Commissioners review county budget

May 19—LENOIR — On Wednesday, May 18, the Caldwell County Board of Commissioners held a special meeting to review and discuss the proposed county budget for the 2022-2023 fiscal year.

"Under North Carolina law, every local government must have a balanced budget by June 30 each year," said County Manager Donald Duncan. "Every local government must have a minimum of 8% of their operating budget in reserves in case something should happen ... you have enough cash on hand to operate for at least a month."

A reserve fund typically must be established with a clear intent or plan in mind regarding the future purpose, use, and replenishment, when needed, of funds from the reserve. Local governments should balance the accumulation of reserves for future needs with the obligation to make sure taxpayers are not overburdened by these practices.

The proposed budget will not raise property taxes. The property tax rate for the county will remain at .63 cents per $100 valuation. In addition, sales revenue was given a conservative estimate of 5% projected growth year over year.

"Because of many years of double-digit growth, some of the estimates, very conservative estimates right now, are 7.5% growth in Caldwell County," Duncan said. "So I think it's safe to say 5%."

The first phase of the budget process is a draft budget for the commissioners to review and give comment or feedback. Wednesday night's (May 18) special meeting was held to serve this purpose.

"Our budget process is very elaborate," said Duncan. "We went through step one, presented the budget to the commissioners, now we're waiting for feedback."

The next phase is for the commissioners to vote on and adopt the final budget at the Board of Commissioners meeting on Monday, June 13. It is required that a public hearing notice be given in advance to give citizens the opportunity to attend the meeting and speak to the commissioners if they feel the need to do so.

The budget for 2022-2023 proposes numerous changes to both the general fund and the utility fund in order to improve the lives of residents and employees in Caldwell County.

Duncan said that one of his main goals upon his hiring was to implement a merit pay system based on annual evaluations for employees in the county.

"Your biggest expenditure is your people," he said.

The budget requests an increase in debt service of $438,000 for a new Animal Shelter and an increase of $345,000 for new body-worn and in-car cameras for the sheriff's office.

Moreover, in order to meet the state-mandated increase in the minimum wage from $13 to $15 per hour, the budget proposes an increase of $435,000 in funding for Caldwell Community College and Technical Institute (CCC&TI) and $585,000 for the Caldwell County school system.

The budget also includes funds to contract services for roadside litter removal.

"The commissioners are enthusiastic about having a clean, attractive community," said Duncan. "When people drive through the county, their first impression is of the side of the roads. We want to make it a better living situation."

Revenue for this litter pickup initiative will come from a landfill system where waste materials become converted into natural gas.

"We've got new revenue coming in from landfill," Duncan said. "The material breaks down and generates methane gas. The gasification system harvests and cleans the gas and then pumps it back into the natural gas pipeline that you burn at home. We're working towards up-cycling waste and providing businesses and homes with methane power."

The proposed budget will create a Waste Coordinator position, set aside reserves for maintaining old landfill, and begin an immersive internship or apprenticeship program.

The previous budget returned $1.8 million in fund balance, otherwise considered the "savings account" for the county. The current budget appropriated $4.4 million and is projected to return $5 million. The proposed budget anticipates using $4.8 million.

Some capital equipment purchases include new IT network equipment for $110,000, SWAT armor and communications for $85,000, two trucks for Animal Care, and three new patrol cars.

Commissioner Donnie Potter requested the board consider increasing the number of new patrol cars above three. After some discussion, the board agreed to purchase additional patrol cars in order to keep up with maintenance and replacements.

The budget also includes a utility fund that will pay for the addition of two new technicians for valve exercising, back-flow prevention, and the hydrant testing and maintenance program; set aside $100,000 for survey and engineering work for future projects; begin a tank maintenance program; and establish a new rate study to plan for future growth and long-term maintenance and expansion of the system.

"Everything is paid for in the current budget," Duncan said. "We're not raising taxes. Everything is funded under the current tax rate."

The two budget increases that may impact residents in the community are fire taxes and water rates.

The fire tax is a separate tax that funds fire departments in more rural areas of the county, such as Happy Valley or Kings Creek. The local fire department is funded through local taxes, but they do not have the power to raise taxes independently. They must apply to an oversight board, in this case the County Commissioners, and submit a budget, audit, and appropriate justifications for any changes in the budget.

The utility fund is different. Not all counties have one, but Caldwell County has one because some parts of the county are rural and some are more urban. Water for county residents is purchased from Lenoir and the town of Granite Falls, and numerous requests have been made to expand water access throughout the county. With an increase in the rates these municipalities charge the county, the county must also raise rates to offset costs.

"County residents will see an increase of about 5.3% to their county water," Duncan said. "To a large family that uses about 5,000 gallons a month, their monthly payment will go up about $1.20."

Additionally, the Register of Deeds has requested to expand the new passport service so residents can get their passports in the county.

The general fund operating expenses ($92.6 million) and the utility fund operating expenses ($7.7 million) added together create a total operating budget of $100 million for Caldwell County's fiscal year 2022-2023.

"The county is fortunate to be in stable, financial position," Duncan said.

The Board of Commissioners will officially adopt the final 2022-2023 budget during the public meeting on Monday, June 13 at 6 p.m. in the City-County Chambers, 905 West Ave. NW in Lenoir.