Today, June 13, 2014, a full moon and Friday the thirteenth the commissioners finally got down to the work finalizing the budget. It took almost 18 hours of mind numbing time and $500 in taxpayers’ money for meals before the commissioners achieved a consensus on next year’s $44,000,000 budget. The following is a written summation of todays meeting only. This summation focuses on some highs and lows of today’s two hour meeting. An unedited recording of the full two hour meeting is posted elsewhere on this site. Also, a complete copy of the papers the commissioners reviewed and discussed in today’s meeting are also posted elsewhere on this site.
The Beginning
Mr. Asycue started the meeting summarizing the revised proposed budgets revenue and expenditure reductions totaling $1,445,782. The details of these reductions are found starting with the page headed Budget Revision FY 2014 – 15 and the two spreadsheets one titled revision of revenues and the other titled reduction of expenditures. I do not claim to understand the nuances of fund accounting; I will claim an elementary understanding of the principles of accounting. Making sense of the Budget Revision was / is tricky for me. The elimination the tax increase and fund balance totaling the $1,445,782 is straight forward. The $728,380 reduction of expenditures is likewise understandable using the Reduction of Expenditures spreadsheet. The devil is always in the details and that is where we see that 28.9% of the expenditure reduction directly impacts employees and retirees ($170,848 reduction in employee health insurance coverage and $39,450 reduction in health insurance for retirees). Another 29.7% ($216,560) expenditure reduction is a reduction in the current operational needs for the public school system. In my understanding of accounting and business one of the expenditure reductions is a truly smoke and mirrors. The Board of Elections budget included $29,161 for a “2nd Primary”. Since an insufficient number of candidates ran for any of the three commissioners’ position this year there was no need for a primary election let alone run-off election. No primary and no run-off elections results in low election costs, which do not equal better government. The $29,161 would have been unspent and been reflected in the Fund Balance at the end of the year. The Revision of Revenues of $261,527 is questionable number. The way it is listed the Revision of Revenue and the Revisions During Review by the Board are added to the Reduction of Expenditures to arrive at Total Change Made of $1,445,782 balancing the tax increase and zero fund balance transfer. How an increase in revenue is treated as a reduction in expenditures is outside of my prevue of fund accounting.
Next Mr. Asycue summarized the Staff Budget Recommendations of expenditures ($665,938) and revenue ($665,938). The recommended revenue includes a 1.3 cent tax increase and $322,817 fund balance transfer. “Options for Budget Inclusion Consideration” includes salary adjustments, health insurance premiums, new/expanded positions and JCPC Youth Village Request of $583,626. Another $82,312 in restored expenditures is included and includes safety equipment, emergency radios, additional security at VGCC, also $600 for a typewriter at Register of Deeds. Does anyone have a typewriter taking up space in a closet you can donate to the Register of Deeds? The staff recommendation excludes the $153,332 fund balance needed to cover the addition cost to the county for taking over the recreation department.
The Discussion
Once Mr. Asycue completed his presentation the wolves began to circle the data they have received at the start of the meeting forty-five minutes ago. Commissioner Brummitt is the only commissioner to praise the zero tax increase, zero fund transfer, zero salary adjustment, zero health insurance premiums, zero change to anything in the budget except reductions. Commissioner Hester stated that a 1.3 cent tax increase would keep Vance County’s tax rate less than surrounding counties. Commissioners Brummitt, Garrison, Hester and Wilder all agreed no one wants to pay more in taxes. Commissioners Garrison, Hester, Taylor individually verified that with a 1.3 cent tax increase and the $322,817 in fund balance transfer the county would provide for a employee salary increase, cover employee health insurance premiums, added fund the requested for new positions, and restore some of the expenditure cuts. To take over control of the parks of recreation would require additional transfer from the fund balance. At one point in the discussion Chairwoman Brown asked how much is the 1.3 cent tax increased on a a $100,000 property. The answer is $13.
The Consensus
Commissioner Taylor summed up the previous sixteen plus hours of budget work sessions into the following three options:
County Managers Proposal: raise property taxes 1.3 cents and transfer $322,817
The Garrison Proposal: use the fund balance for the entire $817,000 additional expenditures.
The Brummitt Proposal: no tax increase, eliminate all expenditure above previous year and use only $82,312 of fund balance for the restored expenditures.
A vibrant exchange of ideas followed Commissioner Taylor’s summation. When Commissioner Brummitt’s extolled again his mantra ‘we don’t have the money’ Commissioner Taylor asked this question, “What does we don’t have the money mean to you?”. Commissioner Brummitt answered, “it means there is not enough revenues to cover expenses or we have not cut enough expenses to do things in some areas that we do in other areas.” The result of Commissioner Taylor’s question and Commissioner Brummitt’s answer revealed a fundamental difference in the funds available to provide for the needs and expectations of the citizens.
The final compromise was to:
- Increase taxes by one cent or $10 on each $100,000 dollars in property value.
- Increase the fund balance transfer to about $553,000.
- Covers salary adjustments, health insurance program, new and expanded positions, JCPC youth requests, plus the $82,312 in restored expenditures.
- Includes funding for the recreation department from the fund balance.
Next meeting of the commission is June 23, 2014, at 6 pm to finalize the budget.