Halifax County Board of Commissioners Chair Vernon Bryant said he is pleased with the proposed $46,569,588 financial plan for the upcoming fiscal year drafted by County Manager Tony Brown.
The proposed budget contains no plans for a tax increase.
“I really think the county manager and staff, the department heads and county commissioners should be commended for a job well done,” Bryant said today. “I’m real impressed with it. I see it as a win-win for our county citizens, employees, economic development and governing board moving this county forward.”
Bryant said the county began planning the budget in September. “It is very strategically planned. I’m real pleased with it. We will be able to significantly help our employees which will help with recruitment and retention and keep our employees encouraged.”
(As required by law, the budget will be available for public inspection in the clerk to the board’s office and in all five county public libraries for the required 10 days. Due to COVID-19 there is limited access in county offices. Contact the clerk’s office or the library branch to schedule an appointment to view a copy or to have a copy made. A public hearing will be held on Monday, June 7 at 9:30 a.m. with a final adoption scheduled for Monday, June 21 at 9:30 a.m.)
The board chairman said the plan offers employees longevity, free healthcare by participating in the county’s wellness program and a floating holiday. “There’s a lot of good things for our employees.”
With money coming in the form of COVID-19 relief, the county will be looking at the possibilities of broadband in areas without the service as well as considering water extensions to areas which remain without it.
Budget message
In his budget message presented during Monday night’s meeting, Brown said the spending plan will take effect on July 1 and end June 30 of next year.
“Two years ago, no one would have ever predicted we would be in a world-wide pandemic crisis starting in early 2020,” Brown said. “The word unprecedented has been used thousands of times to describe the challenges we faced during the last fifteen months. With the county’s good fiscal position, we were able to address our needs without interruption, however, the way we do business had to change drastically in order to keep the public, as well as our employees, safe.”
Brown commended the county’s 562 full-time employees “who all had a hand in continuing our county services either directly or indirectly. I extend a special thanks to the Halifax County Public Health Department. Health Director Bruce Robistow and his staff responded and managed the crisis and ensured citizens were constantly informed.”
Since he began his job as county manager nearly 14 years ago, Brown said, “We have continued to provide outstanding services in an efficient manner. Our exceptional finance department has been the recipient of the Comprehensive Annual Financial Report award for the past 21 years in a row, which continues to show the professional level of service we strive to provide to our citizens for a relatively low property tax rate. Our Halifax County citizens are lucky to have such dedicated county employees whose commitment is obvious each and every day.”
Budget challenges
As with most small and rural local governments, Brown said, “We continue to have budget challenges with our ever-increasing expenses but without revenues keeping pace. However, I do continue to remain optimistic about the county’s overall fiscal and economic outlook.”
The county has a 69.31 percent fund balance which is well above the 8 percent suggested by the North Carolina Local Government Commission.
A majority of the $39,690,093 is not available for general use, Brown said, which limits the county’s cash on hand to $15,812,715 to address additional non-recurring needs in the financial plan. “ … I compliment staff, with direction from the Halifax County Board of Commissioners, for creating the environment to allow us to have this healthy unassigned fund balance, which also helps us be prepared for emergencies and disasters. Unlike the federal government, we are required to balance our budget and also maintain additional funds to cover any major unexpected events.”
The county continues to use revenue-based budgeting, which Brown said allows the county to manage its budget well and be able to weather economic challenges that have occurred and will continue to occur in the future. “Our conservative projections and fiscally responsible approach have allowed Halifax County to maintain a healthy overall general fund balance.”
Yearly improvements
Brown said the county has improved its financial condition each year since the 2007 recession. “We have experienced growth in some of our major revenue streams. Fortunately, our year-to-date sales tax revenue has increased 14.2 percent compared to this time last year which can be attributed to the governor’s stay at home executive order. Shopping has increased tremendously locally as well as on-line, so we have held steady with our sales tax revenue projections for FY 2021-2022 at the FY 2021 level.”
Said Brown: “Based on the many challenges we continue to face, I am impressed we are still able to not only maintain a good collection rate but also increase it to an impressive 97.5 percent. With our healthy fund balance, I am confident we will have the ability to absorb any potential shortfalls in the budget should the economy take a severe downturn.”
Despite Halifax County’s Tier 1 designation, Brown said the county maintains a very strong budget. “I pay tribute to our superb team in making this happen. In addition to the tax office, I commend Sheriff Wes Tripp and his staff, as well as County Attorney Glynn Rollins and his staff, in going above and beyond in working with taxpayers in establishing payment plans to aid citizens and minimize hardships.
“We are not required to do so, but we do in order to support our citizens while respecting the challenges they face in this current uncertain economy. I offer my heartfelt thanks for the jobs the staff in each of these departments accomplish every day.”
Economic development
Brown said the county continues to have positive motion in its economic development efforts. “I applaud the board of commissioners’ forward-thinking and proactive approach in continuing to position the county to create well-paying jobs in the future.”
There has been slight growth despite delays resulting from the pandemic. “With the North Carolina Department of Transportation’s road work in the Roanoke Rapids area, the extension of Premier Boulevard to Highway 125 and of American Legion Road to Premier Boulevard, this area will be primed for additional growth in the county.
“Along with support from our economic development commission, its Executive Director Cathy Scott and the county commissioners’ positive approach, we are poised to have additional growth in our local economy. There is a planning group made up of key stakeholders who are proactively planning for the expected growth.”
Stable financial situation
The county manager said based on the sound approach to its budgets each year, the county’s financial situation is stable and in line with the requirements dictated by the LGC. “I am proud that we have had sound budget practices over my last 14 years as your county manager and over the last 19 years in this office.”
The proposed budget allocates $3,425,950 from the fund balance to cover non-recurring needs for the capital improvement plan, employee expenses, general capital needs and non-profit assistance in their support of community needs. It also allocates additional recurring funds in the amount of $184,840 to address other employee compensation.
This year’s budget provides additional capital funding for public schools and the community college totaling $590,000.
This additional money resulted from sales tax revenues collected and distributed to the county. The current allocation is the result of collections over the past year. Going forward each fiscal year, the Halifax County Board of Commissioners will determine whether and how to appropriate these, which are limited to economic development, public education or community college purposes.
Because the county distributes local sales and use taxes by the ad valorem method, all three districts will be receiving a portion of sales tax revenues. With more available funds, each of the graded school systems will receive an additional $50,000 to address any other capital needs that exist for the upcoming fiscal year.
Budget features
Halifax County has many capital needs. This budget will continue to address pressing capital needs by funding, among other things, debt service payments for Enfield-Inborden School, Manning Elementary School, the social services building and water service line construction in addition to the solid waste transfer station.
The budget features include:
Continuing services at efficient and effective levels.
No property tax increase.
This budget does not include a property tax increase.
Based on an estimated property tax base of $3,506,578,947 and a tax collection rate of 97.5 percent.
Maintains the tax rate of $.76 cents per $100 value.
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Increases the funding for each graded school district from $743.29 per pupil to $749.55 per pupil based on average daily membership.
Provides a competitive benefits package, which includes 100 percent paid premiums for health coverage for each full-time employee who participates in the county’s wellness program.
With increasing health costs, the proposed budget had to absorb a 4 percent premium increase to maintain employee health coverage.
Maintains longevity pay
Provides a 3 percent cost of living adjustment and step increase for full-time employees, as well as a bonus for full-time and regular part-time employees.
Funds the pay-for-performance evaluation plan.
Provides a floating holiday.
Continues a hiring freeze, previous staff reductions and travel restrictions, which will remain in effect throughout this budget year.
Includes funds to support both economic development and contingency operations.
Continues to require employees to use county vehicles, when available, for travel. This policy amounts to a savings of over 60 percent in travel costs versus paying mileage for use of personal vehicles.
Funds needed capital outlay for county departments.
Provides additional funding to non-profit community partners in the amount of $310,647.
There are still unknowns, Brown said. “Historically, we have had difficult budget situations in Halifax County. The past few years of this budget planning process have been especially challenging in playing catch-up on addressing needs that have been delayed based on our reduced revenues during the recession years.
“However, even today, there are unknowns in the areas of lottery revenues, sales tax distributions, allowable 911 fund expenses, beer and wine tax, Medicaid transformation, as well as many others that could affect this and upcoming budgets.”
COVID relief
Brown said the county was fortunate to receive $2,034,271 in COVID-19 relief funds.
Halifax County government received 75 percent — $1,525,371 — of these funds, and the municipalities received a 25 percent — $508,900 — share.
The Halifax County share was used to cover personnel expenses during the allowed period between March and December of 2020.
Most of the funds freed up in the general fund budget were used to replace the 13-year-old radio consoles in the county’s 911 Center.
The county anticipates receiving a total of $9,713,856 in American Rescue Plan funds. Half is expected this month and the balance is expected in May of 2022 with a deadline of December of 2024 to obligate all funds.
Summary
“This proposed budget does show the county’s commitment to providing excellent services to its citizens,” Brown said. “However, this budget only addresses items of which we, the county, have full control. There will always be the potential for changes from both the federal and state governments as we progress to a new normal with the COVID-19 pandemic. Staff and I will continue to work diligently with the North Carolina Association of County Commissioners, the North Carolina City and County Management Association and the National Association of Counties in communicating our concerns to both our state and federal legislators to ensure they are fully educated and aware of the potential implications of their decisions on Halifax County.”
Said Brown: “I applaud this board of county commissioners for continuing to recognize the value of our human capital. It was never more evident how valuable our employees were until we had to respond to the COVID-19 pandemic. This pandemic shows the true commitment our employees have to protecting our citizens, especially those most vulnerable to the ill effects of the virus.
“I am extremely honored by the commitment we have from our employees and the services we proudly provide. I would like to give a special thanks to public health Director Bruce Robistow for his untiring efforts to keep the public not only safe but well informed. Our employees stepped up to the challenge and did a wonderful job, but I want to give additional thanks to our courageous public health nurses. They are the real heroes here and deserve special accolades in their handling of the pandemic through all the various phases.”
