MAY 14, 2009 ISSUE
Budget Cliffs Notes for May 19 Public Hearing
A Comparison: 2008-09 Adopted Budget vs. 2009-10 Proposed Budget
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. The lean proposed budget is $4 million less than Watauga County’s adopted budget for fiscal year 2008-09.
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, and 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.
The commissioners conducted work sessions to review the proposed budget last Monday, May 11, and Tuesday, May 12. 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.
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, 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.”
According to Nelson, revenues in the proposed budget are down primarily because of the projected decrease in sales tax revenue during fiscal year 2009-10. A decrease in collected fees from the Register of Deeds and Watauga County Planning & Inspections Department are also expected in 2009-10 because home sales and new home construction are currently lower than previous years’ levels. Because revenues are expected to decrease, expenditures for 2009-10 are also down.
Nelson attempted to offset the decrease by suspending and/or delaying some programs, and by recommending budget cuts for many county departments and services. Nelson is delaying replacing the normal quota of vehicles in 2009-10. Usually, Watauga County budgets funds to replace eight to 10 vehicles annually, but for fiscal year 2009-10, only two new vehicles will be replaced. Nelson also suspended all county building renovations and cut funding for the Capital Improvement Program, effectively suspending the program for one year. Eight county administration positions are currently vacant and will go unfunded in fiscal year 2009-10 to help balance the budget. No cost-of-living salary increases and no pay-for-performance adjustments for county employees are proposed in the recommended budget to help with the bottom line, and the provision of the wellness allowance for employees is discontinued, according to Nelson.
Budget Breakdown
In preparation for the May 19 public hearing, the following is a budget breakdown and comparison between Watauga County’s 2009-10 proposed budget and Watauga County’s 2008-09 adopted budget:
2008-09 Adopted Budget
Overview…
The fiscal year 2008-09 adopted budget for Watauga County, including all funds, totaled $60,405,058. The General Fund budget totaled $44,624,530.
Revenues…
47.82 percent—property taxes
21.51 percent—other taxes
12.62 percent—fund balance
10.14 percent—sales/permits/fees
6.27 percent—grants/reimbursements/federal and state shared revenues
1.64 percent—miscellaneous revenues
TOTAL: 100 percent = $44,624,530
Breakdown:
$26,397,552—property taxes
$12,965,469—other taxes
$178,000—federal and state shared revenues
$931,000—permits and fees
$420,277—investment earnings
$615,572—grants/reimbursements
$347,000—recreation revenues
$413,450—sales and services
$472,325—miscellaneous revenues
$1,883,885—fund balance
TOTAL: $44,624,530
Expenditures…
27.41 percent—education
18.41 percent—public safety
13.98 percent—debt service/other
12.87 percent—human services
10.7 percent—general government
7.35 percent—environmental protection
7 percent—maintenance/public buildings
3.05 percent—culture and recreation
1.48 percent—economic and physical development
TOTAL: 100 percent = $44,624,530
Breakdown:
$11,741,500—education ($10,954,746 public schools, $786,754 Caldwell Community College)
$11,456,426—transfers to other funds
$8,007,790—public safety ($2,963,220 sheriff’s department, $494,105 telecommunications, $1,882,588 jail, $633,337 emergency management/fire protection, $922,412 ambulance, $197,730 animal control, $48,495 forestry, $792,417 planning & inspections, $48,486 domestic violence grant, $25,000 medical examiner)
$6,338,387—general government ($68,830 governing body, $429,544 administration, $471,274 finance department, $1,301,328 tax administration, $223,749 tax revaluation, $184,737 license plate agency, $51,000 legal services, $3,000 court facilities, $321,809 elections, $518,877 register of deeds, $621,827 data processing, $2,142,412 general administration)
$2,549,110—general services ($1,187,402 maintenance, $1,361,708 public buildings)
$2,295,744—human services ($584,413 public health, $236,194 mental health, $1,368,685 Project on Aging, $106,452 veteran services)
$1,490,580—culture and recreation ($510,310 library, $980,270 parks & recreation)
$744,993—economic and physical development ($78,325 AppalCART, $68,000 economic development commission, $265,168 cooperative extension service, $117,396 soil conservation, $216,104 special appropriations)
TOTAL: $44,624,530
2009-10 Proposed Budget
Overview…
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 $40,430,885, a reduction of $4,192,704 from the current fiscal year.
Revenues…
51.78 percent—property taxes
20.32 percent—other taxes
10.06 percent—sales/permits/fees
9.67 percent—fund balance
6.62 percent—grants/reimbursements/state shared revenue
1.55 percent—miscellaneous
TOTAL: 100 percent = $40,430,885
Breakdown:
$26,595,633—property taxes
$10,640,572—other taxes
$17,500—occupancy taxes
$66,422—intergovernmental revenues
$13,000—federal payment in lieu of taxes
$142,815—federal and state shared revenues
$574,000—permits and fees
$229,650—county towns’ tax collection fees
$5,500—jail medical services
$465,663—Project on Aging
$298,033—recreation revenues
$218,831—investment earnings
$412,791—sales and services
$541,834—miscellaneous revenues
$208,641—fund balance
TOTAL: $40,430,885
Expenditures…
28.68 percent—education
18.71 percent—public safety
12.72 percent—human services
11.57 percent—debt service education
9.51 percent—general government
7.14 percent—environmental protection
7 percent—maintenance/public buildings
3.06 percent—debt service/other
2.55 percent—economic and physical development
2.52 percent—culture and recreation
TOTAL: 100 percent = $40,430,885
Breakdown:
$11,607,030—education ($10,816,179 public schools, $790,851 Caldwell Community College)
$9,646,457—transfers to other funds
$7,539,111—public safety ($2,830,849 sheriff’s department, $482,815 telecommunications, $1,821,275 jail, $635,405 emergency management/fire protection, $933,115 ambulance, $144,285 animal control, $47,186 forestry, $574,055 planning & inspections, $45,126 domestic violence grant, $25,000 medical examiner)
$5,355,321—general government ($63,780 governing body, $423,021 administration, $435,851 finance department, $1,205,458 tax administration, $164,826 tax revaluation, $179,571 license plate agency, $45,250 legal services, $11,250 court facilities, $310,872 elections, $477,144 register of deeds, $653,063 data processing, $1,385,235 general administration)
$1,991,649—general services ($1,036,576 maintenance, $955,073 public buildings)
$2,205,243—human services ($565,127 public health, $228,895 mental health, $1,305,117 Project on Aging, $106,103 veteran services)
$1,418,889—culture and recreation ($495,000 library, $923,889 parks & recreation ($204,341 administration; $216,235 aquatics; $3,995 Cove Creek Gym; $19,672 WHS Athletic Complex; $293,138 athletics; $101,408 arts-special populations; $11,430 facility maintenance; $73,670 special programs))
$667,185—economic and physical development ($76,238 AppalCART, $57,600 economic development commission, $247,643 cooperative extension service, $114,304 soil conservation, $171,400 special appropriations)
TOTAL: $40,430,885
Line Item Comparisons…
The recommended budget for fiscal year 2009-10 contains cuts for most departments and services. Here are some—not all—of the reductions in funding in the proposed budget:
Public Schools:
2008-09: $10,954,746
2009-10: $10,816,179
Caldwell Community College:
2008-09: $786,754
2009-10: $790,851
Sheriff’s Department:
2008-09: $2,963,220
2009-10: $2,830,849
Public Buildings:
2008-09: $1,361,708
2009-10: $955,073
Maintenance:
2008-09: $1,187,402
2009-10: $1,036,576
Public Library:
2008-09: $510,310
2009-10: $495,000
Parks & Recreation:
2008-09: $980,270
2009-10: $923,889
Project on Aging:
2008-09: $1,368,685
2009-10: $1,305,117
AppalCART:
2008-09: $78,325
2009-10: $76,238
Cooperative Extension:
2008-09: $265,168
2009-10: $247,643
General Government Administration:
2008-09: $429,544
2009-10: $423,021
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