Fiscal Year 2018-2019

Manager Recommended Budget

Board of Commissioners Chambers

Wentworth, NC
May 21, 2018
Budget Team Members

• Lance L. Metzler – County Manager

• Paul Murray – Strategic Management Director
• Patricia Galloway – Financial Services Director
• Kelly Burton – Deputy Finance Director
• Justin Thacker – Accounting Specialist
• Marcus Slade– ICMA/NCACC Management Fellow

FY 18‐19
Rockingham County Strategic Planning

• Vision: Provide the best quality of life educationally, economically, and

environmentally.

• Mission: Rockingham County Government will strive to provide the

highest quality of life and the opportunities to achieve it.

• Strategic Focus Areas:

• Economic Development
• Organizational Efficiency and Effectiveness
• Public Safety
• Citizen Engagement / Communication
• County Appearance / Environmental Enhancement
• Quality of Life
• Education

FY 18‐19
Budget Process

• Guiding Principles
• No property tax increase.
• Preserve high quality services.
• Reward high performing employees.

• The budget process formally began in February, however preparations

and forecasting began in late 2017.

• After requests were submitted to the budget team, we arrived at a

General Fund budget deficit of $6.6 million or the equivalent of 9.2
cents of the property tax rate.

FY 18‐19
Recommended Budget Overview

• Recommend zero (0) property tax rate increase.

• Keeps tax rate flat at $0.696 per $100 valuation.
• 9th consecutive year with no County property tax increase.

• Total General Fund Budget – $88,467,328

• Represents a $3,963,552 or 4.3% decrease from the current
General Fund budget.
• Smallest General Fund Budget since FY 2014/15.

• Total Budget (All Funds) – $125,965,740

• One Penny = $721,696 (FY 2017/18 Adopted ‐ $705,212)

FY 18‐19
 Revenues – Ad Valorem

• Current Year Ad Valorem – $50.2 million (increase of $1,147,272 or

2.3%)

• Represents the largest source of discretionary revenue.

• Comprised primarily of four parts:

• Real property – Value is projected to increase 0.94% or $46.7 million next year,
driven by experience in the current year and normal growth.
• Personal property – Value is projected to decrease 1.03% or $7.4 million, driven
by the closing of MillerCoors and Ball Metal.
• Public utilities – Value is projected to increase 13.02% or $97.9 million due to a
better than originally budgeted current year. Projected increase from what was
actually billed this year is a smaller 2% or $16.65 million gain.
• Motor vehicles – Value is projected to increase 4.4% or $32.7 million based
on experience in the current year.

FY 18‐19
Revenues – Sales Tax

• Total General Fund Sales Tax – $9,476,880 (virtually flat with

current year)

• Second largest of source of discretionary revenue.

• Collections in the current year have been stagnant, with July

through March collections growing only 0.3 percent when
compared to the same time period the year before.

• No revenues are included in the budget for the recently passed

Quarter‐Cent sales tax, as this first requires Board action.

FY 18‐19
 Revenues – Other Key Changes

• Building Inspection Fees (decrease of $40,000)

• While new housing starts continue to increase, there has been little commercial
development in the current fiscal year.

• Social Services – Child Care Subsidy Revenue (decrease of $3,558,645)

• Funding for Child Care vouchers no longer flows through the County (now
processed through NC FAST), and this revenue is therefore reduced to only
$100,000 for small carryover cases. This reduction in revenue is matched with a
reduction in expense in DSS Public Assistance.

• Social Services – Medicaid Transportation (decrease of $1,705,557)

• Similar to the Child Care Subsidy revenue described above, the County no longer
receives and distributes these funds. Therefore, the revenue is reduced with a
corresponding reduction in expense

FY 18‐19
Revenues – Other Key Changes

• 911 Services Revenue (new revenue of $56,200)

• A portion of the 911 Database Coordinator and GIS Manager are now charged to
the 911 Telephone Fund for performing eligible tasks.

• Youth Services Revenues (decrease of $152,073)

• This is due to eliminating the standalone Alternatives to Commitment Program
and the associated revenue from the State due to a decline in juvenile offenders,
as well as changing how MOE funds pay for Youth Services’ Substance Abuse
Prevention Program.

• Transfer from Landfill Fund (one‐time revenue of $457,582)

• In January 2018, the Board of Commissioners awarded a contract to timber
approximately 259 acres at the County’s Landfill, with the goal of generating
revenue for future projects. After removing the sale expenses and estimated
reseeding costs, this sale netted the County $457,582. Since this revenue was not
generated by user fees and is above and beyond the amount required to operate
the Landfill, the Recommended Budget transfers these timber proceeds from
Landfill Fund Balance to the General Fund, where they are budgeted to go into
the County’s fund balance.

FY 18‐19
Revenues – Other Key Changes

• Elections Fees (decrease of $38,570)

• While the County Board of Elections performs municipal elections, the cost
of these elections are reimbursed by the municipalities. With no municipal
elections scheduled in FY 2018‐19, this revenue is therefore eliminated.

• Interest Earned (increase of $105,00)

• This is due to a combination of rising interest rates as well as a change in
the County’s investment philosophy.

FY 18‐19
Revenues – General Fund Balance
• General Fund Fund Balance – The Recommended Budget
appropriates $2,479,170 a decrease of $81,605 from the current
year’s budget. This appropriation is comprised of:

• $2.5 million in expected unspent funds (surplus) due to the nature of

budgeting.

• $137,131 in anticipated unearned Duke Energy incentive dollars that are

budgeted but not expected to be paid out.

• $260,700 in one‐time fund balance spending (over 18 percent) for several

projects detailed later in this presentation.

• $85,093 in Public Health escrow funds used in the Dental Clinic and
OBCM/CC4C areas.

• Reduction of $503,754 – This is primarily from the Landfill timber

sale revenue. This is the amount currently planned to be added to fund
balance next year.

FY 18‐19
Expenditures – Top 5 General Fund
% of General 
Rank Department Total Expense
Fund Budget

1 Rockingham County Schools $            16,717,365 18.9%

2 Social Services $            14,697,384 16.6%

3 Sheriff, Jail, and Animal Control $            12,563,859 14.2%

4 Emergency Medical Services $              6,219,350 7.0%

5 Public Health $              6,071,449 6.9%

FY 18‐19
Expenditures – New Positions (0.5 FTE)
• 1 Part‐Time Public Health Nurse II (20 hours per week)

• This position is needed to address an increase in substance affected

infants/newborns in the County. This position will provide the
complex care necessary for substance affected newborns as well as
provide referral, coordination, and support services as needed.

• This position is funded by Public Health escrow funds (partnership

for community care) that were earned in past years and designated
for these programs.

• These escrow funds, combined with existing revenue streams, will

support this position without the need for County funding for the
foreseeable future.

FY 18‐19
Expenditures – Employee Pay

• In FY 2016/17, the County implemented the Springsted Study to right the

County’s compensation levels and fix salary compression.

• One of the recommendations of the study was to “implement the performance

evaluation system currently being developed and provide adequate funding for
performance based merit increases awarded on the anniversary date of the
employees hire or promotion.”

• While the County has re‐implemented performance evaluations, we have not tied
any pay increases to these evaluations.

• Budget therefore includes a 2 percent performance increase for permanent

employees who score an overall average of 3.25 or above on their annual
performance evaluation, to be awarded on their anniversary date

• FY 2018/19 County net cost is $312,000, with the full annualized cost of
$624,000 recognized in FY 2019/20.

FY 18‐19
Expenditures – Significant Capital (General Fund)

• Jail Camera System Upgrade ($115,000 from one‐time fund balance) – This is to complete
the back‐end conversion of the Jail’s camera system, which will allow future camera
replacements to be IP based (currently have 188 total cameras).

• IT Core Infrastructure Replacement ($200,000) – This new funding is recommended to be a

continual set‐aside each year to replace key components of the County’s network infrastructure
(servers, switches, power backups, etc). For next year, this set aside will be used to replace the
production servers and storage that virtually runs all County systems.

• Sheriff’s Office Interrogation Room Recording System ($50,000 from one‐time fund
balance) – The current Sheriff’s Office interrogation recording system is 7 years old and has
reached its end of life. As of early May, this system has stopped working entirely and all
interrogations are now being held in the Reidsville Police Station to remain compliant with the
law.

• Sheriff’s Office Body Camera System Replacement ($80,000, paid from one‐time
fund balance) ‐ The current Sheriff’s Office body camera system is reaching end of life,
and this upgrade is recommended to provide a permanent solution for video storage as
well as enhancement of body cameras themselves.

• 2 EMS Ambulances (one new and one remount) ($331,290) – Replaces 2 existing
front‐line ambulances with nearly 200,000 miles. Funding included for new stretcher and
cardiac monitor for the new ambulance.
FY 18‐19
Expenditures – Vehicles (General Fund)

• Central Services (Fleet) Kia Rio ($13,500) – Existing pool cars are in poor mechanical
repair, and this vehicle will continue the County’s efforts in reducing what we spend on
travel reimbursements.

• Building Maintenance Ford F‐250 ($36,480) – Replaces existing aging vehicle – funding
includes purchase of a service body.

• Emergency Services Admin Dodge Ram ($29,284) – Replaces existing aging second hand
vehicle with mechanical and cosmetic issues.

• Fire Marshal Ford F‐250 ($39,549) – Replaces existing aging vehicle – funding includes
necessary equipment.

• Sheriff’s Office Vehicles ($268,324) – Replaces 8 front line patrol vehicles, as well as 1
Detectives Narcotics car.

• Environmental Health Ford F‐150 ($29,664) – Replaces existing aging vehicle in

poor mechanical condition.

• Social Services Vehicles ($40,107 total expense, $20,084 county cost) – Adds 2
vehicles to DSS’s aging pool of vehicles.

FY 18‐19
Expenditures – Significant Capital (Other Funds)

• Landfill Fund Compactor ($800,000)

• Compactors are arguably the most important equipment at the

County’s Landfill.

• The Landfill currently has two compactors, one newer 2016 model
and one 2003 model.

• This older model is no longer reliable, therefore one additional

compactor is recommended to ensure a compactor is available in
the event the 2016 model breaks down or is taken out of service for
maintenance.

FY 18‐19
Expenditures – Rockingham County Schools

• The Rockingham County Board of Education requested a 6.3 percent

increase ($1,000,000) in its current expense allocation and a 239
percent increase ($2,109,533) in capital outlay funding.

• The Recommended Budget maintains the current year appropriation

for Current Expense ($15,834,840) and Capital Outlay ($882,525).

• Schools are projected to have between $1.7 and $1.8 million in

lottery balance with the State at the end of next year.

• We recently received two potential projects for using these funds,

included in the Budget book for consideration.

FY 18‐19
Expenditures – Rockingham Community College

• Rockingham Community College (RCC) requested a 5% increase

($108,223) in Current Expense and a 438% increase ($740,407)
increase in Capital Outlay.

• The Recommended budget maintains Current Expense and Capital

Outlay funding at the current year’s appropriations ($2,164,473
and $169,091 respectively).

• Funding is not included for the newly approved Quarter‐Cent sales

tax at this point. All proceeds will be dedicated to RCC.

FY 18‐19
Fire Districts

• Three fire districts are requesting to change their fire tax rate for FY
2018/19. All are included in the Recommended Budget.

• Draper (increase from $0.05 to $0.07) – Draper is requesting this increase to offset
losses from the closing of MillerCoors, as well as to continue trying to lower their ISO
rating. They are currently rated a 6 for residential, which is the lowest ISO residential
rating in the County.

• Pelham (initial tax rate ‐ $0.0614) ‐ At its April 17, 2017 meeting, the Board of
Commissioners established a new Pelham Fire Protection Service District. This
represents the first tax rate requested by this district, and is requested at this level to
match what the Pelham Fire District receives in Caswell County.

• Yanceyville (increase from $0.07 to $0.09) – Yanceyville Road Volunteer Fire

Department requests this increase to replace air bottles nearing their end of life, turnout
gear that does not meet NFPA guidelines, and for future renovations to their fire station.

FY 18‐19
Conclusion

• Department heads and staff were very accommodating in meeting

deadlines and sharing information.

• We used all tools at our disposal to present a balanced budget that

preserves funding for County services, rewards employees for
good performance, and maintains the current tax rate.

• This budget will ensure that County operations continue to meet

and exceed performance goals and provide citizens with quality
programs and services.

FY 18‐19
Next steps: Budget Worksession

May 29th – 8:30 am

Commissioners Room