05092000HARNETT 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.
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Dan B. Andrews, Chairman
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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.
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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.
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GENERAL FUND REVENUE
The 2000-2001 budget has been
"..•,..,. developed based upon revenue
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='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
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