Graham County North Carolina  North Carolina.  AN  a G  R  With A Proud History Thot Runs As Deep As The Boors of Her Gods Country  4  Draft  Budget Ordinance Fiscal Year 2020-21    GRAHAM COUNTY BUDGET MESSAGE FY2020-21  Tot the Citizens of Graham County, County Commissioners, Elected Officials and Employees of Graham County Six months ago, no one could have anticipated aj pandemic that would shut down the entire world's economy. Graham County was no exception. Onl March 10, 2020, Governor Cooper declared a State of] Emergency inl North Carolina, which was followed shortly by) President Trump' 'sl National State of Emergency Order onl March 13,2020. Graham County issued: its State of Emergency order and curfew onl March 19, 2020. This was followed shortly thereafter with the closure of county facilities on March 16, 2020, and the closure of our points ofi ingress into Graham County on March 21, 2020. We all started learning how tol livei in the "new normal" oft telecommuting, ZOOM meetings, job furloughs, the Governor's Stay at Home order, and unfortunately, the closure of our accommodations. and businesses who make up ani integral part of our local economy. Since that time, Graham County has been following the Governor's orders as the State works to re-open our economy in aj phased-in approach. The ripple effects of these events willl have lasting and far reaching impacts to our local, state, national, and world economies for years to come. The virus will not go away and we willl have to continue tol learn to navigate life with ani invisible enemy. We, liket ther rest oft the nation, hope that a vaccine willl become available soon. With the closure ofbusinesses in our county and the continued effects of the virus, the budgetaryi impacts will occur over time and willl be difficult toj predict. This creates great uncertainties inj predicting our revenue streams. Following guidance provided the State, we have conservatively projected revenue. Ihave forecasted a $1.1 million shortfall in revenues forf fiscal 2020-21, which includes an estimated $600,000 decline in sales tax revenue.. I aml hopeful that this estimate is too conservative, but cannot afford to over-estimate this important revenue: source. Thisi is magnified by losses ini revenues experienced during March and April due to the pandemic. Going into the pandemic, Graham County had been able to save $1.2 million in' "rainy day" fund balance that was unrestricted either by! State statutes and was above the recommended fund balance percentages that the State Treasurer recommends for small counties. While we began this situation with nearly $10 millioni ini thel bank, thei majority of this balance is restricted. These restricted funds are tol bel held by Graham County to cover operations in the event of al loss in federal and State shared revenues. As ofr now, because ofl losses in immediate revenue, this unrestricted Ina addition to thel loss ofrevenue, the budget for the County has been negatively: impacted by changes in health insurance: rates and retirement rates, along with increasesi in insurance and worker's compensation rates. The North Carolina Local Government Retirement System isi mandating a 14%i increase ini retirement contributions. Healthi insurance rates increased 9.4% and our worker's compensation premiums increased by $50,000: for the coming fiscal year. This represents an additional $300,000 inj planned expenditures. Combined with the projected With this situation atl hand, I1 have proposed al budget fort the Generall Fund of$15,231,778 for fiscal 2020- 21. The following rationale has been adopted to meet thei revenue shortfall and the additional costs for benefits.  Local Government:  "rainy day" fundi is nearly depleted.  revenue shortfalls, a $1.41 million deficit had tol be closed.  No scheduled tax increase. Property taxi rate will remain the same. freeze was implemented in early) February, 2020.  Spending freeze fori non-recurring and non-emergency, discretionary costs remains inj place. This Freeze on new positions not already approved byt thel Board of County Commissioners at. July1,  2020.    Freeze on raises based on new certifications or changes in State Personnel grades unless employees job duties change or take oni new: roles, with Board of Commissioner/County Manager No capital outlay unless iti is 100% grant funded or falls under a State grant which mandates the No overnight travel out oft town, unless state mandated or has a public safety purpose. Maintain K-12 current expense school funding and' Tri-County Community College funding at Maintain Food Bank and Industrial Opportunities funding at 2019-201 levels. Maintain Fire and Rescue funding at 2019-20: funding levels. Nonprofit organizations funding willl be re-evaluated on ai monthly basis and added back as Public library to be funded at current 2019-20 levels, with a monthly budget review and consideration of the full request of $80,783 as revenue streams permit. Use CARES Act and FEMA funding to reimburse COVID-19 related costs so that department budgets most stressed by the pandemic do not expérience adverse effects to their programs due to 5% across thel board cuts to departments with continued monthly reviews. Planned easing of the above restrictions as revenues rebound, with appropriate budgetary While this budget is highly conservative, Graham County remains committed to maintaining high levels of serviçes toi its citizens and toi maintaining as stable and loyal workforce. We will continue tol be vigilant in our budget review process to ensure: integrity ini the budget, but to also look for opportunities to enhance programs and return program budgets toj present levels asi revenues: rebound, while guarding against over-spending the taxpayer's money. Wel have made great strides in the past several years inj program enhancement through the use ofg grant revenue opportunities. For example the Golden Leafi foundation and Appalachian Regional Commission: have provided nearly $1 million towards healthcare enhancement. As ai result, we. have a state oft the art 3D mammogram and al high resolution CT scan in our County. We: are also in thej process of1 launching a community paramedicine program, which will enhance the lives ofe elderly and at-risk patients. We continue to seek grants as a top priority. Graham County has always been ai resilient and innovative County. II have no doubts that we will rebound from this pandemic stronger and better. For now, wel have tol be wise in our efforts toj prevent spread oft the virus and  approval. purchase.  Extend: furloughs for employees under a COVID -19 furlough.  2019-20 levels.  revenue streams permit.  Debt Service maintained: atj present levels.  thej pandemic. amendments.  be wise in our fiscal stewardship to the taxpayers.  Withi Best Regards, CCmGA Rebeccal E. Garland, MPA,CPA CountyMamger/imance Officer    GRAHAM COUNTY, NC GENERAL BUDGET 2019-20  GRAHAM COUNTY GENERAL BUDGET FOR: 2019-20  In accordance with North Carolina! Statute 159-11, the Graham County Fiscal Year 2020-21 budget is being respectfully submitted. The budget is balanced in accordance with the Local Government Budget and Fiscal Control Act with total revenue: ande expenditures for  $ 15,912,770 INTRODUCTIONS  In thet following you will find the summary of the Graham County Budget with appropriations at the departmental level which also shows sources of revenues toi fund the expenditures. With the assistance of the departments this budget can meet the requirements of the Fiscal Control  Act.  BUDGET SUMMARY  This budget is passed on a departmental level. AI line item budget is available int thef finance/county manager officet for review. The line item budget is utilized for analytical purpose andi internal management use.  INDEX Budget Summary  Statutory Requirements and Ordinance Restrictions  Total County Funds  General Fund Revenues By Category General Fund Expenditures By Function Budgets By Fund Type:  General 911 Fund Revaluation Fund Economic Development Fund    Statutory Requirements and Ordinance Restrictions  An Ad valorem Tax Rate of $.65 per $100.00 at full valuationi is hereby established ast the official taxi fort the County of Graham for the Fiscal Year 2020-2021. The ratei is based on thet total valuation of $1,037,923,805 at 97.41 percent collection. The revenue neutral rate is $.5951 per $100 at full valuation att the last revaluation. Thet full $.65 per $100.001 tax rate will be usedt tot fund generalf fund appropriations.  SPECIAL. AUTHORIZATION- BUDGET OFFICER  A. The Budget Officer: shall be authorized to reallocate appropriations amount the various objects of expenditures b.1 The Budget Officer shall be authorized to effect interdepartmental transfers, int the samei fund, not to exceed 10% of the appropriatedi monies for departments whose allocations are reduced. Notation ofs such transfers  as necessary.  shall be madet tot the Board ont the next succeeding financial report.  RESTRICTIONS- - BUDGET OFFICER  A. The interfund transfer that exceeds 10% shall havet the approval from the Board of Commissioners. b. The utilization of any contingency: appropriation shall be only with Board authorization.  C.T The allocation for 699-17 (Schools Current Expense): shall not be usedf for salary increases or bonuses, nor for capital outlay items. Thel Board will present tot the School Board al listingo of approved linei items for which The Ordinance and Budget Document shall bei the basis oft thef financial plani for Graham County Government during the fiscal year 2019-20. The Budget Officer shall administer the! budget andi insure that operating officials are provided guidance ands sufficient details toi implement their appropriate part oft the! budget. The accounting record shalle establish records which arei in agreement with thel budget, this ordinance, This budget willl bei ine effect on a departmental level ina accordance with NCGS159.  the appropriation may be used.  andt the appropriate. statutes oft the State of North Carolina.    Approved and adopted thist the_  Day ofJ June, 2020.  Dale Wiggins, Chairman  Lynn Cody, Vice Chairman Keith Eller, Member  Jacob Nelms, Member Connie Orr, Member  Kim Crisp, Clerk tot the Board of Commissioners Rebecca E. Garland, MPA, CPA County Manager Rebeccal E. Garland, MPA, CPA, Finance Officer    Total County Funds  The FY 2020-21 recommended budget for all Graham County Funds has an annual operating budget of$ 15,912,770. The countyl has established an annual budget for four (4) separate funds. These funds can be  paired in to the following fund groupings.  General Fund Special Revenue Funds  $15,762,076  99.05%  Revaluation 911 Fund  50,000 75,694 25,000 150,694 $15,912,770  0.31% 0.48% 0.16% 0.95% 100.00%  Economic Development Fund Total Special Revenue Funds  Total Operating Budget-2020-21  General Fund- The General Fund is the general operating fund of the County. It is used to account for all of the financial resources except for those required to be accounted fori in another fund. The primary revenue sources are ad valorem taxes, sales taxes, federal and state grants, and various other taxes and user fess. The primary expenditures are for general government services, public safety, human services, education and debt Special Revenue Funds- The Special Revenue Funds are used to accounti for specific sources that are legally restricted to expenditures for specific purposes. The County will maintain three (3) Special Revenue Funds for  service.  FY2019-20: Revaluation Fund,911 Fund, and Economic Development Fund.  Capital Projects Fund: Capital Project Funds are used to account for the financial resources to be used for acquisition and construction of major capital facilities. These funds have a project budget as opposed to an annual budget. Construction of the 911 Call Center will be completed in the fiscal year 2019-20. The amounts presented represented the funds to be expended int the 2020-21 budget year. Capital Projects are presented fori informational purposes only. A capital project ordinance willl be seti in place for the 2020-21 budget year.    GRAHAM COUNTY GENERAL FUND REVENUES BY CATEGORY FY2020-21  General Fund Revenues By Category ofsources, as shown below:  The General Fund with estimated revenues totaling $ 15,762,076 derives its revenues from a variety  SOURCES OF REVENUE  %of Total  Revenue $ 6,598,960 41.87% 199,520 1.27% 226,800 1.44% 316,100 2.01% 827,000 5.25% 3,410,826 21.64% 15,600 1,526,974 1,779,994 11.29% 12,590 0.08% 130,000 0.82% 15,000 0.10% 594,712 108,000 0.69% $ 15,762,076 100.00%  Property Tax- Current' Year Property Tax- Past Due Levy on Utilities DMV Tax and Tag (VTS) Payments in Lieu of Taxes Shared Revenues Shared Revenue Unrestricted Sales" Tax Sales, Fees and Permits Interest on Investments Loans and Lease Proceeds Miscellaneous Fund Balance. App.- Unrestricted Funds Fund Balance. App.- Restricted Funds  0.10% 9.69%  3.77%  Loans and Interest on Lease Investments Proçeeds 1%  Fund Balance FundE Balance App.- App.- Restricted Unrestricted Funds Funds  Sales, Fees and. 0% Permits 11% Sales Tax 10%  1%  Viscellaneous 4%  Property Tax- Current Year 42%  Shared Revenues 22%  Shared Revenue -Unrestricted 0%  Property" Tax- LDMVI Tax Past Due 1% Levy ont Utilities 2% 1%  Payments in Lieuand Tag ofTaxes (VTS) Eor    GRAHAM COUNTY EXPENDITURES BY FUNCTION FY2020-21  General Fund Expenditures By Function  The General Fund Budget totaling $15,762,076 is comprised of separate expenditure categories as shown  below.  EXPENDITURES BY FUNCTION General Government Publics Safety Economic Development Human Services Cultural and Recreation Transportation Education, Including Debt Service Contributions to Other Agencies Transfers to Other Funds Contingency  $  3,325,832 21.10% 5,161,625 32.75% 198,113 4,377,124 27.77% 431,026 590,121 1,490,100 90,635 50,000 47,500 15,762,076  1.26% 2.73% 3.74% 9.45% 0.58% 0.32% 0.30% 100%  $  Education,. Contributions to Transfers to Other Contingency General  9% OtherAgencies 1% Transportation. 4% Cultural and/ Recreation 3%  Funds %  0%  Government 21%  Human Services 28%  Public Safety 33%  Economic Development 1%    GRAHAM COUNTY GENERAL FUND BUDGETED EXPENDITURES FY2020-21  GENERAL FUND  FY2020-21 BUDGET $ 361,372 100,000 95,000 186,415 547,046 144,405 168,407 116,404 67,109 108,749 190,225 640,669 48,303 74,337 47,112 190,815 239,464 47,500 3,373,332  GENERAL GOVERNMENT  GOVERNING BODY- OPERATIONS GOVERNING BODY- CONTINGENCY FOR COURTS GOVERNING BODY- SALES TAXI REVERSION! SCHOOL CAPITAL GOVERNING BODY- TRANSFER TO COURTHOUSE FUND  ADMINISTRATION BOARD OF ELECTIONS FINANCE TAX ASSESSOR TAXI MAPPING TAX COLLECTOR REGISTER OF DEEDS PUBLIC BUILDINGS GROUNDS MAINTENANCE PROJECT MANAGEMENT VEHICLEI MAINTENANCE COMPUTER: SUPPORT CEMETARY CONTINGENCY TOTAL GENERAL GOVERNMENT  PUBLICSAFETY  SHERIFF JAIL AMBULANCE EMS BILLING DISTRICT COURT CIVIL PREPAREDNESS- OPERATING CIVIL PREPAREDNESS- EMPG FUNDED CAPITAL OUTLAY COMMUNITY PARAMEDICINE-G GRANT FUNDED COMMUNICATIONS SANITATION NCFOREST CONTROL FIRE PROTECTION ANDI RESCUE USFS TIMBER RECEIPTS FORI FIRE PROTECTION TOTALI PUBLICSAFETY  1,509,298 827,132 1,129,817 35,625 7,933 88,552 49,968 83,773 482,711 733,711 73,855 139,250 5,161,625    GRAHAM COUNTY GENERALF FUND BUDGETED EXPENDITURES FY2020-21  ECONOMIC DEVELOPMENT  COUNTYPLANNER ECONOMICI DEVELOPMENT COMMISSION GRANTS SOUTHWESTERN COMMISSION- DUES BUILDING INSPECTION TOTAL ECONOMICI DEVELOPMENT  69,501 12,000 6,170 110,442 198,113  HUMAN SERVICES  HEALTHI DEPARTMENT SOCIAL SERVICES HUMAN SERVICESCONTINGENCY SENIOR CENTER VETERANS TOTALI HUMAN! SERVICES  1,389,310 2,356,668 185,000 442,146 4,000 4,377,124  CULTURAL ANDI RECREATION  AGRICULTURE EXTENSION 4H SOILANDI WATER RECREATION SWIMMING POOL CONTRIBUTION7 TOI REGIONAL LIBRARY TOTAL CULTURAL. AND RECREATION COMMUNITYTRANSPORTATION TOTALTRANSPORTATION  91,577 9,500 76,162 145,910 32,877 75,000 431,026 590,121 590,121  TRANSPORTATION    GRAHAM COUNTY GENERAL FUND BUDGETED EXPENDITURES FY2020-21  SPECIAL APPROPRIATIONS EDUCATION  PUBLICS SCHOOLS- CURRENT EXPENSE PUBLIC SCHOOLS- CAPITAL OUTLAY PUBLICS SCH00H5-TIMBER-SRS DEBT SERVICE: GENERAL OBLIGATION BONDS QZAB SCHOOL DEBT TRI COUNTYCOMMUNITYO COLLEGE TOTAL EDUCATION  1,000,000  280,182 84,394 125,524 1,490,100  CONTRIBUTIONS TO NONPROFIT ORGANIZATIONS  JCPC REGIONAL MENTAL HEALTH HERITAGE FESTIVAL STATE OF FRANKLIN INDUSTRIAL OPPORTUNITIES GRAHAM COUNTY FOOD BANK GRAHAM COUNTY HISTORICAL ASSOCIATION GRAHAM COUNTY SPECIAL OLYMPICS CELEBRATE RECOVERY- ADDICTION RECOVERY CHURCH MOUSE MINISTRIES COMMUNITYGARDENFUND STECOAH VALLEY CENTER TOTAL SPECIAL APPROPRIATIONS  56,435 6,000 4,000 13,000 11,200  90,635 50,000 15,762,076  TRANSFERS TO REVALUATION FUND TOTAL GENERAL FUNDI EXPENDITURES    GRAHAM COUNTY 911 FUND BUDGETED EXPENDITURES FY2020-21  EMERGENCY TELEPHONE SYSTEM FUND  REVENUES  NC911 BOARD FUND BALANCE APPROPRIATED TOTAL9 911 REVENUES  > 75,694 - 75,694  EXPENDITURES  TELEPHONE SERVICE CONTRACTED SERVICES SUPPLIES AND MATERIALS TOTAL911 EXPENDITURES  > 15,000 55,000 5,694 75,694    GRAHAM COUNTY REVALUATION FUND BUDGETED EXPENDITURES FY2020-21  REVALUATION FUND  TRANSFERS FROM GENERAL FUND FUND BALANCE APPROPRIATED TOTAL REVENUES  $50,000 $50,000 $50,000 $50,000  CONTRACTED SERVICES TOTAL EXPENDITURES    GRAHAM COUNTY ECONOMIC DEVELOPMENT FUND BUDGETED EXPENDITURES FY2020-21  ECONOMIC DEVELOPMENTF FUND  REVENUES EXPENDITURES  Fund Balance. Appropriated  25,000 25,000  Capital Outlay Health Care Project