Dare leaders receive $99 million budget
Describing the worst economy since the 1940s, Dare County Manager Bobby Outten on Monday recommended what commissioners had asked for: a $99 million budget that would increase the property tax rate 2 cents.
Representing about 1 cent of the increase in Outten’s 2010-2011 spending plan would be two big items — putting almost $1 million into savings for bills due in 2012 and adding $758,000 back into the school budget.
Under the spending plan, no new programs are proposed, merit pay would be eliminated, 13 vacancies would be frozen and employees would lose the 1 percent match for their 401k retirement plan.
Outten said in his budget message that growth in the county’s tax base is the lowest in the staff’s experience. The value of property is estimated at $17.6 billion and is expected to grow by only .22 percent in 2011.
When budget discussions began, the county was faced with a $4.79 million budget deficit.
“The budget structure was at the point of a pivotal decision: either significant service reductions and employee elimination would have to occur or addition revenue would have to be generated,” Outten wrote.
A 2-cent increase would bring Dare County’s rate to 28 cents per $100 of value. It would add $60 a year, or $5 a month, to the tax bill on a $300,000 house. Property owners in incorporated towns pay an additional tax. They also face increases in water as well as wind and hail insurance rates.
The budget adds back 13 vehicles for the sheriff’s department and three new ambulances. The total cost would be $755,000, but under a lease-purchase contract, the payment in the upcoming budget would be $136,000.
Increasing the Board of Education budget by $758,000 restores it to the 2008-2009 level. Local school spending of $18.9 million is the biggest piece of the county’s operating budget, representing 26 percent of the total.
Outten noted that while the number of students has increased by 4.87 percent since 2001, school spending has gone up 87.74 percent. Per pupil spending, the budget document said, would be $3,839 and would probably maintain the county’s ranking as first in the state.
The county, however, is still paying off about $135 million in debt for schools following several of years of construction, and $10.9 million of the year’s revenue will be needed to cover 2010-2011 payments.
A set-aside of $983,489 in the fund balance would cover debt service of $842,000 in fiscal 2011-2012 for the new emergency communications system as well as probable increases in state retirement contributions.
Outten said that the county should also expect more expenses coming out of Raleigh in upcoming state budgets.
After three budget workshops leading up to Outten’s presentation, there were only a few questions and little discussion at the Board of Commissioners meeting Monday.
Commissioner Jack Shea said, however, that he was a “lone wolf” in urging that the county “live within our means.”
Shea, a Republican and the only commissioner facing a challenge in the November election, has said repeatedly that he does not support a tax increase. He noted that some of the towns are also contemplating increases, resulting in a cumulative affect on taxpayers.
Commissioner Allen Burrus said, however, that the towns face the same revenue shortfalls and mandated expenses as the county does.
See what people are saying:
Join the discussion:
The Taxpayer says:
A big thank you to Jack Shea, the only Dare County Commissioner with any fiscal sense. I would not be opposed to a 2 cent tax increase if meaningful cuts were made across the board. An increase in school spending is ludicrous when county employees are going into a second year w/o a merit of COLA increase. It’s time for Dare County to bring government spending down to a sustainable level, even if that means a reduction in non-emergency service levels, to include personnel.
Lisa says:
The voters will remember in November, this year and in 2012.
FW says:
When will it stop!
*Gas prices rising!
*Tourist season food prices up!
**No increase in SS or Pension!
*Almost all of my neighbors out of work!
*Medical insurance up $65 a month!
*Stock dividends suspended or reduced!
*Cd’s rates down almost 3%!
*Homeowners insurance up 10%
It just doesn’t stop ..this is a partial list!
Also our kids don’t seem any smarter!!
Ginny says:
Right, cut retirement matching and merit pay, but then I see things like yesterday. On Hatteras Island, Highway 12 (a two-lane blacktop with limited shoulder) we have a street cleaner going all day long. Anyone want to guess how long it will take for sand to get kicked up on the shoulder again?
They should have looked at the nickel and dime and ineffeciencies that accumulate over time. These costs add up just like the $1 – $3 items on your grocery list soon baloon into $150 at the register.
chuck says:
I know no one likes to even hear about a tax increase, however meager it might be. I believe this is the first one I have witnessed since moving here in 2002. I would like to draw a comparison:
1. Correctly, many responsible folks would like to see government run more like business. Given that comparison, in this case the County was faced with either raising “prices” due to a lag in “sales” or reduce the quality of the product;
2. The other option, as pointed out, is to reduce production costs. I would suggest that such an effort takes serious consideration and a detailed understanding of the cost of doing business. It also includes consideration of the long term ramifications of those cuts for the future.
I believe that reducing the quality of the “product” is not an option. Further, I believe that in order to fairly judge the proposed cuts in spending it takes much more than reading a 200 word news article.
Sometimes increasing prices is “just good business”.
Robert says:
Seems to me that the schools do need to have some more money. Right now, the teachers are stretched to the point that they have limits on the number of copies of materials they make for students. In addition, I know that teachers are often resorting to taking money out of their own pockets to buy materials for the students. We, as a community, have no more important asset than our children and they deserve the best we can provide.
As far as the COLA and the merit pay goes of city/county employees: WHAAA! All I can say is welcome to the club. I work 60 hours per week (on a salary, without overtime) and I have not seen a COLA or bonus since 2006. Life is a bitch… and then you die!
Kenny says:
Chuck, increasing prices in a bad economy is asinine. Real business decisions do not allow for additional income sources, as there are none. Your business “model” sounds as if you moved here after retiring from a government job.
Price cutting in business usually means cutting production costs and other associated costs. Cutting costs does not equate to a lowering of quality!
Robert says:
The example is given on a 300,000 dollar property, will this be after the county reassessment on our de-valued properties considering that the housing market prices of houses has dropped 30%, 40%.
Selena K says:
Seems to me the children already have some “best of the best” things around here. We built–how many?–new schools. (Yeah, yeah, those buildings were crumbling and the construction boom had brought in a ton of transient residents…we know). We have excellent Recreational facilities for them.
The local blogger EOD jokes about the Dare Co. Courthouse complex being the “Hanging Gardens” or the “Taj Mahal,” but have you looked at our schools lately?
And, don’t tell me the kids don’t have it cushy around here when at least half of them don’t even have to ride the school buses. Ever noticed how FEW kids actually ride the bus to and from school these days?
If you try to navigate Colington Rd. when school starts or ends you’d better be prepared to see heavy Mom-traffic. They just can’t let their precious babies ride the bus!
ekim says:
How come everyone else has to cut back on their personal budgets to make ends meet and the government, county, state and federal, just keep on spending money like it grows on trees.