Dear Board Members:

It is a privilege to present the proposed fiscal year 2002-2003 budget for Johnston County with no increase in the property tax rate. The general fund is presented at $107.8 million representing a slim 0.8% increase from last year's adopted budget of $106.9 million.

This budget does not include $2.6 million in state reimbursements. General government will be operating as lean as ever; however, the increased demand for county government services is staggering. Operational budgets for county agencies have been slashed and department heads have "stepped up to the plate" to assist me during this process.  I really appreciate the teamwork.

I'm excited about our organization and the improvements we've made in the area of customer service. Overall, our feedback from citizens has been positive. We are committed to continuous improvement so we can be the best local government operation in the country.

I'm pleased to share some of the many staff accomplishments during the past year.  These include:

• Implementation of a 9-1-1 communications backup center.

• National recognition for our GIS office.

• Mental Health's maintaining national accreditation.

• Child Support's establishment of 485 new child support orders

• Job Link Center recognized by the Southern Association of Colleges and Schools Accreditation team

• Soil and Water Conservation recognized as the Conservation District of the Year in North Carolina

• Historical treasures featured with Heritage Center's "Road Show"

• Internal audits of rescue squads by county finance staff.

• Codification of local ordinances by Clerk to the Board

• Implemented customer service tracking in Planning Office.

• Continued expansion of water program to provide clean drinking water for county citizens. The water customer base increased by 40%.

• Library circulation Increased by 9%.

• Health department continues to serve more clients per day.

• Increased internal handling of training programs by Human Resources.

• Airport received federal grant in the amount of $555,555 for a parking apron and space for 22 single aircraft hangars.

• Cooperative Extension secured $3.8 million in grants and gifts to support educational programs.

• Emergency Management provided input to several state and national initiatives.

• HAPP continues to provide families with quality housing units.

• Comprehensive customer service training in the Tax Office.

The Johnston County Board of Commissioners has always been supportive of the Johnston County school system. This proposed budget provides for the continuation of last year's teacher supplement funding of $1.2 million; provides for local current expense per-student funding of $1107.40 for an additional 1000 students; and includes capital outlay appropriation of $3.1 million.

Current expense funding is provided for Johnston Community College at the same level as fiscal year 2001-2002, and $75,000 is recommended for capital outlay. As with Johnston County Schools, the Board is very supportive of Johnston Community College and the educational opportunities it provides to the citizens of Johnston County.

North Carolina counties are required to match 5.5% of Medicaid funds that flow into their respective counties.  North Carolina is one of the few states in the country that requires counties to match Medicaid funding.  The state's estimate for Johnston County's match in fiscal year 2002-03 is $5.9 million.  State estimates have been traditionally high in past years, and this is true in the current fiscal year when actual expenditures for the Medicaid match will be well under the state's estimate. Based on this, I feel comfortable budgeting only $5.4 million; however it should be noted there is no guarantee when trying to project an accurate Medicaid match figure.

Fee increases are recommended for Planning and Building Inspections in the general fund. In the utilities enterprise fund, there are several fee increases recommended. These are:

• Increase the base monthly water fee from $1,200 to $1,700 for the Town of Clayton to pay for maintenance and painting of the Bayer elevated tank

• Change the base sewer fees based on water meter size.

• Change the water connection fee for meter costs.

• Change septic disposal fees.

• Consolidate the water district budgets with common monthly base fee of $15.00 in each district.

To balance the general fund budget, $6.4 million has been appropriated from reserves.  Sixteen positions for county government operations were requested; however due to the financial situation, I've not included funding for any of those. A market adjustment of 1.6% is included for county employees. Additional funding is included for continuing our performance pay program.

I'd like to recognize the county department heads for a job well done.  I owe a special thanks to John Massey, Finance Director, for his hard work during this process.  His dedication and expertise during the past ninety (90) days has been remarkable.  Also, credit goes to Leslie Stanfield, MIS Manager, and her staff for preparation, graphics, and layout for the budget document.

I look forward to working with you through the budget process. 

Sincerely,

Rick J. Hester
County Manager