $242,365, leaving a balance of 90,901 to be funded by
the county. Warren County annually appropriates $48,000 to match the
HCCBG grant, which leaves a balance of $42,901 in new funding needed to
continue providing critical senior services in Warren County.
Center positions that would become part of the County’s Job Classification Plan:
1 Director - $43,680; 1 Office Assistant - $27,972 ;
1 P/T Nutrition Site Manager - $12,851; and 1 PT Activity Coordinator - $17,543
NOTE: Position costs include salaries and fringes.
PROPOSED NEW EXPENDITURES (Cont’d)
LOCAL NON-PROFITS
In FY 09 funding for non-profits was removed from the budget. However, as we
move forward through the recession, it is clear that Warren County cannot
provide all the services our citizens may need or desire. We must consider
partnering with our local non-profit organizations that provide a myriad of
services, including housing and housing rehabilitation, educational
opportunities, marketing and economic development activities, assistance for
victims of domestic violence, food pantry, preservation of our historic
landmarks and resources, exposure to the arts, and senior services to name a
few.
$54,500 is recommended in the FY 10 budget for appropriation to 15 local nonprofit organizations. This small infusion of financial assistance may help these
organizations remain viable through the recession so they can continue to
provide much needed services in our community.
Enterprise Funds Summary
Solid Waste Fund
This budget reflects a 1% increase from the current year due to increased
costs of fuel and related costs associated with solid waste hauling and
disposal. We are recommending the household fee remain at the
current level of $105/household.
$201,314 is appropriated from the Solid Waste Fund Balance. This
amount represents an 18% increase over last year’s appropriation. There
is no reserve anticipated in the Solid Waste Fund for FY 10.
Position Request
50% to 100% Administrative Assistant II - $16,369 - Recommended
There are no vehicle or major capital equipment purchases anticipated.
Enterprise Funds Summary cont’d
Water and Sewer District Funds
The cost of water purchased from the Kerr Lake Regional Water
System (KLRWS) increased by 6% for FY 10, following a 5% increase
in FY 09, and a 14% increase in FY 08.
As a result of the current increase, the fixed rate for water customers on
the KLRWS is recommended to be increased by $1.00 and the water
rate/1000 gal. increased by $.25 for FY 10. For customers receiving water
from Northampton County, it is recommended the fixed rate be
increased by $1.00.
It is recommended that sewer rates/1000 gallons for all customers be
increased by $.25 for FY 10.
CLOSING
This proposed budget continues the forward momentum of Warren County during a period
of economic instability. We continue to budget conservatively in our revenue projections
and departmental expenditures which has served us well in the current and past fiscal
years.
We have endeavored to improve and maintain our county’s buildings and facilities that were
sorely neglected for many years. We are proud of our new Library, Recreation Complex,
Animal Shelter, renovated Tax Building to house the Clerk of Court & Judicial Services,
satellite parks, including the Magnolia-Ernest Recreation Complex at Soul City. We are
anticipating moving forward with the following projects in FY 10:
Capital Projects
 Satellite Park in Roanoke Township
 Renovation of the Old Library to house Tax Administration
 Accessibility renovations to the Mental Health Building to house County Administration
and Finance
 Two EMS Satellite Facilities
 Armory Renovation Project (Golden Leaf and County Funded Project)
 New Tech High School (Board of Education & County Funded Project)
CLOSING cont’d.
Public Safety
 2 new Deputy Sheriff Investigators – Narcotics positions in the Sheriff’s Department to
crack down on drug trafficking in the County
 Gang officer on board to educate the public and prevent the spread of gangs in the
County
 Funding for Repairs and Upgrades to the Fire Radio System to improve emergency
communications which is critical to public safety
Effective & Efficient County Government
 It is recommended that employee travel continue to be restricted to essential travel for
maintenance of certifications, licenses, and mandatory training sessions. Where
possible, one employee should be designated to represent the department at
informational sessions
 We are in the process of upgrading heating/cooling/lighting systems in all county-owned
buildings to ensure maximum fuel and energy efficiency
CLOSING cont’d
Many thanks to our County Finance Director , Mr. Barry
Mayo; Accounting Manager, Mrs. Gloria Edmonds, and the
entire Finance Office Staff; the County Manager’s Office
Staff; HR Manager; Facilities & Capital Equipment
Committee; IT Committee; Fleet Management Committee;
all County Department Heads and Staff for the input and
Assistance rendered during the preparation of this proposed
budget.
Respectfully submitted,
Linda T. Worth, County Manager