Martin County adopts $31.9 million budget, keeps tax rate and raises water base rate

The Martin County Board of Commissioners voted unanimously June 13 to adopt a $31,893,555 budget for fiscal year 2018-19 that holds the county tax rate at $0.79 per $100 valuation and raises the base water rate for Water Districts 1 and 2 from $42 to $50 per month.

County Manager David Bone presented the budget and explained its priorities, saying the "FY 2018-19 Proposed Budget totals $31,893,555 for all County General Fund operations, capital improvements and debt service." The plan includes about $100,000 for merit raises (up to 2% based on performance), funding for a new information-technology director and several new staff positions, and continued use of savings for one-time items.

The board approved a proposed $1,000,000 transfer from the Hospital Fund to establish an Other Post-Employment Benefits (OPEB) trust; that transfer is included in the adopted ordinance. The budget also assumes a $1,000,000 transfer for the Career Technical Center project that was budgeted in prior years but not yet expended.

Why it matters: Martin County officials said the water districts are under financial stress and the rate increase responds to rising wholesale costs. County Manager Bone told the board that Water District 1 owed the General Fund $120,171 and District 2 owed $941,927 as of June 30, 2017, and that the Martin County Regional Water and Sewer Authority wholesale price will be $5.63 per 1,000 gallons in 2018-19. The budget relies in part on fund balance and transfers from the Hospital Fund, a point county staff said will require monitoring.

Key budget details: the adopted ordinance keeps the tax rate at $0.79 per $100 valuation (plus applicable fire district taxes), projects total tax valuation at about $1.758 billion, includes a proposed $8 increase to the Water Districts' monthly base rate (first 1,000 gallons included), and contains roughly $100,000 for merit-based pay increases. The budget lists $8,253,511 for Board of Education current expenses and capital; Martin Community College funding is also included though reduced from the request.

Board action: Commissioner Ronnie Smith moved to adopt the budget and Commissioner Dempsey Bond Jr. seconded; the motion passed unanimously. The board also approved several related budget amendments during the meeting, including a large increase to a NC 911 grant and funding for airport AWOS site preparation (see separate actions at the meeting).

Context and next steps: County staff warned the board that the water districts’ small customer base and rising wholesale costs have constrained revenues, and that continued use of savings is not sustainable long term. The governing board must adopt the budget ordinance (now done) and will oversee implementation; the next regular meeting is July 11, 2018.