Proposed budget on table

The 2024-25 recommended Sampson County budget includes no proposed tax rate hike or impact to the much-discussed fire district tax rates — revenue is actually projected to increase for fire departments — even though the tax rate figures themselves will be lowering across the board to bring them “revenue neutral” amid a sweeping revaluation this year of parcels across the county.

The tax rate is proposed to drop by 20 cents from 82.5 cents to 62.5 cents per $100 valuation, deemed the revenue-neutral rate as property values spike since the county’s last revaluation five years ago. Fire tax rates are similarly proposed to be modified to the revenue-neutral rate, however those rates are projected to produce estimated revenues higher than what was requested for the coming budget year.

During Monday’s budget presentation, County manager Ed Causey explained the revenue nutral rates.

State law requires that local governments publish a revenue-neutral tax rate in the budget following the completion of the general reappraisal of real property, a process that will now be every four years for Sampson.

The revenue neutral rate is the rate that is estimated to produce revenue for the next fiscal year equal to the revenue for the fiscal year prior to revaluation if no reappraisal had occurred. The rate, according to state law, is then adjusted by a growth factor equal to the average percentage increase in the tax base since the last general reappraisal.

The reappraisal produced an estimated tax base of $7,036,110,841 for Sampson County, county officials said. The estimated tax levy for fiscal year 2024-2025 is $43,556,402, and the average growth factor since the last general reappraisal is 1.60%. Using the formula mandated by state law, the revenue neutral rate for Sampson County is 62.9 cents, Causey pointed out.

“We are recommending an actual tax rate of 62.5 cents,” Causey explained. “Based on the revenue neutral tax rate, some Sampson County taxpayers will pay higher taxes than last year due to higher property values, and some taxpayers will pay lower taxes due to lower property values. The purpose of the revaluation is to proportionately redistribute the tax base. Based on the estimated tax base, a penny on the tax rate and a 97% collection rate generates about $682,500.”

Based on those revenue neutral calculations, fire tax rates for districts in Sampson County as well as the Supplemental Current Expense Tax for the Clinton City Schools were similarly adjusted according to the revenue neutral tax rate.

While the county property tax rate was rounded down, those rates for fire departments and schools were adjusted upward to the nearest half cent, the county manager noted.

The revenue neutral rates for fire tax districts are expected to generate revenue of $4,280,723 across the board in 2024-25, a $467,323 increase over the $3,813,400 in revenues projected from the district tax requested.

The Fire Association recommended an increase for three fire departments, including the Roseboro Fire Department and the Herring Fire Department in the amount of 1.5 cents, and the Turkey Fire Department for 1 cent.

“All fire departments are projected to receive more revenue than what was presented in their respective budgets to the fire commission that was reviewed earlier this year,” said Causey. “We have increased the involvement of the Fire Commission in reviewing budgets over the last several years.”

The 2023-24 fiscal year has been “somewhat more stable economically than the previous two to three years,” Causey stated in opening his budget message.

“Significant increases in inflation have lessened, but inflation and supply chain issues are still present,” he noted. “The county continues to have challenges recruiting for many of our skilled positions, a circumstance similarly found in the private sector. The good news is that we are working diligently to improve our recruiting techniques and have begun to see some success in certain areas.”

Because of economic circumstances, a tax increase of 5 cents was recommended in 2022, a recommendation rejected by the Sampson Board of Commissioners.

“The general feeling, at the time was that the public was facing inflation and general cost increases across the board in their everyday lives. A county tax increase was just too much of a burden to bear,” Causey recalled during Monday’s address. “Those same voices that spoke in 2022 are more adamant today about not having a tax increase, though ironically the county government is impacted by those same increases in our operational costs. We have heard the people. Therefore, a tax increase beyond the revenue neutral rate of 62.9 cents — we are proposing 62.5 cents — will not be proposed.

Employees

The 2024-25 recommended budget calls proposes a 3% cost of living adjustment to be effective Jan. 1, 2025, an increase of $531,147. Additionally, an allocation of $747,700 is being recommended to assist employees in reaching the midpoint of their salary scale.

Effective July 1, 2024, employee salaries will be evaluated to determine the difference between employee salary and midpoint of the assigned pay grade as well as their time in the pay grade. The amount of difference will be divided by the number of years remaining to reach 10 years in the pay grade.

“Each employee will receive that amount as an annual contingent upon a satisfactory performance evaluation,” Causey noted. “The results will allow employees to realize incremental pay raises and greater reward for long-term employees.”

Added outside pressures, on top of family and work responsibilities, have led to the realization that employee wellness is an essential component to efficient and effective operations, said Causey, who pointed to data thasupports a more flexible work schedule and greater work/life balance.

“To provide greater options for our employees to reach a sustainable balance, the implementation of two eight-hour paid wellness leave days to be scheduled and used with the encouragement and permission of supervisors will allow our employees an additional opportunity to spend time on activities that add meaning to their lives,” the county manager stated.

The days will be will become available on Jan. 1, 2025, and must be used before Jan. 1, 2026. The days will not carry forward.

The total cost of health insurance for employees will increase for 2024-25 by roughly $150 per employee per month. That would bring the county expense to $1,100 per month per employee. Employees’ cost of health insurance is expected to increase approximately 6% starting in July 2024.

Schools

Clinton City Schools has requested $2,607,000 in capital outlay funding, and Sampson County Schools requested $5,273,776. With a projected $1,671,500 available from the annual sales tax received and designated for school capital outlay, the city schools are projected to receive $442,800 and the county schools $1,228,700, under the proposed budget.

The county schools has requested an additional $1,037,650 for current annual operating expenses, and the city schools an additional $495,175. The county government is required to fund both school systems at the same per student rate.

“Using our basic budgeting technique of ensuring proportional funding for the operational expenses based on county general revenues, we are projecting available additional funding in the amount of $453,466. We are proposing to increase funding to the County Schools by $312,647 and the City Schools by $140,819,” Causey stated.

That equates to the proposed funding of $1,353 per student, which is up from the $1,324 per pupil funding in the current year. The total operating expense for the Clinton City Schools is $3,851,991 and $10,633,227 for Sampson County Schools.

The Clinton City Schools District Tax Rate, currently 14.5 cents, is being recommended to move to the revenue neutral rate of 11.5 cents.

The proposed budget calls for an increase in the operational funding for Sampson Community College in the amount of $168,830, as well as $250,000 for capital outlay.

Budget highlights

The county is projecting an increase in sales tax revenue of $668,997 and interest income of $550,000. Property tax collections are expected to increase by $483,263. The county is proposing allocating $11,819,168 in fund balance to balance the budget. Lapsed salaries and benefits are expected to cover approximately $1.9 million of this deficit.

The county is currently contracting for legal services, however that will come to an end on June 30. The board has authorized the hiring of a full-time attorney, a process that is underway.

There is $500,000 budgeted for contingency, highlighted by a continued concern of the cost of utilities, gas and oil specifically. The county budget also calls for $800,000 for capital reserve.

Here is a look at what is proposed for departments:

• Detention Center and Sheriff’s Department – Operating expenses for the Detention Center and Sheriff’s Department are $6,135,703 and $12,632,331, respectively. The total budget for both is $18,768,034. The combined proposed expenditures for the department have increased $3,498,070 over the last year. They do have projected revenues of $3,368,682, which is $414,816 less than last year.

• Department of Social Services – The county contribution to DSS is increasing by $1,296,812, much of which can be attributed to personnel.

• Health Department – The county contribution for the Health Department increased by $296,683, primarily due to employee compensation and the increasing cost of medical supplies.

• Cooperative Extension/Beaver Management – Budget has increased by $98,868. We are continuing with the Beaver Management Program, which will cost $106,000. We are adding one new vehicle and one new sign.

• Animal Shelter – Budget has increased by $47,915, mostly due to acquiring on-site veterinary services three days a week beginning July 2024.

• EMS – Budget has increased by $1,106,159, which includes three new ambulances and one replacement QRV.

• Elections – Budget has increased by $60,338.

• Communications – Budget is $1,941,371, an increase of $332,626.

• Aging – Budget for Aging is $496,003, an increase of $99,423.

The budget also includes allocations of $60,000 for the Sampson County History Museum, $6,688 as the local match for the Mid Carolina RPO, and $300 for travel for the mandated CAC committees.

There are a number of vehicles proposed to be replaced in the coming budget, including 15 patrol vehicles with SUVs, one Animal Control vehicle, two vehicles for Social Services, one new truck for the Extension, one new truck for Emergency Management, replacing three ambulances, one QR vehicle, and one truck for Public Works.

Causey, in his two-hour address to the board Monday night, said he felt the future is bright for Sampson County, pointing to the planning that has been done over the years and a recent sound financial audit. Moving forward, he said county leaders will need to determine how it will balance revenues and expenditures, a subject he said “should entice robust discussion and some very deliberate decisions” on the future of Sampson.

As with previous years’ budget presentations, the county manager addressed budget drivers and highlights, those line items that would bring the largest impact to the county’s bottom line now and in the future. This year, Causey added a number of exhibits that offered more information, and some context.

For the first time, he also provided a section offering “context and clarifications,” touching on aspects of government and budgeting, property tax versus sales tax, revaluation, solid waste collection fees, recruiting challenges, fire departments, employee salaries and benefits, litter concerns, a lawsuit filed against the county and even talk about his own compensation.

“Fiscal year 2023-24 has been comparatively stable in regard to economic matters. Conversely, it has unfortunately been a period of heightened controversy regarding many operational and financial matters of the county,” Causey stated in introducing the “context and clarification” portion of his presentation. “It is our hope that when fiscal policies and board actions are evaluated in the context of such thorough, accurate information (versus partial or misinformation often found in social media) it engenders understanding, even when there may be no agreement.”

Monday’s full 2024-25 budget presentation, in document and video form, as well as the unabridged 780-page recommended budget, can be found at sampsonnc.com. A public hearing will be held during the Sampson County Board of Commissioners’ June 3 regular monthly meeting, set for 6 p.m. at the County Auditorium, 435 Rowan Road, Clinton.

“People and governmental units get to choose their perspective regarding circumstances they face,” Causey said in his summary statement. “Metaphorically, one can choose to believe their bottle is half full or half empty. I believe the bottle representing Sampson County is half full. At the same time, we all must occasionally ask ourselves when we get what we ask for if that is truly what is in our best interest.”