Washington County frames FY21 budget as hospital bankruptcy costs, EMS needs and grant capacity loom

At a recessed workshop on Jan. 13, 2020, the Washington County Board of Commissioners laid out priorities and concerns for the FY21 budget, centering on costs tied to the county hospital’s bankruptcy, equipment and facility needs for emergency medical services, and efforts to expand grant-seeking capacity.

County Manager and Attorney Curtis Potter told the board he will ask for approval of budget guidelines at the Feb. 3 meeting and reviewed a detailed FY21 budget workshop agenda. Potter warned that the hospital bankruptcy continues to generate legal and administrative fees: "When something like this happens, the County’s bankruptcy trustee has to get involved (which incurs more fees)," and he reported the county has paid about $65,000 to the trustee and lawyers to date. Commissioner Sexton pressed for a quicker judicial resolution, saying he wants the bankruptcy judge "to go ahead a make a ruling, not keep dragging it out." The next bankruptcy hearing was set for Jan. 16, 2020.

Potter also highlighted the hospital pension plan, which he said now operates on a pay-as-you-go basis. "We pay out approximately $26,000 a month," Potter said, and he reported the plan is being carried on a 20-year payout schedule with no additional funding in the plan.

The board discussed EMS finances and equipment. Potter said call volume is down but transports are producing more revenue. Jennifer O'Neal, EMS director, told commissioners she may request replacement of the Quick Response Vehicle (QRV) at an estimated cost of $50,000. Potter said he prefers to buy some vehicles outright rather than finance them and raised the prospect of using older county vehicles in other roles. He also noted that NCACC Risk Pool Management offers driver training that could reduce crash risk; Potter reported two sheriff vehicles were totaled earlier in the year.

Commissioners emphasized broader capital and planning needs. Chair D. Cole Phelps urged the creation of a Capital Improvement Plan and said the county needs a new EMS base; Potter said he will work with O'Neal on potential options. The board discussed selling or consolidating county property to provide collateral for grants and suggested exploring how Washington County Schools facilities might support recreation if the schools build new space.

Economic development, grant-writing and staffing were recurring themes. Commissioner Johnson urged hiring an economic developer or grant writer to pursue funding available to Tier 1 counties and to focus on agriculture-related grants; Potter and other staff said departments pursue grants but emphasized the need for administrative capacity to manage awards through completion. Potter noted two staff members recently secured a $20,000 grant for security cameras and that grant dollars already appear in EMS and other departmental budgets.

Other budget-related items the board discussed included possible revenue increases at the landfill, building a reserve for water as suggested by Commissioner Sexton, and the timing and format of budget documents — commissioners requested hard copies and multi-year comparison data for departmental budgets.

The board set several follow-up items for its Feb. 3 meeting, including approval of budget guidelines and presentation of specific FY20 budget amendments. Potter and commissioners also scheduled further discussion about strategic-plan staffing and facilitator selection, drainage funding for eastern parts of the county, and potential collaboration with the school system on recreation and facility uses.

The workshop closed without formal budget adoption; Potter will return with draft guidelines and amendments at the Feb. 3 regular meeting.