HomeMy WebLinkAboutC.054.93011_1538 (2)Presentation of the FY 2007-08 Iredell County Budget: County Manager Mashburn highlighted
key points out of the following budget message.
BUDGETMESSAGE
FY 2007-2008
Submitted to the Iredell County Board of Commissioners on May 15, 2007
This budget is submitted to you as a balanced budget and is prepared in accordance with the Local
Government Budget and Fiscal Control Act.
REVENUES
Our economy in Iredell County remains strong and revenues are again anticipated to increase in FY 07-08,
however, we have seen some stowing in sales tax collections which is probably the result of a combination of
factors. Even though we have seen substantial retail growth in the southern end of the county, we have seen
the closing of several businesses in the Statesville area. The mall on Signal Hill has seen the loss of several
major tenants over the past few years, and no new tenants appear to be too interested in moving into an area
that appears to be in economic decline. In addition to the slowing of this retail area, one can observe that
some of the other newer strip shopping centers in the Statesville area are experiencing vacancies or at least
have seen a negative change in the economic vitality of the center. Added to this are the major new retail
businesses that have been developed just across the county line in Mecklenburg County, as well as the
convenience for Iredell Countyfolk to travel to more updated and upscale shopping opportunities in Hickory
and Winston Salem. With some of the plans on the drawing board, we may see a reverse of this trend when
the new development takes off at exit 45, and also in the Troutman and southern Iredell County area.
We have seen some substantial growth in the property tax base during the past year, but much of this
increase is a result of the 2007 revaluation. The overall growth in the tax base is up 24% over FY 07,
however, new growth accounts for almost 114 of this increase. Combined, this new value will increase the
revenue generated by 3348,205 for each cent of the tax rate. The county has experienced a lot of growth in
the residential tax base, but we have lost some substantial base in manufacturing as we have seen more and
more of our manufacturing jobs go to Mexico or to China or other off shore countries. Although we are
maintaining a lower than State average unemployment rate, many of the new jobs we see being brought into
the county are lower paying, reduced benefit type service jobs.
Much of the increase we have seen in the increase in the residential tax base has been in higher end
developments that are occurring along the shoreline of the lake, or the more desirable locations in the
southern pan of the county. This rapid growth in such a concentrated area of course has exacerbated our
resources to the point that we find that we cannot maintain the level of service expectations without some
rather major expenditures for service delivery. This matter will be addressed when the discussion of
expenditures occurs.
A healthy increase is anticipated in most of the other revenue sources such as the collection of fees,
reimbursements, etc.
EXPENDITURES
General Fund: As was discussed earlier, the county continues to experience record breaking growth
numbers. Based on most projections available, there is not an anticipated slowing down as this area is just
becoming more and more popular as a good place to live, work and do business. There is no question that
our close proximity to the Charlotte area is the major driving force behind our growth, and for this very
reason, there does not appear to be a leveling of this growth anytime in the near future, especially since
some of the other fast growing areas surrounding Charlotte are starting to approach maximum build out.
With this in mind, the citizens of the county have raised the bar as to what it expects in services from the
county government, and the county commissioners have responded in- kind to meet these new demands. One
major way the county has responded is by developing a funding plan to provide adequate school facilities.
Even with this plan, however, we will not be able to meet the demand without going to the market and
raising a substantial amount of investment from outside sources. School expenditures will be discussed in
more detail later in the budget message. For now, the discussion will be limited to some major increases in
some of the other county operations.
Some of the major increases are in the area ofpublic safety. The increase in the demand for these services
can be attributed to population growth as well as growth in the number of travelers passing through the
county over our extensive interstate highways and major thoroughfares. Also, because of the more
concentrated and congested retail and residential development, it is necessary to provide services in more
convenient locations. There is of course a need to add additional law enforcement officers, not only to
provide better patrolling of the communities in the county, but to provide a higher level of support to the
field officers. In addition to this, the county has already outgrown its available jail space, and by having to
add satellite facilities to meet the demand, additional staffing and other operational cost are warranted. In