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BREAKING MON. NIGHT: Commissioners vote, 4-1, to tap savings to avoid property tax hike in new budget – alamancenews.com

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Alamance County's board of commissioners has approved a new annual budget that breaks open the proverbial piggy bank to keep the county's property tax rate at its current level of 49.4 cents for every $100 of value.

The board adopted the new budget in a 4-to-1 decision on Monday in lieu of a proposed spending plan that county manager Heidi York had recommended to the commissioners in order to replenish the county's financial reserves.

In her proposed budget, York had opted not to pencil in any savings to cover a shortfall of nearly $13 million that she had anticipated in the county's general fund. She instead proposed to fill this eight-figure gap through a combination of spending cuts and a 2.25-cent hike in the county's property tax rate.

The newly-approved budget rejects York's recommendation in favor of a competing plan from two county commissioners that averts the proposed tax hike by dipping into the general fund's savings and diverting some capital outlays into the general fund.

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Steve Carter, the vice chairman of Alamance County's commissioners, defended the board's continued reliance on savings in spite of the county manager's misgivings. He argued that the general fund's savings, or fund balance, may very well recover on its own based on the preliminary results of the county's next property revaluation, which takes effect in January of 2027.

BREAKING MON. NIGHT: Commissioners vote, 4-1, to tap savings to avoid property tax hike in new budget – alamancenews.com

“Right now, our tax office is telling us that we're seeing increases in commercial property values of 200 to 300 percent. If we get where we think we'll be next year, we should see a considerable increase in our fund balance.â€

– County commissioner vice chairman Steve Carter

“Right now, our tax office is telling us that we're seeing increases in commercial property values of 200 to 300 percent,†he said. “If we get where we think we'll be next year, we should see a considerable increase in our fund balance.â€

Meanwhile, Kelly Allen, the chairman of Alamance County's commissioners, insisted that her own vote on the budget has been shaped by the pleas for tax relief that she has heard from many of her constituents.

“I think today I handled 25 phone calls from people worried to death that they won't be able to pay their property taxes.â€

– County commissioner chairman Kelly Allen

“I think today I handled 25 phone calls from people worried to death that they won't be able to pay their property taxes,†she told the rest of the board ahead of Monday night's vote.

Like the county manager's proposed spending plan, the newly-approved budget calls for just over $239 million in outlays from the county's general fund – a decrease of about 1 percent from the fund's current appropriations.

Included among these outlays is a 2 percent “cost-of-living adjustment†for the county's full-time staff, as well as another 2 percent for those who meet the expectations of supervisors. The budget also sets aside nearly $64.4 million for the Alamance-Burlington school system, including nearly $58.8 million for its day-to-day operations – or about $1.5 million more than these same operations currently get from the county. This sum nevertheless falls roughly $4 million short of what the Alamance-Burlington school system had hoped to receive in the new fiscal year, which formally begins on July 1.

As part of the new budget, the board of commissioners has maintained most of the cuts that York had recommended in her proposed spending plan. These decreases include the elimination of about 50 frozen positions along with reduced hours for the county's library system. The final budget nevertheless provides extra uniforms for paramedics at the behest of commissioner Pam Thompson. It also equips some county ambulances with “whole blood†for transfusions as per a recommendation from the county manager herself.

 

Commissioners dip into savings in order to avoid property tax hike

In order to cover the general fund's outlays, York had recommended a 2.25 cent tax hike to bring an additional $6.2 million into the county government's coffers. As alternative, county manager Ed Priola had suggested dipping into the general fund's savings when the commissioners convened last Tuesday to thrash out their own version of the county's next budget.  His suggestion was further refined by commissioner Sam Powell, who proposed reallocating $2 million in capital outlays to limit the allocation of savings to about $4 million.

A majority of the board ultimately signed off on Powell and Priola's plan with the understanding that it could reduce the general fund's usable reserves to less than 15 percent of its annual outlays. York had strived to keep those savings above 15 percent with the aim of working back up the board's own stated target of 20 percent.

County commissioner Ed Priola, who along with commissioner Sam Powell (below) structured the final budget with no property tax increase that commissioners adopted Monday night.

In the end, the budget ordinance that came before the commissioners on Monday earmarked roughly $5 million from the general fund's savings and about $2.4 million in capital funds to cover a total general fund outlay of $239.4 million.

The only dissent to the newly-approved budget came county commissioner Pam Thompson, a former Republican who has since left the GOP and is now the board's only non-Republican member.

“Every year, we hit that fund balance, and I am not going to support using that savings account to pay our bills.â€

– County commissioner Pam Thompson

“Every year, we hit that fund balance,†she admonished her fellow commissioners, “and I am not going to support using that savings account to pay our bills.â€

 

Fire district tax increases also rejected

In addition to keeping the county's property tax rate at its current level, the newly-approved budget also rejects some proposed increases in the special property taxes that rural residents must pay to support their local fire departments.

Earlier this year, the fire departments that serve the Eli Whitney, Faucette, Swepsonville, and 54/East Swepsonville districts had requested increases in their own special levies. Officials in Eli Whitney had asked the commissioners to ramp up their rate from 8.6 to 11 cents, while their counterparts in the Faucette district requested an increase from 9 to 12 cents. Meanwhile, the Swepsonville fire department had sought a hike from 6 to 7.5 cents for the two districts that its firefighters serve.

A majority of the commissioners rejected all of these requests at the suggestion of Priola, who found them to be fundamentally “expansionistic.â€

“They're worthy objectives,†he added; “However, they're not expenses we can take on at this moment.â€

Priola was joined by Carter, Allen, and Powell in the 4-to-1 vote in favor of a budget ordinance that excluded these fire district tax increases.  Pam Thompson cast the lone vote of dissent in this case.

 

The board went on to vote 4-to-1 in favor of a budget ordinance that excluded the requested fire district tax increases.  Pam Thompson cast the lone vote of dissent.  Voting in favor were Priola, Powell, Carter, and board chairman Kelly Allen.


BACKGROUND STORIES

Commissioners tell manager to revise budget with no property tax increase; use more savings: https://alamancenews.com/breaking-news-commissioners-tentatively-revise-county-managers-budget-to-eliminate-property-tax-hike/

Speakers at budget public hearing divided between those opposing tax increase and others wanting more spending for ABSS: https://alamancenews.com/competing-public-speakers-turn-out-to-press-for-no-property-tax-increase-more-spending-for-abss/

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