1. Budget work session may 20,2019
Pasquotank County
Budget work session
may 20,2019

2. Debt Overview

3. County Debt Comparison
Debt Per Capita - June 30, 2018
Debt
2017 Estimated
30-Jun-18
Population
Debt Per Capita
Pasquotank1
$44,696,135
39,842
$1,121.83
Beaufort
$55,963,372
47,504
$1,178.08
Camden1
$17,580,060
10,358
$1,697.24
Chowan
$9,942,591
14,243
$698.07
Currituck
$28,186,137
26,666
$1,057.01
Dare
143,835,041
36,722
$3,916.86
Perquimans1
$15,330,888
13,690
$1,119.86
Average
$45,139,682
24,864
$1,611.19
Note: (1) Albemarle District Jail shared debt was adjusted.

4. Debt Overview
Loan Proceeds budgeted in FY approved budget - $2,891,845 (note – actual usage has been less).
Loan Proceeds budgeted in FY recommended budget - $1,564,123.
Loan Proceeds in FY recommended budget are $1,327,722 or 46% less than FY
$1.2 million from Quarter Cent Sales Tax is reducing the annual reliance on debt, which will have a short and long term positive financial benefit.

5. Budget Overview

6. Budget Overview
The budget includes the maximum revenue projection that is recommended; using higher projected increases would be too aggressive.
In addition to a detailed analysis of departmental requests for budget increases, we looked at every line item to determine if cuts could be made based on recent expenditures.
In Pasquotank County, as well as all local governments, the largest expenditure is staff.

7. Budget Overview
We do not have excess staffing – our staffing ratio is 8.96 employees per 1,000 population; the NC County average is 9.36 and the average for counties under 100,000 population is (73 total counties).
If we were at the under 100,000 population average of 10.50, we would have 61 additional positions.
We do not need 61 additional positions – this is just one illustration that within Pasquotank County government there is little room to work with in terms of cost cutting or reallocating funds for budgetary purposes.

8. Budget Overview Projected FY2019-20 revenue increase - $975,601.
Mandatory or Unavoidable increases in costs - $902,780:
1.2% Retirement Increase - $160,000;
Tower Upgrades - $125,050
$500 Pay Increase/Employee - $106,000;
Senior Center Operations - $104,000;
Sheriff’s Office - $80,116
Board of Elections - $73,200
Parks and Recreation - $69,422
Library - $68,751
Information Technology - $60,985;
Cooperative Extension - $25,536
Juvenile Detention (Juvenile Justice Reinvestment Act) - $15,000
Finance Department - $14,720

9. Budget Overview Major County items we did not fund:
Competitive Pay Increase for Employees (3%) - $200,000 Additional Needed (for General Fund)
2 HVAC units for Courthouse - $150,000;
Land Use Plan Update - $75,000;
Maintenance Staff Member - $37,000;
Phone System for Courthouse – TBD (will recommend use of capital reserve funds); and
Citizen Service Request and Development Services Tracking System – TBD (will recommend use of capital reserve funds).

10. County Department Increases
(Other than $500 per Employee and 1.2% Retirement Increase)

11. Information Technology Department:
County Department Increases
Finance Department:
Retiree insurance increasing - $12,725
Actuarial Study for Post-Employment Benefits Increase - $1,995
Information Technology Department:
Part-time salary added in the amount of $31,500
Maintenance contracts for various software $13,165
Outside IT services of $16,320

12. Board of Elections: County Department Increases
Part-time salary added in the amount of $15,000
Board salaries increased due to additional member $3,000
Departmental Supplies $6,200
Ballots $19,100
Contracted Services $29,900

13. Sheriff’s Office: County Department Increases
New administration position to start in January
Overtime $5,000
Separation Allowance $32,500
Insurance Retiree $11,416
Supplemental Pension $4,500
Uniforms $3,000
Travel & Training $4,000
Capital outlay 19 tough books $24,200 and 5 desk tops $7,500

14. Emergency Management:
County Department Increases
Emergency Management:
New vehicle-funded by Grant Funds received $40,000 (replaces 2004 Dodge Durango)
Emergency Medical Services:
Overtime $33,170
Insurance-Retiree $6,600
Gas & Oil $15,000

15. Central Communications:
County Department Increases
Central Communications:
Tower Upgrades $125,050
Fire Departments & Coordinator:
Vehicle for Coordinator $30,000 (Replaces 2004 Truck)
Increase in grant match $20,000

16. Cooperative Extension:
County Department Increases
Cooperative Extension:
Salary increases by State and related benefits $25,536
Soil & Water:
Additional $20,000 for drainage project to be determined

17. Parks & Recreation: Library: County Department Increases
Salaries and related benefits $69,422
Library:
Library Materials increased $4,000
Computer replacement (10) $12,000
Maintenance-Equipment-increase of $6,751 for EARL support
No fund balanced used this year (last year $50,000)

18. College of the Albemarle

19. COA – Operations Request
FY requested increase of $117,812 for: custodial staffing; maintenance staffing; service contracts; repairs; legal; and security enhancements.
$75,000 for Security Enhancements is included in the recommended budget.

20. COA – Capital Request
FY requested increase of $200,000 ($500,000 to $700,000).
Capital is funded flat at $500,000.
Debt could be used to fund a Chiller at Foreman/C Building ($250,000) and meet the COA capital request, if the Board desires.

21. Elizabeth City – Pasquotank
Public Schools

22. ECPPS – Capital Request
ECPPS FY Capital Request was $2,620,000.
$2,125,000 is included in the recommended budget.
ECPPS has approximately $500,000 left in FY18-19 capital funds that can cover other requested items.
Quarter Cent sales tax is dedicated to ECPPS capital.

23. ECPPS – Capital Request
Quarter Cent Sales Tax Resolution – “Additional funding for HVAC Systems, Athletic Facilities, Technology, Class Size Reduction Mandates, School Safety, and debt service for any capital projects related to schools.”

24. ECPPS – Capital Request
Restricted Revenue Sources for Capital Funding for Schools
Funds Available
Restricted Sales Tax (estimate)
$1,800,000.00
Land Transfer Tax
$1,000,000.00
Lottery Funds
$400,000.00
Loan Proceeds
$1,015,940.00
Article 46
$1,200,000.00
Total Funds Available
$5,415,940.00
Funds Used
School Debt Service
$3,375,613.44
Capital Funded
$2,125,000.00
Projects Rolled Over
$500,000.00
Total Funds Used
$6,000,613.44
Debt Service & Capital Funded from Other Revenue Sources
$584,673.44

25. ECPPS – Operations Request
ECPPS FY Operations increase requested was $1,120,710.
FY County revenue increase -$975,601 and Mandatory or Unavoidable County increases in costs - $902,780.
No funding is available to increase ECPPS operational funding – recommendation is flat.
The only available option would be to increase taxes – which is not recommended. The $1.1 million request would require a tax increase of almost 4 cents.

26. ECPPS – Operations Request
Recommended budget includes $50,000 for a Financial Operations Review.
Currituck County completed a similar study in 2018 (similar studies have also been completed in Burke; Davie; Duplin; Halifax; Lee; Nash; Wayne; and other counties).
Currituck study identified a potential $3.4 million in additional revenue streams or cost savings over a 5-year period.
Additional revenue or cost savings could be used to help meet ECPPS future operational needs.

27. Questions
Questions?

28. Next Budget Work Session – May 29th @ 4:00pm
Wrap-up Budget Discussion
Proposed Fee Increases
Recommended Policy Changes