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

Public Policy & Program Triage Budget At-a-Glance Key Issues Highlights of Proposed Budget Looking Ahead: Future Years Board Action Requested www.onslowcountync.gov

Public Policy & Program Triage Proposed FY2013-2014 Budget Public Policy & Program Triage See Sheet www.onslowcountync.gov

Proposed FY2013-2014 Budget Budget At-a-Glance www.onslowcountync.gov

Revenue Sources - All Funds

Expenditures by Function – All Funds 74.9% of total budget

Budget At-a-Glance Balanced Budget All debt payments (P&I) are included Requests totaled around $196million Manager cuts totaled around $8 million Total Budget is $188 million (All Funds) General Fund proposed budget is $177 million www.onslowcountync.gov

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 www.onslowcountync.gov

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 www.onslowcountync.gov

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 www.onslowcountync.gov

Proposed FY2013-2014 Budget Key Issues www.onslowcountync.gov

State Budget Adoption Intergovernmental Revenues Lottery Funds: $1,646,000 budgeted to pay for existing school debt Unemployment Insurance $285,000 Other? www.onslowcountync.gov

Maximization of Available Revenue Property Tax Collections 96.06% $8.9 million in delinquent taxes owed Tax and Tag will provide more money if implemented as planned Sales Tax Proceeds Previously under a 40%-60% Blended Change to 100% Ad Valorem $1.2 million increase for FY-14

80% of Programs are Mandates

Population Growth

Parcel Growth by Township

Example of Service Demand Social Services Client Intake

Example of Service Demand EMS Call Volume

Example of Service Demand Building Inspections Activity

Number of County Employees

Bottom Line Fewer 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 Program Current Issue: County pay ranges are, on average, 14% below market.

Highlights of Proposed Budget Proposed FY2013-2014 Budget Highlights of Proposed Budget www.onslowcountync.gov

Board of Education

History of Funding

2009 Funding formula Cons Pros No 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 Pros Used Objective Measures Created Significant Increases in Appropriations to Schools Allowed for budget certainty and planning

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

School System Fund Balance As reported by the NCACC Wake: $73 million Cumberland: $49 million Charlotte/Mecklenburg: $32.1 million Onslow: $28.7 million

Unassigned Fund Balance of the Onslow County Public Schools $25,397,967* *as of June 2012

Recommend New Formula Recognize 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

Public School Bond Referendum If 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

Coastal Carolina Community College

CCCC Operational Budget Flat-Funded Annual Capital Budget Flat-Funded Building new Maintenance Facility at the Western Boulevard Campus $5.5 million project Funded within existing capital improvement program

Human Capital Program

Implement 4-Step System Step 1: Create a Living Wage 65 Lowest Employees in Onslow County Government Federal Poverty Rate for Family of 3: $19,530 Onslow County Custodian: $17,788 City of Jacksonville Custodian: $20,376 Public Schools Custodian: $22,280

Implement 4-Step System Step 2: Correct Inequities in Public Safety Up to 242 Public Safety Employees Onslow E911 Operator: $24,345 New Hanover Operator: $29,514 Onslow Deputy: $32,037 Jacksonville Police Officer: $34,001

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

Implement 4-Step System Step 4: Reorganize County Government Net reduction of 18 positions Consolidate Human Services Agencies Health, Senior Services, Social Services Series of personnel actions Overall Savings to Onslow County: $900,000+

Looking Ahead: Future Years

Fund Balance

Public Education Appropriations Increasing Student Enrollment Continued School Facility Needs Additional Requests for Operating Expenses Issues for both the K-12 Public School System and CCCC

Correcting the Divergence of Taxation and Governance Under 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 Taxes County Reduces Tax Rate by 32.33 cents of the 58.5 cent current rate.

Proposed FY2013-2014 Budget Summary www.onslowcountync.gov

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

Budget Available At: Onslow County Administration Onslow County Finance All Onslow County Public Libraries Jacksonville Richlands Swansboro Sneads Ferry www.onslowcountync.gov

Comments Received At: budgetcomments@onslowcountync.gov Or Budget Comments c/o Onslow County Administration 4024 Richlands Highway Jacksonville, NC 28540

Action Requested: Set Public Hearing Proposed FY2013-2014 Budget Action Requested: Set Public Hearing www.onslowcountync.gov

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