FY2021 Budget Presentation Final - Town of Maggie Valley · Budget Summary: Quick Facts •The...
Transcript of FY2021 Budget Presentation Final - Town of Maggie Valley · Budget Summary: Quick Facts •The...
Town of Maggie ValleyFY 2020-2021Proposed Budget
MAGGIEValley
North CarolinaEst. 1974
Nathan Clark, Town Manager
Tuesday, May 19, 2020
Outline • Budget Message� Budget Summary� Fund Balance� Taxes & Fees� Personnel� Major Projects� Beyond the Horizon
• Department Review� Administration � Public Works� Police� Festival � Board of Aldermen� Parks� Debt Service� Powell Bill� Soco Road Capital Fund� Sewer � Budget Alternatives
MAGGIEValley
North CarolinaEst. 1974
Budget Summary: Quick Facts
• The proposed FY19-20 Budget is balanced with respect to revenues and expenditures
• Meets all requirements of the North Carolina Local Government Budget & Fiscal Control Act
• Maggie Valley’s FY 20-21 estimated total tax value: $394,984,584�FY 19-20 Tax Value: $391,420,616�A net gain in value of $3,563,968 (1.7% increase)
• Town of Maggie Valley Proposed Budget Tax Rate = $0.43�FY 20-21 Estimated Tax Revenue = $1,596,528�Projected Tax Revenue is 2.23% less than FY19-20 MAGGIE
ValleyNorth Carolina
Est. 1974
Quick View: Fund Totals•General Fund - $2,663,643
�10.09% decrease from FY19-20
•Sewer Fund – $883,038�6.35 % decrease from FY19-20
•All Funds - $3,546,681� 16.44% decrease from FY19-20
MAGGIEValley
North CarolinaEst. 1974
Fund Balance• “Fund balance available” is the statutory concept that describes the amount of funds local governments legally have available to be appropriated in the coming fiscal year.
• The Local Government Commission requires all municipalities to keep at least 8% in unappropriated fund balance, their recommended levels for small towns is much higher.
• Estimated FY19-20 Fund Balance� $3,442,164 (114.95%)
• Proposed FY 20-21 Budget: Fund Balance Transfer $123, 968 (110.27%)
MAGGIEValley
North CarolinaEst. 1974
Fund Balance Snap Shot FY Ending Total Undesignated % to
Expenditure
2008 $1,209,324 $1,065,999 51.57
2009 $1,451,541 $1,277,847 72.17
2010 $1,678,207 $1,604,867 67.24
2011 $1,906,268 $1,726,406 82.49
2012 $1,916,848 $1,728,287 77.44
2013 $1,998,384 $1,802,205 83.16
2014 $2,121,853 $1,916,914 100.72
2015 $2,367,202 $2,111,097 110.72
2016 $2,554,639 $2,406,189 107.22
2017 $2,520,466 $2,199,864 97.77
2018 $2,901,053 $2,735,294 110.57
2019 3,046,057 $2,748,182 123.67 MAGGIEValley
North CarolinaEst. 1974
Taxes & Fees
Property Tax• The proposed FY20-21 Budget is based upon a property tax rate
of $0.43 per $100 assessed value� Tax Rate is Lowest in Haywood County
• Property Tax is the largest source of revenue for the Town and is based upon real property assessments performed by Haywood County
• Town’s Total Tax Value is $394,984,584� 1.7% increase from Town’s Total Tax Value in FY19-20
• Fundamentally each $0.01 of the tax rate equals $37,129� That is an decrease of $533 in “penny value”
• Based upon a 94% collection rate, property tax revenue is expected to be $1,596,528� Reduced Collection Rate is 2.97% due to COVID-19; similar rate to “Great
Recession” MAGGIEValley
North CarolinaEst. 1974
Tax Collection Rate By Budget Year95
.44%
95.2
2%
95.3
8%
94.7
9%
96.6
7%
95.7
6%
97.1
5% 98.2
9%
96.4
9% 97%
94%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Property Tax Collection By RateTax
Collection Rate
92% 93% 94% 95% 96% 97%
Tax Revenue
Generated$1,562,559 $1,579,543 $1,596,528 $1,613,512 $1,630,496 $1,647,481
Penny Value $36,339 $36,734 $37,129 $37,524 $37,919 $38,314
Difference of Values
by Collection
Rate
(-) $33,969
(-)$16,985 $0 (+)
$16,984(+)
$33,968(+)
$50,953 MAGGIEValley
North CarolinaEst. 1974
Sales Tax • Sales tax is the second largest revenue source for the
Town’s General Fund. • Sales Tax distribution can occur using the Ad Valorem or
Population method. • It is each county’s prerogative to establish how sales tax
is distributed� Haywood County has chosen the population formula.
• Based upon Haywood County Sales Tax Projections the Town should receive 1.81% of total collected sales taxes = $357,265� 18.7% decline from FY19-20; COVID-19 related.
MAGGIEValley
North CarolinaEst. 1974
Sales Tax Revenues: FY 08-21
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021MAGGIE
ValleyNorth Carolina
Est. 1974
Fees• Sewer Capacity Capital
Charge� Unchanged at $6.75/gpd ($810
Per Bedroom)� Replacement cost $16.00/gpd ($1920
Per Bedroom)
• Sewer User Fees� User Minimums are unchanged� Over the minimum rates are
unchanged
• Planning & Zoning Fees� Unchanged
• Solid Waste Fees� Unchanged ($5 monthly)� 56% of Cost
Motor Vehicle Fees� Unchanged� 15% Projected Revenue Decline
based upon SL2020-3� $6,481 Supplement to Non
Powell Bill
Appendix I & Appendix II in Proposed Budget for Rate Sheet Details
MAGGIEValley
North CarolinaEst. 1974
Personnel
Salary & Wages •Proposed FY 20-21 Budget recommends:
No COLA IncreaseNo Merit IncreaseNo Career Track
�Suspend Adoption of FY19-20 Pay Class Study- Indefinitely
MAGGIEValley
North CarolinaEst. 1974
Salary & Wages �Proposed FY20-21 Budget recommends:�$10,679 for a pay class modification, promotions and educational attainment for a handful of employees
�Police Officer Retirement / Separation Allowance (SL 143-166.42) $13,087
�Total Increase = $23,766MAGGIE
ValleyNorth Carolina
Est. 1974
Health Insurance• On April 1, 2016 the Town of Maggie Valley joined the North Carolina State
Health Plan for Teachers and State Employees (SHP).
• SHP runs consistent with a calendar year (January 1-December 31) not fiscal year (July 1-June 30)� The Town, as per the State’s recommendation, has budgeted for a 5% premium increase.
• Total budgeted amount for employee health insurance coverage is $295,761
• Recommended coverage amounts remain 100% employee, 80% dependent for all employees. Providing 80% dependent coverage to all employees at a cost of $18,767� Previous policy provided dependent coverage to new hires on graded scale- hurt
retention and recruitment MAGGIEValley
North CarolinaEst. 1974
Work Force Composition
•Four Departments�Administration (5)�Police (11)�Public Works (4)�Sewer (3)•23 Total Full Time Employees
MAGGIEValley
North CarolinaEst. 1974
Major Projects
Soco Road Improvement Project• Town of Maggie Valley Pedestrian Safety Action Plan was adopted by the Board of Aldermen
on November 14, 2016
• The Adopted Plan is a result of the Town Center Master Plan process that Began in FY15-16
• Project will focus on pedestrian islands, crosswalks and signage. Bike Lanes have been removed; road will remain five (5) lane highway
• The Total Project Cost is estimated to be $2,370,000
• The STPBGP is an 80% (FHWA) : 20% (Town) reimbursable grant� $35,000 Engineering Costs (PAID March 2017) / $360,000 Construction Costs
• Design Work on Project is ongoing
• FY19-20 Board of Aldermen Established Capital Project Fund� FY19-20 $120,000� FY 20-21 $120,000 (proposed)� Fund Total = $240,000
MAGGIEValley
North CarolinaEst. 1974
Beyond the Horizon
Sewer User Rate Increase• Early Drafts of the Proposed FY20-21 Budget included a Sewer Rate Increase to both minimum and over the minimum rates
• Rate increase is justified to offset expenditures associated with Inflow & Infiltration repairs
• Maggie Valley ranks 7th Cheapest System out of 45 WNC Systems� Maggie Valley: $16.00 minimum� WNC Average: $25.11 minimum� WNC Median: $22.87 minimum
• Artificially Low Rates disqualify Town when seeking grant funding� Reinforced in written comments section of failed AIA grant MAGGIE
ValleyNorth Carolina
Est. 1974
•
MAGGIEValley
North CarolinaEst. 1974
Haywood County Revaluation• Haywood County is in the midst of a property revaluation that will become
effective January 1 2021• Last two “Revals” have been unkind to Maggie Valley
� 2011-2012 Lost $18,689,499 (4% of Total Value)� 2017-2018 Lost $22,828,375 (5% of Total Value)
• After each revaluation year Maggie Valley adjusted tax rate; but adjusted it less than “revenue neutral value”
• Property Owners not all effected equally:� 41% of Parcels Lost Value� 6% of Parcels Unchanged� 31% of Parcels Gained Value
� Imbalance between residential and commercial values has grown MAGGIEValley
North CarolinaEst. 1974
US Census• The 2020 US Census is currently underway. The Census is designed to count
population to establish the composition of the US House of Representatives as dictated by the US Constitution. The Census is taken every 10 years
• During the 2010 Census Town of Maggie Valley population was established at 1,050. It was thought to have been 1,610 as reported by the State Demographer within the Office of Budget and Management.
• Population matters because it determines our sales tax and franchise taxes
• If we lose the same population rate as a result of the 2010 Census in the 2020 Census our sales / franchise tax loss will be $141,359.
• Maggie Valley structure/address response rate is 23.4%.� Vacation / Seasonal / Second Homes� Outpacing Total 2010 Repose after First Phase
MAGGIEValley
North CarolinaEst. 1974
Department ReviewGeneral Fund Department Review
MAGGIEValley
North CarolinaEst. 1974
General Fund Summary FY20-21Department Budget
Administration $475,317
Public Works $674,329
Police $1,078,210
Festival $108,442
Board of Aldermen $136,546
Parks & Recreation $15,503
Debt Service $0
Powell Bill $55,296
Soco Road Capital Fund $120,000
Contingency $0.00
Total $2,663,643
Revenues $2,663,643MAGGIE
ValleyNorth Carolina
Est. 1974
General Fund Comparison: FY20-21 & FY19-20Department FY20-21 FY19-20 Difference
Administration $475,317 $571,323 ($95,915)
Public Works $674,329 $685,013 ($10,684)
Police $1,078,210 $1,116,107 ($37,897)
Festival $108,442 $154,349 ($45,907)
Board of Aldermen $136,546 $109, 321 $27,225
Parks & Recreation $15,503 $18,100 ($2,597)
Debt Service $0 $93,983 ($93,983)
Powell Bill $55,296 $94,582 ($39,286)
Soco Road Capital Fund
$120,000 $120,000 $0
Contingency $0.00 $0.00 $0
Total $2,663,643 $2,962,687 ($299,044)
Revenues $2,663,643 $2,962,687 ($299,044)MAGGIE
ValleyNorth Carolina
Est. 1974
AdministrationUDO/Codification: $10,000• Town of Maggie Valley is
nearing the completion of its Zoning Code Revision; transitioning from a traditional Zoning Ordinance to a Unified Development Ordinance.
• This allows the new UDO to be digitized for improved transparency and ease of user use.
File Room: $20,000• Town is in need of file storage
space to retain documents required by State Retention Law.
• 2 Fire Boxes
• 7 Standard 4 Drawer
MAGGIEValley
North CarolinaEst. 1974
Public Works Vehicle Request� 2021 Ford F-550 Dump Truck: $52,200� Oversized Dump Bed for more efficient brush pickup� Replaces current 2008 Dump Truck which will be surplused� Expected surplus revenue is $15,000
� 2020 Ferris IS 2100 Zero Turn Mower: $9,200
• Non-Powell Bill Street Maintenance: $46,000� Valley Creek Run = $37,963� Other projects = $8,037
� TDA Wayfinding Signs: $15,000 MAGGIEValley
North CarolinaEst. 1974
Police DepartmentNew Purchase of Police K-9• Current K-9 “Moses” retired
in May 2020 for health reasons
� K-9 Purchase = $8,000� Training = $3,000� Living Expenses = $1,800
Total Cost = $12,800
No Police Vehicle Purchase (1st Time Since 12-13)
MAGGIEValley
North CarolinaEst. 1974
Festival Grounds•No New Projects are Proposed in FY20-21 Budget
•$15,000 July 4 FireworksMAGGIE
ValleyNorth Carolina
Est. 1974
Board of Aldermen • $65,000 has been recommended to be placed in the Board’s Economic Development & Place Making Line Item. �Community Amenities = $40,000�Façade, Sign & Landscape Grant Program = $25,000
• Virtual Technology Package� $5,000
• Professional Services of $27,000 remains unchanged; Town Attorney Fees unchanged
MAGGIEValley
North CarolinaEst. 1974
Parks •No New Projects are Proposed in FY20-21 Budget
MAGGIEValley
North CarolinaEst. 1974
Debt Service •Debt Service = $0
•Town of Maggie Valley General Fund is Debt Free
•No new debt proposed for FY 20-21
MAGGIEValley
North CarolinaEst. 1974
Powell Bill •Town of Maggie Valley Powell Bill Street System has grown to 6.79 mi (+0.12mi) with addition of Nottingham to Castle Court•Town pavement resurfacing maintenance allowance is $37,160�Brannon Forest Drive (Airish to Cul-de Sac)�3 Shots of BST 1200 LF
�Brannon Forest Drive (Turn A Bout to Cripple Creek)�1 Shot BST 1.5” Asphalt 850 LF
MAGGIEValley
North CarolinaEst. 1974
Soco Road Capital Fund• Funds held in reserve to help pay for Soco Road Improvement Project
• STPBG 80% NCDOT : 20% Town
• Town’s total share is estimated to be $360,000�FY19-20 $120,000�FY 20-21 $120,000�FY 21-22 $120,000
MAGGIEValley
North CarolinaEst. 1974
Contingency•This department consists of funds that are set aside for unanticipated expenses or as a place to hold funds to be used at a later date for a specific purpose.
• In this year’s budget it is recommended that $0 (total amount within contingency) be directed into the Town’s Contingency Fund.
MAGGIEValley
North CarolinaEst. 1974
FY20-21 Budget Visuals
MAGGIEValley
North CarolinaEst. 1974
How your tax dollars are spent FY20-21Tax Value of your property: $100,000 $300,000 $500,000 $700,000
Maggie Valley Property Taxes Paid $430 $1,290 $2,150 $3,010
How your tax dollars are spent?
Administration $78 $235 $392 $549
Board of Aldermen $23 $68 $113 $158
Debt Service $0 $0 $0 $0
Festival Grounds $18 $54 $89 $125
Parks & Rec $3 $8 $13 $18
Police $178 $533 $889 $1,244
Public Works $111 $331 $56 $778
Soco Road Capital Fund $20 $59 $99 $138 MAGGIEValley
North CarolinaEst. 1974
FY 20-21 Revenue Sources
Property Tax62%
Sales Tax13%
State Funding8%
Fund Balance5%
Solid Waste3%
Motor Vehicle3%
Powell Bill2%
Other/Misc4%
Property Tax Sales Tax State Funding Fund Balance Solid Waste Motor Vehicle Powell Bill Other/Misc
Expenditure By Department FY20-21
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000
Police
Public Works
Administration
Board of Aldermen
Soco Road CF
Festival Grounds
Powell Bill
Recreation
FY11-FY21 General Fund + Sewer Fund Budget Comparison
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
11 12 13 14 15 16 17 18 19 20 21
General Fund Sewer Fund
What is a Penny on Tax Rate Worth? FY11-2139
,419
40,7
90
38,9
17
38,7
36 39,2
73
39,7
02
39,5
64
40,6
52
38,8
86
39,0
07
37,1
29
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Sewer Fund
Sewer Fund Summary FY20-21Department Budget
Administration $453,530Operations $2239,169
Debt Service $190,339Contingency $0.00
Total $883,038Revenues $883,038 MAGGIE
ValleyNorth Carolina
Est. 1974
Sewer Fund Comparison: FY20-21 & FY19-20
Department FY20-21 FY19-20 Difference
Administration $453,530 $461,112 - $7,582
Operations $2239,169 $288,024 - $48,855
Debt Service $190,339 $193,761 - $3,422
Contingency $0.00 $0.00 $0
Total $883,038 $942,897 - $59,859
Revenues $883,038 $942,897 - $59,859 MAGGIEValley
North CarolinaEst. 1974
Appropriated Fund Balance• For the first time since FY17-18 the FY20-21 Budget
relies on a “retained earnings transfer” of $148,454 to balance our Sewer Utility Fund
• Transfer needed to account for loss in projected revenue due to COVID-19. Less people using system =less revenue
• Revenue projections have been cut by 22.5% compared to FY19-20. MAGGIE
ValleyNorth Carolina
Est. 1974
Sewer Fund•Sewer Capacity Capital Charge �No proposed increase
•Sewer User Fees�No proposed increase
�PROPOSED INCREASE FOR 21-22
�Complete Sewer Fee Rate Sheet is located within Budget Amendment-Appendix I MAGGIE
ValleyNorth Carolina
Est. 1974
Leachate Agreement• March 2019 Town of Maggie Valley and SantekEnvironmental of North Carolina entered into an leachate agreement.
• The proposed budget estimates the Town will receive 285 loads this year which will generate $40,000 in revenue.
• Revenue is unpredictable; varies based upon weather conditions and landfilled material�FY19-20 has generated $55,000 (393 Loads)
Sewer Fund•Debt Service�Wastewater Treatment Plant total annual loan payment for is $193,761
�The Town owes $1,620,640 on its WWTP
�The Town will will issue its final payment on the WWTP in 2028.
MAGGIEValley
North CarolinaEst. 1974
Budget AlternativesRevenues and Expenditures
Revenues: Solid Waste Fee
�Each $1 added to solid waste monthly fee generates $17,280
� Town Fee Lowest in County� Canton: $13.50 Clyde: $10 Waynesville: $9 Maggie Valley: $5
� Cost of Service growing more expensive; fee helps off set expenses
� Not included in budget because it adds additional monthly costs to residents � Current Fee $ 5 month / $60 annually
� Proposed Fee $6 monthly / $72 annually ($12 added cost)� Proposed Fee $7 monthly / $84 annually ($24 added cost)
MAGGIEValley
North CarolinaEst. 1974
Expenditures: Salary Increases� No Proposed COLA, Merit or Career Track in FY20-21 Budget
� Each 1% Salary Increase = $11,665
� Not included in budget because Fund Balance was used to balance budget
MAGGIEValley
North CarolinaEst. 1974
Effective Date 1% 2% 3%
July 1 $11,665 $23,330 $34,995
January 1 $5,833 $11,665 $17,498
Expenditures: Public Works New Hire� Discussed at length during Budget Retreat
� Public Works Work Load + Responsibilities Continue to Increase
� Additional Public Works Technician I/II allows Public Works to work more effectively in daily duties i.e brush, mowing, street / side walk maintenance, FG/Park maintenance
� Annual Cost of New Hire: $34,527- $59,983
� One Time Expenditure v/s Annual Cost
� Not included in budget because Fund Balance was used to balance budget MAGGIE
ValleyNorth Carolina
Est. 1974
Expenditures: Police Vehicle
� 1st Year Since FY12-13 No New Police Vehicle Purchase
� Stretching / Expanding Fleet Life
� Average Fleet Age Without Purchase: 3 Years� Average Mileage Without Purchase: 40,637
� Fleet Age With Purchase: 2.5 Years� Mileage With Purchase: 35,030
� Cost to Purchase one (1) Police Vehicle � 2021 Dodge Durango AWD SUV- $32,560� Police Equipment Package – $5,050
� Not included in budget because Fund Balance was used to balance budget. MAGGIEValley
North CarolinaEst. 1974
Expenditures: Building Improvements
� Building Improvements� Exterior Door Replacement
� $10,200 � Common Space Tile Replacement
� $11,800� Drywall Lobby + Interior Hall
� $8,500
� Cost = $30,500
� Not included in budget because Fund Balance was used to balance budget.
MAGGIEValley
North CarolinaEst. 1974
Questions – Comments •Board of Aldermen•Department Heads•Media / Public
MAGGIEValley
North CarolinaEst. 1974
FY 20-21 Budget Calendar•June 2: Work Session I•June 9- 6:30PM: Public Hearing on Budget�Earliest Board could adopt Budget
•TBD: Work Session II •July 1: Budget Adoption Deadline
MAGGIEValley
North CarolinaEst. 1974
Thank you