Onslow County North Carolina Proposed Budget FY 2013-2014 Jeffrey L. Hudson County Manager June 3,...

Onslow CountyOnslow CountyNorth CarolinaNorth CarolinaProposed BudgetProposed Budget

FY 2013-2014

Jeffrey L. HudsonCounty Manager

June 3, 2013

Public Policy & Program TriageBudget At-a-GlanceKey IssuesHighlights of Proposed BudgetLooking Ahead: Future YearsBoard Action Requested

2www.onslowcountync.gov

PUBLIC POLICY & PUBLIC POLICY & PROGRAM TRIAGEPROGRAM TRIAGE

Proposed FY2013-2014 Budget

3www.onslowcountync.gov

BUDGET AT-A-GLANCEBUDGET AT-A-GLANCEProposed FY2013-2014 Budget

4www.onslowcountync.gov

Revenue Sources - Revenue Sources - All All FundsFunds

5

Ad Valorem Taxes, 42.25%

Sales Tax, 17.96%

Other Taxes and Licenses, 1.42%

Unrestricted Intergovernmental,

2.44%

Restricted Intergovernmental,

15.49%

Permits and Fees, 1.85%

Sales and Services, 9.45%

Investment Earnings, 0.08%

Miscellaneous Revenue, 0.23%

Transfer, 1.07%

Sale of capital assets, 0.02%

Fund Balance,

7.74%

Expenditures Expenditures by Function – by Function – All FundsAll Funds

6

Budget At-a-GlanceBudget At-a-Glance

Balanced BudgetAll debt payments (P&I) are includedRequests totaled around $196millionManager cuts totaled around $8 millionTotal Budget is $188 million (All Funds)General Fund proposed budget is $177

million

7www.onslowcountync.gov

Budget At-a-Glance, cont.Budget At-a-Glance, cont.

1.29% increase over last year (All Funds)Increases found in:

◦Mandated DSS Programs ($1.18 million)◦Insurance Costs ($1.13 million)◦Public Safety Vehicles & Equipment

($768,000)◦Volunteer Fire & Rescue ($229,000)◦Living Wage, Public Safety, Salary Range

Adjustments ($2.9 million)◦ Costs beyond $3.2 million covered in cuts

8www.onslowcountync.gov

Budget At-a-Glance, cont.Budget At-a-Glance, cont.

Recommended Property Tax Rate is held at 58.5-cents per $100 in valuation, 2-cents below current revenue neutral

63rd Lowest Tax Rate of all 100 NC Counties

100% of Article 46 Local Option Sales Tax Monies are spent in accordance with promises made to voters in 2010

9www.onslowcountync.gov

Budget At-a-Glance, cont.Budget At-a-Glance, cont.General Fund Balance Appropriated

◦FY 09-10: $9.9 million◦FY10-11: $10.1 million◦FY 11-12 $15.2 million◦FY12-13 $17 million

Proposed for FY-14: $13.4 million

10www.onslowcountync.gov

KEY ISSUESKEY ISSUESProposed FY2013-2014 Budget

11www.onslowcountync.gov

State Budget AdoptionState Budget Adoption

Intergovernmental Revenues◦Lottery Funds: $1,646,000 budgeted

to pay for existing school debtUnemployment Insurance

◦$285,000Other?

12www.onslowcountync.gov

Maximization of Available Maximization of Available RevenueRevenueProperty Tax Collections

◦96.06%◦$8.9 million in delinquent taxes owed◦Tax and Tag will provide more

money if implemented as plannedSales Tax Proceeds

◦Previously under a 40%-60% Blended◦Change to 100% Ad Valorem◦$1.2 million increase for FY-14

13

80% of Programs are 80% of Programs are MandatesMandates

14

Population GrowthPopulation Growth

15

Parcel Growth by Parcel Growth by TownshipTownship

16

Example of Service DemandExample of Service DemandSocial Services Client IntakeSocial Services Client Intake

17

Example of Service DemandExample of Service DemandEMS Call VolumeEMS Call Volume

18

Example of Service DemandExample of Service DemandBuilding Inspections ActivityBuilding Inspections Activity

19

Number of County Number of County EmployeesEmployees

20

Bottom LineBottom LineFewer General Government County

Employees are providing higher service levels for a growing county population

Growth in Public Safety Employees may be primarily attributed to two reasons:◦New Onslow County Justice Complex◦Institution of Emergency Responder

ProgramCurrent Issue: County pay ranges are,

on average, 14% below market.

21

HIGHLIGHTS OF HIGHLIGHTS OF PROPOSED BUDGETPROPOSED BUDGET

Proposed FY2013-2014 Budget

22www.onslowcountync.gov

BOARD OF BOARD OF EDUCATIONEDUCATION

23

History of FundingHistory of Funding

24

2009 Funding formula2009 Funding formula

ProsUsed Objective

MeasuresCreated

Significant Increases in Appropriations to Schools

Allowed for budget certainty and planning

ConsNo Consideration for Factors

Affecting County Government◦ other obligations◦ natural disasters◦ loss of state revenue◦ increased mandates◦ property devaluation◦ military downsizing◦ declining fund balance◦ Increasing school fund balance

25

Today…Today…Multiple factors to be considered

◦Other obligations and needs of county◦Uncertainty of State Budget◦Increased mandates◦Devaluation of Property at next

Revaluation◦Sequestration◦Declining County Fund Balance◦Possible School Bond Tax Increase◦School System Fund Balance Levels

26

School System Fund School System Fund BalanceBalanceAs reported by the NCACC

1. Wake: $73 million

2. Cumberland: $49 million3. Charlotte/Mecklenburg: $32.1

million4. Onslow: $28.7 million

27

Unassigned Fund Balance of Unassigned Fund Balance of the Onslow County Public the Onslow County Public SchoolsSchools

$25,397,967*

*as of June 2012

28

Recommend New FormulaRecommend New FormulaRecognize that county

government has other obligations beyond that of public education

Eliminates funding based on uncertainty of student population projections

Bases increases on a percentage of new revenues realized by the county

29

Public School Bond Public School Bond ReferendumReferendumIf passed by the voters:

◦Tax increase necessary on July 1, 2014

If not passed by the voters:◦School system likely to request

funding for construction of new schools

◦If funded, tax increase necessary on July 1, 2014

30

COASTAL CAROLINA COASTAL CAROLINA COMMUNITY COMMUNITY COLLEGECOLLEGE

31

CCCCCCCCOperational Budget Flat-FundedAnnual Capital Budget Flat-

FundedBuilding new Maintenance

Facility at the Western Boulevard Campus◦$5.5 million project◦Funded within existing capital

improvement program

32

HUMAN CAPITAL HUMAN CAPITAL PROGRAMPROGRAM

33

Implement 4-Step SystemImplement 4-Step SystemStep 1: Create a Living Wage

◦65 Lowest Employees in Onslow County Government

Federal Poverty Rate for Family of 3: $19,530

Onslow County Custodian: $17,788City of Jacksonville Custodian:

$20,376Public Schools Custodian: $22,280

34

Implement 4-Step SystemImplement 4-Step SystemStep 2: Correct Inequities in Public Safety◦Up to 242 Public Safety Employees

Onslow E911 Operator: $24,345New Hanover Operator: $29,514

Onslow Deputy: $32,037Jacksonville Police Officer:

$34,00135

Implement 4-Step SystemImplement 4-Step SystemStep 3: Across-the-Board Pay Adjustment◦1,254 Employees◦4% Raise

36

Implement 4-Step SystemImplement 4-Step SystemStep 4: Reorganize County

GovernmentNet reduction of 18 positionsConsolidate Human Services

Agencies◦Health, Senior Services, Social Services

Series of personnel actionsOverall Savings to Onslow County:

$900,000+

37

LOOKING AHEAD: LOOKING AHEAD: FUTURE YEARSFUTURE YEARS

38

Fund BalanceFund Balance

39

Public Education Public Education AppropriationsAppropriationsIncreasing Student EnrollmentContinued School Facility NeedsAdditional Requests for

Operating ExpensesIssues for both the K-12 Public

School System and CCCC

40

Correcting the Divergence of Correcting the Divergence of Taxation and GovernanceTaxation and GovernanceUnder Current Law

◦School System Governs and Spends◦County Government Taxes◦If County Government Does Not Provide

Enough, Schools take County to court◦Proposed Change◦School System Governs and Spends◦School System Taxes◦County Reduces Tax Rate by 32.33

cents of the 58.5 cent current rate.

41

SUMMARYSUMMARY

Proposed FY2013-2014 Budget

42www.onslowcountync.gov

As proposed, this As proposed, this budget…budget…Keeps Property Tax Rate at Current

LevelsPays for all current debt service and

funds the proposed C.I.P.Recommends Revision to the School

System Funding Formula while maintaining current levels of support

Maintains CCCC funding at current levels

Implements 4-step program of changes to county personnel structure

43

Onslow County AdministrationOnslow County FinanceAll Onslow County Public Libraries

◦Jacksonville◦Richlands◦Swansboro◦Sneads Ferry

www.onslowcountync.gov

44

Budget Available At:Budget Available At:

Comments Received Comments Received At:At:

budgetcomments@onslowcountync.gov

Or

Budget Commentsc/o Onslow County Administration

4024 Richlands HighwayJacksonville, NC 28540

45

ACTION REQUESTED:ACTION REQUESTED:

SET PUBLIC HEARINGSET PUBLIC HEARING

Proposed FY2013-2014 Budget

46www.onslowcountync.gov

Onslow CountyOnslow CountyNorth CarolinaNorth CarolinaProposed BudgetProposed Budget

FY 2013-2014

Jeffrey L. HudsonCounty Manager

June 3, 2013