Franklin County Information to the Board of Commissioners for discussions on the FY proposed budget.

Budget Schedule May 27, 2011 – Deliver Budget to BOC and Public June 1, 2011 – Present Budget to BOC and Public June 14, 15, conduct budget work sessions starting at 6:00pm, meal at 5:30pm. June 20, Hold public hearing on budget, receive comments from public, address issues if necessary. Adopt Budget June 27 and 28 – other meetings if necessary.

Franklin County Current Proposed Budget Fiscal Year FY Departmental Requests $72,105,929 FY Proposed Budget $65,940,792 Requests not included for funding $ 6,165,137

Franklin County Current Proposed Budget Fiscal Year FY Proposed Budget $65,940,792 FY Original Budget $68,492,343 Difference ($2,551,551) Proposed Budget does not include an increase in property taxes for the County or any fire department.

Franklin County Current Proposed Budget Fiscal Year FY Proposed Budget $65,940,792 (Less) Debt Service Increase (1,209,941) FY Original Budget $68,492,343 Difference ($3,761,492) This represents an overall 5.5% decrease

Franklin County Current Proposed Budget Fiscal Year FY Proposed Expenditures $65,940,792 FY Proposed Revenues $63,584,050 Fund Balance Appropriation $ (2,356,742)

Budget is based on no tax increase and the following FY Budgeted Tax Base $4,058,500,000 FY Budgeted Tax Base $4,025,000,000 Tax Collection Rate for is based on a 96.60% rate. In , the county used a 95.90% collection rate. Budgeted Current Taxes for FY $ 34,206,458 Budgeted Current Taxes for FY $ 33,678,282 Additional Revenue from Property Tax $528,176

What are our County Tax Dollars used for?

County Dollars compared to previous FY FY Budgeted County Dollars $ 43,542,586 FY Budgeted County Dollars $ 44,235,389 County dollar decrease $ (692,803)

Current Proposed General Fund Budget FY Budgeted Expenditures $65,940,792 FY Budgeted Expenditures $68,492,343 Decrease in Expenditures $ (2,551,551) FY Budgeted Revenues $63,584,050 FY Budgeted Revenues $65,919,694 Decrease in Revenue $ (2,335,644)

Let’s look at revenues:  Tax Base estimated to increase by $33,500,000 and our collection rate increased from 95.9 to 96.6 percent.  Net Gain of $528,177  EMS Revenue – Budget recommends a suspension for the next two years of the 30% EMS Incentive Capital Fund where EMS Revenues are earmarked for EMS Capital Purchases. County is generating 95% (+) of revenue.  Net Gain $494,913

Let’s look at revenues  The budget contains a transfer from the Water and Sewer Fund for a partial repayment of previous General Fund Loans. Water purchases are budgeted $479,890 less than the previous year.  In the Proposed budget, the Water and Sewer fund is now able to transfer $440,615 to the County’s General Fund.

Let’s look at revenues – More Reductions:  Lottery Proceeds - 790,000  Debt Refinancing - 838,132  Interest Income - 150,000  Sales Tax – 218,380  Transfer from Capt. Res. Fd – 224,000  Adult Day Care – 20,282  Environmental Health Fees - 14,860  Register of Deed Fees - 145,000  Inspection Fees - 325,000  Jail Fees at 50 inmates - 50,000  Solid Waste Fees - 98,000

FY Revenues compared to FY Revenues  Total Revenues Budgeted in FY  $65,919,694  Total Revenues Proposed in FY  $63,584,050  Total Decrease - $2,335,644 or 3.54%

Growth?  So with less revenue to work with, where has the growth been in the past 6 years?

Where has the growth been? CategoryFYE 2011 FYE 2010 FYE 2009 FYE 2008 FYE 2007 FYE 2006 General Govt. 4,642, , % 4,389,5824,770,8234,700,2965,037,9443,887,776 Public Safety 18,136,996 6,197, % 16,138,36816,998,67816,195,79012,952,77411,939,855 Human Services 17,551,445 (942,410) % 16,485,80718,642,58719,610,32918,946,93218,493,855 Education21,543,770 7,173, % 19,610,42819,571,33118,114,74815,489,79814,370,379 Cultural + Leisure 1,229,755 8, % 1,371,8391,174,9441,556,9361,279,5811,221,004

Where has the growth been? DepartmentFYE 2011 FYE 2010 FYE 2009 FYE 2008 FYE 2007 FYE 2006 Sheriff Additional % of Inc. 5,862,246 2,468, % 4,797,7234,964,7305,022,7383,677,6803,394,107 EMS Additional % of Inc. 4,730,304 2,197, % 4,085,8874,584,0424,058,6493,326,3722,532,525 Education Additional % of Inc. 13,375,333 2,015, % 13,007,24813,196,08812,688,15712,089,08111,359,551 Debt Additional % of Inc. 9,675,881 5,541, % 8,116,8427,540,2746,522,3424,511,4154,134,562 Jail Oper. Additional % of Inc. 3,426, , % 3,200,2763,430,6303,192,1092,906,7182,613,031 General Fd68,492,343 14,028,429 63,645, % 66,583,71665,015,34659,050,83154,463,914

Proposed FY compared to Budget FY Budget Category Proposed FY FY Original Budget Amount of Change % of Change General Govt. Public Safety 4,335,699 15,960,170 4,642,472 18,136, , ,176, % % Human Svcs.16,551,28517,551,445- 1,000, % Education Cultural/Leisure 22,787,351 1,174,385 21,543,770 1,229, ,243, , % %

Proposed FY compared to Budget FY DepartmentProposed FY FY Original Budget Amount of Change % of Change Sheriff EMS 5,196,212 3,874,392 5,862,246 4,730, , , % % Education-Oper.13,375,50013,375, % Debt Jail 10,885,823 3,061,810 9,675,881 3,426, ,209, , % % Social Services Programs General Fund 4,103,128 65,940,793 4,737,176 68,492, , ,551, % %

Now Let’s look at Expenses Original Budget FY (7/1/2010) Proposed Budget FY Change in Funding Manager 299,858 Elections 300, , ,412 (36,220) (19,515) Register of Deeds 348,288 Inspections 601, , ,594 (58,216) (90,106) Sheriff 5,862,246 Communications 1,077,258 5,196, ,913 (666,034) (152,345) Jail 2,935,824 EMS 3,842,805 2,656,700 3,165,378 (279,124) (677,427) Rescue /Capital 639,913 General Health 792, , ,142 (174,913) (41,290) Library 783,627 Aging 1,157, , ,714 (40,531) (187,816) Debt 9,675,881 Education 13,375,333 10,885,823 13,375,500 1,209,

What are the reductions  Budget recommends 5 days of furlough for employees which will result in 5 days of closing for County Government.  This results in a Net reduction of $406,487 or cents on the tax rate.  Budget recommends no paid overtime for Department personnel. This results in a Net reduction of $567,504 or cents on the tax rate.  EMS - 174,336  Sheriff – 264,768  Jail – 60,000  Communications – 54,000  Solid Waste – 14,400

What are the reductions  Budget recommends no funding for an E 911 debt service payment. Plan was to borrow dollars in May 2011, but project is behind schedule and certain permits required by LGC have not yet been received. County now plans to complete financing in January 2012 allowing County to not incur a debt payment in the upcoming fiscal year.  Payment schedule does require funding of the following:  $2.4 million - to Harris Communications by August 2011  $1.75 million - Building of towers and purchasing equipment by November 2011  County will float the $4.15 million until January 2012  Net Reduction to Budget $1,000,000 or 2.55 cents

What are the reductions  Board of Elections: reducing office staff from 3.67 to 3.0 and budgets for only two elections this FY. State is looking at reducing the number of days by a week for early voting. Net reduction : $38,070  Tax Assessor: Reduces staff from 9.0 to 8.0 with freezing of vacant Asst. Tax Assessor.  Net reduction: $33,820  Register of Deeds: Reduces staff from 5.08 to 4.0 with freezing of vacant office clerk and eliminating Part-time.  Net reduction: $45,886

What are the reductions  Inspection Department: reducing staff from 8.20 to 7.0 with the reduction of a full time inspector and a part-time inspector. Net reduction: $86,266  Recreation: No funding for requested new Parks Maintenance Technician position.  Net reduction: $43,010  Building Maintenance: Reduces staff from to 12.0 with eliminating Part-time salaries.  Net reduction: $10,765

What are the reductions  Central Services Budget: Reduces all non-profit funding levels by 4% from current funding levels.  Boys and Girls Club – Current Level $9,000, requested $15,000, recommending $8,640.  Franklin County Arts - Current Level $5,000, requested $5,000, recommending $4,800.  Franklin County Chamber - Current Level $9,000, requested $10,000, recommending $8,640.  Volunteers in Medicine - Current Level $9,000, requested $25,000, recommending $8,640.  FVW Opportunities - Current Level $15,750, requested $15,750, recommending $15,120.  Safe Space - Current Level $9,000, requested $25,000, recommending $8,640.

What are the reductions  Central Services Budget: Continued  Area Mental Health - Current Level $134,500, requested $134,500, recommending $129,120.  Transfer to Water and Sewer Fund – Budget provides for no purchase of water from the Town of Franklinton, Furlough and a few other reductions. Net reduction in request resulted in a savings of $516,671 or 1.32 cents in water purchases.  Transfer to Revaluation Fund – Reduced funding from $150,000 to $25,000. Due to delaying the revaluation project 2 additional years, funding at last year’s level is not necessary. Net reduction - $125,000 or.32 cents Net Change in Central Services – Reduced by $688,321

What are the reductions  Sheriff’s Office: Reducing staff from to with the freezing of 3 full time deputies reducing 2 full-time Court Security Guards to a part-time status. Net reduction: $184,894 or.47 cents  Sheriff’s Office: Vehicles – Requested $184,705, recommending funding for $38,000.  Net reduction: $146,705 or.37 cents  Sheriff’s Office: Automotive Supplies - Requested $402,000, recommending funding for $300,000.  Net reduction: $102,000 or.26 cents

What are the reductions  Communications Department: reducing staff from 18.0 to 17.0 positions with the freezing of a telecommunication position. Net reduction: $42,207  Jail Operations: reducing full time staff from 35.0 to 34.0 with the freezing of a Detention Officer position and reduced part-time salaries from $100,000 to $70,000. Reduced Jail inmate medical request from $175,000 to $100,000.  Net reduction: $151,430 or.39 cents on tax rate

What are the reductions  EMS and Rescue Services: reducing full time staff from 54.0 positions to 49.0 positions with the freezing of 5 EMT positions (3 vacant and 2 filled). Reduces part-time salaries from $258,140 to $173,168. Eliminates overtime.  Net reduction in salary and benefits: $321,672 or.82 cents on the tax rate

What is the effect of reduction?  EMS and Rescue Services:  Currently: we have 7 ambulances Monday thru Friday from 6am to 6 pm and no QRV.  From 6pm to 6am we have 5 ambulances and 2 QRVs  From Saturday 6am to Monday 6am we have 6 ambulances and one QRV.  New funding: 5 ambulances from Monday thru Friday from 6am to 6pm, 1 ambulance from 9:00am to 4pm and a QRV from 6am to 6pm  From 6pm to 6am, we have 5 ambulances and 1 QRV. From Saturday 6am to Monday 6am, we have 5 ambulances and 1 QRV.  Results:  One less ambulance on Monday thru Friday and one less QRV from 6pm to 6am. One less ambulance Saturday and Sunday.  Allows four shift supervisors to come off the ambulance. (EMS Dir. Recom.)  Moves one ambulance from Louisburg to Youngsville for better coverage. (Recommended by EMS Director)  Net reduction in salary and benefits: $321,672 or.82 cents on the tax rate

EMS-Rescue Services  Something we need to analyze:  Should we get back in the transport business??  North State completes about 2,000+ billable transports annually in Franklin County. The average collection is about $400 per transport and that would be $800,000 in potential revenue.  It is recommended that we complete an in-house study to see if it would be feasible for us to get back in the transport business. We could add additional ambulances with no additional cost to the county and generate other much needed revenue. :

What are the reductions  EMS and Rescue Services: Working on reducing our contracted billing and collection contract from 9% to 6% of collections. Net reduction: $14,000  EMS and Rescue Services: Budget does not include a County appropriation for Bunn Rescue.  EMS Director recommends no funding due to lack of squad answering emergency calls in their district. Net reduction: $30,000 :

How are the Volunteer Rescue Squads financially? Squad NameAmount of cash on hand as of 6/30 Bunn Rescue FYE 09 White Level FYE 10 $153,888 $123,702 Louisburg FYE 09$102,089 Franklinton-current $60,000 Per randy Youngsville FYE 10$123,683

What are the reductions  EMS and Rescue Services: EMSAC requested $541,000 in capital outlay. Proposed budget provides for $175,000.  Net reduction: $366,000 or.93 cents on tax rate Item RequestedRequested AmountRecommended Three Ambulances $375,000$125,000 Rescue Truck Pmt. For Franklinton Rescue $15,000$0 Defib/Monitor $51,000$0 Pmt for New Station Repair on Ambulances $50,000 0 $50,000

What are the reductions  General Health Budget: Reducing staff from 10.5 positions to 9.0 positions with the elimination of a full time Environmental Health Specialist and a part-time Environmental Health Supervisor. Net reduction: $92,604 or.24 cents  Clinical Health Budget: Reducing staff from 39.0 positions to 37.0 positions with the freezing of a vacant Health Educator position and a Computer Support Technician. Transferred 2 positions from Dental budget.  Net reduction: $12,000  Dental Health: Eliminated Full Time Dentist Position. Contracting out for Dental Services. Transferred 2 positions to Clinical Budget.  Net reduction: $110,304 or.28 cents

What are the reductions  Aging Department: Reducing staff from 11.0 full time positions to 8.0 positions with the elimination of a In Home Health Aide as of 9/1/2011, an Adult Day Activity Asst. effective 6/30, and a Social Worker Assistant effective 6/30. Reduces part-time salaries from $177,480 to $122,665. (Staff Recommendation)  Also recommends contracting out the In Home Aide Service.  State Funds for the Adult Daycare Program have been cut by $20,282. After review of all programs, Aging Manager and Adult Day Care Manager are recommending these reductions. Net reduction: $170,498 or.43 cents

Education  Board of Education:  Requested for Operations: $ 12,457,270  Recommended: $ 12,000,000  $ (457,270)  FY Allocation $ 11,749,053  Recommended: $ 12,000,000  Increase $ 250,947  Requested for Capital: $ 1,175,780  Recommended for Capital: 925,000  Decrease $ 250,780

Vance Granville Community College  VGCC:  Requested for Operations: $ 322,887  Recommended: $ 300,000  $ (22,887)  FY Allocation $ 300,000  Recommended: $ 300,000  Diff. $ 0  Requested for Capital: $ 15,500  Recommended for Capital: 15,500  Diff. $ 0

Number of County Positions included in the proposed budget Proposed FY Proposed FY Difference Total County 457Total County 476(19) EMS 49EMS 54(5) Health Dept. 59Health Dept. 63(4) Sheriff’s 66Sheriff’s 70(4) Aging dept. 8Aging 11(3) DSS 101DSS 992 Inspections 7 Inspections 8 (1)

So again reductions to all departments excluding debt total $3.76 million compared to FY budget Original Budget FY (7/1/2010) Proposed Budget FY Change in Funding Manager 299,858 Elections 300, , ,412 (36,220) (19,515) Register of Deeds 348,288 Inspections 601, , ,594 (58,216) (90,106) Sheriff 5,862,246 Communications 1,077,258 5,196, ,913 (666,034) (152,345) Jail 2,935,824 EMS 3,842,805 2,656,700 3,165,378 (279,124) (677,427) Rescue /Capital 639,913 General Health 792, , ,142 (174,913) (41,290) Library 783,627 Aging 1,157, , ,714 (40,531) (187,816) Debt 9,675,881 Education 13,375,333 10,885,823 13,375,500 1,209,

Est. Fund Balance Position at 6/30/2011 Estimated Expenditures are: $ 68,196,685 Estimated Revenues are: $ 65,541,195 Difference - $ 2,655,490 During the fiscal year , we appropriated $3,483,995 and are going to use $2,655,490.

Estimated Fund Balance position FYE  Total Fund Balance 6/30/2010: $21,115,135  (less) estimated Expenditures for FYE 2011 (68,196,685)  (add) Estimated Revenues for FYE ,541,195  Difference in revenues and expenses (2,655,490)  Total Fund Balance FYE $18,459,645

Fund Balance position based on estimate for FY  Total Fund Balance 6/30/2011 $18,459,645  (less) Est. Required Reserves by Statute: $3,457,220  (less) Earmarked Reserves 1,095,413  (less) FYE 2012 Fund Bal. Appropriation 2,356,741  Projected Undesignated Fund Balance $11,550,271  Using Total GF Budget of $65,490,791  Est. % of Undesignated Fund Balance 17.64%

Undesignated Fund Balance Comparison Est. FYE $ 11,550,271 or 17.64% FYE ,312,790 FYE ,545,686 FYE ,455,767 FYE ,730,851 FYE ,146,678 FYE ,870,944 Based on a $65.9 million General Fund Budget

Capital Projects to Discuss  E 911 Enhancement Project continues. Funding for Debt Service will not be required in the proposed budget. Approximately $1 million in debt service will need to be reflected in the budget. Estimated total cost of the project is $10.7 million. County plans to borrow funds for the E911 project in January  Jail Renovations – The Sheriff is requested roughly $1.3 million in renovations to the Franklin County Detention Facility. The project is currently not funded in the proposed budget. It is recommended that the borrowing for this project be included in the County’s January borrowing for the E911 project.  Payment for New EMS substation at Lake Royale is not funded in the proposed budget. ($50,000)

Capital Projects to Discuss  Early College – Construction continues with an estimated completion date of August  Community College – $135,000 is recommended for Vance Granville Community College for a planning grant. This was budgeted in FY but no request from VGCC has occurred for these dollars as of the date of this report. Also, a chiller must be replaced at the Louisburg Campus. The cost is about $135,000. It is recommended that this be included in the borrowing with the E911 fund.

Fire Departments No Fire Tax rate increases are recommended however the following fire departments have requested rate increases and would like to appear before the BOC during work budget sessions to present their case. Bunn Fire Department - from 4.75 cents to 6.30 cents. FY Allocation – $357,055, Requesting $508,145 Cash on Hand at 6/30/ $397,781 ************************************************************************ Louisburg Fire Department - from 6.25 cents to 8.50 cents. FY Allocation – $184,000, Requesting $250,000 Cash on Hand at 6/30/2010 – Louisburg does not have a separate fund

Fire Departments Mitchiners Fire Department will have a tax rate decrease: Rate decreases from 5.00 to 4.50 cents. All other departments remained the same.

Fire Protection Department Requested Recommended Central Fire District250,000195,000 Epsom Fire District 88,500 Gold Sand Fire District 57,500 Justice Fire District 88,500 Kittrell Fire District 1,000 Pilot Fire District 166,725 White Level Fire District 73,500 Brassfield Fire District 7,979 6,000 Mitchiners Fire District131,100 Hopkins Fire District 10,100 Franklinton Fire District217,702 Youngsville Fire District949,098929,008 Bunn Fire District508,145370,000 Castalia Fire District 1,200 Centerville Fire District 59,000 TOTAL2,610,0492,394,925

Water and Sewer FY Proposed Budget  Proposed Operational Expenditures: $ 4,437,094  Proposed Debt Service 1,915,998  Total Proposed Expenditures 6,353,092  Current Proposed Revenues $ 6,793,707  Transfer to General Fund for partial repayment of prior year loans:  $440,615 Last year transfer needed from General Fund to balance Enterprise Fund was $235,283.

DEBT POSITION- General Fund  OUTSTANDING PRINCIPAL 4/15/2011 $111,183,454.  DEBT EVIDENCED BY  G.O. BONDS $ 69,650,000  COPS 41,533,454  Total $ 111,183,454  *************************************************************************  Water and Sewer: $ 17,121,275  *************************************************************************  Total Debt: $ 128,304,729  Debt per Capita: $ 2,  Based on 60,500 citizens

DEBT POSITION- General Fund  OUTSTANDING PRINCIPAL 4/15/2011 $111,183,454.  DEBT EVIDENCED BY  G.O. BONDS $ 69,650,000  COPS 41,533,454  Total $ 111,183,454  *************************************************************************  Water and Sewer: $ 17,121,275  *************************************************************************  Total Debt: $ 128,304,729  Debt per Capita: $ 2,  Based on 60,500 citizens