Washington County proposes $19.9 million FY23 budget, keeps property tax rate steady

County Manager and Budget Officer Curtis S. Potter on May 2 presented the Washington County Board of Commissioners with a $19,912,241 recommended general fund budget for fiscal year 2022-23 that would keep the countyadads ad valorem tax rate at $0.840 per $100 of assessed value and rely on a larger-than-normal allocation of unassigned fund balance to fund one-time needs.

Potter said the countyadads taxable base is projected at $954,400,821, a roughly 4.2% decline from the current year, producing an estimated ad valorem levy of $6,883,383. "This recommended budget attempts to manage expenses and utilize revenues in order to meet all current mandated funding requirements and ongoing needs," Potter said as he read the budget message to the board.

Why it matters: Potter recommended assigning about $3.8 million of unassigned fund balance to address two priorities: $2 million to begin shoring up a Washington County Hospital pension plan that he said is underfunded by about $4.7 million, and roughly $1.8 million to accelerate a set of deferred capital improvements identified in a draft Capital Improvement Plan (CIP). The proposal also uses one-time receipts (including an anticipated $682,896 from remaining ARPA revenue replacement funds and an estimated $600,000 from the sale of the Commerce Center) to help balance the budget without raising the tax rate.

The recommended budget includes several notable transfers and projects: a proposed $525,000 transfer from the general fund to the Water Fund to support capital improvements (SCADA replacement, asset management software, municipal interconnect repairs, and security fencing), $600,000 to a Special Projects & Grants Fund to support a new multipurpose facility at the airport, and a $468,000 continuing transfer to EMS along with an additional $127,000 designated for VIPER radio replacements.

Potter also recommended a 2.5% cost-of-living adjustment for county employees and described several regrading and reclassification items intended to improve regional recruitment and retention in positions such as housekeeping, senior center nutrition specialist and transit drivers.

Commissioner Ann C. Keyes commended Potter and staff for the budget work; Commissioner Julius Walker said headads seen improvements in process and paperwork. Potter said staff will continue work with the school system on its request for a new facility; Potter noted final adoption is expected in June after a public hearing scheduled for May 16 at 6:00 PM in the Cooperative Extension room.

The budget message cites state law compliance: "In accordance with the North Carolina Local Government and Budget Fiscal Control Act," Potter said, describing the process used to build the recommended budget.

Next steps: The board will hold a public hearing on May 16 before making any final decisions; Potteradads memo asks commissioners to review the detailed budget notebooks and the draft CIP prior to that hearing.