The Alexander County Board of Commissioners held a public hearing to allow input and to discuss the proposed 2024-2025 county budget at the May 20th meeting. The proposed budget was first presented to the board at a work session on April 29. Commissioners will approve the budget in June.
Former County Manager Shane Fox, who worked diligently with department heads to develop the budget, was asked to present the proposed budget to commissioners.
The proposed general fund budget totals $56,589,979, which is a 2 percent decrease of $1,105,973 compared to the current year’s budget. The general fund budget includes a two-cent property tax cut which would lower the tax rate to 65 cents per $100 valuation, a 5 percent cost of living adjustment (COLA) for all county employees, continuation of the employee Christmas bonus, a continued focus on public safety, and additional school funding.
Chairman Josh Lail said, “This proposed budget is impressive and I’m proud to be a part of it. We have been looking at ways to run more efficiently and to be responsible with taxpayer dollars. I’m very proud of the financial position of Alexander County and how seriously every department has contributed.”
Fox said the proposed budget was developed with a conservative approach based on economic metrics. 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.
“I think the county is in great shape financially on the general fund,” Fox related.
The property tax base increased by approximately 40 percent following revaluation in 2023, after years of stagnant growth. The previous revaluation in 2015 showed a 2.5 percent decrease in tax base. The tax base is projected at $4,080,203,444 (1.4 percent increase) for 2024-2025. The county is required by state law to have a revaluation every eight years, with the next revaluation in 2031.
Fox said sales taxes are only up 3.85 percent in the current fiscal year, compared to 11 percent growth in the prior year. The proposed budget includes sales tax projections of $11,765,000, which is a $350,000 decrease.
Revenues from building permits are up 18 percent this year, with $500,000 projected for the current year. The proposed budget includes $550,000 in building permit revenues. Other sources of income include detention center ($135,000) and interest income ($775,000).
Fox then presented the proposed general fund expenditures for 2024-2025. Before adding the 5 percent cost of living adjustment, 29 county departments are equal to or less than the 2023-2024 budget.
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.
Fox’s presentation showed a decrease of $2,308,205 (approximately 8 percent) in operating expenditures. Health and human services expenditures are budgeted at $13,097,118, which is a 5.9 percent decrease. Public safety continues to be a priority, with a $1,087,729 increase, for a total of $17,871,496.
Capital items in the proposed budget include: $100,000 in information technology upgrades, $230,000 for seven vehicles, $600,000 for two ambulances, $79,000 for a sheriff’s office vehicle and equipment, $450,000 for a trash truck, and $60,000 for heating and air upgrades. The sheriff’s office also plans to purchase an armored vehicle, with half the cost funded from drug seizure money.
In terms of personnel, the proposed budget includes only two new positions, with one at the sheriff’s office and one at the landfill. With the 5 percent COLA and Christmas bonuses for employees, salaries and benefits total $29,859,926 in the proposed budget. Employee benefits are also improving at no additional cost to the county.
Alexander County Schools requested $8,287,394 for 2024-2025, which is up from $7,383,428, for an increase of $903,966. The proposed budget includes $109,612 for the fire academy and NC Pre-K program, for a total allocation of $7,493,040 for Alexander County Schools.
“Alexander County has been consistent in providing positive funding to Alexander County Schools,” Fox said. “It’s an enrollment issue, not a funding issue.”
Commissioner Marty Pennell said he is somewhat hesitant to approve a 2-cent property tax cut. “I love the idea of a 5 percent COLA and bonuses, as our employees deserve that greatly. But what happens when our growth is stagnant and our revenues are flat? There is talk about things our county needs. Where do we go to balance that out and to improve Alexander County?”
Commissioner Larry Yoder agreed, “I don’t want to cut the tax rate only to have to raise it again. If we don’t have growth in the county, it will happen.”
Chairman Lail said, “A budget is what we’re guessing will happen. If we don’t have growth, regardless of the tax rate, we’re going to have to raise taxes because everything is more expensive every year. It’s nice to be in a position where we can even talk about lowering the tax rate.”
In the water and sewer fund, the City of Hickory is proposing a 5 percent rate increase for both services (average $3 increase per bill).
Capital projects in the proposed budget include the Bethlehem Park improvements project (state funding and sales tax revenue), Bethlehem water tank project (state funding), Bowman Court sewer project, EMS Station #1 building (state funding), water line expansion project (federal funding), and courthouse project (subject to further discussion).
In other business:
• Interim County Manager Ben Faulkenberry presented a bid recommendation for the Bowman Court sewer pump station project. A bid opening was held on May 9, with Carolina Grading and Utilities submitting the low bid of $2,130,205. The project includes 6,500 linear feet of sewer force main and a pump station, which will serve a significant housing development that is being planned. Commissioners approved the bid recommendation.
“This has been a long time coming. Projects like this are exactly what we have to do to spur the development and growth that we need,” said Chairman Lail.
• Commissioners approved a project budget ordinance for the Paragon Films Rail Project. Revenues include a Community Development Block Grant of $222,375, an NC Department of Transportation grant of $143,539, and county funding of $74,126. The project involves the construction of a third railroad spur for Paragon Films’ production facility in the Alexander Industrial Park. The company is currently completing a new 70,000-square-foot warehouse on White Plains Road in the Alexander Industrial Park.
The board also approved a budget amendment to increase the senior center budget by $16,000 to account for a Home and Community Care Block Grant and ARPA Congregate Nutrition Grant. The amendment also adjusts the 911 Communications budget for a $1,675 increase in state grant funds.
• In the County Manager’s Report, Mr. Faulkenberry said that six volunteer fire departments received the 2024 Fire Grant from the NC Office of State Fire Marshal: Central Alexander – $7,385.96; Ellendale – $10,000; Hiddenite – $39,000; Sugar Loaf – $8,994; Vashti – $15,434; and Wittenburg – $9,970. On a related note, he said the new fire training facility should be complete by the end of the month as gravel and road work are in progress.
The public is invited to a ribbon cutting at the new Wittenburg Access Area Swim Beach on Friday, May 24 at 2:00 p.m.
County offices will be closed for Memorial Day on Monday, May 27.
A large crowd attended the first installment of the 2024 Summer Concert Series on May 11. The next concert will feature The Whisnants on June 1.
The next meeting of the Alexander County Board of Commissioners is set for Monday, June 3 at 6:00 p.m. at the CVCC Alexander Center for Education (room #103). 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.