Currituck County Budget

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FROM THE DAILY ADVANCE

Currituck spending more than $50 million

By Cindy Beamon

The Daily Advance

Saturday, June 4, 2011

At a time when most counties are cutting back on expenditures,
Currituck County is proceeding with new projects and initiatives,
spending millions in the process.
The price tag exceeds $50 million for projects on-go or on-tap from
Moyock to Corolla. Better than half that amount will be paid up front
for projects that other cash-strapped counties can only envy.
County Manager Dan Scanlon credits a pay-as-you-go fiscal policy, some
wise decision-making and a little luck for Currituck’s financial
position.
One glance at the county’s capital outlay projects could lead one to
believe Currituck is a big spender compared to other counties in the
Albemarle: Thirteen million dollars for a new recreational complex. Ten
million dollars for a water system and possibly double that amount for a
new sewer system on the Outer Banks. Four million dollars for a new 800
megahertz communications system.
The big purchases are contrasted, however, by the county’s reputation as tight on spending — and borrowing.
Next year’s $45.3 million general fund budget is “pretty flat” on
spending, asserts Scanlon. The county’s debt is low compared to what
counties like Pasquotank and Dare counties are paying, he said.
Scanlon said conservative spending has paid off.
“Here we are today with very little debt, all without having to raise taxes,” he said.
Scanlon said the projects, mostly paid for with land transfer taxes and
state sales taxes, should help Currituck compete with other counties
for business dollars in the next decade.
County Commissioner Butch Petrey agreed. Plans for the Currituck County
Airport and nearby facilities in Maple is an “investment in the
future,” Petrey said.
“We have an asset we want to take advantage of and grow it,” he said.
The construction projects are mostly focused in three areas of the county: Moyock, Maple and the Outer Banks:
At the county’s center, Maple and the Currituck County Airport on Short
Cut Road (U.S. Highway 158) have drawn some high-dollar attention.
Combined, the projects total more than $22 million in upgrades and new
construction. They include:
• New taxiway at the airport — $2.4 million (in mostly state and federal funds);
• YMCA/Community building — $13.5 million (paid with occupancy taxes);
• Phase I of a new wastewater treatment plant — $1.9 million;
• Roads and drainage for a new 100-acre Commerce Park — $1.7 to $2 million;
• New aviation training facility in partnership with College of The Albemarle — $3 million; and
• 47 acres of land acquired from the state — $52,000.
Scanlon said the county already has funds available to pay for these projects. No borrowing will be necessary.
For the other projects, the county plans to borrow money but later recoup the cost from users.
In Moyock, the county is planning to build a new wastewater treatment
plant for $2 million to $3 million to serve commercial customers.
On the Outer Banks, the price for water, sewer and stormwater run-off
systems is the most costly. All the projects combined — at a possible
cost of $25 million or more — would be paid by landowners possessing
some of the highest-priced real estate in Currituck.
“The mainland folks won’t be paying for any of this,” Scanlon said.
The most costly of the projects will be replacement a 30-year-old
wastewater system for Ocean Sands. The county is studying the
possibility of going beyond the subdivision’s needs to extend services
to other potential customers on the Outer Banks. Replacing the Ocean
Sands system would cost between $10 million to $15 million.
A new study estimates the cost of developing a regional system could
cost between $20 million and $60 million. Under pressure by the state to
replace the old system, the county will need to make a decision soon on
what’s next, Scanlon said.
The county is also seeking to become the Outer Banks’ sole water
provider with a $5.5 million buyout of existing private systems and a $5
million upgrade to its reverse-osmosis water treatment plant. The
county is awaiting approval from the state Utilities Commission for the
purchase.
Some property owners opposed to paying fees for the upgrade have
complained to the state agency. Scanlon said the $75 fee that residents
will be required to pay for the next five years will not have as much
impact as some property owners fear. The county will be charging less
for water than the previous private water supplier charged, which means
the average customer will pay only about $35 more a month for services,
Scanlon said.
Another multi-million-dollar project is the ongoing stormwater drainage
system in Whalehead subdivision. The first of the three-phase project
cost $1.7 million. The county is currently polling residents to
determine support for increasing their district’s tax from 4 cents per
$100 valuation to 10.5 cents. The increase will continue the upgrade and
allow the county to offer door-to-door trash pickup. The remaining
phases of the project could cost more than $4 million, according to cost
estimates from County Engineer Eric Weatherly.
Petrey said the projects on the Outer Banks are driven by necessity.
Poor quality drinking water, storm-flooded beach cottages and an aging
wastewater system all needed solutions, he said.
“On the beach, we didn’t have a choice,” he said.






Currituck budget raises trash fees by $15

By Cindy Beamon

The Daily Advance

Saturday, June 4, 2011

Although property taxes are expected to remain the same, Currituck
residents will be paying a little more for trash collection if
Currituck’s proposed $66 million spending plan is approved.
Since the mid-1990s, property owners on the mainland have paid $99 for
trash pickup at collection sites. The fee could go up $15 to $114 if the
proposed fee increase is adopted by commissioners later this month.
For property owners in Corolla, door-to-door trash collection will also go up $15 — from $235 a year to $250.
The trash fee is part of the county’s annual bill to residents. That
bill includes property taxes as well, which are not expected to
increase.
According to the proposed budget for 2011-12, the property tax rate of 32 cents per $100 valuation would remain the same.
Some wastewater and water customers may also see an increase in rates this summer.
Wastewater customers in Ocean Sands and Newtown Road wastewater districts are slated for rate increases.
Ocean Sands, which will need to replace its aging wastewater system,
will face the most dramatic increase. Wastewater bills could double.
Customers now billed at 50 percent of water usage would be billed at 100
percent of their water usage.
Customers in the Newtown Road Wastewater District would face a $6
increase in their flat monthly rate. The flat fee would go up from $20
to $26.
Water rates may also go up for commercial water customers on the
mainland — including county government offices and the school system.
The county’s largest users will no longer benefit from a cost freeze for
commercial customers using 15,000 gallons or more a month. Now rates
will go up $1 per 1,000 gallons for customers using more than 15,000
gallons a month and will increase $2 per 1,000 gallons for customers
using more than 20,000 gallons in the month.
Scanlon said the biggest customers to be affected will be county
governmental offices and schools, but some other big commercial users
will also be affected.
Scanlon is scheduled to present his budget proposal on June 6 and a public hearing is set for June 20.
The $45.3 million general fund budget is “pretty flat” with no proposed
increases in staffing or county pay for the coming year, said Scanlon.
For the second straight year, the county’s 360 employees would receive
no cost of living increases. The county has also switched health care
plans to keep costs for health insurance the same. For some county
employees, the change could result in increased deductibles for health
care.
Scanlon said the proposed budget includes basically the same level of
county services with a “little belt tightening.” Some of the routine
operating expenses, such as replacing six cars within the sheriff’s
department, will remain the same.
The school system would receive close to the same from the county as
last year — even as the system braces for deep cuts in state funding.
For several years, the county has determined its contribution using a
funding formula based on the number of students and the consumer price
index. With the number of students down and the consumer price index up
slightly, the formula increases only slightly the coming year’s
contribution. The county’s $8.74 million contribution would be up about
$25,000 from 2010.
The county also plans to provide $990,000 for school capital outlay to
fund repair projects, equipment purchases, bus replacements and other
similar expenses.

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FROM THE DAILY ADVANCE

Scanlon: Currituck has seventh-lowest tax rate in state

By Cindy Beamon

The Daily Advance

Thursday, June 9, 2011

CURRITUCK — Currituck is facing a “new economic reality” as the
county’s tax base has flattened out over the past several years, the
county manager says.
The bad news: The no-growth, slow-growth trend is likely to affect
county spending in coming years, County Manager Dan Scanlon says. The
good news: the rest of the financial outlook for Currituck looks pretty
good.
For example, Currituck’s property taxes are among the lowest in the
state. And, despite the economic downturn, the county is ready to spend
millions on new capital projects, including designs for an animal
shelter that one commissioner wants moved up in priority.
The county will spend about the same on operating costs in 2011-12 that
it spent for the past five years, Scanlon said. The proposed $45
million general fund budget “is about as flat as a budget could be” with
no increases in the number of employees or pay, he said.
He attributed the trend to static growth in property taxes, which make
up 55 percent of the county’s income. To illustrate his point, Scanlon
pointed to a chart graphing building permits over the past 14 years.
After the real estate market crash, the number of permits steadily
dropped from 2005 until recent years when the number levels off. Scanlon
said that leveling off marks a trend he expects will continue for the
next few years.
While operating costs have leveled out, the county is still planning
several new capital projects costing millions. Projects include prepping
a 100-acre site in Maple for a new commerce park, a new aviation
technical training center, an upgrade to water access facilities at the
Rural Center in Powells Point, and a $4 million upgrade to the county’s
communication system. Funds are on-hand to pay for the projects, he
said.
Another capital project — not yet fully funded — drew special attention from commissioners Monday night.
Commissioner Paul Martin pressed to speed up the construction of a new
animal shelter in Maple. The budget includes funds for schematic
drawings of the shelter, but actual construction could be a couple years
away, Scanlon said.
Martin asked for the timetable to be pushed up so that construction can
begin sooner. He said the budget commitment would “put in concrete
finality” that the animal shelter will be built.
Other board members questioned if speeding up construction would be possible since roads to the site have not been built yet.
Commissioner Paul O’Neal said he supports the new shelter, but does not
believe the county should rush the process — which includes presenting
plans to the public before more detailed construction plans begin.
“I want to see the board committed to the project, but I want to see it done in the proper steps,” O’Neal said.
The board plans to meet next week to determine if the county budget will be amended for the shelter.
As presented, the proposed projects will not require an increase in the
county’s 32 cents per $100 valuation property tax rate, which has
remained the same since 2004, Scanlon said.
He noted that the tax rate is the seventh-lowest in the state, and that
the counties with lower rates are in metropolitan areas where property
owners are also subject to city taxes.
Commission Chairman Vance Aydlett said considering that fact, Currituck “has the lowest tax rate in the state.”
Scanlon said he doesn’t expect the county’s level of spending to change
much in the coming few years because of “nominal-to-no increase in our
tax base.”
In addition to property taxes, another major key revenue source, the
state sales tax, is also down, said Scanlon. The state returns a portion
of the sales tax each year for county use. That amount — like property
taxes — has remained flat in recent years, despite an uptick last summer
that sparked optimism that the economy may be on the upswing. Scanlon
said the sales tax spurt in July did not last and the “optimism was not
sustainable.”

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