County budget proposes 12-cent tax hike

By NICOLE CARTRETTE
Staff Writer

Columbus County taxpayers are facing one of the largest tax increases in recent history.

Commissioners were presented a fiscal 2007-08 budget proposal Monday night that calls for the 12-cent tax increase.

The tax hike would raise the property tax rate from 76.5 cents to 88.5 cents per $100 value.

A taxpayer with $100,000 worth of taxable property would pay $885 in 2008 –up $120 from this year’s $765. The figure does not include fire tax, special water taxes in two districts, or solid waste fees.

“We’re maxed out,” County Manager Jim Varner said of the budget that “holds the line” on the undesignated fund balance and keeps it at just 13 percent.

“We’ve been on a downward spiral,” Varner said to the board that has often turned to the fund balance to balance the budget each year.

“This budget has been the most difficult budget financially I have ever had to present. It is very much evident that revenues are at a point where they are maxed out,” Varner read from his budget message. “As you know, fund balance has reached a critical point where we cannot continue to use such to balance the budget.”

Little more was discussed at the brief meeting except the potential for additional Medicaid relief from the state and the June 4 public hearing date on the budget.

Medicaid is budgeted at $5.4 million in the proposal, although without some form of state relief, the county could be forced to pay more than $6 million next year.

“We’ve been getting some good news from Raleigh,” Chairman Sammie Jacobs said of a state budget proposal that passed the House last week and calls for $3.5 million in Medicaid relief for Columbus County.

“We can’t depend on them until they get something set in stone,” Commissioner Bill Memory said of the measure that has not passed the Senate.

After the meeting was adjourned staff met with the press to discuss the budget. Only commissioner Ricky Bullard remained.

“I need to know what we can cut because I personally cannot support a twelve-cent tax increase,” Bullard told Varner.

Varner said it would be difficult for departments to stay within their budgets because of cuts already.

The proposal calls for a contingency fund of $295,000 to cover budget shortfalls.

Local accountant Jimmy Mauldin, one of only a few individuals at the meeting, pointed out afterward that contingency funds can be tricky because it gives someone power to appropriate money without oversight.

“What you say in a budget ordinance can change that,” Interim Finance Officer Leo Hunt said, pointing out the thinking behind the contingency fund is that it gives commissioners a clear picture of what the bottom line is when it comes to keeping the fund balance at 13 percent.

The $76 million-plus budget is a 2.51 percent increase compared to the 2006-2007 budget.

Included are five new positions for the Sheriff’s Department. Four are for the new jail and one is for an additional drug detective.

Last year, five positions were added for the new jail, eight for the Department of Social Services and one for parks and recreation.

Debt service payments on a loan for the Columbus County Jail and Williams School Project total $956,000.

The figure does not include $266,000 a year for the last $2.5 million borrowed for the jail. It is a 13-year loan.

All county employees will receive a 3-percent salary increase and 2-percent 401k contribution.

For the first time in years, a salary increase is not proposed for county commissioners.

Solid waste user fees will remain at $193 per year for county residents and $106 per year for municipal residents, despite Waste Management’s 2.4 percent increase in tipping fees and 2.7 percent increase in operational fees.

Fees were increased nearly 7 percent for county customers and 4 percent for municipal customers last year.

Water rates remain the same in all five districts. Property owners in Water Districts II and III will continue to pay special water district taxes of 9 and 13 cents per $100 value to pay debt service in those districts.

Customers in Water Districts II and III continue to pay a $25 flat fee for up to the first 2,000 gallons of water used, while customers in Districts I and IV pay $24. Water district V customers will pay a $21 flat fee for the first 2,000 gallons.

To balance the budget, close to $1.2 million is pulled from Aging, Solid Waste, and Water Districts I, II and III revenues.

Aging contributes $256,250 and the three water districts (two of which pay special taxes) contribute $63,000 to $77,000 each.

Solid waste, which owes the general fund $2.5 million, pays back $800,000, under the proposal.

City and county schools and Southeastern Community College are funded at the same levels as the prior year’s budget.

“The Health Department, Social Services, and Sheriff’s Department and Jail alone would exceed current ad valorem tax revenues,” Hunt pointed out.

See the entire budget online at Whiteville.com.