Madison County Administration

Transcription

1 Madisn Cunty Administratin PO Bx 579 Marshall, NC (828) T: Bard f Cmmissiners Frm: Frrest Gilliam, Cunty Manager Date: June 23, 2016 Re: FY Budget The prpsed General Fund Fiscal Year Budget f $22,745,945 maintains the current tax rate while cntinuing effrts t hnestly and cnservatively prject revenues. The prpsal dramatically reduces the amunt f mney apprpriated frm Fund Balance, reversing a trend that started in FY in which the cunty dipped int savings t balance the budget. Revenues are frecasted cnservatively and cuts cntinue t be made in rder t cver $500,000 in increased recurring expenses that were apprved tw years ag. The budget utilizes additinal sales tax revenues t significantly increase the cunty s supprt fr ecnmic develpment and educatin effrts. Department spending is generally held at the same level as the current year, hwever there are increases in the cst f insurance, retirement, and inflatinary csts included in certain cntracts. Year Budgeted Revenues Budgeted Expenditures FY (prpsed) $22,745,945 $22,745,945 FY $22,218,191 $22,218,191 FY $22,688,240 $22,688,240 FY $21,295,140 $21,295,140 FY $19,749,184 $19,749,184 General Fund Revenues (Budgeted) FY FY FY Current Year s Real $9,425,784 $9,482,684 $9,673,672 Prperty Taxes Current Year s Vehicle $571,844 $769,000 $894,000 Taxes Prir Year s Real $1,403,014 $890,256 $715,000 Prperty Taxes Interest and Late $269,000 $253,376 $242,472 Listing Fees n Taxes Other Tax Fees $4,380 $10,630 $2,300 Franchise Taxes $18,000 $17,804 $16,228 Lcal Optin Sales Tax $2,181,552 $2,358,243 $3,122,336 Other Revenues $8,465,466 $8,032,802 $7,902,465 Interest n Banking Accunts $3,000 $1,910 $9,600

2 Page 2 June 24, 2016 Transfer Frm Fund Balance $346,200 $401,486 $167,872 $22,688,240 $22,218,191 $22,745,945 Revenue Highlights The cunty began an effrt in 2013 t dramatically imprve the cllectin f prperty taxes, bth fr the current year and fr prperty taxes wed fr prir years. The cunty s cllectin rate fr Current Year s Prperty Taxes cntinues t increase, with budgeted revenues based n a 95% cllectin rate. The cllectin rate has risen significantly since FY , when the rate was 90.5%. The average fr cunties statewide in ur ppulatin gruping (25,000 ppulatin and belw) is 96.47%. This imprvement in the cllectin f current year prperty taxes ver the past fur fiscal years has increased revenues by apprximately $500,000. Prjected revenue frm prir years prperty taxes is again reduced in an effrt t reach a mre realistic number after this revenue was dramatically increased in FY and again in FY There was a surge in the spring f 2013 in revenue frm back taxes due t immediate prgress with the cunty s effrt t imprve cllectin n utstanding accunts. The budget fr FY placed unrealistic expectatins that even mre mney frm prir years taxes wuld be cllected, in spite f the verall utstanding amunt having been reduced due t the initial success the prir year. The cunty will cntinue effrts t pursue delinquent taxes frm prir years, including initiating freclsure prceedings when ther ptins have been exhausted, but shuld nt vercmmit ne-time revenues frm prir years taxes t recurring expenditures. The cllectin f vehicle taxes cntinues t increase, bth as a result f an imprving ecnmy and the secnd full year f the state s Tag and Tax Tgether prgram which blcks vehicle registratins if taxes are nt paid. The cllectin rate fr vehicle taxes remains near 100%, and increased vehicle values has caused an increase in Madisn Cunty s prjected vehicle tax revenue by $125,000. Sales tax revenues cntinue t increase. Statewide grwth has slwed since last year. The majrity f Madisn Cunty s sales tax revenue cmes frm the per-capita distributin methd, in which sales tax prceeds frm all 100 cunties are cllected in Raleigh befre being distributed t all cunties based n ppulatin. Grwth in sales tax revenues frm the per-capita methd is prjected t be 2.5%. A smaller prtin f the cunty s sales tax revenue cmes frm the pint f sale methd, meaning the mney received cmes frm sales tax cllected n sales that are made in the cunty. Sales tax revenues frm the pint f sale methd are prjected t increase 5%. While a smaller percentage f ur verall sales tax prceeds, this increase is a psitive sign f increased taxable retail sales within the cunty. After intense debate regarding the redistributin f existing state sales tax revenues t allcate a larger prtin t rural cunties with a limited sales tax base, the General Assembly vted last year t implement a new sales tax n certain services. The prceeds frm the new tax are distributed t the rural cunties that wuld have benefitted frm the riginal prpsal t distribute a greater prtin f existing revenues t rural areas. Madisn Cunty is prjected

3 Page 3 June 24, 2016 t receive $676,000 frm the new tax, which is cllected frm all cunties and distributed n a per-capita basis. The funds must be used fr educatin and ecnmic develpment. Decreases in Other Revenues include: A cntinued decline in the number f federal inmates being hused at the Jail ($68,000). The decline is indicative f a natinal trend in sentencing f federal inmates, including shrter sentencing and a preference t huse inmates clser t their family. A $64,200 increase in the revenues frm husing state inmates helps t ffset the reductin in federal revenues. Health Department revenues are dwn slightly ($15,337). The expiratin f r scheduled reductin in funding f tw grants (Rural Business Develpment Grant and HOME Grant) in the amunt f $37,500. A $15,000 reductin in the Hme and Cmmunity Care Blck Grant, which supprts In Hme Aides, Transprtatin, Senir Cmpanins, Hme Delivered Meals, and Cngregate Nutritin. Increases in Other Revenues include: $30,704 in additinal curt facility fees, based n the trend fr the current year. $25,000 in Building Inspectin Fees as a result f increased building and permitting activity. $30,610 in Register f Deeds fees. $26,000 in additinal Medicaid fees due t increased service by Madisn Cunty Transprtatin Authrity fr Nn-Emergency Medical Transprtatin clients. The increased Medicaid fees will ffset a $26,000 expense in Transprtatin t prvide an additinal 38 hurs per week f van service. The amunt apprpriated frm Fund Balance is $167,872, which is 58% lwer than the current year. Fund Balance is the cunty s savings/rainy day fund. While it is ften necessary t spend frm Fund Balance fr large r unexpected expenses, Fund Balance shuld nt be used t cver recurring expenses, such as salaries. The budget fr FY included apprximately $500,000 in increased recurring expenses (cuntywide salary increase, increase in schl funding, additinal psitins at 911) that were nt ffset with reductins in ther expenses. The budget was balanced by apprpriating $346,200 frm Fund Balance as well as inflating prjectins frm ther revenues, such as delinquent taxes and Health Department fees. The FY budget reduced varius expenses t help ffset the $500,000 in recurring expenses apprved the prir year, and apprpriated $345,716 frm Fund Balance fr ne-time expenditures, including the carrying frward f varius grant funds. The FY budget als included $30,000 fr neyear staffing needs t help with a backlg in the evidence rm at the Sheriff s Office and $18,000 fr a ne year trial perid fr a Veterans Services Officer psitin. Cntinued spending f Fund Balance t cver recurring expenses will slwly deplete the cunty s rainy day fund. $100,000 is apprpriated frm Fund Balance fr cntinued curthuse renvatins.

4 Page 4 June 24, 2016 General Fund Expenditures FY FY FY General Gvernment $2,303,513 $2,346,131 $2,343,337 Public Safety $5,028,093 $5,251,846 $5,075,612 Transprtatin $596,168 $504,884 $627,921 Health and Human $3,658,533 $3,270,735 $3,115,323 Services Cmmunity Services $809,358 $821,615 $679,417 Scial Services $5, $5,385,674 $5,429,140 Ecnmic/Physical $491,519 $493,245 $770,392 Develpment Educatin $2, $2,703,060 $2,893,240 Culture and Recreatin $665,296 $596,080 $602,090 Cntingency $50,000 $75,665 $45,000 Debt Service $672,990 $533,333 $963,000 Debt Service Interest $265,658 $216,640 $201,536 Transfer t Revaluatin $50,000 $19,948 $0 Fund $22,688,240 $22,218,191 $22,745,945 Expenditure Highlights All Cunty departments submitted budgets that either hld spending t current year levels r reduce spending. Any requests fr expansin items were submitted separately frm the initial budget requests, and such expansin items were cnsidered by the Bard f Cmmissiners during a series f wrk sessins. The budget includes $102,000 fr increases in varius insurance premiums (Health, Wrker s Cmp, Prperty and Liability) as well as an increased retirement cntributin mandated by the state. Funds fr a cuntywide Human Resurces Officer are included ($66,246 salary and benefits). The psitin will ensure cmpliance with state and federal regulatins and wrk t develp a cuntywide HR management system, including pay scales and a ptential perfrmance appraisal system. Bard f Electins expenditures are dwn $41,644 due t nly ne electin being held in the next fiscal year, cmpared t three fr the current year. Additinal reductins may be pssible if the State Bard f Electins apprves a pending request t maintain three early vting sites, rather than five. The Maintenance Department budget is reduced $16,602 as a result f nt filling a vacant wrk release inmate psitin. The Sheriff s Department budget is reduced by $87,180 t accunt fr tw deputies wh serve as schl resurce fficers at Madisn High and Madisn Middle. The allcatin fr Public Schl Current Expenses is increased by the same amunt. State mandated increases in Medical Examiners fees will cst the cunty $21,028. As a result f funding cuts and a reallcatin f funds amng cunties by NC State University, cunty funds fr Cperative Extensin will increase $19,472 t cver an increased cunty share fr psitins there. The cunty has been planning fr the increase since late 2014, and eliminated 1.5 FTE psitins frm Cperative Extensin in the current year s budget in rder t cver the increased share fr agent psitins.

5 Page 5 June 24, 2016 The prpsed budget allcates $26,000 frm Medicaid service fees fr Nn-Emergency Medical Transprtatin t fund an additinal 38 hurs per week f van service at Madisn Cunty Transprtatin Authrity. The additinal Medicaid revenues will cver increased labr and fuel csts as a result f the service increase. Health Department expenses are dwn $49,146 due t reductins in varius expense line items as well as the eliminatin f ne nurses psitin that became vacant earlier this fiscal year. The reduced Health Department budget includes $30,142 in reallcated funds fr cntract help with well and septic permitting and restaurant and ldging expenses in Envirnmental Health. Cunty funding fr the Department f Scial Services is reduced by $5,000 due t the eliminatin f tw psitins within the department. The internal savings allwed fr the creatin f ne new supervisry psitin and salary adjustments fr departmental emplyees. The In Hme Aides budget is reduced by $60,786 due t the eliminatin f 2.5 In Hme Aide psitins. One psitin has been vacant since earlier this fiscal year and the remaining 1.5 are scheduled retirements in the cming mnths. State guidelines are requiring a reductin in the number f In Hme Aide service hurs assigned t each client. This reductin in hurs shrtens the waiting list fr services. The Nutritin budget is reduced by $62,271 due t the eliminatin f ne van driver psitin that became vacant earlier this year and ther expense reductins based n histric trends. Pstage csts are reduced cuntywide by $1,800 as a result f a decrease in pstage rates. Salary adjustments are reserved fr thse psitins that have significant discrepancies with similar psitins with similar respnsibility levels within the cunty as well cmparisns t cmparably sized cunties. The budget als raises the cunty s minimum hurly pay rate t $8.15 per hur. The new Human Resurces Directr will wrk t create a cuntywide salary schedule that will address any remaining discrepancies and allw fr better planning fr future cuntywide cst f living adjustments. $45,000 is apprpriated t Cntingency t cver unanticipated needs that arise thrughut the year. Sales Tax/Rural Cmpetitiveness Fund As a result f the cmprmise n last year s prpsed sales tax reallcatin by the General Assembly, Madisn Cunty will receive an additinal $676,000 in revenues raised thrugh a new sales tax levied by the state n certain services. These funds must be used fr educatin and ecnmic develpment purpses. The budget allcates the funds as fllws: $316,961 t Ecnmic Develpment, including funds fr the new cunty planner psitin which was created in December f 2015, 50% f the salary and benefits fr the directr f develpment services, funds fr ecnmic develpment related nnprfits, and expenses assciated with marketing, branding, and ecnmic develpment prduct develpment. $80,000 is set aside fr ecnmic develpment grant matching. $148,539 in cntinued funding fr Public Schls Current Expense. An additinal $98,000 is reserved fr public schl effrts related t wrkfrce and ecnmic develpment.

6 Page 6 June 24, 2016 $112,500 fr maintenance and perating csts at the AB-Tech Madisn Campus. This is a $5,000 increase ver the current year s allcatin t AB-Tech. Public Schls The prpsed budget increases the cunty s allcatin t Public Schls Current Expense by $87,180 ($2,490,740), as well as maintaining the current $92,000 fr B-K prgram expenses. The additinal $87,180 is t cver 80% f the salaries and benefits fr tw deputies wh serve as Schl Resurce Officers at Madisn High and Madisn Middle. The Sheriff s budget is reduced by the same amunt. The state is prjecting a decline in 64 students acrss the schl system next year, resulting in sme frmula-based funding reductins frm the state. The cunty has been asked by the Bard f Educatin t help ffset thse reductins and keep the schl system frm having t send any emplyees hme. Discussins regarding ptential savings related t an Energy Savings lan payment being paid with cunty funds by the schl system, as well as the pssibility f using 40/42 sales tax funds t cver a prtin f the payment n said debt are nging. Any savings n the debt payment r replacement f cunty funds with 40/42 fund wuld free up additinal dllars t be used by the Bard f Educatin fr ther Current Expense items. The budget als sets aside $98,000 fr public schl expenses related t ecnmic and wrkfrce develpment. $529,667 in 40/42 sales tax funds, restricted fr public schl building capital prjects, is included in the budget. $429,667 will pay indebtedness n the Qualified Schl Cnstructin Bnd schl cnstructin prgram apprved earlier this year. $100,000 is fr general schl system maintenance and small prject needs. Additinal 40/42 funds will likely be allcated thrughut the year. Nnprfit Funding The budget allcates $61,650 t nnprfit rganizatins: Cntinues funding f $850 per cmmunity club ($6,800) Cntinues funding f $2,400 fr Cmmunity Club Assciatin expenses (peridic meetings/meals f all cmmunity clubs. Cntinues funding f $850 t Special Olympics. Increases Arts Cuncil funding frm $10,000 t $15,000, using ecnmic develpment sales tax funds. Increases Fairgrunds funding frm $8,750 t $10,000, using ecnmic develpment sales tax funds. Maintains current apprpriatin t Pisgah Legal Services f $3,000. Increases funding fr My Sister s Place/Helpmate frm $10,000 t $15,000. Maintains funding fr United Way 211 f $3,000. United Way matches an additinal $3,000. Increases the apprpriatin t the Cmmunity Husing Calitin f Madisn Cunty frm $500 t $3,000. The cunty will cntinue t prvide in-kind supprt as a HOME grant applicant.

7 Page 7 June 24, 2016 Restres a $2,000 apprpriatin t WNC Cmmunities, which has nt been funded fr several years. Landfill Fund The Landfill Fund is an enterprise fund that perates independently f the General Fund. While the General Fund is perated with revenues frm prperty tax, sales tax, and ther surces, the Landfill is funded by cllectins frm the slid waste dispsal card, cmmercial and residential tipping fees, sale f recyclables, and ther surces. The prpsed budget fr the Landfill is $1,847,310, $433,905 lwer than the current year s budget. $299,000 f this reductin is due t an apprpriatin frm Landfill Reserves in last year s budget fr equipment replacement. The budget maintains the $160 per husehld dispsal card, which was reduced frm $180 in the current year s budget. The budget increases the tipping fee by $3.00 per tn, fr a ttal fee fr cnstructin and demlitin debris f $37 per tn and a ttal fee fr cmmercial haulers f husehld garbage f $47 per tn. $16,160 is apprpriated frm fund balance/landfill reserves. Three vacant psitins have been eliminated. Additinal funds are allcated t purchase pants and steel-ted bts as part f landfill unifrms. Salary adjustments are made in rder t bring all emplyees t at least $8.15 per hur and reflect differing levels f respnsibility amng varying psitins. $30,000 is apprpriated t cntingency fr unanticipated needs thrughut the year. Fire Tax The attached list includes Fire Tax revenues fr each department that has service territry in Madisn Cunty. The fire tax is assessed nly t residents f that district and funds simply pass thrugh the Cunty. The Spring Creek Vlunteer Fire Department has requested a $.03 increase in the tax fr their district. The budget reflects the current tax rate fr each fire district, and the Bard wuld need t vte n any prpsed increases.