Serving Boone, Blowing Rock, Banner Elk, and other towns of the North Carolina High Country
Founded 05-05-05
May 10, 2007 issue
Story by Kathleen McFadden
The Watauga County Board of Commissioners met in a special work session Wednesday night and again on Thursday to hammer out the details of the county’s 2007-08 fiscal year budget. The new fiscal year begins July 1, and the commissioners must adopt a balanced budget in June.
The commissioners’ work sessions cap a busy few months for County Manager Rocky Nelson, Assistant County Manager Deron Geouque and County Finance Director Doris Isaacs who have prepared a recommended budget for the commissioners’ consideration.
On the expense side, Nelson, Geouque and Isaacs begin with budgets from each county department. Each spring, department heads submit their budgets, and Nelson, Geouque and Isaacs decide what to cut—or, in rare cases, what to add—to come up with a balanced budget countywide. For next year, department heads asked for a total of 23 net positions; the manager’s recommended budget includes only six of those positions, and four are in the Sheriff’s Office: an additional patrol officer, an additional bailiff, a domestic violence officer and an additional jailer.
On the revenue side, Isaacs estimates what money the county will receive in the coming year, basing her projections on past tax revenues and applying a conservative increase for growth.
The recommended general fund budget for the coming year is $42,521,990, with an ad valorem tax rate of $0.313—no increase from last year. Every penny of the ad valorem tax rate equals approximately $804,989 at a projected collection rate of 98 percent.
Where the Money Comes From
More than half the county’s revenues come from property taxes, and about one-fourth comes from sales taxes.
Ad valorem taxes: 51.8 percent
Other taxes (principally sales tax): 26.26 percent
Grants/Reimbursements/State Shared Revenue: 10.53 percent
Sales/Permits/Fees: 10.35 percent
Fund Balance: 2.35 percent
Miscellaneous: 1.39 percent
Where the Money Goes
As in past years, the largest share of the county’s money goes to education, accounting for almost one-fourth of expenditures. The Sheriff’s Office is the next largest beneficiary, at 19 percent, and Human Services is third, reflecting the county’s share of Medicaid expenses.
Education: 24 percent
Public Safety: 19 percent
Human Services: 15 percent
Debt Service: 13 percent
General Government: 11 percent
Environmental Protection: 8 percent
Maintenance/Public Buildings: 7 percent
Cultural and Recreation: 3 percent
Economic and Physical Development: 2 percent
Highlights of the 2007-08 Budget
• No ad valorem tax increase
• No increase in solid waste user fees
• No fund balance appropriations
• Only one fire district tax rate increase; Deep Gap increases from 3 cents to 5 cents
• 7 percent increase for Watauga County Schools operating expense
• 5 percent increase for Caldwell Community College operating expense
• 5 percent increase for the Appalachian District Health Department
• 6.2 percent increase for the Watauga County Public Library
• 2.5 percent cost of living salary increases for county personnel, with an additional net 2 percent pay for performance adjustment to be effective January 1, 2008
Commenting on the Budget
Copies of the proposed budget are available for public inspection at the county manager’s office and at the public libraries in Boone, Blowing Rock and the Western Watauga Community Center.
A public hearing on the proposed budget will be held on Tuesday, May 22, 6:00 p.m. in the commissioners’ boardroom at the Watauga County Administration Building. At that time, anyone who wishes to comment on the budget may appear. For questions, call 828-265-8000.