BC 2017 05 15 Regular Meeting - Laserfiche WebLink

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May 15, 2017 (Regular Meeting) Page 3150 to be in the forefront to provide direction to staff in the creation of this comprehensive and balanced budget. The budget began with a strategic alignment to the Board of Commissioners' established goals and objectives. These include a focus on planning, growth, and economic development; communication and transparency; enhanced programs and excellent public service; public safety; transportation; education; and mental health. Beginning in October 2016, County management and our department heads reviewed current departmental programs, services, and operating budgets. They evaluated the operational successes, impacts and vulnerabilities of programs, and their relationship to the Board of Commissioners' vision. Departments then made adjustments necessary to keeping programs united with these goals. In December 2016, our department heads began the process of identifying future operational and fiscal needs of their departments. County management spent the next several months mapping a strategic budget that provides appropriate funding to ensure the success of mandated functions of county government. The County also built upon our non-mandated programs. These programs set Cabarrus apart as a place with strong quality of life attributes, a productive and resilient community, and where prospective businesses and employers will want to locate and expand in the future. It is my recommendation that the Board of Commissioners consider the approval of a FY18 General Operating Budget of $246, 620, 485, which will represent a 3.83% decrease in spending from the FY17 revised budget. The FY17 revised budget includes a $14, 504, 394 transfer to the Capital Reserve Fund budget based on the County's 15% Fund Balance Policy. Funding for the proposed budget requires an ad valorem rate of 70 cents. The proposed budget maintains current levels of spending when possible. It also provides additional funding to selected programs and services in order to enhance levels of service, meet the demands of a fast-growing community, and to continue to improve service to our citizens. This budget will address the growing capital and current expense needs of our two public school systems, Cabarrus County and Kannapolis City, and Rowan-Cabarrus Community College. New charter schools have taken shape in Cabarrus and, following State mandates, this budget provides additional funds that will follow students to their intended charter school at the time of enrollment. The budget also expands funding for the deferred maintenance needs of our school buildings. Deferred maintenance needs continue to grow and will require higher funding levels in the future to sustain our school facilities and keep up with current and projected needs. Economic and Operational Impacts on the County Budget 1. Cabarrus County continues to experience a high volume of residential, commercial, and industrial growth. Some of this growth has happened naturally, as we are part of the Charlotte Metropolitan Region, and some has happened because of targeted economic development initiatives. Whatever the cause, development continues to have a positive impact on the County' s revenues. Projections indicate ad valorem and sales tax revenues will increase by $10, 617, 829 in FY18. This equates to projected growth of 4 .84% in ad valorem taxes and 7.75% in sales taxes when comparing the revised budget FY17 to the projected budget FY18 . Staff will continue to monitor potential impacts to our revenue streams, including state and national economic forecasts, and projections from the North Carolina Association of County Commissioners. However, the County staff continues to use a conservative approach when projecting revenues for our budgetary purposes. 2. The county' s population has kept in pace with previous year' s projections and, based on U.S. Census Bureau' s latest publication, is 201, 590. Cabarrus County maintains its rank of