BC 2012 05 21 Regular Meeting - Laserfiche WebLink

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May 21, 2012 (Regular Meeting) Page 1077 PLANNING Hold an extensive work session for information gathering and strategy development in the area of economic development. (G) NEW BUSINESS (G- 1) County Manager - Presentation of the Proposed FY 2013 Cabarrus County Budget and Scheduling of Public Hearing Mike Downs, County Manager, presented the following budget message to the Board: Honorable Chairman and Members of the Board of Commissioners, I am pleased to submit to you the recommended Cabarrus County Operating Budget for fiscal year 2013. This budget has been prepared in accordance with the General Statutes of North Carolina and the Local Budget Fiscal Control Act. The Board's established mission, vision, and strategic goals provided valuable direction as this balanced budget was prepared. Included in this budget document are the expected revenues projections and operational expenses for FY2013. During the preparation of the proposed budget, county staff evaluated every department's programs and services for effectiveness and efficiency. Financial reductions, staff reductions and /or reassignments, consolidation of departments and /or services, and privatization of services were all considered and implementation is recommended where appropriate. In completing this very detailed process, I am recommending a General Fund Budget in the amount of $200,011,036 which is $3,388,668 less than the current year's adopted budget and $2 million below what was projected for FY2013 in last year's Five Year Financial Plan. In fact, the proposed budget will be $43,000 less than the FY09 actual expenditures. To fund this budget as recommended will require the Board of Commissioners to adopt an ad valorem tax rate of 70 cents. This is 2 cents less than the projected revenue neutral tax rate that would be required as a result of the county's revaluation process in order to realize the same amount of revenues received for FY2012. This budget has been prepared to accommodate the current and future financial impacts on expected revenues because of a slowly recovering economy. Some of these impacts are listed below: Economic Impacts on County Budget 1. The property revaluation process produced an expected decrease in revenues of approximately 12 %. This decrease equates to approximately $15 million less in operating revenues than FY2012. 2. At your retreats in February 2011 and again in January of 2012, you directed staff to maintain current operating expenses flat through FY2016. To do this would require the board to adopt a revenue neutral tax rate of 72 cents. 3. State and local economies are showing some improvement. However this improvement is very slow and is projected to proceed in that manner for the near future. 4. Cabarrus County's unemployment rate has dropped to 9.0% but still remains well above the levels enjoyed prior to the recession. 5. Fuel and energy costs continue to rise nationwide. These increases are expected to have a negative impact on the cost of county operations for the next budget year. 6. There continues to be a slow recovery in the building industry. However we are experiencing some increased activity in Construction Standards and the Register of Deeds. This is projected to bring a modest level of additional revenues for FY2013. 7. Within Social Services, continued growth in case loads is being tracked. It is wise to note that the various programs within the department have experienced growth of 6% - 20% over the past three years. Funding for these programs at the federal and state levels continues to be a challenge for current and future service provision due to the cutbacks in