HERTFORD — Perquimans County taxpayers will see their property tax rate rise 2 cents above the revenue-neutral rate and their annual solid waste fee increase by $30 if commissioners approve the county’s proposed budget for the next fiscal year.
The Perquimans County Board of Commissioners is scheduled to hold a public hearing Monday on County Manager Frank Heath’s budget proposal that also raises county worker pay by 3% and increases funding for the Perquimans County Schools, law enforcement and public safety, and other county services.
In his budget message to commissioners and taxpayers, Heath said the proposed budget reflects a 39.69% increase in the county tax base following this year’s countywide property revaluation. The county’s tax base grew by more than $57 million following the state-required reassessment of property values — from $1,439,705,262 to $2,011,226,681.
Because of the revaluation, Heath’s spending proposal decreases the county’s property tax rate from 64 cents per $100 of property valuation to 52 cents. That is 2 cents above what would be considered revenue neutral. A revenue-neutral tax rate raises exactly the same amount of revenue as the previous tax rate using the current property valuation. In Perquimans’ case, a revenue-neutral rate after revaluation would be around 50 cents, Heath said.
The manager noted that “revenue neutral calculations” include more than just the value of real property.
“The revaluation of real property is the mechanism that requires us to publish a revenue-neutral rate, but the calculation is based on all property: real, personal, business personal and public service companies,” he said.
Despite raising the county tax rate two cents above revenue neutral, the 52-cent rate he’s proposing “will remain among the lowest” in the region, Heath said.
In his message, Heath said the county “remains in excellent financial condition ... but is feeling the effects of inflation and increased personnel and capital costs.” He also said the county intends to “continue to make substantial investments in school spending, public safety, capital projects and personnel.”
Heath’s budget proposes a general fund of $23.47 million, which is $324,461 less than the current year’s amended budget. It’s also $1.74 million less than what the county would spend if each of its agencies had gotten all the funding they requested, he said.
Taxpayers will see a $30 increase in their annual solid waste fee — from $160 to $190 — if Heath’s budget is approved as presented. The $1.3 million in revenue the fee generates goes to pay the cost of operating five convenience sites, Perquimans’ portion of the Perquimans-Chowan-Gates transfer station’s operating cost, and the county’s tipping fee — dump charges — at Republic’s landfill in Bertie County.
“All of these operational costs have increased significantly over the past couple of years,” Heath said.
Water rates for county customers will remain unchanged. Customers will pay $17.50 for a minimum bill and $9 per thousand gallons after the first 1,000 gallons used. The county’s proposed water fund budget for 2024-25 is $2.65 million.
In addition to the 3% cost-of-living raise for county employees, Heath’s spending plan also includes a 2% county match for employees’ 401(k) accounts as well as step and merit pay increases.
Heath said the budget includes several new positions and “proactive employment measures” to attract and keep personnel. That includes longevity payments for long-serving employees and sign-on bonuses for new public safety and emergency services workers, he said.
The budgets for the Sheriff’s Office and Emergency Medical Services include increased salary grades “to reflect the complexity of their positions,” Heath said. Deputies, sergeants, investigators, and all emergency medical technicians, advanced EMTs and paramedics “have been tiered to reward those who choose to advance their careers,” he said. Heath also noted that two full-time advanced EMT positions and an additional full-time paramedic have been budgeted for EMS as the department works to become less dependent on part-time employees.
Heath also said that health insurance rates are projected to cost $9,212 per employee next fiscal year. That amount includes a 5% rate increase and $25-per-month charge for employees who choose the base 70-30 plan. He said the county’s contribution to the NC Local Government Employees Retirement system will increase from 12.9% to 13.65%.
While property taxes account for the largest share of county revenues, sales taxes will bring in about $2.8 million next year, an increase of $400,000 from the current year, Heath said. The county is forecast to receive $630,000 that will be added to its sales tax allocation, reflecting additional services taxed by the General Assembly in 2016. That’s an increase of $105,000 from last year’s fiscal year budget, he said.
The county is also projected to receive $950,000 in land transfer tax revenue in 2024-25. Health also plans to use $1.35 million from fund balance to help balance next fiscal-year’s budget.
Education again comprises the largest share of the proposed general fund budget: 22%. Emergency medical services and social services account for 14% each, while the Perquimans Sheriff’s Office’s expenses account for 12% of the total.
Heath’s spending plan provides $3.6 million in local current expense funding for the Perquimans County Schools, about $181,000 less than the school district requested but $210,454 more than the district received this year. Heath said the increase will help fund two high school math teaching positions, one high school language arts position, and increases to general benefits and salaries. The schools will again receive $615,000 in capital outlay funding.
The county’s proposed capital expenditures in 2024-24 include two SUVs and radios for the Sheriff’s Office; a new ambulance and quick response vehicle for Emergency Medical Services; an outdoor equipment shelter and upgrades to vehicle bays, Knox boxes and mobile radios for Emergency Management; a new transportation van for social services; a new camera system and folding chairs for the Center for Active Living; and a new 60-inch mower and batting cage nets for the recreation department.
Other key expenditures include an additional $5,000 each for the county’s volunteer fire departments, increasing that cost from $100,000 to $105,000 per department; $215,000 for the Perquimans County Library; $130,166 for the Tri-County Animal Shelter for staffing and building needs; and an additional $230,000 to Albemarle District Jail for its share of the jail’s annual budget.
According to Heath, the county’s share of the jail budget will be more than $900,000 next year. The increase is being driven by a decrease in revenue the jail receives from housing federal inmates. The jail is housing fewer federal inmates because of its ongoing staffing shortage.
The hearing on the county’s proposed budget is scheduled to be held at the Perquimans County Library on Monday at 7 p.m.
The county is required to adopt a budget for the new fiscal year prior to July 1.
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