Presentation on theme: "Linda T. Worth, County Manager. ANNUAL BUDGET SUBMISSION In accordance with the Local Government Budget and Fiscal Control Act, I submit to the Board."— Presentation transcript:
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 30 th.
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 12,352,932 Avg Tax Base Increase (3%) +370,588 12,723,520 94% Collection Rate Applied _ x.94 Estimated Tax Levy – If No Reval 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 CollAd Valorem% Year Tax BaseRate 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$1,338,403,80694.5%$10,624,236
EXPENDITURE COMPARISON EXPENDITURES FY 08-09 (Revised) FY 09-10 (Requested) % Change 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% All Other Expenditures TOTAL ALL EXPENDITURES 5,837,489 28,217,918 5,777,124 27,944,986 -1%
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 non- profit 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