1. Joseph Scherer, City Manager
Proposed Budget
May 31, 2017
Presented by:
Joseph Scherer, City Manager
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

2. Visuals in this presentation will be included in your Budget Notebook
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

3. City Manager’s Budget Message Fiscal Year 2017 / 2018
Mayor Doughtie and Members of the Roanoke Rapids City Council:
In accordance with the NC Local Government Fiscal Control Act, the recommended budget for Fiscal Year is presented for your consideration. The budget document represents balanced revenues and expenditures. Achieving a balanced budget remains a challenge to provide effective services to our citizens.
The General Fund operating budget includes revenues and expenditures each totaling $15,648,682.
The property tax rate is recommended to remain at $.651/$100 of valuation.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

4. Summary of Recommendations
I am recommending the following action for the Fiscal Year Budget:
Funding for employee benefits at the current level, and a 4 % Cost of Living Adjustment
The property tax rate remain at the rate of $.651/$100 of valuation
The budget allows the City to continue to provide quality services at the minimum acceptable levels.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

5. Economic Outlook
The results of the November 2016 presidential election was a surprise to many and to date there is uncertainty as to what impact this will have on U. S. economy. Nearly 5 months into , there have been few obvious economic setbacks.
It remains to be seen how issues like health care, infrastructure spending, tax code and the federal budget will impact economic performance and outlook.
Much the same can be said for North Carolina, though tempered somewhat from overall economic perspective.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

6. Economic Outlook
Dr. Walden, NC State: Economic Indicators Index declined in April by % from March.
Dr. Connaughton, UNC: Projected 2.3% increase in real state GNP from to 2017.
Carolina Survey of Business Activity: General Business Conditions Index at highest point since April 2016.
Expect total inflation to be 2.1% in 2017, the same as in Core inflation, which excludes food and energy costs, should be 2.0% this year, down a bit from 2016’s 2.2% rate. Reduced medical-care price inflation — which should be about 2.1% in 2017, down from 3.8% in — explains most of the slower growth. Housing costs are likely to rise 3.3% in 2017, because tight home inventory is pushing up purchase prices and rents.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

7. Economic Outlook
Roanoke Rapids unemployment rate as of March was 7.5%, a decrease of .2% compared to March The State rate was 4.3% as of March
Consumer Confidence Index®, which had decreased in April, declined slightly in May. However, consumers’ assessment of present-day conditions held steady, suggesting little change in overall economic conditions.
Consumers’ outlook for the labor market was mixed. The percentage of consumers expecting their incomes to increase edged up from 18.7 percent to percent, but the proportion expecting a decrease also rose, from 7.6 percent to 8.7 percent.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

8. Economic Outlook
The annual budgets produced during the past few years had required a very careful approach to revenues. This resulted in severely reduced capital spending and cost of living adjustments .
This year’s budget attempts to address some of the more critical needs in salary and cost of living adjustments, to bring our most valued resource, our employees, closer to median salary levels in their fields.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

9. Roanoke Rapids
Budget & Economic Data
Fiscal
City
Unassigned
% Fund
# Full-time
Outside Funds
Tax
Collection
Year
Expenditures (1)
Fund Balance
Balance
Employees
Secured (3)
Rate
FY 97/98
$ ,758,794
$ ,805,266
32.0%
157
$ ,562 $
97.38%
FY 98/99
$ ,264,729
$ ,427,554
26.2%
154
$ ,738,732
96.36%
FY 99/00
$ ,523,559
$ ,741,224
28.8%
153
$ ,545,280 $
96.94%
FY 00/01
$ ,631,367
$ ,972,320
30.1%
156
$ ,738,508
97.75%
FY 01/02
$ ,997,217
$ ,033,611
20.3%
$ ,607,800
97.06%
FY 02/03
$ ,272,221
$ ,893,970
20.4%
$ ,077,500 $
91.04%
FY 03/04
$ ,644,661
$ ,801,248
16.9%
$ ,649,804
95.32%
FY 04/05
$ ,824,411
$ ,751,257
16.2%
158
$ ,267,718 $
97.41%
FY 05/06
$ ,272,179
$ ,327,786
10.9%
$ ,942,050
97.39%
FY 06/07
$ ,015,974
$ ,454,935
11.2%
165
$ ,349,768 $
97.68%
FY 07/08
$ ,909,927
$ ,246,024
8.3%
$ ,287,889 $
96.38%
FY 08/09
$ ,010,207
$ ,331,164
17.91%
139
$ ,346,717 $
94.20%
FY 09/10
$ ,265,713
$ ,895,065
29.4%
$ ,670,328
95.60%
FY 10/11
$ ,125,545
$ ,727,208
26.4%
134
$ ,459
96.70%
FY 11/12
$ ,706,857
$ ,218,104
28.7%
$ ,350,000
96.50%
FY 12/13
$ ,404,909
$ ,275,566
37.0%
137
$ ,179
96.96%
FY 13/14
$ ,315,353
$ ,149,411
27.0%
143
$ ,423
98.70%
FY 14/15
$ ,549,621
$ ,367,805
28.0%
$ ,977
98.57%
FY 15/16
$ ,554,155
$ ,409,448
22.0%
147
$ ,716 $
98.88%
Co. Unempl.
Retail
Building
Long Term
Cash and
Population
Rate (6)
(5) Sales (3)
Base (2)
Permits (8)
Debt (4)
Investments (7)
County
15,991
8.6%
$ 344m
$ 514m
$ 703m
$ 11.6m
$ ,659,456
$ ,024,420
15,804
8.4%
$ 331m
$ 504m
$ 728m
$ 12.8m
$ ,173,869
$ ,639,580
15,676
7.0%
$ 328m
$ 502m
$ 879m
$ 10.8m
$ ,702,458
$ ,484,949
16,957
$ 315m
$ 503m
$ 876m
$ 10.9m
$ ,281,035
$ ,802,847
16,979
10.0%
$ 305m
$ 510m
$ 9.1m
$ ,268,393
$ ,450,121
16,943
10.1%
$ 333m
$ 586m
$ 934m
$ 21.4m
$ ,784,527
$ ,947,350
16,904
9.6%
$ 357m
$ 628m
$ 901m
$ 19.2m
$ ,388,425
$ ,748,239
16,821
$ 380m
$ 655m
$ 13.5m
$ ,086,214
$ ,710,023
16,741
7.3%
$ 216m
$ 341m
$ 860m
$ 19.8m
$ ,658,554
$ ,755,892
16,721
6.3%
$ 240m
$ 905m
$ 32.4m
$ ,725,045
$ ,885,038
16,609
6.7%
$ 230m
$ 334m
$1.077b
$ 36.5m
$ ,425,105
$ ,730,864
16,569
13.8%
$ 294m
$ 407m
$1.110b
$ 17.8m
$ ,449,086
$ ,337,251
16,552
12.5%
$0.00
$ 342m
$1.128b
$ 9.7m
$ ,648,444
$ ,578,544
15,731
13.6%
$ 350m
$1.130b
$ 11.9m
$ ,370,000
$ ,455,222
13.2%
$ 368m
$12.0m
$ ,690,000
$ ,187,835
15,691
11.1%
$406m
$1.159b
$9.6m
$ ,965,000
$ ,877,499
15,543
10.6%
$421m
$1.192b
$10.1m
$ ,195,000
$ ,035,515
15,392
9.5%
$450m
$1.189b
$11.3m
$ ,375,000
$ ,306,725
15,221
7.6%
$463m
$1.139b
$23.0m
$ ,500,000
$ ,735,061
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

10. Revenue – Major Sources
Ad Valorem (Property Tax)
Sales Tax
Utility Franchise Tax
Powell Bill
Solid Waste User Fees
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

11. Ad Valorem (Property Tax)
City’s primary source of revenue
43% of total General Fund Budget
Projected 2017 tax levy $6,602,661
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

12. Ad Valorem (Property Tax)
Tax rates and prior year budgeted amounts are listed below
(receipts for FY 2017 is based on a 98% collection rate)
2011
2012
2013
2014
2015
2016
2017
0.574
0.624
0.651
6,768,485
6,862,753
6,977,275
6,872,871
7,332,371
6,805,041
6,602,661
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

13. Sales Tax Revenues City’s second largest source of revenue
22% of the total General Fund Budget
Proposed sales tax revenues for 2017/ totals $3,353,527
2.15% increase compared to 2016/ appropriation
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

14. Sales Tax Revenues Appropriated Sales Tax Revenues are listed below:
2012
2013
2014
2015
2016
2017
2018
2,070,113
1,938,632
2,005,894
2,090,541
2,817,600
2,954,907
3,353,527
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

15. Utility Franchise Tax City’s third major source of revenue
10% of the total General Fund budget
Proposed franchise tax revenues for 2017/2018 totals $1,470,344.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

16. Appropriated Revenues for Utility Franchise Taxes
2012
2013
2014
2015
2016
2017
2018
1,113,582
1,229,631
1,200,000
1,320,569
1,470,344
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

17. Powell Bill Funds City’s fourth major source of revenue
3.00% of the total General Fund budget
Proposed Powell Bill funds for 2017/2018 totals $463,891, same as recommended from FY 2016/2017.
Powell Bill is calculated using population plus street miles
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

18. Appropriated Revenues for Powell Bill Funds
2012
2013
2014
2015
2016
2017
2018
458,877
467,824
473,244
475,217
470,060
463,891
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

19. Solid Waste Fees
Solid waste user fees are the fifth largest source of revenue
These fees are designated to cover the actual cost of providing this service
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

20. Solid Waste Fees
We are recommending no increase in solid waste user fees.
The calculation for this fee is as follows:
solid waste/refuse budget, debt service and administrative cost
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

21. Solid Waste Fees Fiscal Year Solid Waste Fee 2017-2018 204.50
199.25
188.59
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

22. Departmental Summary General Fund Operating
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

23. Departmental Summary – General Fund Operating
Amount
General Government
$ 4,215,503.00
Fire
$ 1,851,699.00
Parks & Recreation
$ 1,987,782.00
Planning
$ ,674.00
Police
$ 3,056,175.00
Public Works
$ 4,050,849.00
Total Fund Summary
$15,648,682.00
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

24. Personnel & Employee Benefits
We currently have 147 Full Time Employees
Police and Fire report minimal vacancies
Recommending a 4% COLA for all employees
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
158
139
134
141
142
147
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

25. Employee Benefit Package
Annual Cost
Group Health Insurance
$ 1,357,414
No Increase
Dental
$ ,000
Life Insurance
$ ,800
Longevity
$ ,060
Christmas Bonus
$ ,000
Employee’s Assistance Program
$ ,742
Health Reimbursement Account
$ ,000
$2,000 towards deductible
3% 401k Employer Match
$ ,885
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

26. Debt Service
Installment Notes Payable
Balance Due FY
First Citizens Bank - (refinanced USDA loan - Neighborhood
Resource Center) due in 8 annual installments of $24,274,
including interest at 2.25%, beginning August 30, 2014 through
August 30, 2021.
$ ,274.00
First Citizens Bank - (refinanced USDA loan - Firestation #2)
due in 18 annual installments of $94,521.30, including
interest at 3.00%, beginning August through
August 30, 2031.
$ ,521.30
First Citizens Bank - due in 5 consecutive annual installments
of $32,826.02, including interest at 1.85%, beginning
July 2014 through July 2018.
(6 Police Vehicles)
$ ,826.02
First Citizens Bank - due in 3 consecutive annual installments
of $97, including interest at 1.4%, beginning
August 28, 2015 through August 28, 2017.
(11 Departmental Vehicles) 4 Chargers/2 Camrys/1 Expedition/4 Ford Trucks
$ ,255.93
SunTrust Bank - due in 5 consecutive annual
installments of $100, including interest at 1.385%
beginning April 8, 2014 through April 8, 2018
(1 Fire Ladder Truck)
$ ,025.38
BB&T Equipment Installment Financing - due in 6 annual
installments at $108,270/includes interest rate of 1.78%,
repayment beginning December 7, 2017 through December, 2022.
$ ,270.81
Total Installment Financing Payable
$ ,173.44
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

27. Community Contributions
Outside Agency Requests
Agency
Amount
Status
Beautification Committee
$ 1,500.00
Funded
Roanoke Valley Rescue Squad
$ 17,000.00
Halifax-Northampton County Airport
$ 25,000.00
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

28. In Closing
We continue to strive to present a recommended Annual Budget that is balanced, protects the investments made in the past, fosters a work environment that ensures the safety of those who serve the City, and provides for services as economically and efficiently as possible.
Respected citizens, outside agencies and City departments requested substantial new and additional funding for a variety of programs and services. Many of the requests were reasonable, yet the available dollars to help everyone were very limited. As such, most were not included in my recommended budget.
Joseph Scherer, City Manager
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

29. What’s Next? Public Hearing 5:15 p.m. June 6, 2017 Andrews Building
Adoption of the Budget
5:15 p.m. June 20, 2017
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC

30. Availability of Proposed Budget
The proposed budget will be available online at the City of Roanoke Rapids website on Thursday, June 1, 2017
A detailed copy of the Proposed Budget is available in the City Clerk’s Office for Public Inspection.
City of Roanoke Rapids * 1040 Roanoke Avenue * Roanoke Rapids, NC