Transcript Document 7425357

COUNTY OF WARREN
BUDGET
PRESENTATION
FY 2008-09
Linda T. Worth, County Manager
ANNUAL BUDGET
SUBMISSION
In accordance with the Local Government
Budget and Fiscal Control Act, I submit to
you the recommended Fiscal Year 2008-09
Budget for Warren County.
This proposed budget is respectfully
submitted as a working document.
Budget Components
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•
•
•
•
GENERAL FUND
REVALUATION FUND
E-911 FUND
FIRE TAX DISTRICT FUND
ENTERPRISE FUNDS
–
–
–
–
–
Regional Water
District I Water
District II Water
District III Water
Solid Waste
FACTORS
• The current economic downturn fueled by record job
losses, a stagnant housing industry, rising fuel, utility,
food, healthcare and prescription drug costs will have a
substantial negative affect on Warren County’s operating
costs and revenue generation in FY 09.
• Employee health insurance rates increased 24.8% based
on our current health benefits package. To make this
coverage affordable for the County, I am recommending
changes in the benefits package that will reduce the rate
increase to 14.4%. Dental rates increased 12.8%. The
increase in health insurance is estimated to be $246,617.
• The Library will be completed in early FY 09. Increases in
staffing, operating expenses, and debt service will be
approximately $302,727.
FACTORS cont’d.
Medicaid
The State of NC has begun its permanent
takeover of Medicaid. However, Warren
County will lose over $204,000 in sales
taxes in FY 09 as part of the State’s
Medicaid Relief Plan and will share in
50% of the anticipated Medicaid costs for
Warren County in the amount of
approximately $1,090,000.
Factors cont’d.
-
-
FUND BALANCE
In FY 08 a total of $3,949,190 was
appropriated from Fund Balance to help
meet expenses in the General Fund.
$3,500,181 of the $3,949,190 was
appropriated from Undesignated Fund
Balance.
There will be an estimated loss of
$2,212,652 in Fund Balance in FY 08.
It is anticipated that Fund Balance will
gain only $73,000 in FY 08.
Factors cont’d.
Fund Balance cont’d.
- Due to the slowed economy and the
uncertainty of revenue generation
coupled with increasing operating costs
in FY 09 and subsequent years, it is
imperative that only a minimal amount of
fund balance be appropriated to balance
the budget in the event we must rely on
fund balance to help meet unanticipated
revenue shortfalls.
Factors cont’d
Fund Balance cont’d
- There are several jurisdictions in NC that are
laying off employees because revenue
projections have fallen short and will not cover
expenses through the end of the fiscal year.
Apparently, they did not have sufficient
Undesignated Fund Balance to help cover the
shortfalls.
- In spite of being designated as economically
distressed, Warren County’s governmental
finances have always been fiscally sound. It is
my recommendation that we begin immediately
to reverse the trend of relying on Fund Balance
to fund expenses the property tax was designed
to fund.
RECOMMENDED BUDGET
•
A General Fund Budget of $27,269,959 with a proposed Tax Rate
of $.94/100 valuation. This recommended budget is .35% less
than the current year’s revised budget of $27,364,479.
•
The tax rate is based upon an estimated assessed valuation of
taxable property of $1,428,417,105 and an estimated collection
rate of 94%.
The assessed valuation of taxable property
increased by only $54,935,527 over last year’s valuation.
•
A penny on the tax rate equals $134,271 (last year’s one cent
equivalent was $129,794).
•
The amount of undesignated fund balance applied to the General
Fund is $2,000,000 representing a decrease of 43% of the
current year’s $3,500,101 fund balance appropriation.
TAX BASE HIGHLIGHTS
Year
Estimated
Tax Base
Collection
Rate
Ad Valorem
Taxes
94%
$13,497,674
2008-09
$1,428,417,105
2007-08
$1,373,481,578
94.5%
$11,832,704
2006-07
$1,338,403,806
94.5%
$11,247,336
NOTE: Annual percentage of change in the tax base is
approximately 3% annually. However, revaluation is
scheduled to take effect 1/1/09 that will bring our real
property valuations back to 100% of market value.
REVENUE
COMPARISON
%
Change
FY 07-08
(Revised)
FY 08-09
(Requested)
11,832,704
13,497,674
+14%
Sales Taxes
3,115,287
2,911,000
-7%
Restricted/Unrestricted (Grants)
4,919,002
4,933,258
+.29%
Fund Balance Appropriated
3,500,181
2,000,000
-43%
Other Revenue
3,997,305
3,928,027
-1.7%
27,364,479
27,269,959
-.35%
REVENUES
Ad Valorem Taxes
TOTAL ALL REVENUES
REVENUES BY CATEGORY
FY 09 RECOMMENDED
CATEGORY
$ AMOUNT
%
13,497,674
49%
Sales Taxes
2,911,000
11%
Restricted/Unrestricted Grants
4,933,258
18%
Fund Balance
2,000,000
7%
Other
3,928,027
14%
$27,269,959
100
Ad Valorem Taxes
3,928,027
Sales Taxes
Ad Valorem Taxes
2,000,000
13,497,674
4,933,258
2,911,000
Restricted/Unrestricted
Grants
Fund Balance
Other
TOTAL
EXPENDITURE COMPARISON
07-08
08-09
(Revised) (Requested)
Human Services
–DSS
–Health/Home Health
–Mental Health
Totals
7,050,480
2,994,223
56,399
6,597,406
3,100,483
59,561
10,101,102
9,757,450
1,859,159
557,139
1,091,248
1,374,286
200,432
259,200
1,941,622
555,902
1,132,747
1,158,097
508,098
270,700
5,341,460
5,567,166
Public Safety
–Sheriff
–Central Communications
–Detention
–Emergency Medical Services
–Emergency Services
–Fire/Rescue
Totals
EXPENDITURE COMPARISON
(CONT’D)
07-08
08-09
(Revised) (Requested)
Education
–Warren County Schools
–Vance Granville Community College
–SEMAA
Totals
3,176,935
152,380
160,073
3,440,517
180,112
167,182
3,489,388
3,787,811
1,839,088
336,757
700,000
278,441
5,278,243
2,063,453
353,996
71,224
140,780
5,528,079
8,432,529
8,157,532
27,364,479
27,269,959
Other
–Debt Service
–Insurance/Fringes
–Transfers to Other Funds
–Contingency
–All Other Expenditures
Totals
TOTAL ALL EXPENDITURES
EXPENDITURES BY CATEGORY
FY 09 RECOMMENDED
CATEGORY
8,157,532
9,757,450
$ AMOUNT
%
Human Services
9,757,450
36%
Public Safety
5,567,166
20%
Education
3,787,811
14%
Other
8,157,532
30%
$27,269,959
100%
Human Services
Public Safety
Education
Other
3,787,811
5,567,166
TOTAL
PROPOSED NEW
EXPENDITURES
NEW VEHICLES
- 4 replacement vehicles in Sheriff’s Dept.
- 1 new vehicle in DSS
- 1 new vehicle & 2 used vehicles in Buildings & Grounds Dept.
NEW POSITIONS
- Librarian I, Library Assistant I, & Library Aide in Library
(Effective 1/1/09) 2 Library Pages (Effective 7/1/08)
- Merge 2 P/T Computer Lab Assistants to Library Assistant I
Position (Effective 7/1/08 at No Additional Cost)
- 50% to 100% Recreation Coordinator (Effective 7/1/08)
- Administrative Assistant II (50% HR and 50% Solid Waste,
Effective 7/1/08)
- 50% to 100% Administrative Assistant I in Buildings & Grounds
(Effective 7/1/08)
- 50% Kennel Attendant in Animal Shelter (Effective 7/1/08)
- Temporary Revaluation Clerk in Tax Administration (Revaluation
Fund will fund this 18 month Position)
PROPOSED NEW
EXPENDITURES (CONT’D.)
New Positions cont’d.
- Physician Extender, 2 Public Health Nurse II,
and Processing Assistant III in Health Dept.
Wellness & Home Health Programs (Effective
1/1/09)
- 50% to 100% Maintenance Worker from Sheriff
Dept. to Detention Center (Effective 7/1/08)
- Deputy Sheriff - Courthouse Square (Effective
1/1/09)
PROPOSED NEW
EXPENDITURES (CONT’D.)
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Fire Radio System Repairs - $300,000 plus Installment Purchase
Payments of $40,762 for a total of $340,762 (Emergency
Services)
Renovations to Mental Health Building to House County
Administration & Finance Offices - $85,000
(Building & Grounds Department)
Renovations to Old Library to House Tax Administration $93,000 (Buildings & Grounds Department)
Sewer System Repairs at Detention Center -$25,000 (Buildings &
Grounds Department)
Court Facilities Annual Telephone System Cost - $12,613
EMS Capital Equipment - $40,150
2% COLA for County Employees Effective 1/1/09 - $102,780
New Debt Service:
Library Principal & Interest - $252,109
Old Library & Mental Health Building Renovation Principal &
Interest - $21,804
Halifax EMC (Wise Project) - $15,161 (6 months)
Enterprise Funds Summary
Solid Waste Fund
This budget reflects moderate increases from the current
year due to increased costs of fuel and related costs
associated with solid waste hauling and disposal.
There are no vehicle or major capital equipment purchases
scheduled for FY 09.
We are recommending the household fee remain at the
current level of $105/household.
There is no reserve anticipated in the Solid Waste Fund for
FY 09.
Enterprise Funds Summary
cont’d
Water and Sewer District Funds
The cost of water purchased from the Regional Water
System increased by 5% for FY 09 following a 14% increase
in FY 08.
As a result of these increases the flat rate for water
customers has been increased by $1.00 for FY 09.
The water/sewer rate structure implemented in FY 07
has proven to be effective in raising sufficient revenues to
meet the needs of the water district funds.
Enterprise Funds Summary
cont’d.
Water and Sewer District Funds cont’d.
New Positions
- 1 Utility Service Technician to help accommodate the
additional 1200+ customers to be added in the District III,
Phase II Water Project
-
Reclassify Utility Office Coordinator from Grade 19 to
Grade 21 to reflect additional job duties and
responsibilities associated with supervising all office
personnel, coordinating and assisting with project funding
and oversight in a growing Public Utilities Department
CLOSING
This proposed budget continues the forward momentum of Warren County
in several areas, namely:
Capital Projects/Recreation
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Library/Community Meeting Room will be completed and operational in
FY 09
Recreation Complex - Phases I & II (fully operational)
Funding for 1 Satellite Park in FY 09
Funding for Renovation of the Old Library and Mental Health Building to
house County Administration and Tax Administration
One EMS Satellite Facility to be constructed with funds appropriated in
FY 08
Economic Development
•
•
Funding for Water/Sewer Infrastructure at the Wise I-85 Interchange
Water/Sewer District III, Phase II to serve the Northeastern and a portion
of the Southeastern areas of the county is under construction
CLOSING cont’d.
Communications
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Funding for Repairs and Upgrades to the Fire Radio System to improve
emergency communications
Effective & Efficient County Government
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It is recommended that employee travel 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. Most departmental
travel lines have been reduced to FY 07 spending levels or below.
Departmental office supply lines have also been reduced to encourage
recycling and conservation.
We are in the process of reviewing all heating/cooling systems to ensure
maximum fuel efficiency in all county-owned buildings.
The new vehicle gas purchasing system through Wilco Hess/Trade Mart
is in place for the county’s fleet. It is anticipated the County will realize
greater fuel efficiencies through this program.
CLOSING cont’d
Many thanks to our County Finance Director and
the Finance Office Staff, 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