Fiscal Year 2020-2021 Recommended Budget Presentation · Rec. ENP Appr. Millions. Enterprise...

Brunswick County

Recommended BudgetMay 18th, 2020

Randell WoodruffCounty Manager

Budget Principles

• Conservative revenue and expenditure projections

• Preserve reserves to maintain bond rating and provide flexibility to respond to changing circumstances/opportunities

• Maintain low property tax rate

Key Focus Areas

• Current and Future Impacts of the COVID‐19 Pandemic• Revenue decreases for the continued recommended stay at home

orders and lack of tourism• Decrease in ad valorem property tax collection rate• Maintain current service levels • Deferred capital expenditures and capital projects

• Employee Retention, Recruitment and Succession Planning• Market adjustment 2.0% to employees who are satisfactory

performers• Additional .25% to 1.23% merit to employees who are satisfactory

performers• Additional 1.37% to 2.35% merit to employees who are high

performers.• Additional 2.49% to 3.35% merit to the County’s highest

performers in 2020‐2021 • no reduction of benefits.

• Meet the Needs of a Growing County with Diverse Demographics• Increase of 7.6% per the funding agreement with Brunswick County

Schools for the operating budget resulting from growth in ad valorem taxes

• Increase of 2.1% to Brunswick Community College to support existing programs and an additional $350,000 for the Foundation Grant providing tuition assistance

• Increase of 4.8% to Brunswick Senior Resources for program support

• Continue the County’s commitment of $200,000 per year to the reserve for shoreline protection

• Added 11 new positions in Health and Human Services (5) to meet state guidelines with funding grant reimbursements provided and Public Safety (6) to meet the needs in detention and a school resource officer.

• Provide employees training, resources, and equipment to facilitate high service levels to citizens

• Funding for a facilities and space needs study• Continued funding for technology/computer software support and

cyber security upgrades

FY 2020‐21 Recommended Budget

•$265.5 million all funds

•Recommending no change in the property tax rate of 48.50 cents

Population Growth

98,557

110,148

122,957 127,152 131,644

137,103 142,088 146,135 149,508

152,881

‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2007 2011 2015 2016 2017 2018 2019 2020* 2021* 2022*

Population Growth in 2019:• Ranked #1 NC %

Population Growth• Ranked #4 NC

Numeric Population Growth

• Ranked #7 US County Growth

• Ranked #6 County Growth > 20,000 County Population

• Included in Myrtle Beach MSA, 2ndFastest Growing Metro Area in US at 3.3%

Source: US Census Bureau; NC Office of State Budget and Management

*Projected

Visitor Spending

$395 $418

$446

$471 $496 $509 $544

$563 $599

‐

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 2016 2017 2018

Visitor Spending in 2019:• County ranks 9th in

spending• Approx. 5,930

tourism‐related jobs• County is one of the

top ten counties in the state

• Population rises to approx. 355,000 during tourism season, peaking on the July 4th week

Source: Economic Impact of Travel on North Carolina Counties study prepared for the NC Division of Tourism, Film and Sports Development by the US Travel Association

Recent General Fund Approved BudgetsAnd Fund Balance Appropriated

$176.2

$185.7

$192.5

$210.3 $209.9

$150.0

$160.0

$170.0

$180.0

$190.0

$200.0

$210.0

$220.0

FY2016‐17 FY2017‐18 FY2018‐19 FY2019‐20 FY2020‐21 Recommended

Total Budget

$3.3

$4.9 $5.0 $5.6

$4.2

$‐

$2.0

$4.0

$6.0

FY2016‐17 FY2017‐18 FY2018‐19 FY2019‐20 FY2020‐21 Recommended

Fund BalanceAppropriated

Millions

FY 2020‐2021 Recommended Budget General Fund Revenues

FY 2020-2021 Recommended

% of Total

FY 2019-2020 Approved

% of Total

% Change Over Prior

Year

Ad Valorem Taxes 144,312,368$ 68.9% 138,091,466$ 65.7% 4.5%Local Option Sales Taxes 21,430,183 10.2% 25,765,298 12.3% -16.8%Other Taxes and Licenses 4,235,000 2.0% 4,823,000 2.3% -12.2%Unrestricted Intergovernmental 1,698,000 0.8% 3,123,000 1.5% -45.6%Restricted Intergovernmental 15,712,567 7.5% 15,414,818 7.3% 1.9%Permits and Fees 4,493,860 2.1% 4,210,982 2.0% 6.7%Sales and Service 12,191,561 5.8% 11,924,347 5.7% 2.2%Investment Earnings 500,650 0.2% 300,650 0.1% 66.5%Other Revenue 1,029,168 0.5% 1,050,120 0.5% -2.0%General Fund Balances Appropriated 4,248,520 2.0% 5,563,789 2.6% -23.6%

Total Revenues 209,851,877$ 100% 210,267,470$ 100% -0.2%

Revenues from Property TaxExcluding Prior Years’ Collections

$115.2 $119.6

$123.9

$139.0 $141.4

$‐

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

FY2016‐17 Actual FY2017‐18 Actual FY2018‐19 Actual FY2019‐20 Estimate FY2020‐21 Recommended

• Last Revaluation January 2019

• Recommending No Change in the Tax Rate of 48.50 Cents

• Expected Decrease in Collection Rate to 97.90% due to COVID‐19 from 98.31% collected in 2019

Millions

Revenues from Sales TaxIncludes Amounts Legislated for Schools Capital

$22.5 $24.0

$26.3 $26.0

$21.4

$‐

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

FY2016‐17 Actual FY2017‐18 Actual FY2018‐19 Actual FY2019‐20 Estimate* FY2020‐21 Recommended*

*2019‐20 Estimates include

last quarter COVID‐19 impacts

*2020‐21 Recommended before COVID‐19 estimate was $8.1 million higher, dropping 27.5%

Millions

FY 2020‐2021 Recommended Budget General Fund Expenditures

FY 2020-2021 Recommended

% of Total

FY 2019-2020 Approved

% of Total

% Change Over Prior

Year

General Government 13,558,465$ 6.5% 13,348,323$ 6.3% 1.6%Central Services 17,838,802 8.5% 17,877,823 8.5% -0.2%Public Safety 49,640,268 23.7% 49,526,836 23.6% 0.2%Transportation 170,572 0.1% 170,572 0.1% 0.0%Environmental Protection 18,347,433 8.7% 18,256,312 8.7% 0.5%Economic Development 7,584,003 3.6% 8,199,637 3.9% -7.5%Human Services 27,525,348 13.1% 27,173,559 12.9% 1.3%Education 66,775,291 31.8% 66,123,304 31.4% 1.0%Culture & Recreation 4,637,147 2.2% 4,810,522 2.3% -3.6%Net Transfer to Project Reserves 3,774,548 1.8% 4,780,582 2.3% -21.0%

Total Expenditures 209,851,877$ 100% 210,267,470$ 100% -0.2%

Governmental Debt Service

$14.3 $14.0 $13.5

$18.6

$15.6

$‐

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0


• General Debt Service 7.5% of Recommended Expenditures

• Debt Service Policy Annual Range not to exceed 10‐13% of Total Expenditures

Millions

2020 Tax Levy Distribution

General Government, 4.1%

Central Services, 10.3%

Public Safety, 20.7%

Transportation, 10.0%

Environmental Protection, 8.7%

Economic Development, 1.9%

Human Services, 6.8%

Culture and Recreation, 2.4%

Education, 45.0%

General Fund Employee Compensation

% Increase County Cost

Market Adjustment 2% $1,150,000

Merit Increase Range .25‐3.25% $1,150,000

Retirement Increase 1.19% $550,000

Total $2,850,000

FTESFY 2020 Current FY 2021 2020‐2021

General Government 100.00 100.00 ‐

Public Safety 451.00 457.0 6.00

Central Services 91.00 91.00 ‐

Human Services 222.94 224.44 4.00

Environmental Protection 8.00 8.00 ‐

Culture & Recreation 45.00 45.00 ‐

Economic Development 19.06 19.06 ‐

Total 937.00 943.00 10.00

• Eleven new positions and one eliminated position are recommended for general government.

• 6 Human Services FTE’s are either cost shared, grant funded, or previously part‐time and 1 Public Safety SRO is reimbursed by the schools

• 3 FTEs in public safety and 5 FTEs in Human Services are funded beginning in January 2021

General Government RecommendedFee Changes

Building Inspections and Central Permitting Fees Working without a permit from $200 to double permit fee or $200

minimum Solid Waste Fees Mulch for commercial customers from no charge to $3 per ton

Health Services Fees Various fee changes per a public payor study and a comparison with

surrounding counties Environmental Health LSS Option Permit (new requirement) 30% of the set rate for IP and CA

Permit

Recent Enterprise Fund Approved Budgets and Expendable Net Position (ENP) Appropriated

$23.2 $21.7

$24.5 $24.6 $24.2

$24.8 $26.2 $26.2 $27.4

$30.1

$2.3 $2.9

$2.9 $2.8 $3.2 $2.9 $‐

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

FY2016‐17Total Bud.

FY2016‐17ENP Appr.







FY2020‐21Total Rec.

Bud.

FY2020‐21Rec. ENPAppr.

Millions

Enterprise Customer Growth

38,760 40,101

41,557 42,934

44,248

15,847 16,579 17,719

18,816 19,647

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

FY2015‐16 FY2016‐17 FY2017‐18 FY2018‐19 FY2019‐20as of April Billing

Water Fund

Wastewater Fund

Enterprise Debt Service

$2.3 $2.3 $2.2 $2.2 $2.2

$13.9 $13.9 $13.7 $14.4

$17.0

$‐

$5.0

$10.0

$15.0

$20.0

$25.0


Wastewater Fund

Water Fund

• 2021 Includes debt service for the Northeast WWTP expansion

• Annual Debt Service will increase in FY 2022 for the construction of a 54” Raw Water Main and FY 2023 for the NW Plant Expansion with LPRO Treatment

Millions

Enterprise Fund Employee Compensation

% Increase County Cost

Market Adjustment 2% $190,000

Merit Increase Range .25‐3.25% $190,000

Retirement Increase 1.19% $90,000

Total $470,000

FTESFY 2020 Current FY 2021 2020‐2021

Water Fund 92.75 93.00 0.25

Wastewater Fund 53.25 53.00 ‐.25

Total 937.00 943.00 0.00

Enterprise Recommended Fee Changes

Wholesale & Industrial rate based on May PPI; current rate $2.96 per 1,000 gallons; expected decrease in PPI rate based on the April PPI release. (Note: The County is not obligated to set the wholesale and industrial rate at PPI after October 2020)

Budget Process

Budget Workshop Scheduled June 1, 2020 at 1:00pm Public Hearings: June 15, 2020 at 6:00 p.m. in the Board

of Commissioners Chambers:‐ Consider Adoption of Recommended Budget‐ Consider Adoption of Rate and Fee Changes

For more info… www.brunswickcountync.gov or 910.253.2016

Fiscal Year 2020-2021 Recommended Budget Presentation · Rec. ENP Appr. Millions. Enterprise...

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