Local Government & Finance

Municipal Government in NC

Structure & Organization 2 Types of Local Government Counties –100 counties in NC –County seat– center of county gov’t

Municipalities –Cities, Towns, or Villages (have same legal status) –Have legislative and executive branches… some have judicial branches (no judicial authority) –Raise $ through taxes –Set local public policies –Establish ordinances

MUNICIPALITIES Key terms: IncorporatedIncorporated- declared as a municipality and granted a charter Charter– outlines basic rules for a municipal gov’t Home rule– allows cities to write their own charters, chose their own type of gov’t and manage their own affairs

MUNICIPALITIES 540+ exist in NC See p 408 to see services provided on the local level Each has been incorporated & given a charter… can change by General Assembly or home rule Can expand– annexation (to bring unincorporated areas into an existing municipality)

Municipal Government Elects a board: a town council, city council, board of commissioners, or board of aldermen Acts like a legislature In Alamance County: –Haw River– Town Council –Burlington– City Council –Alamance County– Board of Commissioners –Elon– Board of Alderman

Pass local laws (ordinances) Approve budgets Set tax rates Regulate citizens’ behavior Municipal Government (cont’d)

3 types: Mayor-Council Government Council-Manager Plan Commission Plan Types of Municipal Government

Most use a “Mayor-Council” plan: Mayor serves as chief executive and the board of alderman/ city council serve as the legislative branch Can be a “weak” mayor or a “strong” mayor “weak” mayor– few executive powers; most powers are with council “strong” mayor– similar to relationship of President to Congress

Council- Manager Plan Voters select a Council, which makes laws and hires a City Manager who handles the daily business of government, including supervising city employees

Commission Plan: Commissioners are chosen by voters who direct one of the city’s departments Rarely used anymore

COUNTY GOVERNMENT

Governing the Counties 100 counties Serves as local gov’t AND as an extension or branch of state gov’t Sets local public policy Carries out state guidelines and laws Governing body of a county = Board of County Commissioners –Set tax rates –Approve budget –Establish county policies

Alamance County Board of Commissioners Chairman -Tom Manning Vice Chair - William H. Lashley Linda Massey David I. Smith Tim Sutton Serve 4 year terms

Responsibilities of counties: General Assembly created independent boards to oversee specific services required by counties to provide (if county is small can combine) Education Elections Mental health Public health Social services ABC (alcoholic beverage control) Soil & water conservation

See website:

Education LEA = Local Education Authority 100 counties… 116 public school systems (100 county + 16 city) Example: Orange County Schools & Chapel Hill-Carrboro City Schools Voters elect school board members

County Offices Some NC counties hire professionals called county managers Alamance County = David Smith Reports to the board of county commissioners

Services Provided (see page 408)

County Departments Sheriff’s Department– headed by Sheriff (elected)– leads county law enforcement & oversees the county jail Dept. of Register of Deeds– headed by Registrar (elected) – keeps county records: land ownership, marriage, birth & death

Government Finances

State Budget Process Budget– a plan for managing and spending money 2 parts: government income & government expenditures NC= Biennial Budget –Every 2 years (odd) –Fiscal year= July 1 st – June 30 th

Governor’s role: –Prepare revenues guesstimates for upcoming 2 years –Add up requests for expenditures from state agencies –Compare total estimated revenues with total estimated expenditures –Propose a BALANCED BUDGET State Budget Process (cont’d)

General Assembly’s role –Studies proposed budget –Makes necessary revisions –If can’t agree… State Budget Process (cont’d)

Expenditures & Revenues –Half of total spending went toward health & human services and public education –Over half state revenue comes from state taxes Budget Surplus –Amount income exceeds spending Borrowing $ –NC gov’t’s can NOT borrow $ for operating expenses –CAN borrow for major purchases –Allows gov’t to make purchases without waiting to save –Spreads burden of repayment to future users State Budget Process (cont’d)

Municipal & County Budgets Municipalities & county gov’ts adopt budgets every year NC gov’ts MUST pass balanced budget Must balance between needs & wants Expenditures –1/3 rd municipal toward utilities (water / sewage) –Police & fire –1/3 rd county go toward LEAs –1/4 th county pay for public health, mental health and social services Revenues –1/3 rd municipal comes from utility user fees –Property taxes provide large amounts of revenue