Presentation of the FY14-15 Budget

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1 Presentation of the FY14-15 Budget Chris Coudriet County Manager New Hanover County

2 Budget Themes 1. Focusing on advancing county s overall strategy 2. Aligning resources to meet strategic priorities 3. Planning for long term county sustainability New Hanover County Slide 2

3 Economic Conditions Economy is showing positive signs of recovery 1. Construction is up 2. Tourism is growing 3. Retail sales are improving New Hanover County Slide 3

4 Revenue Picture 1. Increase in tax base is less than 1%; budget balanced with a 55.4 cent tax rate 2. Sales tax is estimated to increase 3.2% over FY Increase in charges for services is estimated to increase 11.3 percent New Hanover County Slide 4

5 New Hanover County Slide 5

6 Millions NHC SALES TAX REVENUE GROWTH $2.5 $2.4 $2.4 $2.0 $10.5 $9.9 $10.2 $1.9 $9.5 $1.6 $8.8 $8.1 $40.0 $41.6 $42.3 $43.6 $35.5 $30.1 FY10 ACT FY11 ACT FY12 ACT FY13 ACT FY14 REV FY15 REC GENERAL FUND NHC SCHOOLS FIRE SERVICES FY 10 LAST YEAR OF ARTICLE 44 New Hanover County Slide 6

7 Millions $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 GROWTH OF REVENUE FOR REGISTER OF DEEDS AND PLANNING AND INSPECTIONS $2.2 $2.0 $2.4 $2.7 $2.3 $3.1 $2.4 $2.3 $2.5 $2.9 $3.3 $3.5 FY10 ACT FY11 ACT FY12 ACT FY13 ACT FY14 REV FY15 REC Register of Deeds Planning & Inspections New Hanover County Slide 7

8 Fund Balance 1. Fund balance is recommended for appropriation at $9 million 2. Same amount recommended in FY13-14 New Hanover County Slide 8

9 Expenditures/Challenges 1. How to best allocate limited dollars 2. Strategically-driven requests exceed available resources 3. Debt services is far exceeding growth in tax base New Hanover County Slide 9

10 Expenditures 1. Economic Development & Intelligent Growth 2. Superior Public Education 3. Superior Public Health and Safety 4. Effective County Management Capital The Model of Good Governance New Hanover County Slide 10

11 Economic Development 1. Incentives for PPD, GE, Castle Branch, Fortron, and Live Oak 2. Funding to advance the Garner Economics report-pathways to Prosperity 3. Wilmington Business Development and North Carolina Southeast Regional Economic Development Partnership 4. WAVE New Hanover County Slide 11

12 Superior Public Education 1. Cape Fear Community College Operating - $11 million: $2.3 million increase Debt - $15.3 million: $3.8 million increase 2. NHC Schools Current expense - $67.9 million: $3.2 million increase Capital - $2.8 million: $600,000 increase Debt - $19.9 million: $900,000 decrease New Hanover County Slide 12

13 New Hanover County Slide 13

14 New Hanover County Slide 14

15 Superior Public Health and Safety 1. Continued funding of effort to focus on crime in public housing communities and gang related violence 2. Programs to reduce juvenile recidivism New Hanover County Slide 15

16 Superior Public Health and Safety 3. NC FAST 4. Action Plan for health and human services collaboration 5. Reduce the rate of adult and juvenile obesity New Hanover County Slide 16

17 Fire Service District (Public Safety) 1. The addition of the nine positions: Completes a baseline level of staffing Maintains effective workforce Aims to reduce overtime in FSD 2. Capital Quint apparatus 3. Consolidation study implementation New Hanover County Slide 17

18 Environmental Management (Public Health) 1. Tipping Fee decreased to $55/ton a 6.8% decrease from $59/ton 2. Increase diversion of municipal solid waste by 30% 3. Expand the life of the landfill to 73 years New Hanover County Slide 18

19 Environmental Management (Public Health) 4. $800,000 toward fund balance annually 5. $1.15 million toward closure/post closure reserve annually 6. $250,000 toward capital reserve annually 7. $2 million in FY through FY for future cell construction on the southern property New Hanover County Slide 19

20 Effective County Management: Capital 1. Expansion of the law enforcement evidence room $400, Widening of the Hugh MacRae trails $200, Construction of Ogden Skate Park $300, Matching grants for the Middle Sound Loop and south Smith Creek trails as noted above $120,000 New Hanover County Slide 20

21 Financing of Capital Financing capital at this level is a departure from what we have done in the past, but is a reasonable business strategy. It is necessary to: Maintain current tax rate Meet needs of new facilities Deal with deferred and postponed capital and maintenance needs New Hanover County Slide 21

22 Effective County Management: The Model of Good Governance 1. 2% market adjustment for the salary schedule starting after the first quarter 2. Strategic implementation of the Pay and Classification Plan effective July positions: General Fund 8 DSS NC FAST related Fire Service District - 9 New Hanover County Slide 22

23 Strategic Priorities Accomplished 1. Moving the community forwarded 2. Every board priority funded 3. Covering all mandated obligations 4. Limiting overall rate of growth: 2.1% New Hanover County Slide 23

24 Tax Rate Position 1. Current and balanced at 55.4 cents 2. Most effective rate to cover debt obligations cents Pays for debt approved by voters since 2006 (Parks and CFCC) and Board issued Covers the life of these debt issues through 2035 New Hanover County Slide 24

25 $16,000,000 $14,000, Proposed Revenue & Debt Service Park & Rec and $164M CFCC General Obligation Bonds $12,000,000 $10,000, $8,000,000 $6,000, Annual Revenue Annual Debt Service Requirement Required Tax Rate $4,000,000 $2,000, $ New Hanover County Slide 25

26 0.70 Historical Tax Rate Comparison Incremental Tax Rate Revenue Neutral Tax Rate Increase New Hanover County Tax Rate New Hanover County Slide 26

27 Tax Rate $ $ $ $ $ $ $ $ $ $ $ FY13-14 Tax Rate Comparsion for Counties with Aaa/AAA Bond Rating $ $ $ $ $ $ NC Counties New Hanover County Slide 27

28 Next Steps 1. Identify possible work sessions 2. Public hearing June 2 3. Adoption scheduled for June 16 New Hanover County Slide 28

Presentation of the FY15-16 Recommended Budget

Presentation of the FY15-16 Recommended Budget Chris Coudriet County Manager New Hanover County Slide 1 Budget Themes Advancing the County s strategic direction Aligning resources to meet Board-identified