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Finance Committee Presentation.2.20.24Finance Committee Meeting February 20, 2024 FY24-25 Budget Overview The goal of this year’s budget is to provide the level of service that our citizens expect of us and to plan for future growth, at a tax rate adjusted for the large increase in property values. Staff reviewed all department requests, making reductions to the requests based on actual, not desired, use. No wish list! Therefore, this budget is as lean as we can make it. Every tax dollar has a higher standard and must be justified as a needed cost! No one wants more taxes! This budget will be a balance between that understanding and what is expected of us TO DO for this community, now and going forward. Budget Challenges Reminder: we started this year’s budget with a $2M budget deficit and must be able to operate and pay the bills as an ongoing organization with payroll, equipment, fuel, etc. Costs have increased significantly over the last 6 years but there has been no reassessment or tax increase to cover them in that period. The County faces new long-term multi-million $$ capital projects with the Jail, renovations to the Historic buildings, a future Courthouse complex, among others. We need to plan for the long term and not just today! The State contribution to Schools was reduced by $900,000, due to the increased local composite index, which we are required to cover as per Standard of Quality Requirements. FY 2024 Revenues Projected 2024 Revenue*2024 Budget Additional Revenue Real Estate 26,684,017 26,381,477 302,540 Personal Property 11,794,455 11,778,178 16,277 Mobile Homes & Barns 242,643 239,743 2,900 Machinery and Tools 2,126,280 1,597,503 528,777 Merchant's Capital 398,514 381,381 17,133 Public Service Corps-Real Estate 2,412,679 2,135,577 277,102 Public Service Corps-Personal Property 508,549 371,643 136,906 Solid Waste Household Fee 3,153,700 3,180,000 (26,300) TOTALS 47,320,837 46,065,502 1,255,335 *These figures are estimates and will most likely change as more accurate figures are received and entered Major Revenue Sources FY 2025 Revenue Projections Estimates currently being used for revenue projections are based on historical data. We will not have confirmed figures for the major sources of revenue until month-end. Reassessment-Value increased on average 48% Value of Property: $6.2B Tax Value at current 62¢ rate: $36.5M Additional Revenue at this rate: $10.1M Operating Budget Budget Requests total $10M more than last year’s adopted GF Budget 3% COLA has been included for County employees under the County’s Pay Plan as well as funds to cover minimum wage increase to $13.50 effective January 1, 2025 –TOTAL INC $670K Requests include new positions-TOTAL INC $746K 7 Full-time Positions: 1-Information Technology 4-Public Safety 1-Recreation 1-Community Policy and Management Team (CPMT) 1 Part-time Position 1-Library 3 Part-time to Full-Time 1-Registrar 2-E911 Operating Budget Sheriff: Increase to Overtime due to workforce shortage-TOTAL INC- $118K New Lease for 20 vehicles started in FY2024 with Carryover Funds- TOTAL INC-$214K Increases new SRO Positions-$162K Increase for Local Match to SRO and other Grants-$350K Fire/EMS: Matrix Base increase for Volunteer Agencies-TOTAL INC-$184K EMS Supplement-Per Call increase to $50-TOTAL INC-$205K Fire Response-Per Call-New Request-TOTAL INC-$60K Equipment Maintenance-EMS-TOTAL INC-$212K Equipment Maintenance-FIRE-TOTAL INC-$179K Operating Budget Schools: Amount included in this budget is based on Required Local Effort (RLE) amount listed in the Governor’s Proposed FY2025 Budget plus an additional 6% over the RLE-TOTAL INC $2.175M. This is not a final amount since we still do not have the House nor Senate version of the FY2025 Budget. This figure will most likely increase Capital Contribution included in this budget TOTAL INC $4.5M. Staff is recommending the elimination of $930K from these requests. Capital Budget Computer Capital Outlay Totals $136.5K: Software Upgrades for HR Onboarding, Telephone Upgrade, and Community Development On-line Portal for Building Permits Building & Grounds Capital Outlay Totals $440K: Building & Grounds Improvement Emergency Fund-$340K Space Needs Study-$100K (Recommended by Staff to Eliminate) Fire & Rescue Capital Outlay Totals $1.370M: Apparatus Increases for Volunteer Fire and Rescue-$50K per Vehicle Fire Trucks-Increase from $200K to $250K Ambulances-Increase from $125K to $175K Purchase of EMS Building in Blairs-$680K (Recommended by Staff to Eliminate) Drug Box Requirement-$70K Career Ambulance-$250K Radio Upgrade-$180K (Year 2 of 3 Year Upgrade) Capital Budget Departmental/Community Capital Outlay Totals $2.2M: Moses Building Renovations-$1.5M Comprehensive Plan Upgrade-$150K (Grants to possibly Fund Remainder) Voting Equipment Purchase-$375K (187.5K will be cut ) Bookmobile Purchase-$100K (Grants to possibly Fund Remainder) Recreation Capital Outlay Totals $40K: Tractor for Wayside Park-$25K Facility Lease-Schools-$15K Long Term Capital Needs Long Term Capital Needs Currently, the County has a modest amount of debt outstanding, totaling $31 million. Annual debt service range from $1.2 million to $8.4 million, with final maturity in FY 2031. Tax Rate Relief We recommend lowering the tax rate to 59¢. This rate would allow us to cover current budgetary needs for FY 2025 and will allow for some growth over the following 3 fiscal years. A typical Single-Family Residence with a current property value of $200,000 would increase to $296,000 based on the average 48% increase. The effect of this tax rate will cost this taxpayer an additional $506.40 in tax over last year. This equates to $42.20 per month. Recall that one cent of taxes is $588,000. To reduce the tax rate further would require reductions of this amount for each cent reduced. We invite your Comments and Thoughts?