Rowan County finance staff report March revenues above last year but warn of slowing growth

Anna Baumgartner, county finance staff, told commissioners the county’s cumulative March expenditures were about $16,000,000 higher than fiscal year 2024 and that cumulative revenues were roughly $10,300,000 higher than the prior year.

"We are up, 16,000,000 over FY24, which is about 12.32," Baumgartner said, and added that cumulative revenues were "10,300,000 or 6.3% over March of FY24." She cautioned that recent sales-tax data show signs of slowing: January collections were down about $170,000 from last January.

Why it matters: County revenue projections guide budgeting for services and capital projects. Baumgartner listed revenue components that contributed to the year-over-year increase and items that are expected to slow in the year ahead.

Baumgartner said interest earnings contributed about $1,500,000 and EMS billing was up about $700,000. The county recognized a sheriff's department grant of roughly $530,000 in the current year's revenue, and reimbursements from a loan for Knox Middle School returned about $3,700,000 to the county's accounts. She also noted that a $500,000 building-reuse grant that appeared in last year's figures is not in this year's budget.

Property tax receipts through February were up about $2,700,000, she said. On sales tax, Baumgartner said December was up $251,000 (approximately 6.5% month over month) but that January receipts came in lower and indicated that sales-tax growth may be leveling off. "We do believe that sales tax is leveling off to where we're not going to see the growth that we've been seeing," she said.

Baumgartner told commissioners she had investigated a $2,700,000 increase from registered-deeds activity and explained part of those receipts are deposited into an account that is not the register of deeds' monthly account, and that about half of the real-estate transfer tax is remitted to the state.

She warned that planning-and-development fee and building-inspection revenues may be lower in coming months and said there were not "any other positive news" she could report for the next six to 12 months.

Commissioners asked clarifying questions about the registered-deeds receipts; Baumgartner said the funds were accounted for but in different account numbers and that half of the transfer tax is payable to the state.

The report provided fiscal-year comparisons and short-term projections but did not contain any motion or vote related to budget changes. Commissioners did not take formal action on the report at the session.