PITTSBORO — Last year, Chatham County prepared for the potential negative economic impacts of COVID-19 with a cautious recommended budget for 2020-21, up 5% from the prior year.
Now, the county manager’s recommended 2021-22 budget proposes total expenditures of $149.9 million — up 10.4% from last year and including an additional $2.5 million to support the opening of Seaforth High School, plus funds for 31 new county positions.
The budget calls for a half-cent property tax decrease — from 67 cents to 66.5 cents per $100 valuation — following Chatham’s 2021 property revaluation, which resulted in valuation increases for three-fourths of Chatham property owners.
“It’s been an interesting year filled with challenges from COVID and the cyber attack, through it all we’ve adapted, remained strong and resourceful through all of it,” said County Manager Dan LaMontagne at the Chatham County board of commissioners’ meeting Monday night. “Tonight we recommend a budget that will staff needs that have been postponed for the last few years. It will help prepare us for future growth and reduce the tax rate by one half-cent.”
No action was taken on the budget; Monday’s meeting kicked off a budget process that will span through the end of June. The board will host a public hearing on the budget May 17, with board work sessions to follow on May 20, 21 and 25. The budget is set to be finalized June 21 to meet the state-required June 30 budget adoption date; the county’s fiscal year begins July 1.
The recommended budget presentation, presented by Assistant County Manager Bryan Thompson, indicated that current year revenue was on track to meet or exceed budget targets — 100% of budgeted property tax revenues were collected by the end of March, excise tax and fees exceeded budget by the end of March, 85% of budgeted motor vehicles revenues were met by early April and development services were all on track to meet or slightly exceed the fiscal 2020-21 year’s budgeted revenue.
The county also expects increases in sales tax revenue, with Article 39 and 42 locally collected taxes trending 13% over the previous year and Article 40 statewide collection 11% higher. The Article 46 county sales tax, approved by 646 votes in the March 2020 primary election, is at 85% of projected revenues collected, but Thompson said the county expects to exceed the budget. That new tax was projected to bring in $1.6 million, the bulk of which will be used for education purposes such as teacher supplements.
“Again, our conservative approach to sales tax when we called an audible at this time last year with the pandemic really came to bear,” Thompson said during Monday’s presentation. “Our performance is stronger than what we could have anticipated.”
The county’s recommended budget for 2021-22 also forecasts increases in revenues for property taxes, permitting, excise and sales tax collections and transfer-in budget revenue.
In addition to the $2.5 million to support Chatham County School’s new high school, Seaforth, the budget also includes an expenditure of $180,000 to teacher supplements to meet state-mandated retirement increases. The 31 budgeted new positions include multiple positions in building inspections, social services, MIS, emergency communications and the Sheriff’s Department.
The county will also increase expenses to invest in sustainability, cloud-based software, off-site backup, support for small business, an employee pay adjustment and the expansion of a walking trail at SW District Park.
Thompson said the key line of this year’s budget message is, “time and tide wait for no man” — emphasizing the county is expecting and planning for growth.
“As you read, it will reflect a sincere belief and confidence in recovering from this pandemic,” he said of the budget message, “something that we could not necessarily say with this level of confidence last year.”
Reporter Hannah McClellan can be reached at hannah@chathamnr.com or on Twitter at @HannerMcClellan.