Fiscal Year 2018-2019 Recommended Budget Presentation May 14, 2018 County of Beaufort Fiscal Year 2018-2019 Recommended Budget Presentation May 14, 2018

FY 18-19 Recommended Budget Presented as required by NCGS 159 Balanced and prepared in accordance with policies and procedures outlined in the Local Government Budget and Fiscal Control Act Contains 3 sections Continuation Budget Service Expansions Fee Manual

FY 18-19 Recommended Budget July 1 – June 30 Budget Period Process Planning Retreat Internal Budget Work Budget Workshops (this week and next) Public Hearing (June regular meeting) Adoption (Special second June meeting)

FY 18-19 Recommended Budget Overview Maintains all services and programs Maintains prior year fire and EMS district tax levels Makes adjustments for 2018 Revaluation Recommended ad valorem tax rate of $0.60 for each $100 of assessed valuation 3 cents for “revenue neutral” 2 cents to maintain current County provided services

FY 18-19 Recommended Budget General Fund $56,714,321 Decrease of $1,147,730 from prior year 2% decrease Appropriates $251,457 in fund balance Decrease of $793,383 from prior year $15.67 M in fund balance est. June 30, 2019 27.63% of expenditures

FY 18-19 Recommended Budget Revenues Property taxes $34,357,419 $0.60 per $100 valuation $5,730,622,022 total taxable valuation Total real property valuation down 5.5% Assumes 97.92% collection for real/personal Assumes 100% for motor vehicle

FY 18-19 Recommended Budget Fiscal Year Tax Rate Reval Year 2008-2009 $0.60 7 2009-2010 8 2010-2011 $0.50 1 2011-2012 $0.53 2 2012-2013 3 2013-2014 4 2014-2015 5 2015-2016 6 2016-2017 $0.55 2017-2018 2018-2019 $0.60 rec

FY 18-19 Recommended Budget County Tax Rate Ratio Effective Rate Rank (100 highest) Washington $0.8550 1.0299 $0.8806 96 Martin $0.7900 1.0148 $0.8017 85 Hyde $0.7300 0.9846 $0.7187 64 Pitt $0.6960 0.9883 $0.6878 55 Pamlico $0.6250 0.9515 $0.5947 36 Beaufort $0.5500 1.0504 $0.5777 31 Craven $0.5394 0.9900 $0.5340 22

FY 18-19 Recommended Budget Revenues Sales and other taxes $9,360,061 Up in current year Based on broader base of taxes by General Assembly FY 18-19 estimated to be up 4% Anticipate trends leveling out next year

FY 18-19 Recommended Budget Revenues Restricted and Intergovernmental $9,852,066 Project lower in FY 18-19 Mostly due to program changes in DSS Childcare payments in NCFAST Medicaid payments in NCTRACKS Subject to change over the course of the year based on State and Federal programs

FY 18-19 Recommended Budget Revenues Licenses, Fees and other $2,368,931 Significant decrease from prior year Due to one-time installment note proceeds related to the prior year $3M financing package Projected slightly upward in FY 18-19 after removal of financing proceeds

FY 18-19 Recommended Budget Revenues Investment earnings $220,000 Projected increase in FY 18-19 due to investment changes in County’s portfolio in FY 16-17 Interest rates projected to rise March 2018 – Fed raised rate a quarter point to a range of 1.50% to 1.75% Anticipated to raise two more times in 2018 Would put rate at 2.25% going into 2019

FY 18-19 Recommended Budget Revenues Administrative Charge $304,387 New in FY 18-19 Charged to Enterprise Funds Pays back services used from the General Fund Helps eliminate general fund tax subsidy to enterprise fund user fees Based on specific units used (IT example)

FY 18-19 Recommended Budget Revenues Appropriated fund balance $251,457 Decrease of $793,383 from prior year $15.67 M in fund balance est. June 30, 2019 27.63% of expenditures

FY 18-19 Recommended Budget

FY 18-19 Recommended Budget Expenditures Education $18,492,235 Human Services $15,384,309 Public Safety $11,871,763 General Government $ 6,132,461 Community Services $ 1,640,371

FY 18-19 Recommended Budget Expenditures General Government Decreased overall from prior year by 5.6% Tax Assessor up - 3 positions moved from Planning Tax Collector down - elimination of position and replacement with lock box service Elections down - no municipal election Register of Deeds up - automation funds Maintenance, Buildings and Grounds up - furnishings for financial services center and Horne building repairs Other departments flat or less

FY 18-19 Recommended Budget Expenditures Human Services Decreased overall by $1,667,113 or 9.8% Driven by DSS changes in NCFAST and NCTRACKS BATS – increase of $52,500 Final year of 2-year adjustment approved last year Eliminates subsidy provided by BCDC Other departments decreased

FY 18-19 Recommended Budget Expenditures Community Services Down overall by $192,739 or 10.5% Driven by elimination of Planning Director position Services now contracted with local COG Movement of 3 positions from Planning to Assessor

FY 18-19 Recommended Budget Expenditures Education Beaufort County Schools Maintains FY 17-18 funding level Beaufort County Community College Slightly lower than FY 17-18 Additional Campus Police Office moved to service expansion

FY 18-19 Recommended Budget Expenditures Public Safety Up overall by $349,488 or 3% Emergency Management replacing vehicle Animal Control replacing cat kennels due to State inspection requirements Increased Jail Safe Keeping funds by $150,000 Increased Medical Examiner funds by $25,000

FY 18-19 Recommended Budget

FY 18-19 Recommended Budget Enterprise Funds Water $7,322,910 Consolidation of the 7 water districts into a single operational water district using an interlocal agreement between the County and the districts Incorporates new water rate study that consolidates existing rates over a five-year period into a uniform rate for all class customers Established a formal 10-year CIP for the entire system $380,338 is estimated to be added to Fund Balance Reserve

FY 18-19 Recommended Budget Enterprise Funds Solid Waste Projected $3,383,648, 4.89% increase $145 per parcel maintained (utility fee – not tax) Not charged to vacant land or parcels with recognized full service solid waste provider (pays tipping fee) Corrected prior exempted properties All residential waste costs Municipal vs. other pick up 11 convenience sites and transfer station General fund transfer to pay for services

FY 18-19 Recommended Budget Schedule Tonight – presentation of recommended budget Budget Workshops Thursday, May 17 – General Fund Monday, May 21 – General Fund and Enterprise Funds Tuesday, May 22 – Service Expansions (County and Outside Agencies) Thursday, May 24 – Finalize Budget Monday, June 4 (regular meeting) – Public hearing Monday, June 11 (special meeting) – Adopt budget

FY 18-19 Recommended Budget Questions