2004-05 Budget Presentation

Proposed General Fund Budget Totals $77,831,595

Increase of $4.1 million over the original 2003-04 budget of $73.7 million

5.5 percent increase

Proposed General Fund Tax Rate

Recommended tax rate of 73.5 cents per $100 of assessed valuation of $4,732,315,616

Based on a 93.54 percent collection rate

Year in Review

Successes-Economic Development

Continues to utilize an aggressive private sector approach to marketing Harnett County’s image

Marketing:– Enhanced and maintained a progressive web site– NC Magazine– Signs will be placed on I-95 to advertise Edgerton II

Successes-Economic Development

Infrastructure improvements at Edgerton II and Western Harnett Industrial Parks:– Roads (DOT funding)– Water & Sewer– Obtained permits, surveys and plans to make these

parks “client ready”

Moved into a more visible office which presents a professional image

Successes -Facilities

Sold the old Harnett County Courthouse on Main Street

Purchased Shawtown School from the Harnett County Board of Education which provides space for:– Central Carolina Community College– Headstart (scheduled to move in August 2004)– Shawtown Alumni– Lee Johnston Harnett Community Action

Successes-Facilities

Workplace Changes and Plans:Moved Board of Elections to Eighth StreetMoved Personnel into the Assembly Room in the Administration BuildingEconomic Development Office has new office spaceAuthorization for Jail StudyAuthorized plans for Agriculture Building and addition to the Animal Shelter

New School Facilities for Our Children

Overhills High School will open in the fall of 2004Lillington Shawtown Elementary School opened in the fall of 2003Refinanced 1994 COPS which includes Anderson Creek and Dunn Middle SchoolsRenovation to 20 schools in the County with a QZAB loan in the amount of $4,000,000 (interest free) Funding of addition to Lafayette Elementary

General Fund Revenue Highlights

Fund Balance Comparison General Fund

$11,543,031$10,496,265

$15,888,723$15,697,451$15,783,463

$8,396,923 $7,923,543

$3,967,485$2,863,388

$6,410,242

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

1999 2000 2001 2002 2003

Total Fund Balance Available Fund Balance

Available Fund Balance is defined as the portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriation.

Analysis of AvailableFund Balance: General Fund

0

5

10

15

20

25

1999 2000 2001 2002 2003

CountyPop. Group Avg.State Average

Fund Balance Appropriated

$2,614,895

$3,050,135 $3,012,703

$1,600,000 $2,508,359

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

00/01 01/02 02/03 03/04 04/05

Property Taxes Remain Largest Single Source of Revenue

Other Taxes & Licenses

1%

License, Permits & Charges

2%

Sales Tax19%

Interest Earnings, Miscellaneous,

Transfers9%

Fund Balance3%

Property Tax45%

Intergovernmental21%

Ad Valorem TaxCurrent Years’ Collections

$26,914,383

$31,836,640 $32,535,569

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

2002/03 2003/04 est. 2004/05 est.

Analysis of Property TaxCollection Percentage

88.00%

89.00%

90.00%

91.00%

92.00%

93.00%

94.00%

95.00%

96.00%

97.00%

98.00%

1999 2000 2001 2002 2003

CountyPop. GroupStatewide

20032002200120001999

96.50%96.49%96.46%96.72%97.12%Statewide

95.11%95.42%95.31%95.42%95.67%Pop. Group

93.54%91.45%92.32%91.35%91.95%County

Comparison of Assessed Valuations

$3,618,034,342

$3,776,538,684

$4,598,432,469 $4,732,315,616

$0$500,000,000

$1,000,000,000$1,500,000,000$2,000,000,000$2,500,000,000$3,000,000,000$3,500,000,000$4,000,000,000$4,500,000,000$5,000,000,000

2001/02 2002/03 2003/04 est 2004/05 est.

Proposed Budget Assumes Almost Level Sales Tax Collections

Historically the annual growth has been between 11 and 14%

However, this year we are only showing a 3.5% growth in sales tax

Sales Tax

$10,894,495

$12,440,418$14,100,000 $14,600,000

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

01/02 02/03 03/04 est. 04/05 proj.

Sales Tax Comparison

$3,795,692$4,069,803

$7,745,956

$9,171,890

$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000$8,000,000$9,000,000

$10,000,000

Point of Sale Per Capita2002 2003

General Fund Expenditure Highlights

General Fund Expendituresby Function

General Govt.12%

Debt Service12%

Cultural & Rec.1%

Econ. & Phys. Dev.4%

Education19%

Human Services32%

Public Safety20%

General Fund – Total Budget $77,831,595

General Fund Expendituresby Category

Operating Expense18%

Capital Outlay2%

Public Assistance15%

Education19%

Debt Service12%

Personnel34%

General Fund Expenditures - $77,831,595

Public Education Remains a Priority for Harnett County

Total General Fund appropriation for Education increases 8.99 percent and totals $13,634,156 which includes $500,000 of start up cost for new school $1,125,436 increase from 2003-04This increase represents almost 27.7 percent of the $4.1 million General Fund budget increaseAllocation and Debt Expense for Schools totals $20,801,255Overall share of County budget is 26.73 percent

Board of Education

$10,856,551

$3,332,354

$11,507,944

$3,802,592

$11,507,944

$7,001,679

$12,508,720

$6,992,103

$13,634,156

$6,732,099

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2000/01 2001/02 2002/03 2003/04 2004/05

App. Current Expense/Capital OutlayDebt Service Owed

Law Enforcement has been a priority for Harnett County

Total General Fund appropriation for Law Enforcement increases by 18.18 percent and totals $9.23 million$1,246,342 increase from 2003-04Represents almost 30.65 percent of the $4.1 million General Fund budget increaseOverall share of County budget is 12 percentIn the past two years the Law Enforcement budget has increased a total of 39 percent$50,000 is proposed in the budget for Sheriff to use for reclasses and salary adjustments for all law enforcement departmentsThe proposed budget includes 5 new employees

General Fund Debt Service

Refinancing the 1994 COPS last year resulted in a reduction in debt service of approximately $388,000$4,000,000 interest free QZAB loan for renovation to 20 existing schoolsMajority of County’s debt is for schools– Total Debt is $9,276,142 of that $6,732,099 is for

schoolsThe last year the County will be paying on the DSS/Health buildings will be 2008-09

Employee Pay and Benefits

Proposed budget includes 3% cost of living adjustments, new positions, special salary adjustments and some reclassificationsNew positions include:– 5 for Sheriff– 1 in Planning & Inspections (half will be paid out of Solid

Waste)– 2 in Library– 2 halftime positions in Anderson Creek Library– 1 in Tax– 1 in Animal Control

Countywide Classification StudyFunds included in departmental budgets for a projected 7.1% increase in employee health insurance

Solid Waste Enterprise Fund

Solid Waste Enterprise FundTotal Budget $3,190,912

Proposed budget includes:– 1 additional staff person in Planning & Inspections of

which half of the salary will be paid out of the Solid Waste budget. This position will be related to mobile home cleanup.

– Increase in Uwharrie contract– Increase in the volume of waste at the container

sites which causes an increase in charges to Republic Waste

– Increase in household and tipping fees by $1.00 each which will result in revenue increase of approximately $92,000

Public Utilities Enterprise Fund

Refinanced 4 water and sewer districts for 25 years which will result in an overall savings over the life of the debt of approximately $2 million

Several ongoing capital projects will continue in the coming year

Document Availability

Clerk to Board of CommissionersCounty Finance OfficeCounty LibraryCounty’s Web Site– www.harnett.org

Sheriff’s Department Budget Comparison

5,779,015 6,001,6736,329,331

6,617,883

7,982,414

9,228,556

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005