Proposed budget unveiled

The 2023-24 Sampson County recommended budget was unveiled Monday, with $3 million set aside for anticipated raises and benefits expected in light of an ongoing market study, and several fee increases that seek to boost revenues in lieu of any property tax hike. That tax rate is proposed to remain the same, per pupil funding for local schools would get a rise, more fund balance would be appropriated and several positions would be created under the recommended plan.

That fiscal plan will be the subject of a public hearing, set for 6 p.m. Monday, June 5, at the County Auditorium, in conjunction with the Sampson County Board of Commissioners regular monthly meeting.

On Monday, County Manager Ed Causey presented his budget message, which precedes the 855-page recommended 2023-24 fiscal plan. The recommended budget can be viewed in full online at www.sampsonnc.com.

Causey pointed to the many moves made in the current fiscal year and those upcoming, all with the goal to “garner long term benefits without creating unintended negative short-term consequences.”

”In this regard, we learned last year that our focus on increasing revenue was correct,” Causey stated. “However, we quickly realized that we must begin to think much more broadly and look for revenue sources that include more than raising the property tax rate. Thus, we are not recommending an increase in the tax rate (stands at 82.5 cents per $100 valuation). We have, however, begun to shift our focus to fee-based services and have reviewed our fee structures, recommending fee increases in multiple areas. Many believe that a reasonable fee structure for desired services helps to create a more equitable distribution for sharing the cost of government.”

That includes implementing a countywide availability fee for the utilization of solid waste conveniences sites. The availability fee will be billed in August 2023 for the calendar year beginning January 2024.under the proposal. Properties within the incorporated areas of the county (municipalities) will not be assessed this availability fee.

This recommendation for a $80 solid waste availability fee is part of the county’s focus on fees for services to decrease the county’s need for increased property taxes, Causey reiterated. Estimated revenues of $1,055,000 (based on approximately $1.5 million costs and 70% fee collection rate) are expected to offset annual solid waste costs he noted

“We have had multiple departments review their fee structure and offer appropriate changes in their fees or fee structure to ensure they are more in line with those of our surrounding counties and/or the cost of the services provided,” Causey stated.

A detailed overview of the major proposed fee changes can be found at sampsonnc.com.

The Board of Commissioners approved an additional 2.5% pay increase for all employees to take effect this past January. It is expected that a market study will be completed in late June.

“Likewise, no additional COLAs or pay increases are included in this budget,” said Causey. “It is anticipated that the market study once completed and approved will be implemented in a very reasonable timeframe. In this regard, we are including a proposed expenditure of approximately $3 million to cover the proposed salaries and benefits provided in the market study.”

The number of permanent employees at the time of last year’s budget message was 560. During the year, the board added four telecommunicator positions and converted one part time DSS employee to permanent. The Board then added seven SROs to the Sheriff’s Department, for a total of 572 positions.

There were requests to add several more positions in 2023-24. Causey is recommending seven new positions that, if approved, will bring the full-time employee number to 579.

The seven positions include four social workers to add handle the Medicaid Expansion. It is expected that all associated costs for those positions will be paid by the state for the first several years.

The other positions include one assistant EMS operations chief; one training officer to be assigned directly to the Emergency Services Director with training telecommunicators as a primary responsibility; one inspector for the Inspections Department because of service demands, the need for succession planning, and the fact that the county expects financial compensation from the state to cover about half of the salary for the first two years.

Although not recommending additional positions for the Sheriff’s Department, Causey said the county is “receptive” to reclassifying one comparable vacant position to a juvenile officer.

The county is appropriating approximately $4,458,257 to balance the budget. Lapsed salaries and benefits will cover a significant portion of the deficit, county officials said. Causey said the county’s fund balance (as of June 30, 2022) represents nearly 35% of expenditures as well as a total net financial position that has increased by $34 million.

Clinton City Schools (CCS) has requested $415,000 in capital outlay funding, and Sampson County Schools (SCS) has requested $3,576,000. County officials are projecting $1,524,750 to be available from the annual sales tax received and designated for school capital outlay projects, so projections for CCS will be $412,274 and SCS will be $1,112,476.

SCS has requested an additional $494,986 for current annual operating expenses, and CCS has requested an additional $536,360 for current annual operating expenses. The county is required to fund both school systems at the same per student rate.

“Using our basic budgeting technique of ensuring proportional funding for the operational expenses based on county general revenues, we are projecting available funding in the amount of $489,578,” Causey stated. “We are proposing to increase funding to the county schools by $445,919 and the city schools by $43,659. This equates to funding of $1,324 per student.”

That funding for 2022-23 is $1,273 per pupil.

Also among the items proposed in the budget are:

• Increase in operational funding for Sampson Community College by $59,552, a 3.6% increase in operational expenditures similar to the increase for the public school systems. In addition, $250,000 proposed for capital outlay (as proposed in the 2016 budget for the following 10‐year period).

• $100,000 to continue to defend against the lawsuit filed by 34 current and former Sheriff’s Department employees. This is in addition to the expenditure of $82,299.45 this year.

• $380,910 for contingency, with concerns of the cost of utilities, gas, and oil. It is possible that the funding for these items in the various department budgets will have to be adjusted during the year.

• Increased cost of health insurance amounting to approximately $440,700 for the year. This equates to $65 per month per employee. Since 2019, the county’s share of employee health insurance has risen from $734 per month to the current $950 per month per employee. The county has absorbed more than $1,450,000 in cost since 2019. Benefits for employees will be evaluated as part of the pay study. The employee cost of benefits may need to be adjusted in subsequent budgets, the county manager stated.

• Increase county contribution of $305,080 to Department of Social Services, attributed mostly to personnel. There are concerns of the cost of Medicaid expansion and the challenges in Child Protective Services. The state is expected to cover all county-related costs for Medicaid expansion for the next several years.

• The Cooperative Extension budget has increased by $113,242. Of this amount, $100,000 is for full-time beaver management in addition to the $6,000 basic fee annually for beaver management.

• The projected Rescue budget is $7,971,909. This budget includes two new ambulances and two replacement QRVs. The budget also includes an Assistant EMS Operations Chief.

• Increases in fire tax rate for the Turkey Fire Department from $.07 to $.09, the Faison Fire Department from $.04 to $.06, and the Plain View Fire Department from $.09 to $.10. County Administration supports the recommendation of the Fire Commission.

• Allocation of $60,000 for the Sampson County History Museum, $6,888 as the local match for the Mid Carolina RPO, and $300 for travel for the mandated CAC committees. These are requests that have been annually funded for many years. These were the only requests received, Causey noted.

• Replacing 16 Sheriff’s vehicles, two ambulances, one truck for Inspections, two QRVs for EMS, one truck for the animal shelter, and two vehicles for DSS. The vehicle requests in the Sheriff’s Department budget have been changed to cars. The QRVs for EMS have been reduced to small SUVs.

• Increase in retirement system contributions, from 11.4% for all employees except law enforcement to 12.14%; the rate for law enforcement will rise to 13.04% from 12.04%. The county is part of the Local Government Retirement System. The rates paid on employees’ gross salaries are set annually by the state. The total cost of this increase is $226,200.

That $226,200 plus the additional $440,700 for Health insurance/benefits totals an additional $666,900 that the county is paying for benefits on behalf of employees, Causey pointed out.

”Thus, the county is increasing its contribution to employee benefits by more than $1,000 per employee,” said Causey. “That is something that I think is often forgotten.”

• An increase of $63,162 for the Elections budget.

• Budgeting $687,500 for capital reserve.

Causey noted that sales tax revenue are expected to increase by $1 million, while property tax revenue collections are expected to increase by $1,080,300, with a tax collection rate of 97%. The county also has $2 million of ARPA monies as revenues.

“While our financial position is sound, we do have cash flow challenges. This is a result of pervasive inflation, a declining rural population, and the need for more job creation in our communities,” Causey stated in summary. “We have an increasing cost of operations and the need to make numerous technological improvements. Simply put, our recurring revenues are less than our projected current expenses. Thus, we are faced with the continuing challenge of searching for more revenue. Moreover, given the reality that the same economic conditions which burden the County weigh just as heavily on our citizens, our revenue search must go beyond increased taxes.”

Causey said county staff and the board have worked “diligently and methodically to meet the compensation needs of our employees despite economic challenges.”

In January 2022, Causey said the county closed much of the monetary gap regarding salaries. Subsequently, no COLAs or raises were initially granted in the Spring 2022 budget. During that same time, surrounding counties implemented numerous salary adjustments, exacerbating pay gap concerns in Sampson.

“While frustration at salary disparities is to be expected, we were still surprised by the vitriol that began in late July on social media regarding salaries. The commissioners and County Administration were personally maligned repeatedly and quite severely,” Causey stated. “We are extremely proud of the commissioners for their fortitude, professionalism, and dedication to making good decisions for the entire county rather than reacting emotionally to incomplete and often incorrect information.”

That negativity, said Causey, was “fueled by a lack of clear and accurate information without context and promulgated false narratives,” and “was unwarranted and nonproductive.”

“Nevertheless, the situation illustrated the need for improving our technology to ensure that we have an improved capability for providing the public with clear, concise, and factual information,” the county manager stated. “We do have to evaluate how we communicate when miscommunications/disinformation abounds in social media. We do hope that those who were perpetuating misunderstanding have learned that Sampson County government is here to represent all citizens and all employees and make fact-based decisions based on understanding all the needs of the county. We do listen to all concerns and try to adjust when appropriate in a very responsible manner. We do want to emphasize that we wholeheartedly support the right of all citizens to express their concerns and offer suggestions for improved governance.”

Causey noted the accomplishments in Economic Development over the last several years and this year, with still much work to be accomplished. The county, in many ways, is “setting the table” for the dinner party to develop.

“Moving forward, we recognize that our recommended budget includes a higher recommended appropriated fund balance than in the previous few years,” the county manager stated. “We believe this recommendation is appropriate as we need time to evaluate our revenue sources and determine how to more effectively balance our projected revenues versus expenses. We also expect continued slow improvements in the inflation rate as well as continued improvements in the supply chain.”