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Uncertain budget: County's proposal doesn't call for tax hike

By Mike Conley | The McDowell News

Published: May 13, 2009

County Manager Chuck Abernathy gave the commissioners a proposed $34.4 million budget that doesn't call for a property tax rate hike.
At a special meeting on Wednesday, Abernathy gave a presentation about the proposed fiscal year 2009-2010 budget to the McDowell County Commission. The county's property tax rate will stay at 55 cents per $100 valuation, the seventh straight year it has held at that level. The recommended budget of $34,447,419 represents a decrease of $2,653,336, or 7.15 percent, over the current budget of $37,100,755.
Abernathy said putting this budget together was difficult as the county was hit with plant closings and lost jobs, a reduction in sales tax revenue and other economic uncertainties.
"This budget is very uncertain," he said to the commissioners. "I've never prepared a budget as uncertain. We're still in the midst of a global crisis. I am uncertain because of the economy. I am uncertain because of county revenues."
In his presentation, Abernathy said the county has so far sufficiently handled the budget crisis. The county did this by building a diesel storage tank, cutting costs on energy, eliminating unnecessary travel, an early retirement initiative, closing down a day care, putting a hold on some projects, using biodiesel fuel and other steps.
In addition, the county has eliminated the equivalent of 17 full-time positions. These include the people whose jobs were cut when the county closed the McDowell Children's Center on State Street to save money. Other full-time positions were eliminated after the employees who had held them retired. Several part-time jobs were cut in the board of elections, building inspections, administrations, recreation, tax assessing, the Register of Deeds office and other departments.
Furthermore, county employees will not get a pay raise under the proposed budget.
Despite these cuts, the proposed budget for 2009-2010 is still $169,378 out of balance. It has more expenses than revenues. So the commissioners will have to hold a series of meetings to go through the budget in more detail and see if any more cuts can be made.
"That is the first time I have ever had that situation," said Abernathy.
The proposed 2009-2010 budget contains money for the school system and the community college. Education takes up 30 percent of the budget while the Department of Social Services takes up 25 percent.
The current expense money budgeted for both the school system and the McDowell Technical Community College will not increase and stay at the levels for 2008-2009.
The county also provides money to a wide array of other agencies. These include the Clerk of Court's office, the volunteer fire departments, Family Services of McDowell, the Carson House, the N.C. Forest Service, alcohol and substance abuse programs, the McDowell Chamber of Commerce, the Old Fort Chamber of Commerce, the medical examiner, the National Guard Armory, the Rescue Squad, MACA, the Volunteer Center, the Watershed Commission, Keep McDowell Beautiful, Davidson's Fort and others.
The property tax remains the largest single source of revenue for the county. It takes up 47 percent of the proposed budget. The county also gets money from the sales tax, social and community programs, license and permit fees and interest income. McDowell also gets money from the county-run tag office.
During his presentation, Abernathy took a look back at what was accomplished in 2008-2009 despite the tough economic times.
Progress continues to be made on the Nebo water system and the water lines for Watson Road and the Sherwood Forest area are complete. The county plans to take over the operation of this system. The feasibility study for the Lake James water filtration plan was done and additional site work is being completed. The new A.C. "Bud" Hogan Nutrition Center in Old Fort was completed in April and is now in operation. The county also fulfilled its obligations to move the N.C. Forest Service from the McDowell Tech property to county land on N.C. 226 South. The Point Lookout Trail was built and opened for public use. The county is also trying to get a grant for the construction of additional trails at the YMCA, The McDowell Hospital and county buildings on Spaulding Avenue.
In addition, the county completed the financing for the renovation of the former Marion Manufacturing building which will be converted into a job-training center. The county plans to build a Nebo EMS base station next to the new Nebo Fire Department building. McDowell officials and other local leaders are working on a long-range plan for the McDowell House, which could become the headquarters for the Overmountain Victory Trail Association.
But the county also faced a difficult year in 2008 as several plants closed and numerous people were suddenly out of work. In response, the commissioners have worked to recruit a new state prison for McDowell and are assisting with the location of a new shopping center on Sugar Hill Road. Two companies are also looking to create new jobs in McDowell.
Like all other local governments in North Carolina, McDowell County has to a balanced budget by June 30. Abernathy said the recommended 2009-2010 budget would be posted on the county's Web site. Copies are also available for public inspection.