BOARD OF SUPERVISORS
BUDGET WORK SESSION
Wednesday, March 17, 2010

Present: Ms. Connie Brennan, Mr. Joe Dan Johnson, Mr. Tommy Bruguiere, Mr.
Allen Hale and Mr. Tommy Harvey

FY11 BUDGET: Mr. Carter noted that the draft budget is level funded on the
county’s side, including agency budgets. He said that the draft incorporates
input from the School Board. Ms. McCann said that the Department of
Education and Compensation Board official information has not yet been
received so the draft is based on the estimated figures.

Ms. McCann then presented adjustments to revenues and expenditures for the
General Fund and the School Fund, noting the following assumptions:

GENERAL FUND:

– Includes state revenue adjustments;
– Includes revised real estate and personal property projections;
– Includes reduced revised real estate tax sale proceeds and Aid to
Localities;
– Includes an increased Vehicle License Fee ($20 to $33)
– Includes staff recommended reductions to funding requests;
– Includes a group life premium holiday
– Includes 6 months of new courthouse facility costs;
– Reduces the number of school buses to be purchased from four to two and
includes that saved $160,000 in the transfer to the school operations fund;
– Includes an increased school transfer; and
– Includes a Contingency Fund of $255,179

Total Revised Revenue/Expenditure: $29,958,277

SCHOOL FUND:

– Includes estimated funding (House);
– Includes reduction to number of school buses to be purchased;
– Includes transfer from General Fund for operations;
– Includes adjustments to state revenues; and
– Includes adjustments to VRS and group life.

Total Revised Revenue: $22,418,859/Total Revised Expenditures: $22,652,982
Shortfall $234,123

Ms. McCann noted that the revised numbers reflects an increase in local
funding of $518,946 for the school fund operations over last year. Mr.
Carter reported a projected carryover from last year’s budget of
approximately $385,000 and said that the Contingency Fund ($255,179) could
be used to fund the School Fund shortfall.

Mr. Carter then reported on considerations related to next year’s budget,
including:

– An expected additional reduction in state revenues ($106,320) for
education in FY12 and increases in teacher VRS rates (+1.23% on teacher
rate);
– Courthouse debt service and one-year interest due in FY12 (interest
$309,375; debt service $645,000 for 20-year payback or $391,182 for 40-year
payback);
– A full year of new judicial facility operational costs ($99,500
additional costs in FY12);
– School bus replacement (additional $160,000 assuming two buses purchased
in FY11); and
– Tye River Elementary roof and window project

Mr. Hale said that the first step is to look at changes in revenue,
including the proposed increase in the Vehicle License Fee which would raise
approximately $202,000. Mr. Johnson said that the county needs to have a
Contingency Fund. Mr. Harvey said that the Board owes it to the taxpayers to
get the situation under control on both the county and the school side and
that he is not in favor of raising taxes at all this year. He said that both
sides can tighten belts and school instruction should not be cut.

Supervisors voted 5-0 to authorize staff to advertise raising the Vehicle
License Fee from $20 to $30 for vehicles and $8 to $15 for motorcycles. Ms.
McCann noted that the increase would result in approximately $150,000 in
revenues. Supervisors directed staff to take the difference (approximately
$53,000 from the Contingency Fund to balance the county budget, leaving the
School Fund shortfall at $234,123). Supervisors also voted unanimously to
keep the Real Estate tax rate at $.055 and the Personal Property tax rate at
$2.95 for FY11 (no change from FY10).

Meeting adjourned.

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