The proposed $149 million general fund budget for fiscal year 2006-2007 is respectfully presented to you with a tax rate of 78 cents per $100 valuation. Budget preparation and implementation are critical to any organization, not only for estimating revenues and expenses, but also for prioritizing the needs of Johnston County and delivering necessary services. This proposed budget accomplishes that and supports the following mission statement:
 

This past year has been exciting for our county and it is important to recognize the Board's accomplishments, which include, but are not limited to:

• Approved construction of the Little River Water District which will provide clean, dependable drinking water to many residents that live in the northeastern and eastern sections of the county.

• Received bond rating upgrade from Carolinas Municipal Advisory Council which further increases the likelihood of reduced interest costs for borrowing to all taxpayers in Johnston County.

• Joined the Capital Area Metropolitan Planning Organization to coordinate transportation needs with jurisdictions in the Triangle area. Once the 70 bypass is completed, we will be closer to the Triangle in terms of "driving minutes," and working with our partners in Johnston County and the Triangle area cities and counties is important.

• Began 9-1-1 police dispatching for the Town of Clayton. If the Town of Selma decides to join the county's police dispatching system, every town in Johnston County will be integrated into the system. This cooperation and coordination will pay dividends in future situations. We all need each other.

• Worked with Town of Micro on an incentive grant for Bunting Enterprises. We were excited to work with the Town of Micro and look forward to future opportunities and partnerships with Johnston County municipalities.

• Approved bids for Devil’s Racetrack wastewater project to assist citizens with failed or failing septic tanks. This project was difficult in terms of financing, and it wouldn't have been possible without the state and federal grant and low-interest loans.

• Approved creation of Johnston Memorial Hospital Authority to secure financing for new hospital construction. The future is exciting for Johnston Memorial Hospital with major plans "in the works."

• Received clean financial audit for FY 04-05. We have one of the smallest finance staffs for county's our size, but one of the best and most efficient. We applaud their work.

• Received Triangle region award for top new industry in 2005 (Sysco). Congratulations to the Johnston County Board of Commissioners, Economic Development Advisory Board, Michael DeSherbinin, and Paula Woodard, for a job well done!

• Completed countywide recreation capital needs study. The official report is expected to be presented at June's board meeting, which will hopefully result in a future bond referendum for recreation in Johnston County.

Budget Highlights

The proposed fiscal year 2006-2007 budget provides for a newly revamped current expense model for Johnston County Schools which will better meet the needs of our growing school system. The model is based on an assumption of 1400 new students in the coming year. Continued support for Johnston Community College is reflected in this budget. We continue to enjoy and appreciate the working relationship we share with both Johnston County Schools and Johnston Community College.

Counties in North Carolina share the responsibility of matching federal Medicaid dollars that flow into our county. We are encouraging the North Carolina General Assembly to assist counties in North Carolina with relief from our 5.5% local match starting in fiscal year 2006-07. North Carolina is the last state in the country to require counties to provide match monies. You may note that our local match is $6.9 million in this proposed budget, which is equivalent to approximately eight (8) cents on the property tax rate.

An appropriation of $2.6 million from general fund reserves is included to balance the budget. We have traditionally budgeted reserves; however in most cases, we have not had to use the reserves appropriated. We must continue to monitor our fund balance and stay in the 16-18% range. Please note that I did not budget any state lottery proceeds in this budget. We do expect some lottery proceeds to be distributed in the upcoming year to be used to pay towards school debt.

Johnston County's workforce is committed to providing excellent service. That is what our citizens deserve. Our employees adopted vision and mission statements three years ago that read:

New Positions

Thirty two (32) positions were requested by county agencies. While I recognize the strain and demands this county's growth in population places on our services, I am recommending ten new positions. These positions are in the following agencies:
 

Fee increases

Fee increases are recommended for stormwater plan review; in the fixed monthly charge for retail wastewater service; and in the septage and sludge fees.

Employees

The proposed budget includes a market adjustment of 2.9% in July and the possibility of a performance pay increase in October not to exceed 1%.

I look forward to working with you throughout this budget process.

Sincerely,
 
 

Rick J. Hester
County Manager