County adopts a bigger budget but includes nothing for how a new jail will be paid for | Eastern North Carolina Now

    Publisher's Note: This article originally appeared in the Beaufort Observer.

    Stan Deatherage, writing at Beaufort County Now reports:

    Beaufort County Budget Passes 5 to 2, with Republican Gary Brinn making the motion, Al Klemm seconding the motion, Democrats Jerry Langley, Ed Booth and Robert Belcher voting yay, and Republicans Hood Richardson and Stan Deatherage voting nay.

    Those commissioners voting in the affirmative thanked the manager for giving them a budget that needed little of their consideration toward any measurable cuts in spending, while Commissioner Richardson voting nay because of what few cuts in spending that were made did not go far enough. Commissioner Deatherage stated that by passing a budget that considered the new jail, with so few cuts in additional spending, gave tacit approval to the construction of that proposed 'Southwest County Jail', which will leave the county vulnerable to certain large tax increases should the nation have another economic downturn.

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    Additional commentary:

    The following are excerpts from the County Manager's Budget Message which can be found in whole by clicking here.

    Based on current projections, including Fund Balance appropriations, it is expected the actual revenues will increase approximately $271,408 over the current fiscal year budget.

    This proposed budget indicates increased spending of 0.5% over the FY 2014 budget. This increase is understated by roughly $750,000 due entirely to an amendment to the FY 2014 Budget as a result of the Jail shut down. The General Fund has a number of decreases related to this issue, as well as some one-time costs, and decreased spending in Solid Waste that are then offset entirely by increases in Education spending ($700,000) and expansion items of $764,210 that are explained thoroughly in the Detail on Expansion Items section of this document. This budget includes continuation increase for a 1.5% COLA for County employees that costs the County $155,000 for salary and fringe benefits.

    Among these expenditures that primarily drive the one-time expansion costs there is a recommended three year contract for Pictometry Services with the first year being $39,711 to greatly enhance GIS and mapping capabilities, two replacement vehicles for the Sheriff's Department at $70,414, a replacement vehicle for Inspections at a cost of $22,000 as well as a number of other items that are covered in much more detail within this document, all totaling $473,939.

    The more challenging re-occurring items include an increase in School current expense of $224,013 and $275,000 in School capital outlay, a total of $201,031 in increased recommended spending for the Community College, $155,000 for a 1.5% cost of living adjustment for the county staff, $127,009 for two new positions, and $5,818 in reclassification of several positions, all totaling $987,871. This category is primarily driven by an increase in education spending of $700,044.

    Essentially, what the Board of Commissioners did was rubber-stamp the Manager's recommendations.

    Amazingly, the budget does not include the costs of a new jail ("Public Safety Complex"). Instead, it takes a position of "we'll cross that bridge when we come to it..." The Manager wrote:

    While the Board of Commissioners has continued to move forward with the design of a Public Safety Complex, most likely the financing will be secured from USDA Rural Development by mid-budget year as the design phase is completed and the project is ready to go out for bids. Additionally the County will be securing a construction loan through a commercial bank to fund the project temporarily until it is completed and the USDA loan closing will take place.

    With this large project on the horizon it is essential for the County to wisely manage its reserves during this construction process as the increased operational costs combined with the annual debt service will most likely be in excess of $1.8 million each year.

    As this fiscal year is crossing over the administration of two Sheriff's Administrations, it is imperative also during FY15 that the current Sheriff and staff monitor their departmental expenditures and spend no more than five months' worth or 42 % of the total approved budget. This is essential to allow adequate funding to cover the costs for the transition to the newly elected Sheriff's administration. The CFO will assist the Department in its monitoring of this priority.

    So where's the money coming from to finance the construction and operation of a new jail? If you can figure it out, please let us know.