1. Onslow County North Carolina Proposed BudgetFY
Onslow County North Carolina Proposed Budget
Jeffrey L. Hudson
County Manager
June 3, 2013

2. Public Policy & Program Triage Budget At-a-Glance Key Issues
Highlights of Proposed Budget
Looking Ahead: Future Years
Board Action Requested

3. Public Policy & Program Triage
Proposed FY Budget
Public Policy & Program Triage
See Sheet

4. Proposed FY Budget
Budget At-a-Glance

5. Revenue Sources - All Funds

6. Expenditures by Function – All Funds
74.9% of total budget

7. Budget At-a-Glance Balanced Budget
All debt payments (P&I) are included
Requests totaled around $196million
Manager cuts totaled around $8 million
Total Budget is $188 million (All Funds)
General Fund proposed budget is $177 million

8. Budget At-a-Glance, cont.
1.29% increase over last year (All Funds)
Increases found in:
Mandated DSS Programs ($1.18 million)
Insurance Costs ($1.13 million)
Public Safety Vehicles & Equipment ($768,000)
Volunteer Fire & Rescue ($229,000)
Living Wage, Public Safety, Salary Range Adjustments ($2.9 million)
Costs beyond $3.2 million covered in cuts

9. Budget At-a-Glance, cont.
Recommended Property Tax Rate is held at cents per $100 in valuation, 2-cents below current revenue neutral
63rd Lowest Tax Rate of all 100 NC Counties
100% of Article 46 Local Option Sales Tax Monies are spent in accordance with promises made to voters in 2010

10. Budget At-a-Glance, cont.
General Fund Balance Appropriated
FY 09-10: $9.9 million
FY10-11: $10.1 million
FY $15.2 million
FY12-13 $17 million
Proposed for FY-14: $13.4 million

11. Proposed FY Budget
Key Issues

12. State Budget Adoption Intergovernmental Revenues
Lottery Funds: $1,646,000 budgeted to pay for existing school debt
Unemployment Insurance
$285,000
Other?

13. Maximization of Available Revenue
Property Tax Collections
96.06%
$8.9 million in delinquent taxes owed
Tax and Tag will provide more money if implemented as planned
Sales Tax Proceeds
Previously under a 40%-60% Blended
Change to 100% Ad Valorem
$1.2 million increase for FY-14

14. 80% of Programs are Mandates

15. Population Growth

16. Parcel Growth by Township

17. Example of Service Demand Social Services Client Intake

18. Example of Service Demand EMS Call Volume

19. Example of Service Demand Building Inspections Activity

20. Number of County Employees

21. Bottom Line
Fewer General Government County Employees are providing higher service levels for a growing county population
Growth in Public Safety Employees may be primarily attributed to two reasons:
New Onslow County Justice Complex
Institution of Emergency Responder Program
Current Issue: County pay ranges are, on average, 14% below market.

22. Highlights of Proposed Budget
Proposed FY Budget
Highlights of Proposed Budget

23. Board of Education

24. History of Funding

25. 2009 Funding formula Cons Pros
No Consideration for Factors Affecting County Government
other obligations
natural disasters
loss of state revenue
increased mandates
property devaluation
military downsizing
declining fund balance
Increasing school fund balance
Pros
Used Objective Measures
Created Significant Increases in Appropriations to Schools
Allowed for budget certainty and planning

26. Today… Multiple factors to be considered
Other obligations and needs of county
Uncertainty of State Budget
Increased mandates
Devaluation of Property at next Revaluation
Sequestration
Declining County Fund Balance
Possible School Bond Tax Increase
School System Fund Balance Levels

27. School System Fund Balance
As reported by the NCACC
Wake: $73 million
Cumberland: $49 million
Charlotte/Mecklenburg: $32.1 million
Onslow: $28.7 million

28. Unassigned Fund Balance of the Onslow County Public Schools
$25,397,967*
*as of June 2012

29. Recommend New Formula
Recognize that county government has other obligations beyond that of public education
Eliminates funding based on uncertainty of student population projections
Bases increases on a percentage of new revenues realized by the county

30. Public School Bond Referendum
If passed by the voters:
Tax increase necessary on July 1, 2014
If not passed by the voters:
School system likely to request funding for construction of new schools
If funded, tax increase necessary on July 1, 2014

31. Coastal Carolina Community College

32. CCCC Operational Budget Flat-Funded Annual Capital Budget Flat-Funded
Building new Maintenance Facility at the Western Boulevard Campus
$5.5 million project
Funded within existing capital improvement program

33. Human Capital Program

34. Implement 4-Step System
Step 1: Create a Living Wage
65 Lowest Employees in Onslow County Government
Federal Poverty Rate for Family of 3: $19,530
Onslow County Custodian: $17,788
City of Jacksonville Custodian: $20,376
Public Schools Custodian: $22,280

35. Implement 4-Step System
Step 2: Correct Inequities in Public Safety
Up to 242 Public Safety Employees
Onslow E911 Operator: $24,345
New Hanover Operator: $29,514
Onslow Deputy: $32,037
Jacksonville Police Officer: $34,001

36. Implement 4-Step System
Step 3: Across-the-Board Pay Adjustment
1,254 Employees
4% Raise

37. Implement 4-Step System
Step 4: Reorganize County Government
Net reduction of 18 positions
Consolidate Human Services Agencies
Health, Senior Services, Social Services
Series of personnel actions
Overall Savings to Onslow County: $900,000+

38. Looking Ahead: Future Years

39. Fund Balance

40. Public Education Appropriations
Increasing Student Enrollment
Continued School Facility Needs
Additional Requests for Operating Expenses
Issues for both the K-12 Public School System and CCCC

41. Correcting the Divergence of Taxation and Governance
Under Current Law
School System Governs and Spends
County Government Taxes
If County Government Does Not Provide Enough, Schools take County to court
Proposed Change
School System Taxes
County Reduces Tax Rate by cents of the 58.5 cent current rate.

42. Proposed FY Budget
Summary

43. As proposed, this budget…
Keeps Property Tax Rate at Current Levels
Pays for all current debt service and funds the proposed C.I.P.
Recommends Revision to the School System Funding Formula while maintaining current levels of support
Maintains CCCC funding at current levels
Implements 4-step program of changes to county personnel structure

44. Budget Available At: Onslow County Administration
Onslow County Finance
All Onslow County Public Libraries
Jacksonville
Richlands
Swansboro
Sneads Ferry

45. Comments Received At:
Or Budget Comments c/o Onslow County Administration 4024 Richlands Highway Jacksonville, NC 28540

46. Action Requested: Set Public Hearing
Proposed FY Budget
Action Requested: Set Public Hearing

47. Onslow County North Carolina Proposed BudgetFY
Onslow County North Carolina Proposed Budget
Jeffrey L. Hudson
County Manager
June 3, 2013