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HomeMy WebLinkAbout05092000HARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Special Meeting (Budget Workshop) May 9, 2000 The Harnett County Board of Commissioners met in special session on Tuesday, May 9, 2000, in the Commissioners Meeting Room, County Administration Building, 102 East Front Street, Lillington, North Carolina. Members present: Dan B. Andrews, Chairman Beatrice Bailey Hill, Vice Chairman Joseph T. Bowden Teddy J. Byrd Walt Titchener Staff present: Neil Emory, County Manager Wm. A. (Tony) Wilder, Assistant County Manager Vanessa W. Young, Finance Officer Kay S. Blanchard, Clerk to the Board Chairman Andrews called the meeting to order at 9 a.m. and called on County Manager Neil Emory. FY 2000-2001 Mr. Emory presented the FY 2000-2001 Harnett County Budget Message to the Board of BUDGET Commissioners and reviewed items of the proposed FY 2000-2001 Harnett County MESSAGE Budget. Mr. Emory and the Board members discussed the proposed Budget in a work session format. (Budget Message -Attachment 1) There being no further business, the Harnett County Board of Commissioners special meeting, May 9, 2000, duly adjourned at 2:30 p.m. Attachment 1. S_4y_,_ s. zz/ Dan B. Andrews, Chairman /a4/ /� AAM_C Kay SO Blanchard, Clerk to the Board COUNTY OF HARNETT 2000-2001 BUDGET MESSAGE TO: THE HARNETT COUNTY BOARD OF COMMISSIONERS Dan B. Andrews, Chairman Beatrice B. Hill, Vice Chairman Joseph T. Bowden Teddy J. Byrd Walt Titchener The proposed Harnett County Budget for 2000-2001 is hereby submitted for review and consideration by the Board of Commissioners. Harnett County has continued its conservative budgeting practices that will help maintain the County's General Fund Balance and will allow the County to continue its reputation as a unit of local government which has long maintained a strong financial position. It is the staffs belief that this document provides for day -today county operations as well as major capital items in an efficient and conservative manner. The following is a listing of the major points of interest in this year's budget: A. It is being proposed that the general fund tax rate remain at $.73. B. Public Education is an area of local government that has been impacted tremendously by the growth of our County. To address this growth and in an attempt to increase our per pupil expenditure, the proposed budget provides for an increase in funding that recognizes the growth in enrollment while also providing for an across-the-board increase. C7 • • • • C. In the area of Capital Projects, the proposed budget allocates funds for partial debt payment on the new Courthouse as well as Highlands Elementary School. D. The proposed budget allocates additional funding for personnel. These additional expenses include a cost -of -living increase for current employees and the final implementation of last year's pay classification study. In addition, the budget reflects a 15% increase in the County's health insurance prerr ums and a 1% increase in the match the County provides for our employees' 401k program. E. This year's budget limits expenditures in many areas in order to minimize any further reductions in the County's overall fund balance. Please keep these five items in mind as we review the details of the budget during the upcoming budget workshops. As in past years, this document was developed following individual meetings with each department head and after extensive review by staff. The following overview notes the budget highlights as they relate to revenues and expenditures. Before beginning this overview, I would like to thank Projected Revenues by Function - Vanessa Young, Finance Officer, and 2000 - 2001 Tony Wilder, Assistant County General Fund - $54,504,939 Manager, for their assistance in ,x developing this document. Also, I A M ••N••••"• would like to thank members of the .,x Finance and Administrative Staff who assisted in this effort. 314 GENERAL FUND REVENUE The 2000-2001 budget has been "..•,..,. developed based upon revenue .w. ..,,„,. a •... �.,: ='t projections that reflect low to moderate growth as well as actual declines in revenues generated by some fees. Therefore, we have developed this document based upon very conservative revenue projections. The following review highlights the status of the major County revenue sources as well as changes of particular interest: Ad Valorem Tax - The budget has been developed based on a tax levy of $25,220,014 and a collection rate of 92.65%. Utilizing a tax rate of $.73, we have projected tax collections of $23,366,330 for the upcoming year. Current year's ad valorem tax represents 42.87% of total General Fund Revenue. Sales Tax - Growth in this revenue is projected to be moderate. However, please keep in mind that a portion of this revenue is dedicated to school capital needs and is utilized to pay a portion of the debt service for schools. Other Revenue - Revenue from fees has experienced an overall decrease. These decreases include Planning and Inspections as well as the Register of Deeds, Home Health and EMS. Fund Balance - Harnett County has a long tradition of maintaining an available fund balance of at least 15%. This tradition is one that I believe we should maintain. County management continues to work toward the goal of supporting current operations from current revenues while maintaining a General Fund balance sufficient to provide both adequate working capital and reserves for unanticipated expenditures. During the past fiscal year, a portion of our fund balance was expended to balance the budget. Therefore, this year we must take whatever steps necessary to maintain fund balance levels. In addition, next year we must be prepared to take the necessary steps to ensure a revenue flow which will result in a strong fund balance. GENERAL FUND EXPENDITURES Projected Expenditures by Function - 2000- 2001 General Fund - 554,504,939 Growth in General Fund Expenditures continues to reflect that the County is one of the fastest growing in the State. In response to this growth, the County must invest its resources in an attempt to address the needs of its growing population. At the same time we are faced with a reduction in our overall fund balance. With these two factors in mind, we are recommending growth in key expenditures such as education as well as in mandated programs. At the same time, we have provided for very limited budget growth in day-to-day department operations. Personnel - If we are to maintain and recruit the employees we need, we must be prepared to compete financially with our fellow local governments. I believe that the following recommended investments will permit us to do just that. First, funding has been provided for a 4% cost -of -living increase with a minimum increase of $S00. In addition, funding has been provided for implementing the final portion of the results of the pay classification study. New position requests and those positions recommended are summarized in an attachment to the budget message. Human Services Programs — This area of the budget continues to experience change due to ongoing reform efforts at the Federal and State level. These reforms have resulted in funding changes related to welfare reform. The actual programs involved include the One Stop Center, Welfare -to -Work and Workfirst. In addition, Medicaid costs continue to rise • due to costs associated with the elderly and the implementation of the new CHIPS Program throughout the State. Tax Office — This proposal provides for the changes in tax billing. Planning — The proposed budget provides for the next phase of a central permitting program in the County. In addition, funding has been provided for an additional planner to assist with the implementation of zoning in the western portion of the county. Board of Education - This year, the recommended appropriation for the Public Schools was developed by utilizing a ADM of 16,600 which is consistent with last year's budget projections. A 10% increase per ADM has been provided for within the proposed budget. However, budget projections do incorporate use of a portion of the sales tax dedicated to the schools for school capital needs. PUBLIC UTILITIES This department continues to experience growth that requires additional expenditures. In addition, we are undertaking several major capital projects that will impact this portion of the budget. CONCLUSION We believe the proposed 2000/2001 Budget is a very conservative document that recognizes the importance of preserving the County's strong financial position. • Neil Emory, Budget Officer 40