Proposed Budget Maintains Tax Rate

The recommended fiscal year 2004-05 budget does not raise taxes and maintains the County's commitment to education by increasing funding to Wake Technical Community College and the Wake County Public School System.

County Manager David Cooke presented a budget to the Board of Commissioners today that is 4.1% larger than the fiscal 2003-04 budget (the fiscal year is July 1 – June 30). Some of the highlights of the budget include:

• Maintains the existing property tax rate at the current level of 60.4 cents per $100 of valuation.
• Provides additional funds to Wake County Public Schools, Wake Technical Community College, Human Services, Public Safety and the Sheriff's Office.
• Continues the County's $1.55-billion, long-range capital program and recommends bond referenda in the fall for Wake Technical Community College ($40 million) and Open Space ($26 million).
• Constrains spending and holds the line in almost all other areas of the County government.

The Board will hold public hearings on June 7 and a work session on June 15 before considering the budget for adoption on June 21.

As proposed by Cooke, the budget totals $746.96 million, a 4.1% increase over the fiscal 2003-04 budget. The recommended budget contains no tax rate increase, maintaining this year's rate of 60.4 cents per $100 of assessed valuation.

Cooke applauded commissioners for "maintaining a long-term perspective" while thoroughly reviewing and reassessing county plans, policies, priorities, services and programs. This process, Cooke said, gave County staff clear direction "to live within our means – without tax increases."

"Although not complete, we have come a long way toward charting the future of Wake County," Cooke said.

Cooke noted that, measured against other areas of the state or nation, Wake County's outlook is "quite positive," and the County will continue to produce more job opportunities, grow in population and sustain a desirable quality of life. "And, as we grow, Wake County is doing the right things," he said.

As evidence of the County's steady growth, Cooke pointed to a $29.5-million increase in projected revenues for the County's general fund, primarily through property and sales taxes. A $14.5-million increase in property tax revenue is due to higher property base valuation, with growth steady at 3.5%, while sales tax revenue is expected to increase 7.8% over the current year (by $8.4 million).

Most of the $29.5 million in new revenue, Cooke said, will go to support a higher level of funding for the Wake County Public School System ($10.7-million increase) and Wake Technical Community College ($2.9-million increase), and, as Cooke also noted, a $4.9-million increase in transfers to debt and the capital program.

A $5-million increase in Human Services' budget, Cooke said, will allow the County to provide more services without increasing the local net cost, and a $2-million increase in the Sheriff's budget would pay for necessary medical services and food costs for an increased number of detainees.

The fiscal year 2005-2011 Capital Improvement Plan (CIP) totals $1.55 billion, with fiscal year 2004-2005 accounting for $221 million of that total. A significant portion of the CIP goes to implement Wake County Public Schools' Plan 2004 building program over the years. The CIP, which is funded by 16.5 cents of property and sales taxes, also anticipates bond referenda in fall 2004 for Wake Technical Community College ($40 million) and for open space ($26 million).

The proposed budget also covers an average pay-for-performance increase of 3% for County employees as well as job classification adjustments to better reflect the market.

"The 2005 budget I have recommended acknowledges that Wake County will continue to grow in population and produce more jobs," Cooke said. "The challenges and opportunities related to growth will continue. And, as we grow, Wake County is charting a bright future."