Martin County proposes 2-cent tax increase, leans on reserves to balance 2019-20 budget

County Manager David Bone presented the Martin County Board of Commissioners with a proposed FY 2019-20 budget on May 22, outlining a strategy to maintain current services while minimizing a tax increase. The plan relies on a 2-cent tax-rate increase (from $0.79 to $0.81), a $1,270,777 appropriation from the general-fund balance and $1,566,667 drawn from the county's hospital fund; a public hearing is scheduled for June 12, 2019.

Bone told the board state law requires the proposed budget be submitted by June 1 and that the board must adopt a budget by July 1 or adopt an interim budget. He framed the proposal around three pressures: an expected $7 million decline in property-tax base (roughly $50,000 in revenue), rising employee health and retirement costs, and the county's long-term capital needs.

The proposed budget includes several targeted personnel changes and new positions: one Department of Social Services position (with a 50% federal match), one Adult and Aging Services position (with half the cost covered by the Council on Aging), conversion of two part-time transit roles into one full-time position, and creation of an Economic Development Director post under a contract with the Martin County Economic Development Commission.

School and college requests outpaced the proposal. The Board of Education asked for $6,110,255 in current expenses (an increase of $320,097); the county included only $94,000 of that increase. Martin Community College requested $1,266,806 (including capital outlay) but the proposed budget maintains the prior-year funding level of $1,089,054.

Public-safety and social-service lines were largely held at prior levels: Bertie-Martin Regional Jail funding remains at $1,346,486 and youth-detention funding at $70,000. The budget adds a new $10,000 line for a Drug Recovery Court. Mental-health and district-health funding levels were maintained rather than increased as requested.

The proposal raises flat annual rescue-squad allocations by $5,000 (to $27,500 per squad) and retains per-call payments, including an additional $5 per call for squads providing advanced life support.

On capital needs, the manager said the proposed budget does not include two large projects under discussion: courthouse renovations to establish a single one-point-of-entry (estimated $680,000) and a combined Emergency Management/Maintenance/Sheriff facility (estimated $290,000). Bone noted the courthouse renovations would likely carry about $190,000 in additional staffing and equipment costs if pursued.

Utilities and water districts were highlighted as fiscal stress points. Water District #1 did not cover debt service in 2018 and owed the general fund $156,053 as of June 30, 2018; Water District #2 owed $1,071,325. Wholesale water rates through MCRWASA remain at $5.63 per 1,000 gallons; the budget holds the base district water rate at $50 per month.

Bone reviewed the county's reserves: the available general-fund balance was roughly $8.5 million (about 30%), above the county's 20% target and well over the state-minimum 8% recommended for cash flow. The budget appropriates $1,270,777 of fund balance but noted the county typically does not spend the full amount appropriated. The hospital fund balance stood at about $13.5 million with $7.7 million considered "earned" as of June 30, 2018; the proposal would use $1,566,667 from the hospital fund in 2019-20, including $1 million earmarked for the Career Technical Center.

Bone also summarized recent economic-development activity: the county sold a shell building at the industrial park to Weitron in FY 2018 and used proceeds to credit the hospital fund. The county has pursued and received multiple rail and infrastructure grants (from the NC Railroad Company, NC Commerce, NCDOT and the Golden Leaf Foundation) to provide rail access in the industrial park. Bone said having the I-87 future-interstate designation and potential federal INFRA funding for the US-64 corridor should improve the region's attractiveness to industry.

Commissioners asked for more context on local economic impacts. Vice Chairman Dempsey Bond Jr. asked if staff could quantify a dollar impact from recent projects; Bone said he could not provide a single dollar figure but cited occupancy-tax gains and other indicators. Commissioner Elmo "Butch" Lilley noted regional commuting patterns and potential benefits of better roadway connections, while Commissioner Smith (first name not specified in the transcript) emphasized career-technical training for students.

Bone closed by reminding the board that a public hearing on the budget will be held at the board's regular meeting on June 12, 2019, and that the county must adopt a budget by July 1 or adopt an interim budget. With no further business, Commissioner Smith moved to adjourn; Vice Chairman Bond seconded, and Chairman Tommy Bowen adjourned the meeting at 7:42 p.m.