Proposed Bertie budget includes tax hike

Bertie County Manager Juan Vaughan II presented his proposed FY 2024-2025 budget to the Bertie County Commissioners on Monday at their monthly work session. The proposed budget includes a 1.5 cent ad valorem tax increase.

Vaughan explained the increase was needed in order to increase the county’s fund balance and to alleviate any yearly shortfalls.

“I have to start with a historical discussion about fund balance and how far we have come. A few years ago we were appropriating the fund balance very regularly. Since 2021 we have not appropriated any fund balance in our original budget or in our final budget. However, our fund balance has grown to over $2 million. I am happy with that as it is tremendous growth,” explained Vaughan.

Last month, the county’s auditors informed the commissioners the county’s fund balance had grown to 8.68 percent, meeting the LGC’s previously recommended fund balance of eight percent.

However, the LGC now recommends a fund balance of 20 percent for local government units of Bertie’s size. The median for units of Bertie’s size is 39 percent.

“Now the question is, how are we going to do that? Let’s take a look at what our tax rate has been. And let’s take a look at where I’m proposing we go. So, back in 2017, we were at 84 cents, and then the board decided to decrease the tax rate. In 2018, we took it down a penny. It stayed that way for two years, and then it went up 3.5 cents to 86.5 cents,” noted Vaughan.

He continued, “So it has been that way for five years, and I would love for it to stay that way, but we have needs. We have growing needs. So for the first time since I’ve been here, I’m recommending a tax increase. A tax increase of 1.5 cents.”

If the commissioners approve the increase the tax rate would increase from 86.5 cents to 88 cents. Vaughan also noted if all of the expenditure requests received were honored, the county would need to raise taxes to 95 cents.

“Of course we are not going to do that, but I am recommending that we take it up a penny and a half, which would take us to 88 cents for a hundred dollars evaluation,” suggested Vaughan.

The proposed budget has increased expenditures and includes two new county positions, one is in the Information Technology department and another in the Finance office.

There are also capital purchases slated for 2024-2025.

“The IT department is a number one priority. We’ve been having a lot of discussions about this. There are just a couple of really big purchases that we have to have this year just to strengthen our WiFi for better security. We have to have switches and some servers,”, said Vaughan. “Joe Wilkes can tell you about that, but they have convinced me that it is absolutely necessary. Our switches are well over 10 years old and we have to update them. They have to be updated and replaced. There are some radios needed and actually for emergency services and communications, their radios will be obsolete as of December 2025.”

The budget also includes yearly appropriation for the Bertie County Schools, Martin Community College and an across the board pay increase of three percent for county employees.

Vaughan’s proposed tax increase and budget have a lengthy road ahead before being approved.

County budget work sessions are being held on Tuesday, May 28, and Wednesday, May 29, beginning at 10 a.m. in the commissioners room. The public budget hearing is scheduled for 6 p.m. on June 6 in the commissioners room. The FY 2024-2025 budget needs approval by June 30.