Though Moore’s tax base climbed above $5 billion this year, property owners face a 4-cent increase in their tax rate.

If the $69.1 million budget proposed by County Manager David McNeill is approved, the county’s tax rate would rise from the present 49 cents per $100 assessed valuation to 53 cents. With the 5 cents added for the emergency services program, the total tax rate would become 58 cents.

McNeill Jr. told the Moore County Board of Commissioners Monday night that the growth factor makes it possible to appropriate $1.3 million in anticipated revenue for the 2000-01 year. In addition, the county expects to see an 8.4 percent increase in collections of local option sales taxes.

“That (growth) is tremendous for a county our size,” McNeill said in his budget presentation during the board’s regular meeting.

The property tax hike would add another $1.9 million in revenue.

But McNeill said this growth must be balanced with county needs, such as a hefty increase required to pay for issuing the final school bonds and evidence of an economic slowdown.

The 2000-01 budget proposal provides a $1.2 million increase for the public schools’ current expense budget and fully funds the schools’ capital outlay budget of $1,017,168.

McNeill did not include the $1.9 million requested by the school board to initiate a comprehensive computer technology program next year.

Although McNeill’s recommendation for the current expense budget represents a 8.51 percent increase in school funding for the new year, it is about half the total increase requested by the Board of Education.

McNeill recalled that the commissioners directed him earlier this year to prepare a budget without a tax rate increase.

“I don’t believe that can be done this year. This is a hold-the-line budget,” McNeill said.

The manager said he met with department heads earlier in the day and, in spite of cuts in their requests, “they were very supportive of the budget.”

McNeill said the tax rate increase is needed not only to meet the county’s final obligation for the bond issue but also because of the $1 million appropriation made two years ago as a result of a mediation agreement with the school board.

As a result of the mediation, the county appropriated $1 million more than the manager had recommended for the schools system. In addition, a recommended tax increase of 8 cents was cut to 4 cents by making sharp reductions in other allocations and also by dipping heavily into the unappropriated fund balance.

McNeill said the fund balance is no longer large enough to take an additional raid sufficient to cover the needs of the new year without incurring serious fiscal problems. Even so, he is recommending a $3,350,000 contribution from the fund balance to supplement the revenue side of the ledger.

The budget proposal reflects an increase of $4,516,964, or 6.9 percent, over the 1999-2000 year. Almost half of the increase is attributed to school funding, including increases in both current expense budget and bond debt.

Other budget increases include $311,000, or 16 percent, as the county’s share of Medicaid funding through the Department of Social Services and a 9.49 percent increase in the Health Department budget to cover operation of the animal shelter.

Increases are also found in the self-insurance fund, where medical insurance costs have climbed $300 per employee because of medical claims.

General government costs are up by 7.73 percent, covering establishment of a separate budget for legal services, continuation of the property revaluation project and the first payment toward the purchase of a new software system for the Register of Deeds.

Economic Slowdown

In spite of the county’s continuing growth, McNeill pointed to evidence that growth will advance at a more moderate rate than has been the case in previous years. He also noted such expenses as higher interest rates, higher oil prices and fluctuating stock markets, all factors having an impact on county revenues. The January snowstorm caused a setback in new housing starts, something that is expected to show a sharp contrast with the growth of the 1999 fiscal year.

McNeill said revenues would climb $1.9 million as a result of a 4-cent tax rate increase, and another $1.3 million because of growth and the expectation that sales tax collections would climb by 8.4 percent. He also mentioned increases in fees charged by such agencies as the Code Enforcement Division and the Register of Deeds. Both go into the General Fund.

He recommends an increase in the landfill tipping fee from $25 to $27 a ton. He said the additional revenue would offset costs associated with obtaining the construction and demolition permit from the state.

No New Positions

Departmental leaders asked for 21 new positions, and McNeill turned down all these requests, including a request by the sheriff for four deputies. Instead, the manager reported that efforts would be focused on employee retention. He expressed concern that the county has experienced 71 resignations since July 1.

Of $7.4 million in departmental capital outlay requests, the manager is recommending $4.2 million, of which $1.6 million is designated for the new Public Utilities Department.

Public Utilities, formerly the Moore Water and Sewer Authority, is an enterprise fund that more or less pays for itself through such things as user fees and tap fees. Several projects are included in that fund — a waterline extension on N.C. 211 from West Pine Middle School to West End, two elevated storage tanks for Pinehurst, upgrades in Pinehurst, and completion of the Mobbs property well on Foxfire Road to serve Pinehurst.

The county has agreed to take over the Pinesage subdivision water project, but the town of Taylortown has agreed to reimburse the county for this cost.

No increase is recommended in the bulk rate charged by the county wastewater treatment, which stands at $1.20 per 1,000 gallons. The plant serves Southern Pines, Pinehurst, Aberdeen and Pinebluff. For this enterprise fund, there is a recommendation for a $360,000 allocation for capital outlay.

Tax rates for the fire service districts also remain unchanged.

After the manager’s presentation, the commissioners briefly discussed his recommendations but took no action other than to call the budget public hearing for Monday, June 5, at 6 p.m.

Prior to that, the board will delve more deeply into budget details at a series of work sessions. The first such workshop is scheduled for Thursday, May 18.

Responding to a question from Commissioner Bob Ewing, Deputy County Manager for Finance Michael Griffin said he would discuss the fund balance and bond rating issue at one of the work sessions.

Chairman Michael Holden said that much attention has been directed toward the schools but pointed out that there are other significant needs in the county, including the Social Services budget.

He said the board should take a closer look at these needs.

“Gentlemen, it looks like we’ve got our work cut out for us,” Holden said.

The budget discussion ended with words of praise from Ewing, who thanked the staff for the work going into the effort.

“It’s no easy task,” he commented.

The new budget, to be adopted at a June 19 board meeting, goes into effect July 1.