By: Robert G. Hester
Bladen County Commissioners met for another budget work session Monday evening attempting to “cut where they can” to reduce what appears to be as much as an 8 cent tax increase.
Chairman Charles Ray Peterson ask Greg Martin, County Manager, to review recent discussion on the budget.
Martin said following revaluation, a revenue neutral budget would require a tax rate of .7489. The tax rate for the current year is 74 cents. The revenue neutral tax rate does not include the annual cost of a new jail or additional cost related to the EMS department.
According to Martin, the county can borrow up to $19.3 million from USDA Rural Development for 40 years with an interest rate of 3.5% and an annual payment of $903,000. Additional principal may be paid at anytime. That would require a tax increase of 4.63 cents on the revenue neutral tax rate.
In addition to the cost of the jail, the EMS has immediate vehicle needs that will require another 1.48 cents on the tax rate. EMS officials are proposing to purchase a used ambulance from the Elizabethtown Rescue Squad plus spending another $92,500 to refit another unit. Martin reminded the board they purchased 2 new ambulances in 2012, 2 more in 2013 and one last year. Most have high mileage and are requiring more upkeep. A change in reimbursement for EMS services has caused some of the financial problems of the agency.
The cost of ongoing expenses, plus the additional jail and EMS expenses would require an 81 cent tax rate. That does include a 1 percent increase for salaries for employees.
Other request includes additional staffing at the new jail, up to six new jailers are expected to be needed, additional utility costs plus the cost of an IT person. Martin said he was hopeful of merging the current IT staff with one more position at the jail in order to provide the coverage needed.
Martin told the board Health and Human Services Director Cris Harrelson was concerned about an annual Medicaid settlement with the state, last year it was $60,000. It could be as much as $120,000 but more likely in the range of $70,000.
The current proposal is to fund the School Board $6.2 million, the same as last year.
There was a request to provide the Economic Development Department with a sum of money to assist in building new buildings for economic expansion. The majority of industrial prospects are looking for an existing building and Bladen does not have a vacant building that is not obligated.
Commissioners also have a request from the White Lake Water Rescue to increase their annual allotment by $15,500 to $25,500. The increase is related to the squad moving to a land and water rescue unit.
When all the additional request are added up, another penny is needed moving the tax rate to 82 cents.
On the positive side, some jail expenses will be eliminated or reduced, including the cost of housing some inmates in area jails. It is anticipated that Bladen County should have space to rent to other counties, a source of income.
The county has been advised they can use 911 funds from the fund balance to fund ongoing expenses in that department. 911 funds come from the state and expenditures must comply with state law.
The Bladen County current year tax collection rate is 94.5%. Bladen County has had a good tax collection year, according to Martin.
Chairman Peterson ask for comments related to the budget. Several said they were not in favor of an 8 cent tax increase but no one ask to revisit any item in the budget. Peterson ask Martin to “go through” the budget and determine if there were any cuts that could be made and bring the budget back to commissioners for more discussions and approval.
The budget must be adopted prior to July 1, 2015.
Share on social media using short code: https://bladencounty.org/?p=15928
About Author
