Education pegged for lion's share of county budget

The Caldwell County Board of Commissioners began analyzing the internal figures contained in the 2008-09 fiscal year budget, during a work session Monday at the City-County Chambers in Lenoir.

According to interim County Manager Bobby White's $72.43 million outline, roughly two-thirds of the money - $48.46 million - is set to be from direct county spending, with the rest coming from federal and state funds, along with local services and fees.

“We've tried to itemize the various functions of government and identify what the local costs are,” White said.

The budget plan keeps the property tax rate of 65.99 cents per $100 valuation unchanged, following a 12-cent increase last year to close a pronounced budget shortfall.

By state law, the commissioners must have a budget in place before July 1, the beginning of the new fiscal year. The board has called a public hearing for Monday, May 19 at 6 p.m. to receive input on the budget.

The breakdown of the proposed county funding includes:

€ $20.07 million net for Caldwell County Schools and Caldwell Community College and Technical Institute for direct funding and debt expense. The total represents 41.42 percent of local county funding and includes $14.1 million for the school system and $3.2 million for CCC&TI.

The commissioners recessed Monday's meeting until May 22, when representatives from the school system and the community college are scheduled to address the board.

€ $7.35 million, or 15.19 percent of local dollars, for the Department of Social Services, including $2.80 million for Medicaid matching funds.

€ $7.02 million (14.48 percent) for Sheriff's Office operations that includes $1.51 million for patrol, $1.24 million for the Detention Center and $1.23 million for debt service.

€ $4.97 million (10.27 percent) that includes capital outlay debt service, planning and permitting, the county's motor fleet and economic development.

€ $4.42 million (9.12 percent) for county government administrative expenses and departments such as tax, elections, computer systems and human resources.

€ $2.87 million (5.92 percent) for the Health Department - with $743,322 devoted to debt service, $476,230 net for the health clinic, $442,982 for administration, $335,169 for environmental health and $323,168 for animal control.

Property tax revenue, including vehicle taxes, is expected to provide $34.67 million (71 percent) of the local budget. Overall sales tax receipts, including allocations from the state, are forecast to come in at $9.5 million (19 percent), while an additional $4.92 million (10 percent) includes a $1.58 million capital reserve rollover, investment interest, cable franchise fees and solid waste fees.

White reiterated his forecast that property tax revenues will increase by $1.6 million, mainly due to a $1.1 million, one-time boost due to Google not opting to receive its grant payments this year. In addition, Finance Department Analyst Tony Helton said that a projected $4.4 million in county sales tax revenue (part of the $9.5 million overall sales tax estimate) has been based on an equivalent 12-month look back at tax receipts.

“If we fail to meet projections, it will be because sales tax has fallen,” Helton said.

Following a request by Commissioners Don Barrier and Faye Higgins, White said the county staff will put together an outlook for the next five years of revenues, expenses and projects.

Commissioner Dr. John Thuss cautioned that forecasting real estate values - which are set for revaluation this year and will take effect for the 2009-10 fiscal year - might be difficult due to a depressed market stemming from the recent troubles in the housing industry.

The commissioners also are seeking insight as to how the county's overall debt ranks with other counties in the state.

Looking at the current year's budget, White projected that the county will finish on a positive note, to the tune of approximately $80,000. The undesignated fund balance is forecast to come in at 10.7 percent ($7.7 million), above the 8 percent minimum that the North Carolina Local Government Commission prefers before approving any new borrowing.

Meanwhile, the $1.39 million 2008-09 capital outlay, which finances most purchases for a 59-month period, includes:

€ $250,000 for two ambulances and $60,000 for two heart monitors for Emergency Medical Services.

€ $210,000 for the first phase of new document management software for the Department of Social Services. DSS Finance Officer Linda Laws said the aim is to reduce the amount of paperwork that currently consumes more than 3,600 square feet of storage.

€ $200,000 for a monitoring system to improve fuel management.

€ $186,000 for eight Sheriff's Office vehicles, along with $96,800 for in-car data terminals and cameras.

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