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Pender County finance staff point to sharp rise in interest income as they begin budget workshop
Summary
Finance staff told commissioners that interest income has grown from roughly $9,000 to nearly $5 million a year as higher market rates and county investments drive a large change in revenue forecasts for the coming budget cycle.
Interim County Manager Miss Blue opened a multi-department budget workshop by walking commissioners through revenue forecasting and highlighted a large, recent rise in interest income.
"One of the biggest changes over the last couple of years is going to be interest earned," Miss Blue said. "A couple of years ago, it was as little as $9,000 because that's what interest rates were giving us. Now we're up to nearly $5,000,000 a year, in interest income alone." She said the county invests idle cash with North County Capital Management Trust and typically keeps about $100 million to $130 million invested while keeping minimal cash in checking for operations.
Miss Blue said revenue lines were forecasted using a mix of department-provided projections, historical averages and adjustments for one-time items. She noted the county’s tax revenues are tracked in a separate spreadsheet but that Munis, the county’s accounting software, consolidates revenue and expenditure data. "All of this is included in Munis," she said.
Finance staff told the board they consult the county’s investment manager on near-term interest forecasts and incorporate those views into the budget model. They also described treating large, nonrecurring items—such as major permit or inspection fees tied to a specific project—by excluding them from recurring-year forecasts.
Why it matters: interest income at this level affects general-fund capacity and can reduce the pressure on property-tax increases or increase one-time spending capacity, but it also depends on how long elevated rates persist and how much cash the county keeps available for operations.
What's next: staff will continue to refine the revenue forecast and the separate tax spreadsheet and present department-level requests against that forecast as the workshop continues.
