Davidson County FY 2017-18 County Manager’s Proposed Budget May 9, 2017 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Where The Money Comes From…..? Highlights Proposed tax rate of $0.54 per $100 of assessed property valuation, the same as it was for FY 2017 (Property Tax revenue increase of $771K or 1.09%) Article 46 Sales Tax (0.25%) totals $2.87 million dollars + $2.7 million dollars from the redistributed sales tax, Article 44. Base sales tax increase of $453K Additional $174K in Intergovernmental Revenue largely in Social Service related to foster care and child daycare program subsidies from the federal / state government Overall increase in all Other County revenues of $775K – Building permits, Register of Deeds charges and a contribution from County Capital Reserve to complete several major projects like the Lexington Library roof replacement Uses an additional $222K in County fund reserves to balance overall budget Where The Money Comes From…..? Total Change Over FY 2016-17 = $2.55 Million Dollars 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Property Tax Values Summary 1.08% Growth vs. FY 2017 Adopted Budget 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Consistently Budgeting Close to Prior Year the Actual FY 2019’s Estimated Growth = $585K or 0.81% Consistently Budgeting Close to Prior Year the Actual 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Can Only Be Spent On Certain Services Areas 7% Growth Over Last Year At This Time 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Re-Distributed Sales Tax Summary 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Growth in Property Tax Revenues Article 44 + 46 Sales Tax Revenues Changes in Taxes: Growth in Property Tax Revenues Article 44 + 46 Sales Tax Revenues $181.9 $135.0 $137.5 Changes In Other Financing / Licenses & Permits: Increased contribution from Capital Reserve to the General Fund for major capital projects within Support Service’s budget (Lexington Library Roof) Growth in Building Permit + ROD Charges Revenues 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Where The Money Goes…..? Highlights Includes $140K to continue with Phase I of the I-85 Industrial Park and $649K for the 911 Radio System Upgrade via the state VIPER system (Base debt down by $1 million dollars) Includes an additional $377K for education funding (Operating + Type II Capital Outlay) Includes an additional $1.5 million dollars for employee pay increases (on average 2.9%), group insurance increase of 5.7% and a retirement increase of 7.5%. Includes (6) additional high priority positions within the Social Services (3), County Manager’s Office (1), Sheriff (1) and Library (1) totaling $205K Final contribution to DCCC for the Allied Health Building totaling $1 million dollars (2nd and last year of a two year commitment) Sheriff pay adjustment for “front-line” personnel = $141K Total Change Over FY 2016-17 = $2.55 Million Dollars 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

How Every Dollar Is Spent Within The General Fund….. 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Included in employee pay increases: Base salary + $500 + 1.5% COLA Summary Included in employee pay increases: Base salary + $500 + 1.5% COLA Includes 5.7% increase in group insurance cost + a mandated 7.5% employer retirement contribution increase Six additional positions (3) Social Services, (1) County Manager’s Office, (1) Sheriff and (1) Library – Increased workload and mandated regulation standards (Covered via reimbursements or reductions in other operating cost, so net County cost only totals = $58K) Includes funding for 911 Radio System Upgrade via the state VIPER system + funds for continuation of Phase I of the I-85 Industrial Park Contribution from County Capital Reserve of $525K to complete several major capital projects (Lexington Library Roof Replacement) Includes $141K for an adjustment to “front-line” law enforcement personnel (Will increase starting pay to $35,425 with completion of associated training) Slight increase to On-Site Waste / Private Water Supply Fees within Environmental Health 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

1.08% Growth in Total Funding vs. FY 2017 Adopted Education Funding Summary 1.08% Growth in Total Funding vs. FY 2017 Adopted 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

-4% decrease in ADM since FY 2011 16% increase in per pupil funding since FY 2011 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Low Debt per Capita When Compared to Peer Group Orange section above is….. I-85 Corporate Center Project 800 MHz Radio System (via State VIPER System) Potential Sewer Projects in the Future 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Highlights NC Forester Contract – Increased funding (by $18K) to replace one existing high mileage truck (Total truck cost = $44K) (60% - NC and 40% - County) Spreads the “Buy Local” funds between the existing two Chambers of Commerce and the North Davidson branch (All three organizations will receive $8K for the campaign) Eliminates funding to both the Davidson County and Thomasville Rescue Squads until a “Sustainability Plan” is presented to the County 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

$5 Million Dollars Remaining in County Capital Reserve 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Estimated Average Growth % Per Year from FY 2018 – FY 2022 = 1% Note: Beginning balance above adjusts for funds added from the end of FY 2016 as well as any projected changes that have or will occur during FY 2017 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Low Tax Rate Consistent Tax Rate 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Other Funds: Landfill – Proposed slight increase for the E-Waste and Per Passenger Vehicle Minimums (from $8 to $10) Sewer – Anticipating a 5.2% fee increase imposed on the County by its waste water treatment provider the City / County Commission (Winston-Salem / Forsyth County). Transportation – Fully funds all routes with participation by the Cities of Lexington and Thomasville totaling $26K each and the General Fund = $119K Special School District - Proposed budget keeps the tax rate at $0.1200, which is expected to generate about $1.53 million for FY 2018 School Capital Outlay – Final installment of $1 million dollars toward the County’s contribution to DCCC for future Allied Health Building + maintains the additional $500K for Type I School Capital Outlay from FY 2016 (Paid for via the re-distributed sales tax revenues) Rural Fire Districts - Four fire districts have asked for a tax rate increase due to increased capital needs and on-going operating expenses such as employee insurance (each have met the criteria for submitting a tax rate increase proposal as outlined with the agreement with the County): Churchland – Increase of $0.02 to a total of $0.09 Fairgrove – Increase of $0.02 to a total of $0.10 Linwood – Increase of $0.005 to a total of $0.09 Horneytown – Increase of $0.02 to a total of $0.13 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Remaining Item From The Budget Retreat Items are not included in the FY 2017-18 Proposed Budget Should the BOC wish to move forward with any of these items, staff respectively asks that the board either identify an expenditure reduction from within the proposed budget or an additional source of funds 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.

Public Hearing on the County Manager’s Proposed Budget – May 23rd 2017 Next Steps: Public Hearing on the County Manager’s Proposed Budget – May 23rd 2017 (6:00 pm in County Commissioner’s Board Room) Board of Commissioners Budget Work-session – June 1st 2017 (8:00 am in County Commissioners’ Board Room) Possible Adoption of the Budget – June 13th 2017 5/9/2017 Davidson County Government - devoted to excellence,… enhancing the well being of our communities.