Dear Board Members:

The proposed $140 million general fund budget for fiscal year 2005-2006 is respectfully presented to you with a tax rate of 78 cents per $100 valuation.  Budget preparation is critical to any organization, not only for estimating revenues and expenditures, but also for prioritizing the needs of Johnston County citizens and delivering the necessary services. In my opinion, this budget does that and reflects the mission of the Johnston County Board of Commissioners, which reads:The mission of the Board of Commissioners is to provide leadership and support, and to advocate actions for an effective County Government that seeks to enhance the quality of life for present and future generations of the people of Johnston County.

Accomplishments

• Participated financially with four major industrial announcements.

• Accepted old Benson Middle School and donated to the Town of Benson for community use.

• Authorized the final rural water district for Johnston County that concludes a nine-year district formation plan to provide clean drinking water.

• Revised residential wastewater policy to better prepare for long range needs.

• Heard county manager's recreation study findings and recommendations, and set up task force to develop recommendations for possible recreation bond referendum.

• Supported the Towns of Princeton and Kenly in their efforts to have local calling to Raleigh.

• Authorized bond referendum for Johnston County Schools and Johnston Community College in the total amount of $95 million.

• Supported the new Benson EMS satellite facility in southern Johnston County that provides service to a part of the county that had response time concerns.

• Adopted new Environmentally Sensitive Overlay District so that Clayton Bypass could be bid and constructed in a timely fashion.

• Authorized expansions of water, wastewater and solid waste facilities for long-term needs.

• Were presented with clean financial audits for FY 03-04.

• Hosted bond rating agencies from New York for tour of Johnston County to continue marketing our county to future investors.

• Authorized Emergency Management to proceed with accreditation initiative, which would be the first in North Carolina.

• Accepted numerous state and federal awards for initiatives in customer service

• Refunded $50 million in existing general obligation bonds, resulting in a net savings to taxpayers of $1.8 million in interest expense.

• Authorized purchase of two new elementary school sites with accompanying recreation area, as mentioned in last year’s recreation study.

• Established growth management workgroup to discuss short and long-term planning strategies.

Budget Highlights

The proposed fiscal year 2005-2006 budget provides for new and additional supplemental current expense funding for schoolchildren in our public school system. In the late 1990's, a group of community leaders formed a task force to study Johnston County's long-range capital and financial planning needs.  The funding model was later presented to the Board of Commissioners to use as a guide for long range purposes. That model has worked well, but needed to be updated.  With 1400 new students enrolling in our public school system each year, it was recognized that a one-time infusion of $2 million would be needed for the local current expense funding for schools. This budget reflects that additional appropriation.

The citizens of Johnston County are to be praised for their commitment to the building and renovation needs of Johnston County schools and Johnston Community College. The recent passage of the $95 million in school construction bonds is a critical component to not only our school needs, but our economic development and marketing program.  This budget provides for the additional debt service needed to support those bonds.

Counties in North Carolina have the responsibility to pay a 5.5% match for all federal Medicaid dollars that flow into Johnston County.  While the need for Medicaid is great, it does strain county governments in North Carolina. North Carolina and New York are the only states in the country that share match responsibilities with counties.  We hope that the North Carolina General Assembly will provide relief to counties in our great state.  The county’s Medicaid match is provided in this budget at more than $6 million.

Johnston County has a workforce that is committed to excellence.  We realize that we are here to carry out the policies adopted by the Board of Commissioners and to provide the best customer service in America. As with any organization, we are not perfect, but we pride ourselves on improving each day to reflect the mission of the Board of Commissioners and our employee mission and vision statements, which were put into effect last year by the employees. Those statements are as follows:

Mission Statement

The employees of Johnston County are dedicated to enhancing the quality of life in our community by working together to provide responsive, efficient and innovative services.

Vision Statement

Johnston County will be a nationally recognized leader in local government. Johnston County will be a continually improving and learning organization, encouraging employees to be creative and innovative. Johnston County will set the highest standard of professionalism and respect for others.

This county is growing at a phenomenal rate, and the county agencies are straining to meet the needs. Our employee base has remained somewhat constant, and employees recognize the need to remain lean and efficient.  We had 17 new positions requested in this budget, and I am recommending four. The four included are:

• Two positions in the sheriff’s office;
• A director of animal services;
• A zoning inspector.

New positions that were requested, but not included in the recommended budget are:

• Two positions in the sheriff’s office;
• Three positions in the health department;
• Five positions in social services;
• One position in maintenance and grounds;
• Two in job training.

Fee increases are recommended in environmental health and public utilities, and performance pay (only) is provided in the budget.   Increases were also budgeted for rising health insurance costs. I'd like to thank John Massey and technology services for their assistance in preparing this document.

Sincerely,

 
Rick J. Hester
County Manager