Gary L Herman
The Alexander County Board of Commissioners adopted the 2024-2025 budget at the June 3rd meeting by a 3-2 vote, with Commissioners Marty Pennell and Larry Yoder opposed.
The new budget includes a two-cent property tax decrease, which will reduce the property tax rate to 65 cents per $100 valuation. Commissioners Pennell and Yoder believe the new budget is sound, but the property tax rate reduction is somewhat premature.
Interim County Manager Ben Faulkenberry said the 2024-2025 general fund budget totals $56,616,494, which is a 2 percent decrease compared to the current year’s budget. The new budget includes a 5 percent cost of living adjustment (COLA) for all county employees, a continued focus on public safety, capital projects, additional school funding, and more.
Chairman Josh Lail said he believes Alexander County’s financial position is strong and secure.
“Overall, this is the best budget that I’ve ever been a part of as a county commissioner. A lot of work has gone into this budget, with a lot of people involved who know what Alexander County needs. We make decisions based on information that is presented to us,” said Chairman Lail. “Maybe I’m a little more optimistic than some, but I feel like we are going to experience some growth. I think it’s a solid budget that is a very close representation of what will be spent.”
Commissioner Kent Herman said he voted against the 2023-2024 budget last year due to the property tax increase following revaluation, but is glad to offer some relief to taxpayers. “This is a good step in the right direction,” said Herman.
Commissioner Pennell said he believes that a two-cent property tax rate reduction is relatively minor for citizens, but is a significant amount of money for the county. With a median home value of $272,500, Pennell said the two-cent decrease equates to a savings of approximately $50 per year for a homeowner; however, the county will lose $816,000 in revenues.
“If you run the numbers, nothing suggests this is the time for a two-cent reduction. Our growth rate is only 1.12 percent and sales tax has deflated. Do I want to lower the property tax rate? Yes, but I’d want to make it worthwhile to our citizens,” said Pennell. “It’s premature to ask for a two-cent reduction with our infrastructure needs, services, and the wants of our citizens.”
Commissioner Yoder agreed, “We can cut two cents now, but we’ll likely have to raise taxes by four cents later. My main concerns are Medicaid Hold Harmless and declining sales tax revenues. I don’t want to have to use fund balance. The county is in great financial shape right now and I want to make sure it stays that way.”
Vice Chairman Ronnie Reese said he believes the 2024-2025 budget is a good balance.
“I’m still optimistic that revenues will keep coming in. We could also change our revaluation timeline,” said Reese. “I like the budget – it covers a lot of things. It’s good for our employees and our citizens.”
Pennell said, “I agree with the budget wholeheartedly, except for the tax cut.”
Chairman Lail said the county’s fund balance, which is comparable to a savings account, is currently at 41 percent.
“Just to help folks understand, if the fund balance was 50 percent, you could operate the county for six months with no revenue. I’m very proud of where we are,” said Lail. “As commissioners, it’s ok to have differing opinions and not agree all of the time. I truly believe the five of us have the best interests of Alexander County at heart.”
In the newly-adopted budget, general fund revenues are comprised of property taxes at 47 percent, sales tax at 21 percent, restricted grants at 20 percent, other revenues at 6 percent, and sales and services at 6 percent. General fund expenditures are comprised of public safety at 35 percent, health and social services at 25 percent, general government at 18 percent, education at 15 percent, culture/recreation at 5 percent, debt at 1 percent, and economic development at 1 percent.
Capital items in the budget include information technology upgrades, eight vehicles, two ambulances, a trash truck, and heating and air upgrades. The sheriff’s office also plans to purchase an armored vehicle, with half the cost funded from drug seizure money.
Capital projects in the 2024-2025 budget include the ARPA water line extension project (federal funding), Bethlehem Park improvements project (state funding and sales tax revenue), Bethlehem water tank project (state funding), Bowman Court sewer project (state funding), and EMS Station #1 building (state funding).
The budget includes two new full-time positions – one at the sheriff’s office and one at the landfill. In addition to the 5 percent COLA and continued Christmas bonuses for employees, benefits are also improved at no additional cost to the county.
Alexander County Schools requested $8,287,394 for 2024-2025, an increase of $903,966; however, the budget allocation totals $7,493,040, which includes $109,612 for the fire academy and NC Pre-K program.