No tax increase in proposed county budget
By Dwight Otwell

The proposed 2007-2008 county budget shows a slight increase in the General Fund and a decrease in the overall budget while keeping the tax rate the same.

The total county budget, revealed on May 22 at the county commission meeting, is $35,757,623 compared to $42,820,000 for 2006-2007. That is a 16.5 percent decrease in the total budget.

The proposed General Fund budget for 2007-2008 is $32,999,069 compared to $31,738,949 for 2006-2007, which is less than a 4 percent increase.

The balanced budget, required by law, will have the property tax rate remaining the same at $0.52 per $100 valuation, providing $13,507,718 or 40.9 percent of the total General Fund Budget.

Under this tax rate, a person with property valued at $200,000 would pay $1,040 in ad valorem taxes.

County Manager David Badger said the county commissioners cut nearly $7 million out of budgets proposed by various county department heads. Those cuts were required to balance the budget, he said.

The Budget Message from the county states that capital expenditures have been significantly limited in the Fiscal Year 2007-2008 budget. The most significant capital expenditures are the purchase of new accounting software for the finance office, three new ambulances to update an aging fleet and a new garbage truck for the landfill.

The Budget Message states that projects such as School Improvements, the Cherokee County Detention Center and Sheriff's Office and the implementation of a more equitable pay plan, will continue as planned.

The county has established an annual budget for eight separate funds. Two new funds will be established in the new budget. The wellness center Enterprise Fund will be used to account for all financial activity of the new Hiwassee Valley Pool and Wellness Center. A Capital Reserve Fund has been established to fund future capital improvements. The Wellness Center Proprietary Fund is for $461,250. The Capital Reserve Fund is for $100,000.

The General Fund is the general operating fund of the county. The primary revenue sources are ad valorem taxes, sales taxes, federal and state grants and various other taxes and fees. The primary expenditures are for general government services, public safety, human services and education.

Special Revenue Funds are used to account for specific revenue sources that are legally restricted to expenditures for specific purposes. The county will maintain five Special Revenue Funds: Revaluation Reserve Fund, 911 Fund, Fire Districts Fund, Bear Paw Service District Fund and the Debt Service Fund.

The county derives 40.9 percent of its revenue from property tax and 23.3 percent from sales tax.

The Budget Message states, "The Fiscal Year 2007- 2008 budget focuses on limiting the county's burden on property tax dollars. The budgeted revenues reflect increases in user fees, which are set at an appropriate rate to break even in those programs. The three significant fee increases are an increase in the landfill convenience fee from $45 to $75, an increase in the environmental permitting fee from $300 to $600 and an increase in building inspections fees that appropriately cover the costs of inspections.

The property tax collection rate is 96 percent. Cherokee County's goal is to achieve a property tax collection rate of at least 97 percent.

The top five areas of expenditure for the proposed budget, which will take effect on July 1, are Public Safety ($7,797,199 or 23.6 %); Education ($5,489,413 or 16.6 %); Social Services ($5,028,412 or 15.2 %); General Government ($3,870,024 or 11.7 %); and Debt Service ($3,447,804 or 10.4 %).

Under Public Safety, $2,490,473 will go for the Ambulance Service, $1,977,479 for the Sheriff's Department and $1,770,423 for the Jail.

Under the Health and Human Services category, $2,536,124 will go toward Social Services Administration and $2,492,278 toward Social Services Programs.

Under Total Education, $4,922,141 will go toward Schools and $567,272 to Community College.

Public Health will get $1,654,760.

Personnel is the single largest expense category for the county. The new fiscal year will mark the third year of a five year plan to establish a more equitable pay plan, which will better enable the county to attract and retain the most qualified employees, the Budget Message states. The county's total payroll, including salaries and benefits, is proposed to be $13,741,502 for a total increase of $1,390,888.

The Budget Message states, "The Cherokee County pay plan closely mirrors the North Carolina State Personnel Pay Plan. This fiscal year we have budgeted for a 100 percent move to a market at 93 percent of the state pay plan, with a minimum 3 percent cost of living increase. This move is the county's largest budget increase for Fiscal year 2007- 2008."

The proposed budget has created six new full-time positions, which are a purchasing officer to oversee the procurement and disposition of county property, four new jailers to meet the personnel needs of the detention center currently under construction, an administrative assistant in the Health Department, and an income maintenance case worker in the Department of Social Services.

The budget will be on view in the County Manager's office at the courthouse. Any member of the public is welcome to look at the proposed budget.

A public hearing on the budget will be held at the June 4 county commission meeting. The final budget is scheduled to be adopted at the June 18 county commission meeting.