Onslow County North Carolina P roposed Budget

1. Onslow CountyNorth CarolinaProposed Budget FY 2013-2014 Jeffrey L. Hudson County Manager June 3, 2013

2. Public Policy & Program Triage • Budget At-a-Glance • Key Issues • Highlights of Proposed Budget • Looking Ahead: Future Years • Board Action Requested www.onslowcountync.gov

3. Proposed FY2013-2014 Budget Public Policy & Program Triage www.onslowcountync.gov

4. Proposed FY2013-2014 Budget Budget At-a-Glance www.onslowcountync.gov

5. Revenue Sources - All Funds

6. Expenditures by Function – All Funds

7. Budget At-a-Glance • Balanced Budget • All debt payments (P&I) are included • Requests totaled around $196million • Manager cuts totaled around $8 million • Total Budget is $188 million (All Funds) • General Fund proposed budget is $177 million www.onslowcountync.gov

8. Budget At-a-Glance, cont. • 1.29% increase over last year (All Funds) • Increases found in: • Mandated DSS Programs ($1.18 million) • Insurance Costs ($1.13 million) • Public Safety Vehicles & Equipment ($768,000) • Volunteer Fire & Rescue ($229,000) • Living Wage, Public Safety, Salary Range Adjustments ($2.9 million) • Costs beyond $3.2 million covered in cuts www.onslowcountync.gov

9. Budget At-a-Glance, cont. • Recommended Property Tax Rate is held at 58.5-cents per $100 in valuation, 2-cents below current revenue neutral • 63rd Lowest Tax Rate of all 100 NC Counties • 100% of Article 46 Local Option Sales Tax Monies are spent in accordance with promises made to voters in 2010 www.onslowcountync.gov

10. Budget At-a-Glance, cont. • General Fund Balance Appropriated • FY 09-10: $9.9 million • FY10-11: $10.1 million • FY 11-12 $15.2 million • FY12-13 $17 million • Proposed for FY-14: $13.4 million www.onslowcountync.gov

11. Proposed FY2013-2014 Budget Key Issues www.onslowcountync.gov

12. State Budget Adoption • Intergovernmental Revenues • Lottery Funds: $1,646,000 budgeted to pay for existing school debt • Unemployment Insurance • $285,000 • Other? www.onslowcountync.gov

13. Maximization of Available Revenue • Property Tax Collections • 96.06% • $8.9 million in delinquent taxes owed • Tax and Tag will provide more money if implemented as planned • Sales Tax Proceeds • Previously under a 40%-60% Blended • Change to 100% Ad Valorem • $1.2 million increase for FY-14

14. 80% of Programs are Mandates

15. Population Growth

16. Parcel Growth by Township

17. Example of Service DemandSocial Services Client Intake

18. Example of Service DemandEMS Call Volume

19. Example of Service DemandBuilding Inspections Activity

20. Number of County Employees

21. Bottom Line • Fewer General Government County Employees are providing higher service levels for a growing county population • Growth in Public Safety Employees may be primarily attributed to two reasons: • New Onslow County Justice Complex • Institution of Emergency Responder Program • Current Issue: County pay ranges are, on average, 14% below market.

22. Proposed FY2013-2014 Budget Highlights of Proposed Budget www.onslowcountync.gov

23. Board of Education

24. History of Funding

25. 2009 Funding formula Pros • Used Objective Measures • Created Significant Increases in Appropriations to Schools • Allowed for budget certainty and planning Cons • No Consideration for Factors Affecting County Government • other obligations • natural disasters • loss of state revenue • increased mandates • property devaluation • military downsizing • declining fund balance • Increasing school fund balance

26. Today… • Multiple factors to be considered • Other obligations and needs of county • Uncertainty of State Budget • Increased mandates • Devaluation of Property at next Revaluation • Sequestration • Declining County Fund Balance • Possible School Bond Tax Increase • School System Fund Balance Levels

27. School System Fund Balance • As reported by the NCACC • Wake: $73 million • Cumberland: $49 million • Charlotte/Mecklenburg: $32.1 million • Onslow: $28.7 million

28. Unassigned Fund Balance of the Onslow County Public Schools $25,397,967* *as of June 2012

29. Recommend New Formula • Recognize that county government has other obligations beyond that of public education • Eliminates funding based on uncertainty of student population projections • Bases increases on a percentage of new revenues realized by the county

30. Public School Bond Referendum • If passed by the voters: • Tax increase necessary on July 1, 2014 • If not passed by the voters: • School system likely to request funding for construction of new schools • If funded, tax increase necessary on July 1, 2014

31. Coastal Carolina Community College

32. CCCC • Operational Budget Flat-Funded • Annual Capital Budget Flat-Funded • Building new Maintenance Facility at the Western Boulevard Campus • $5.5 million project • Funded within existing capital improvement program

33. Human Capital Program

34. Implement 4-Step System • Step 1: Create a Living Wage • 65 Lowest Employees in Onslow County Government • Federal Poverty Rate for Family of 3: $19,530 • Onslow County Custodian: $17,788 • City of Jacksonville Custodian: $20,376 • Public Schools Custodian: $22,280

35. Implement 4-Step System • Step 2: Correct Inequities in Public Safety • Up to 242 Public Safety Employees • Onslow E911 Operator: $24,345 • New Hanover Operator: $29,514 • Onslow Deputy: $32,037 • Jacksonville Police Officer: $34,001

36. Implement 4-Step System • Step 3: Across-the-Board Pay Adjustment • 1,254 Employees • 4% Raise

37. Implement 4-Step System • Step 4: Reorganize County Government • Net reduction of 18 positions • Consolidate Human Services Agencies • Health, Senior Services, Social Services • Series of personnel actions • Overall Savings to Onslow County: $900,000+

38. Looking Ahead: Future Years

39. Fund Balance

40. Public Education Appropriations • Increasing Student Enrollment • Continued School Facility Needs • Additional Requests for Operating Expenses • Issues for both the K-12 Public School System and CCCC

41. Correcting the Divergence of Taxation and Governance • Under Current Law • School System Governs and Spends • County Government Taxes • If County Government Does Not Provide Enough, Schools take County to court • Proposed Change • School System Governs and Spends • School System Taxes • County Reduces Tax Rate by 32.33 cents of the 58.5 cent current rate.

42. Proposed FY2013-2014 Budget Summary www.onslowcountync.gov

43. As proposed, this budget… • Keeps Property Tax Rate at Current Levels • Pays for all current debt service and funds the proposed C.I.P. • Recommends Revision to the School System Funding Formula while maintaining current levels of support • Maintains CCCC funding at current levels • Implements 4-step program of changes to county personnel structure

44. Budget Available At: • Onslow County Administration • Onslow County Finance • All Onslow County Public Libraries • Jacksonville • Richlands • Swansboro • Sneads Ferry • www.onslowcountync.gov

45. Comments Received At: budgetcomments@onslowcountync.gov Or Budget Comments c/o Onslow County Administration 4024 Richlands Highway Jacksonville, NC 28540

46. Proposed FY2013-2014 Budget Action Requested:Set Public Hearing www.onslowcountync.gov

47. Onslow CountyNorth CarolinaProposed Budget FY 2013-2014 Jeffrey L. Hudson County Manager June 3, 2013