The Alexander County Board of Commissioners adopted the 2024-2025 budget at the June 3rd meeting by a 3-2 vote, with Commissioners Marty Pennell and Larry Yoder opposed.
The new budget includes a two-cent property tax decrease, which will reduce the property tax rate to 65 cents per $100 valuation. Commissioners Pennell and Yoder believe the new budget is sound, but the property tax rate reduction is somewhat premature.
Interim County Manager Ben Faulkenberry said the 2024-2025 general fund budget totals $56,616,494, which is a 2 percent decrease compared to the current year’s budget. The new budget includes a 5 percent cost of living adjustment (COLA) for all county employees, a continued focus on public safety, capital projects, additional school funding, and more.
Chairman Josh Lail said he believes Alexander County’s financial position is strong and secure.
“Overall, this is the best budget that I’ve ever been a part of as a county commissioner. A lot of work has gone into this budget, with a lot of people involved who know what Alexander County needs. We make decisions based on information that is presented to us,” said Chairman Lail. “Maybe I’m a little more optimistic than some, but I feel like we are going to experience some growth. I think it’s a solid budget that is a very close representation of what will be spent.”
Commissioner Kent Herman said he voted against the 2023-2024 budget last year due to the property tax increase following revaluation, but is glad to offer some relief to taxpayers. “This is a good step in the right direction,” said Herman.
Commissioner Pennell said he believes that a two-cent property tax rate reduction is relatively minor for citizens, but is a significant amount of money for the county. With a median home value of $272,500, Pennell said the two-cent decrease equates to a savings of approximately $50 per year for a homeowner; however, the county will lose $816,000 in revenues.
“If you run the numbers, nothing suggests this is the time for a two-cent reduction. Our growth rate is only 1.12 percent and sales tax has deflated. Do I want to lower the property tax rate? Yes, but I’d want to make it worthwhile to our citizens,” said Pennell. “It’s premature to ask for a two-cent reduction with our infrastructure needs, services, and the wants of our citizens.”
Commissioner Yoder agreed, “We can cut two cents now, but we’ll likely have to raise taxes by four cents later. My main concerns are Medicaid Hold Harmless and declining sales tax revenues. I don’t want to have to use fund balance. The county is in great financial shape right now and I want to make sure it stays that way.”
Vice Chairman Ronnie Reese said he believes the 2024-2025 budget is a good balance.
“I’m still optimistic that revenues will keep coming in. We could also change our revaluation timeline,” said Reese. “I like the budget – it covers a lot of things. It’s good for our employees and our citizens.”
Pennell said, “I agree with the budget wholeheartedly, except for the tax cut.”
Chairman Lail said the county’s fund balance, which is comparable to a savings account, is currently at 41 percent.
“Just to help folks understand, if the fund balance was 50 percent, you could operate the county for six months with no revenue. I’m very proud of where we are,” said Lail. “As commissioners, it’s ok to have differing opinions and not agree all of the time. I truly believe the five of us have the best interests of Alexander County at heart.”
In the newly-adopted budget, general fund revenues are comprised of property taxes at 47 percent, sales tax at 21 percent, restricted grants at 20 percent, other revenues at 6 percent, and sales and services at 6 percent. General fund expenditures are comprised of public safety at 35 percent, health and social services at 25 percent, general government at 18 percent, education at 15 percent, culture/recreation at 5 percent, debt at 1 percent, and economic development at 1 percent.
Capital items in the budget include information technology upgrades, eight vehicles, two ambulances, a trash truck, and heating and air upgrades. The sheriff’s office also plans to purchase an armored vehicle, with half the cost funded from drug seizure money.
Capital projects in the 2024-2025 budget include the ARPA water line extension project (federal funding), Bethlehem Park improvements project (state funding and sales tax revenue), Bethlehem water tank project (state funding), Bowman Court sewer project (state funding), and EMS Station #1 building (state funding).
The budget includes two new full-time positions – one at the sheriff’s office and one at the landfill. In addition to the 5 percent COLA and continued Christmas bonuses for employees, benefits are also improved at no additional cost to the county.
Alexander County Schools requested $8,287,394 for 2024-2025, an increase of $903,966; however, the budget allocation totals $7,493,040, which includes $109,612 for the fire academy and NC Pre-K program.
The City of Hickory is proposing a 5 percent rate increase for water and sewer services, for an average $3 increase per bill.
As requested, the budget includes a half-cent fire tax increase for the Vashti Volunteer Fire Department.
“I would like to thank the finance department and department heads for their hard work in developing this budget, and our employees for providing excellent services to our citizens and community,” said Faulkenberry.
The new budget becomes effective July 1, 2024.
In other business:
• Commissioners approved a resolution to oppose the City of Charlotte’s interbasin transfer request from the Catawba River Basin. The North Carolina Environmental Management Commission approved an interbasin transfer for Charlotte in 2002 for 33 million gallons per day and for Concord and Kannapolis in 2007 for 10 million gallons per day, and is currently reviewing Charlotte’s request for an additional 30 million gallons per day.
Alexander County and surrounding counties and municipalities are primarily concerned that the proposed transfer would limit the amount of water available to support growth in the area.
During the public comment period, Bud Caywood also expressed his concern about the transfer request. He attended the community meeting in Hickory on May 8, which attracted a large crowd of those in opposition to the transfer.
Chairman Lail said, “We are absolutely and unequivocally against Charlotte taking another drop of water from the Catawba River Basin. We need to take this very seriously and do everything we can to stop it.”
Charlotte Water’s next public meeting will be held on July 15 at 6:00 p.m. at the CoMMA Performing Arts Center in Morganton.
• Commissioners approved a resolution to direct the expenditure of Opioid Settlement Funds. David Moose, Consolidated Human Services Director, presented the resolution detailing how the county will utilize the funding for 2024-2025.
The first strategy authorizes $450,000 for the Alexander County EMS Post Overdose Response Team/Community Paramedic program. This will be the second year of funding for the program and will provide for an expansion of the program to include a second full-time position along with two part-time Peer Support Specialist positions.
The second strategy authorizes $16,000 to purchase Naloxone (Narcan) and other supplies for two Harm Reduction Vending Machines, which are being funded by Blue Cross Blue Shield of North Carolina. This strategy is a joint venture between the Alexander County Health Department and the EMS PORT program to provide 24/7 access to free Narcan in an effort to reduce overdose deaths. Moose said one vending machine would be located at the Mobile Café in downtown Taylorsville, with the second machine likely to be placed somewhere in the Stony Point area.
“By putting these programs in place, we can reach those who are addicted to opioids,” said Moose. “If we save one life, it’s well worth it.”
• Commissioners approved a capital project budget ordinance and five budget amendments. The project budget ordinance appropriates $2,330,205 in state grant funds for the Bowman Court sewer project in Bethlehem. The first budget amendment adjusts the general fund budget for personnel costs in 2023-2024, with no increase in expenditures. The second budget amendment adjusts the solid waste fund budget for 2023-2024 personnel costs, with no increase in expenditures. The third budget amendment increases the library budget for revised allocation of state funds, increases the detention center budget for medical supplies and inmate medical bills, decreases estimates for sales tax revenues, and increases the budget for social services representative payee client revenues and expenses, for a net increase of $94,594 in expenditures. The fourth budget amendment is a book entry that is required for financial statement presentation due to the requirements of Governmental Accounting Standards Board Statement No. 96 (GASB 96), which governs the accounting treatment of subscription-based information technology arrangements. The fifth budget amendment is also a required book entry due to GASB 87, which governs the accounting treatment of leases.
Consolidated Human Services Board meeting
Following the regular meeting, commissioners convened a meeting of the Consolidated Human Services Board.
• Health Director Billie Walker provided an update for the Alexander County Health Department. There are two vacancies on the Health Advisory Board for an ophthalmologist and an engineer. The department recently hired an Environmental Health Specialist, but still has vacancies for a Dental Assistant and Environmental Health Administrative Assistant.
Walker presented a schedule of fees, which was approved by the board.
The health department did not receive the NC Rural Health Grant, but plans to apply for the next grant cycle.
The board also approved changes to the department’s administrative manual policy and agreement addenda.
Walker then provided a situational report, noting that the canopy/covered walkway at the main building is now complete. Several cabinetry renovations are also complete.
“We have really updated a lot at the health department,” said Walker. “I’m very pleased.”
• Senior Center Director Kristy Hunt provided an update for the Alexander Senior Center. She said that 100 people signed up for the upcoming birthday lunch and bingo event. The center hosts a musicians’ jam every Monday at 10:00 a.m., which is also streamed live on YouTube. There will be a special evening of music on June 25 at 6:00 p.m. The center continues to add enrichment classes at the Taylorsville, Stony Point, and Bethlehem locations.
The senior center will utilize ARPA Congregate Nutrition Funds to provide free meals to local seniors using local caterers and restaurants.
Operation Fan Heat Relief will provide a free box fan to local seniors age 60 and older. Distribution will begin on July 3 at the Taylorsville location.
A Shred-a-Thon and Operation Medicine Drop event was recently held, with 116 people participating. Approximately 2,600 pounds of documents were destroyed and 42 pounds of medication were collected.
Almost 160 people attended the senior celebration on May 10, with a fun walk, lunch, car show, door prizes, and more.
The center continues to offer trips through Diamond Tours, with the next trip planned for Myrtle Beach in December. A series of day trips are also scheduled.
The center has assisted seniors with their Medicare drug plan, saving them over $130,000 since January.
General participation increased almost 31 percent through April as compared to last year.
“We do what we need to do to keep our seniors happy and healthy,” said Hunt. “Seniors are my heart – they are precious to me.”
• Consolidated Human Services Director David Moose provided an update for the Alexander County Department of Social Services (DSS). DSS Program Manager Keri Jerrell has been promoted to DSS Director, effective May 27. She was unable to attend the meeting due to teaching a MAPP (Model Approach to Partnerships in Parenting) class for prospective foster parents that same evening.
Moose said the economic services division will be fully staffed as of June 10. They are working to fill vacancies in child protective services.
All available funding allocations, both federal and state sources, have been drawn down, including $100,520.29 in additional Medicaid Expansion funds.
The state fiscal review of DSS financial operations has been extended to every two years due to low-risk ratings for the past two years.
The REDA (Recipient Eligibility Determination Audit) was recently completed with 200 Medicaid cases checked over a 10-month period. DSS has only two paybacks totaling $75.63.
Currently, there are 59 children in DSS custody. There are 15 foster homes in the county; however, the MAPP class will result in four additional licensed families starting in August.
There were no adoptions from March to May, but staff anticipates several new adoptions in the next quarter. One child has been reunified with their parents as of May, and one child will reach permanency through legal guardianship.
The next meeting of the Alexander County Board of Commissioners is set for Monday, June 17 at 6:00 p.m. Regular meetings are recorded and can be viewed on the county’s Government Channel on Spectrum channel 192 or the county’s YouTube channel at www.youtube.com/alexandercountync. Meeting agendas, minutes, videos, and more are available on the county’s website at https://alexandercountync.gov/commissioners.