MAY 7, 2009 ISSUE
County Manager Presents Lean, Balanced Budget with No Property Tax Increases
Public Hearing On Recommended Budget May 19
After shaving more than $4 million from its total, Watauga County Manager Rocky Nelson presented his staff’s recommended budget for fiscal year 2009-10 to the Watauga County Board of Commissioners on Monday, May 4.
“It’s a very austere budget, but it’s a balanced budget,” said Nelson. “And it does not include a recommended property tax increase.”
A public hearing on the proposed budget will take place on Tuesday, May 19, at 6:00 p.m. in the commissioners’ boardroom in the Watauga County Administration Building. The public is invited to attend.
A copy of the proposed budget is available for public inspection by clicking to www.wataugacounty.org, in the county manager’s office in the Watauga County Administration Building and at the public libraries in Boone, Blowing Rock and at the Western Watauga Community Center.
“It is currently the recommended budget, but there is still a lot of work to be done with the commissioners before it is done,” said Nelson.
The commissioners will conduct work sessions to review the proposed budget on Monday, May 11, and Tuesday, May 12, at 4:00 p.m. both days in the commissioners’ boardroom. Nelson expects the commissioners to schedule an additional budget work session after the public hearing on May 19 and then continue to tweak the budget during their regular meetings in June.
According to Nelson, the final budget must be finalized and approved by June 30, as required by state statute.
The fiscal year 2009-10 recommended budget for Watauga County, including all funds, totals $56,310,766, a reduction of $4,094,292 from fiscal year 2008-09. The General Fund budget totals $40,435,885, a reduction of $4,192, 704 from the current fiscal year.
According to Nelson’s budget memo, “This recommended budget carries forward existing services and programs and has been balanced using all current available revenue sources. However, the fiscal year 2010 recommended budget contains cuts in most areas, including but not limited to departmental budgets and education.
“As it should be noted at this time,” Nelson’s memo continued, “due to the potential effect of economic conditions on the fiscal year 2010 revenue stream, the budget will have to be closely monitored throughout the year. Any revenue shortfalls that may occur will have to be addressed, possibly resulting in further cuts.”
In the recommended budget, the current countywide property tax rate is proposed without an increase at $.313 per $100 valuation. Property taxes—or ad valorem taxes—account for 51.78 percent of all county revenues. All fire district tax rates are proposed in the budget at their existing rates.
Under Nelson’s plan, the education budget for both the public school system and Caldwell Community College would be reduced by 3 percent, although $3,964,700 would be set aside for debt service on the new Watauga High School.
Also facing 3 percent cuts are the Appalachian District Health Department, the Watauga County Public Library and the Smoky Mountain Mental Health Center.
A 3.85 percent decrease in funding is proposed for the Watauga County Sheriff’s Office, which will be achieved through a recommended suspension of purchasing two replacement vehicles.
Planning and Inspection fees and solid waste fees are recommended without an increase in the proposed budget.
In the proposed budget, Nelson recommended suspending all major capital projects for the next fiscal year, with the exception of the construction of a new Animal Care and Control facility. Based on direction from the commissioners, Nelson wrote, this option may need to be considered if a service agreement with the Watauga County Humane Society does not materialize.
No cost-of-living salary increases and no pay-for-performance adjustments for county employees are proposed in the recommended budget. Additionally, the provision of the wellness allowance for employees is discontinued.
Nelson wrote, “This recommendation is offered reluctantly and based solely on economic conditions. It goes without saying that the county has many deserving career employees who continue to deliver quality services.”
Due to increased cost of administration, limited coverage and low utilization, short term disability insurance is discontinued in the recommended budget. In its place is a shared leave policy to assist employees dealing with long-term illnesses that will be presented to the commissioners prior to June 30 for consideration.
No new employment positions are proposed in the recommended budget, however, gross salary amount reductions are recommended for two departments due to decreased revenues. A $37,123 decrease is recommended for the Register of Deeds Office and a $53,136 decrease for the Planning and Inspections Department. Nelson expects the department heads to manage the decreases through furloughs, decreased workweeks and/or job cuts.
In the budget, currently eight county positions are vacant due to a lack of revenues, one position has been reduced from full-time to part-time and one position was eliminated in the Planning and Inspections Department, with the employee transferred to the Sanitation Department.
For more information, call 828-265-8000.
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