The proposed 2015-2016 fiscal year financial plan is now available for public inspection following delivery of a sober budget message by Halifax County Manager Tony Brown today.
“Addressing this … budget was a great challenge,” the county manager told commissioners. “We are coming out of the recession and have experienced some growth, however, not enough growth that would allow us to address many of our delayed capital needs that occurred with the economic slow down.”
The county was able to increase its fund balance up to 18 percent going into budget deliberations and the proposed fiscal blueprint was developed using the same revenue-based budgeting process that has been in place for the past 15 years. “By use of this revenue-based budgeting process and through great fiscal responsibility we … have been able to maintain a healthy fund balance over the years which allowed Halifax County to weather the economic downturn that began in 2008.”
(A public hearing on the budget will be held June 1 at 9:30 a.m. In addition to the link above, the budget will be available for public inspection at the clerk's office at the Historic Courthouse in Halifax as well as all five county libraries. Adoption is scheduled for June 15 at 9:30 a.m.)
Since that time, Brown said the county has used $11,474,799 from fund balance to balance its budgets. “If we had not had a substantial fund balance at the start of the bad economy, this would have equated to a greater than 35 cents total property tax increase over this period.”
Brown explained, however, with revenues not keeping pace with expenses, the use of fund balance has been needed to maintain an appropriate level of service to county residents. “Our ability to sustain operations during the recession with no tax increase show the importance of maintaining a healthy fund balance to not only assist us during emergencies, but to aid in maintaining services during hard times as well.”
Difficult cuts
Despite a slightly improving economy, Brown said the county initiated difficult cuts at the start of the depression. “I am happy to report that we continue to maintain our current service levels despite reductions made over the last seven years.”
Sales tax revenue increased by 14.1 percent and the tax collection rate is .27 percent ahead of last year.
Klausner Lumber is expected to bring 350 jobs, he said.
Still, Brown noted, “Our current economy continues to be a crisis situation for Halifax County and its residents.”
With cash reserves, the budget allocates $2,902,307 total dollars from fund balance in order to maintain critical capital needs and services required of the county and to compensate for our lack of revenues.
Despite the use of fund balance, the county's projected reserves will be at 12 percent of the operating budget, “and will still allow the county to have fiscal stability and allow for an adequate response to any emergencies that could occur during the year in the county.”
From 2008 to 2014 the county has cut departmental budgets by $3.1 million, Brown said, equating to an almost a 7.8 percent reduction from the average $35 million financial plan. “With these cuts, our county departments are as lean as they can get without cutting valuable services and programs to citizens.”
Capital needs and other funding
The most pressing capital needs are funded in the budget, Brown said, and include debt service payments for the Enfield-Inborden school project, the social services building, water service line construction in addition to the solid waste transfer station.
The budget includes the following:
No property tax increase but a revenue neutral rate of 73 cents per $100 of value.
An employee competitive market adjustment of 2 percent for full-time employees.
A competitive benefits package that includes 100 percent paid premiums for health coverage for each full-time employee who participates in the county's wellness program.
Maintains the longevity program.
The county's pay for performance plan.
Continues hiring freeze, previous staff reductions and travel restrictions without the need for furlough days.
Maintains average daily membership for each of the school systems at the current fiscal year level.
Money to support economic development and contingency operations.
Requires employees to use county vehicles when available for travel, which results in an estimated 70 percent savings.
Provides a $500 supplement for certified teachers.
Funds $1,258,400 in school capital needs.
Uncertainty
“The proposed budget shows the county's ability to provide excellent services to its citizens,” Brown said. “However, this budget only addresses items of which we, the county, have full control. With continuing challenges facing the federal government and the changes occurring at the state level, there is a greater potential for additional adaptations to which Halifax County would need to react.”
Brown said he continues to have concerns about mandates being passed down to local government.
“Our citizens get a great return on their tax investment,” Brown said. “Compared to all 100 counties in the state of North Carolina, we still still rank in the top 25 percent of counties with the lowest citizen tax burden. That is a feat of which we all can be proud, considering we are a Tier 1 county.”
Brown praised the board for not raising property taxes. “The last property tax increase for Halifax County citizens occurred 12 years ago in 2003 when the tax rate was increased from 78.5 cents to 86.5 cents. During our 2007 property revaluation, the tax rate was decreased to a revenue neutral rate of 68 cents. I congratulate this board on being taxpayer-focused to ensure our citizens continue to have a reasonable property tax rate with no increase for the past 12 years.”