Washington County adopts FY24 budget, consolidates reserve accounts and approves fire department funding

The Washington County Board of Commissioners adopted the FY24 Budget Ordinance on June 5, 2023, approving a package of budget items, amendments and transfers that county staff said will allow early fiscal-year closeout and address several capital and operational needs.

County Manager and County Attorney Curtis Potter summarized additions to the budget noted in a memo in the board packet. Among the items discussed were a proposed transfer of roughly $400,000 to the pension fund (noted in the budget message), a $40,000 line restored for a Creswell well, a proposed cost-of-living adjustment for staff, and a combined tax rate of .85 cents per $100 valuation composed of .84 for property tax and .01 for the watershed tax. Potter said the county’s fund balance is “strong enough to withstand that transfer” and that the county could borrow from the fund balance if necessary.

Commissioner John C. Spruill pressed for caution about moving $400,000+ to the pension fund without leaving liquidity for school needs or the Airport (AVCON) building; he also described pressure on volunteer fire departments, noting that many trucks exceed the 15-year equipment guideline under State NFT1901 and that some local departments operate vehicles between 16 and 37 years old. Potter said a $40,000 CIP item for a Creswell well that will not be spent this year can be returned to the budget to help cover needs. Finance Officer Missy Dixon explained that the contingency (about $188,000 at the time of discussion) accrues and can be used at year-end for closeout; she also confirmed parts of the budget allocation (for example DSS and fixed asset schedules).

After discussion, Commissioner Ann C. Keyes moved to approve the Budget Ordinance with $40,000 restored for the Creswell well but excluding the Fire Department budget; Commissioner Spruill amended so the board would vote on everything except the Fire Departments. The amended motion carried unanimously. Keyes then moved to approve the Fire Department budgets and asked the board to excuse Commissioner Spruill from that vote because Spruill is affiliated with Roper Volunteer Fire Department; the motion to approve the Fire Department budgets carried 4–0 with Spruill excused.

The board also adopted Resolution 2023-020 to close and consolidate four older NCCMT reserve accounts: Public Building Capital Reserve (approx. $118,003.19), Recreation Land Reserve (approx. $9,116.37), Water Works Debt Service Reserve (approx. $73,577.98), and Economic Development Reserve (approx. $209,964.46). Under the resolution, these accounts will be closed and their balances transferred into the county’s main accounts or other designated funds to simplify administration; staff were authorized to execute instruments necessary to effect the transfers.

Other actions taken at the meeting included appointment of Ann Keyes to the Washington County DSS Board, approval of budget transfers and amendments presented by Finance Officer Dixon, and removal of the Creswell schools demolition from Phase II of the school project so the buildings could be sold and proceeds used for the new school. The board also voted to cancel its July 3 meeting and entered a closed session under N.C.G.S. §143-318.11(a)(3) and (a)(6) before adjourning.

Next steps: staff will process the budget ordinance, execute transfers authorized in Resolution 2023-020, and provide the board with required documentation for capital items and any subsequent grant applications (for example PARTF) noted during the discussion.