COUNTY OF WARREN COUNTY OF WARREN BUDGET PRESENTATION BUDGET PRESENTATION

FY 2008-09 FY 2008-09

Linda T. Worth, County Manager

ANNUAL BUDGET ANNUAL BUDGET SUBMISSIONSUBMISSION

In accordance with the Local Government Budget and Fiscal Control Act, I submit to you the recommended Fiscal Year 2008-09 Budget for Warren County.

This proposed budget is respectfully submitted as a working document.

Budget ComponentsBudget Components

• GENERAL FUND• REVALUATION FUND• E-911 FUND• FIRE TAX DISTRICT FUND• ENTERPRISE FUNDS

– Regional Water– District I Water– District II Water– District III Water– Solid Waste

FACTORSFACTORS

• The current economic downturn fueled by record job losses, a stagnant housing industry, rising fuel, utility, food, healthcare and prescription drug costs will have a substantial negative affect on Warren County’s operating costs and revenue generation in FY 09.

• Employee health insurance rates increased 24.8% based on our current health benefits package. To make this coverage affordable for the County, I am recommending changes in the benefits package that will reduce the rate increase to 14.4%. Dental rates increased 12.8%. The increase in health insurance is estimated to be $246,617.

• The Library will be completed in early FY 09. Increases in

staffing, operating expenses, and debt service will be approximately $302,727.

FACTORS cont’d.FACTORS cont’d.

MedicaidThe State of NC has begun its permanent takeover of Medicaid. However, Warren County will lose over $204,000 in sales taxes in FY 09 as part of the State’s Medicaid Relief Plan and will share in 50% of the anticipated Medicaid costs for Warren County in the amount of approximately $1,090,000.

Factors cont’d.Factors cont’d.

FUND BALANCE- In FY 08 a total of $3,949,190 was

appropriated from Fund Balance to help meet expenses in the General Fund.

- $3,500,181 of the $3,949,190 was appropriated from Undesignated Fund Balance.

- There will be an estimated loss of $2,212,652 in Fund Balance in FY 08.

- It is anticipated that Fund Balance will gain only $73,000 in FY 08.

Factors cont’d.Factors cont’d.

Fund Balance cont’d.- Due to the slowed economy and the

uncertainty of revenue generation coupled with increasing operating costs in FY 09 and subsequent years, it is imperative that only a minimal amount of fund balance be appropriated to balance the budget in the event we must rely on fund balance to help meet unanticipated revenue shortfalls.

Factors cont’dFactors cont’d

Fund Balance cont’d- There are several jurisdictions in NC that are laying

off employees because revenue projections have fallen short and will not cover expenses through the end of the fiscal year. Apparently, they did not have sufficient Undesignated Fund Balance to help cover the shortfalls.

- In spite of being designated as economically distressed, Warren County’s governmental finances have always been fiscally sound. It is my recommendation that we begin immediately to reverse the trend of relying on Fund Balance to fund expenses the property tax was designed to fund.

RECOMMENDED BUDGETRECOMMENDED BUDGET

• A General Fund Budget of $27,269,959 with a proposed Tax Rate of $.94/100 valuation. This recommended budget is .35% less than the current year’s revised budget of $27,364,479.

• The tax rate is based upon an estimated assessed valuation of taxable property of $1,428,417,105 and an estimated collection rate of 94%. The assessed valuation of taxable property increased by only $54,935,527 over last year’s valuation.

• A penny on the tax rate equals $134,271 (last year’s one cent equivalent was $129,794).

• The amount of undesignated fund balance applied to the General Fund is $2,000,000 representing a decrease of 43% of the current year’s $3,500,101 fund balance appropriation.

TAX BASE HIGHLIGHTSTAX BASE HIGHLIGHTS

Estimated Collection Ad Valorem

Year Tax Base Rate Taxes

2008-09 $1,428,417,105 94%$13,497,674

2007-08 $1,373,481,578 94.5% $11,832,704

2006-07 $1,338,403,806 94.5% $11,247,336

NOTE: Annual percentage of change in the tax base is approximately 3% annually. However, revaluation is

scheduled to take effect 1/1/09 that will bring our real property valuations back to 100% of market value.

REVENUE COMPARISONREVENUE COMPARISON

REVENUES FY 07-08

(Revised)

FY 08-09

(Requested)

%

Change

Ad Valorem Taxes 11,832,704 13,497,674 +14%

Sales Taxes 3,115,287 2,911,000 -7%

Restricted/Unrestricted (Grants) 4,919,002 4,933,258 +.29%

Fund Balance Appropriated

Other Revenue

TOTAL ALL REVENUES

3,500,181

3,997,305

27,364,479

2,000,000

3,928,027

27,269,959

-43%

-1.7%

-.35%

REVENUES BY CATEGORYREVENUES BY CATEGORYFY 09 RECOMMENDEDFY 09 RECOMMENDED

13,497,674

2,911,000

4,933,258

2,000,000

3,928,027

Ad Valorem Taxes

Sales Taxes

Restricted/UnrestrictedGrants

Fund Balance

Other

CATEGORY $ AMOUNT %

Ad Valorem Taxes 13,497,674 49%

Sales Taxes 2,911,000 11%

Restricted/Unrestricted Grants 4,933,258 18%

Fund Balance 2,000,000 7%

Other 3,928,027 14%

TOTAL $27,269,959 100

EXPENDITURE COMPARISONEXPENDITURE COMPARISON

07-08

(Revised)

08-09

(Requested)

Human Services–DSS

–Health/Home Health

–Mental Health

7,050,480

2,994,223

56,399

6,597,406

3,100,483

59,561

Totals 10,101,102 9,757,450

Public Safety–Sheriff

–Central Communications

–Detention

–Emergency Medical Services

–Emergency Services

–Fire/Rescue

1,859,159

557,139

1,091,248

1,374,286

200,432

259,200

1,941,622

555,902

1,132,747

1,158,097

508,098

270,700

Totals 5,341,460 5,567,166

EXPENDITURE COMPARISON EXPENDITURE COMPARISON (CONT’D)(CONT’D)

07-08

(Revised)

08-09

(Requested)

Education–Warren County Schools

–Vance Granville Community College

–SEMAA

3,176,935

152,380

160,073

3,440,517

180,112

167,182

Totals 3,489,388 3,787,811

Other–Debt Service

–Insurance/Fringes

–Transfers to Other Funds

–Contingency

–All Other Expenditures

1,839,088

336,757

700,000

278,441

5,278,243

2,063,453

353,996

71,224

140,780

5,528,079

Totals 8,432,529 8,157,532

TOTAL ALL EXPENDITURES 27,364,479 27,269,959

EXPENDITURES BY CATEGORYEXPENDITURES BY CATEGORYFY 09 RECOMMENDEDFY 09 RECOMMENDED

9,757,450

5,567,1663,787,811

8,157,532 Human Services

Public Safety

Education

Other

CATEGORY $ AMOUNT %

Human Services 9,757,450 36%

Public Safety 5,567,166 20%

Education 3,787,811 14%

Other 8,157,532 30%

TOTAL $27,269,959 100%

PROPOSED NEW PROPOSED NEW EXPENDITURESEXPENDITURES

NEW VEHICLES- 4 replacement vehicles in Sheriff’s Dept.- 1 new vehicle in DSS- 1 new vehicle & 2 used vehicles in Buildings & Grounds Dept.

NEW POSITIONS- Librarian I, Library Assistant I, & Library Aide in Library (Effective 1/1/09)

2 Library Pages (Effective 7/1/08)- Merge 2 P/T Computer Lab Assistants to Library Assistant I Position

(Effective 7/1/08 at No Additional Cost)- 50% to 100% Recreation Coordinator (Effective 7/1/08)- Administrative Assistant II (50% HR and 50% Solid Waste, Effective

7/1/08)- 50% to 100% Administrative Assistant I in Buildings & Grounds

(Effective 7/1/08)- 50% Kennel Attendant in Animal Shelter (Effective 7/1/08)- Temporary Revaluation Clerk in Tax Administration (Revaluation Fund

will fund this 18 month Position)

PROPOSED NEW EXPENDITURES PROPOSED NEW EXPENDITURES (CONT’D.)(CONT’D.)

New Positions cont’d.- Physician Extender, 2 Public Health Nurse II, and

Processing Assistant III in Health Dept. Wellness & Home Health Programs (Effective 1/1/09)

- 50% to 100% Maintenance Worker from Sheriff Dept. to Detention Center (Effective 7/1/08)

- Deputy Sheriff - Courthouse Square (Effective 1/1/09)

PROPOSED NEW PROPOSED NEW EXPENDITURES (CONT’D.)EXPENDITURES (CONT’D.)

- Fire Radio System Repairs - $300,000 plus Installment Purchase Payments of $40,762 for a total of $340,762 (Emergency Services)

- Renovations to Mental Health Building to House County Administration & Finance Offices - $85,000

(Building & Grounds Department)- Renovations to Old Library to House Tax Administration - $93,000

(Buildings & Grounds Department)- Sewer System Repairs at Detention Center -$25,000 (Buildings &

Grounds Department)- Court Facilities Annual Telephone System Cost - $12,613 - EMS Capital Equipment - $40,150- 2% COLA for County Employees Effective 1/1/09 - $102,780 - New Debt Service: Library Principal & Interest - $252,109 Old Library & Mental Health Building Renovation Principal & Interest -

$21,804 Halifax EMC (Wise Project) - $15,161 (6 months)

Enterprise Funds SummaryEnterprise Funds Summary

Solid Waste Fund

This budget reflects moderate increases from the currentyear due to increased costs of fuel and related costsassociated with solid waste hauling and disposal. There are no vehicle or major capital equipment purchasesscheduled for FY 09.

We are recommending the household fee remain at thecurrent level of $105/household.

There is no reserve anticipated in the Solid Waste Fund forFY 09.

Enterprise Funds Summary Enterprise Funds Summary cont’dcont’d

Water and Sewer District Funds

The cost of water purchased from the Regional WaterSystem increased by 5% for FY 09 following a 14% increase in FY 08. As a result of these increases the flat rate for watercustomers has been increased by $1.00 for FY 09.

The water/sewer rate structure implemented in FY 07has proven to be effective in raising sufficient revenues tomeet the needs of the water district funds.

Enterprise Funds Summary Enterprise Funds Summary cont’d.cont’d.

Water and Sewer District Funds cont’d.New Positions- 1 Utility Service Technician to help accommodate the

additional 1200+ customers to be added in the District III, Phase II Water Project

- Reclassify Utility Office Coordinator from Grade 19 to Grade 21 to reflect additional job duties and responsibilities associated with supervising all office personnel, coordinating and assisting with project funding and oversight in a growing Public Utilities Department

CLOSINGCLOSING

This proposed budget continues the forward momentum of Warren Countyin several areas, namely:

Capital Projects/Recreation

• Library/Community Meeting Room will be completed and operational in FY 09• Recreation Complex - Phases I & II (fully operational)• Funding for 1 Satellite Park in FY 09• Funding for Renovation of the Old Library and Mental Health Building to house

County Administration and Tax Administration• One EMS Satellite Facility to be constructed with funds appropriated in FY 08

Economic Development

• Funding for Water/Sewer Infrastructure at the Wise I-85 Interchange• Water/Sewer District III, Phase II to serve the Northeastern and a portion of the

Southeastern areas of the county is under construction

CLOSING cont’d.CLOSING cont’d.

Communications

• Funding for Repairs and Upgrades to the Fire Radio System to improve emergency communications

Effective & Efficient County Government

• It is recommended that employee travel be restricted to essential travel for maintenance of certifications, licenses, and mandatory training sessions. Where possible, one employee should be designated to represent the department at informational sessions. Most departmental travel lines have been reduced to FY 07 spending levels or below.

• Departmental office supply lines have also been reduced to encourage recycling and conservation.

• We are in the process of reviewing all heating/cooling systems to ensure maximum fuel efficiency in all county-owned buildings.

• The new vehicle gas purchasing system through Wilco Hess/Trade Mart is in place for the county’s fleet. It is anticipated the County will realize greater fuel efficiencies through this program.

CLOSING cont’dCLOSING cont’d

Many thanks to our County Finance Director and the Finance Office Staff, Manager’s Office Staff,HR Manager, Facilities & Capital Equipment Committee, IT Committee, Fleet Management Committee, all County Department Heads and Staff for the input and assistance rendered during the preparation of this proposed budget.

Respectfully submitted,Linda T. Worth, County Manager