County workers will take a hit with no tax hike
Anti-tax Tea Party members outside the county building Tuesday. (Voice photo)
With a $4.1 million budget gap, the county would have to freeze 13 vacancies, lay off six to 10 employees, impose five furlough days equaling a 1.92 percent pay cut and take away a 1 percent employer 401k retirement fund match, Outten told the Board of Commissioners.
The county would also have to persuade at least five higher salaried employees to accept early retirement incentives.
The consequence, Outten said, would be pushing some big problems, and expenses, back at least another year in the face of uncertainties about how much the state will continue cutting money for local governments.
To balance the budget, the county could spend no more than the projected revenues of $94.78 million, which are $2.89 million less than this year’s.
Outten’s presentation was informal, and his recommended budget will not be presented until May 17, which will be followed by a public hearing. The new budget year starts July 1.
“This list a menu,” he said. “It’s not etched in stone.”
But Board Chairman Warren Judge said none of the commissioners was willing to suggest a tax increase at Tuesday’s work session and told Outten to return Monday with more polished numbers that did not include one.
Before Tuesday’s work session, members of the Outer Banks Tea Party held anti-tax signs outside the county government building. Board members had also received numerous e-mails.
Outten’s suggestion last week that the EMS helicopter and school nurses could be cut appears to be off the table.
The MedFlight chopper was scheduled for replacement next year, but Outten said that could be delayed for as long as 10 years provided it is serviceable and safe. A new helicopter would cost about $7.5 million, or less depending on what the county could get for the old one, which was put into service in 1991.
Purchase of 15 new cars for the Sheriff’s Office and three ambulances would also be put off.
Under Outten’s latest scenario, none of the increases requested by 25 non-profit groups supported by the county, including Food For Thought, the Community Care Clinic and The Lost Colony, would be included in the budget. The county could save almost $73,000 by cutting some of them below what they received this fiscal year, according to Outten’s numbers.
Requests for budget increases among county departments range from as little as $10 to $50,000. Outten’s numbers included reducing the county’s contribution to the Department of Public Health, which is largely state-funded, by $96,652.
Revenue projections are $2.88 million below what the county expects to receive by the end of the current fiscal year, which is June 30, and there is little prospect for other sources or significant improvements. Outten said the county is authorized to seek a .25 percent local increase in the sales tax, but that would require a referendum.
The county’s fund balance, essentially its savings account, also needs attention, Outten said last week, standing at 17 percent of the county’s general fund. While that is above what the state recommends, the fund balance influences the county’s bond rating and Dare’s goal has been to keep it at 18 to 21 percent.
Expenses that would be pushed off until at least next year, Outten’s figures show, would include restoring the schools budget to its 2009 level by adding back $758,000. Two big ticket items coming up next year are not optional: a retirement rate increase adding up to $427,385 and debt payments of $842,070 on the federally mandated communications system.
Judge said that the county found a loophole to use the first 3 cents of occupancy taxes charged to vacationing renters for the county’s general fund. But the state closed the loophole and requires the fourth cent to go to the tourist board. The fifth cent is set aside for beach nourishment.
The sixth and last cent available is also reserved for travel and tourism and could not be used in the general fund, as some have advocated, Judge said. The Board of Commissioners is scheduled to vote on asking the General Assembly for authorization to add the last cent for use in shoreline management.
See what people are saying:
Join the discussion:
Lisa says:
Glad to see our County taking reasonable steps to bring the budget in line with reality. We just cannot spend at the same levels as we did a few years ago. Revenues are down and will continue to be down for the forseeable future. Let Dare County be a leader in responsible governing and an example to other Counties and the State of North Carolina.
Jeff says:
Isn’t Outten’s salary in excess of $200,000/year? I would hope the contract with him that was made in the era of high property tax revenues would be re-evaluated at contract end. I hope he considered himself when thinking about high salaried personnel taking an early retirement incentive.
Mike W says:
Our county employees enjoy some the highest salaries and excellent benefits compared to other workers in the area.
The workload of some county employees must have seen a decrease since the economic slowdown. Is it time to downsize and lay off some county workers and run government like a business? Our commissioners act like the county employee jobs are are an entitlement and safe from the reality of the economy.
It’s time to step-up to reality!
Paul Apostolos says:
They’re still not cutting the fluff, and already underpaid county employees will suffer because of it. A 2-3 cent tax hike would make this all go away, and cost individuals $90-$150. But instead the burden will be unfairly put on county employees, and it will cost them hundreds and hundreds of dollars. Will the county manager also take the pay cut, or will it not apply to him? The commissioners created this problem, they should be the ones to fix it. Cutting salaries and benefits further is a slap in the face. Obviously layoffs would be much worse, but there are plenty of non-essential items that could be cut before they cut into salaries.
chuck says:
I have lived in the Dare County since 2002 having lived in the D.C. area and other locations in the northeast at different stages of my life. Without question we have the finest services and schools I have encountered anywhere. Additionally, our tax rate is very low by any comparison I can find.
We also have a unique situation with reference to our property tax situation. There are approximately 12,800 household units in the County and over 32,000 homes. So 60% of the taxes are paid by investors or absentee owners.
All this being said, I for one would support a meager tax increase. I find it reasonable to pay an additional $100-200 per year to maintain the quality of life that Dare County provides.
David says:
All residents and visitors should consider moving and visiting other areas this year. I agree the county needs to cut that fat from the budget. Maybe it should be the fat that sits in the seats occupied by elected officials in Dare County.
If they need an ambulance or a helicopter for a medical problem, sorry … call back later !!!
If they need a law enforcement officer, sorry … Call back later !!!
If they need the fire department, sorry … Call back later !!!
But they will be able to find comfort in the new dog park, which is probably where they belong anyway …
Ray says:
Dewey, the comparison of Currituck County and Dare County EMS was done by county manager, Outten in the workshop, not the blog writer. Outten also said that Dare County EMS overtime pay equaled the cost of 28 new positions in EMS should the county chose to go that route. Both counties have to go a long way to get to their destiniation(s) e.g. Currituck Outer Banks route…however, they have stations all along the way. I agree that we cannot do withhout the first class EMS we have here in the county. As to property tax “rates” I find that it is mostly people who come here from up north who love our rates, and the reason is clear there. However, it isn’t the rate, but the valuations that determines whether we pay higher taxes than others in eastern North Carolina. And, in that regard we have always been as much as 50% higher. There is no need to compare us with New Jersey when it comes to property taxes.
Allen says:
When discussing the overtime pay in Dare County EMS, please just remember these ladies and gentlemen work 24-hour shifts in order to provide the protection demanded by the public and the responsibility of local government to ensure that protection is available.
EMS overtime currently under discussion would certainly not create 28 EMS or county positions. Cutting out the overtime would eliminate the level of service we currently enjoy. In addition, EMS is going to have to provide the same level of service even though they are currently 5-6 positions short. With the current hiring freeze, this one fact alone will have a potential mortality impact in the busy summer months ahead. Let’s hope not, but let’s be real. Can EMS be expected to cover Dare County from Duck to Hatteras, 300,000 residents and visitors with 9 ambulances ?
Let’s be real about salaries as well. While Dare County EMS pays reasonably now, it is only because of the overtime pay. Does anyone remember the time when a Paramedic in Dare County EMS was paid $8.25/hr and only $4.12 for every hour over 40 ? That’s right, they were paid “Half Time” rather than time and a half.
If you take away the overtime, DCEMS would be among the lowest paid EMS systems in the country. That fact alone would push valuable paramedics away from this area in droves. You can imagine the result to the protection of life.
When the leaders of Dare County consider the budget, I just hope they can imagine a day when they or their family need an ambulance and they can not get one right away. They would not be able to lay blame on anyone’s feet but their own.
Roger Lambert says:
As sad as it is, jobs are lost every day in the private sector. It only stands to reason that when the tax base declined in the private sector, the local as well as the federal government is also going to decline. That is why good paying private sector jobs are critical to a healthy, limited local and federal government.
Joe Public says:
Several years ago EMS was in a very fragile state. Their pay was low; their ability to recruit and retain good quality employees was dismal. EMS was seventeen employees short staffed, unable to keep their desired coverage intact. One day I heard on the scanner an ambulance responding from the Oregon Inlet Bridge to The Village of Duck for a patient not breathing. Then County Manager Terry Wheeler instituted time and a half pay for overtime as required by federal statue. EMS ranks swelled to nearly desire staffing levels. Recruitment and retention problems disappeared and when my friends in EMS say someone is leaving it is for personal reasons, not that they cannot longer afford to live and work here. The Comparing Dare County’s overtime pay to Curritucks in one blog I recently read is deceptive because you are not also comparing their ambulance numbers and staffing, the geographical area they cover or the cost of living in Currituck versus Dare. Do we really want to cut essential personal’s pay and benefits? Do we want these folks to leave and be short staffed again? While I realize we need to balance the budget, I as a home owner have no problem paying more taxes to support the essential services such as police, fire and EMS. Cut the dog parks and dance troops, community building and meeting halls, cut the 12K from the budget listed as “dinner theater” at the various community centers and all the fluff. If you going to cut the essential personnel’s pay and benefits we are going to once again be in a position here in Dare county where we are waiting for an ambulance, fire truck etc. I have many friends who work in all the various Public Safety agencies in the county and many have said they will have no choice but seriously look at leaving. Not that they want to, but that they just cannot afford to live here making less. If our board of commissioners wants to do that I sure hope they offer some free first aid, CPR and fire fighting classes for the public, because we are going to need to know how to fend for ourselves.
Is it true says:
that as reported on EOD that Judge is misinformed about how the occupancy tax can be used? I’m sure he was not misleading us, saying that the $ cannot be channeled to local need, but was he mistaken?
Can OBV fact check his statement please? thanks
Andy says:
My understanding is that it could be used to help with the Budget.
Mr. Judge knows this, but states that the Restaurant/Hotel or whatever Associations would not like it.
Simply shows where his allegiance is. Not to the people of this County, but to the Businesses.
Jenny says:
As many of you may not know, county employees works 2 sometimes 3 jobs just to make ends meet for their families. A tax increas throughout the county would cost the majority of citizens a whole $90 extra dollars a year compared to what it will cost the individual employees of each county department should they begin laying off personnel. I personally have no problem paying my extra $90 year in taxes to keep the county employees from having to add additional jobs to make ends meet and insure there will be an ambulance available when I need it. To all of you who want to cut back on services, I certainly hope you will be one of the lucky ones that has a medical or trauma emergency and actually have an ambulance that isn’t backed up on other calls and is able to responsed to you in a timely matter before your loved one dies. Be careful what you wish for.
J.C. Towler says:
I share sentiments with Joe Public, Jenny and several others. County employees, particularly those in emergency services, got the rawest of the raw deals for decades with “flex time” and other unfair practices that wound up paying them less money for working longer hours. Even when FEMA was helping pay for overtime after some of our more devastating hurricanes these folks were STILL getting the financial shaft. Where all that federal money went would be an interesting subject for another article.
I know griping about taxes is as American as steroids in baseball, and on a national level if a Congressman or Senator mentions the possibility of a tax hike it lights up the Capitol Hill switchboards. (Younger readers can Google “switchboards” for clarification). But on a local level, when you are much closer to the “cause and effect” of budget shortfalls, it brings out a bit more generosity and a bit less cries of “socialism.” I’d not be opposed to a tax increase so long as I knew it was going to pay for education and essential county services.
Joe Public says:
Now is a time for top-down leadership. How will furlough days effect the salaried folks? Will the county Manager be taking 5 unpaid furlough days as well as other salaried department heads and staff? If this equates to 1.92% pay decrease as stated by the county manager will the commissioners be taking a 1.92% pay reduction? I for one feel it is time for the county leadership to lead by example and not directive. This county can cut a lot of excess out of the budget and should before going after the very life blood of the safety of our residents and quests, our public safety folks in Police and EMS.
Fisher says:
$842,070 payment on the “federally mandated” communications system? Whoever said that upgrading our current VHF radio system to 800mhz was required by the feds? This is inaccurate and someone needs to research the facts on this new 4 plus million dollar system! The federal government advised agencies to either be on the 800 system or to narrow band current VHF systems after 9-11. Which could be done at a far lesser cost. Also the cost. 4 plus million doesn’t include the shared cost of new equipment being shared between all public safety agencies, which is estimated to be be in the millions! Not to mention that the system isn’t all that great and most agencies don’t want it. Thanks Dare co.
Delton says:
Paul Apostolos said it right! Not all county employees are at the top of the pay scale; basically just the department heads. The lower paid employees are the ones that do the work while the dept head gets the credit and the pay!
There are small ways that could pay off big in the end i.e. conserve energy like cutting off the lights and computers at night. No free lunches for meetings, etc…, stop driving the county vehicles home unless revelant.
Katie says:
Last week when I visited Dare county tax/recording offices, I observed enough employees to think I’d gone back in time to the real estate bonanza days of 2005-2007 (except no one was standing in line). Private businesses have all had to adjust to the economic downturn, having fewer employees doing more work, why can’t OUR public employees do the same?