Board OKs 4-cent rate hike
Murphy – After a month of contentious work sessions, county commissioners passed a budget Monday that increases the millage rate and slashes the rainy day fund in half, while funding critical needs and establishing a countywide pay plan aimed at retaining employees.
A majority of the Cherokee County Board of Commissioners voted to increase the millage rate by 4 cents, bringing the property tax rate for the upcoming fiscal year – which begins Thursday – to 50 cents per $100 of valuation. Commissioners Jan Griggs and Cal Stiles opposed the increase.
Commissioners did not dedicate the millage increase to a particular expense, which means the county could use the money for any need. A majority of commissioners previously voted to fund high school consolidation through a dedicated millage rate increase; however, County Manager Randy Wiggins did not include it in his budget proposal because officials are still working to determine the project’s overall costs.
A majority of the board decided to impose the tax increase now rather than wait because they wouldn’t be able to increase taxes mid-year in the event that school officials are ready to move forward before July 2022.
“If I can’t show that the county has the revenue to pay the debt service, the [state Local Government
Commission] will not approve [the loan],” county finance director Candy Anderson said at the June 21 budget work session. “It would be like a bank approving your house loan when you’re not yet receiving a paycheck that could cover that house payment. You have to have the raise before you get it.”
By not dedicating the money raised through a millage increase, county officials could use it to fund school repairs in the event that a future board configuration decides not to move forward with consolidating high schools. The money could also be used to replenish fund balance, which is projected to be cut in half by additional expenditures next year.
Commissioners unanimously voted to adopt a countywide pay plan adjustment that adds $1.6 million to the upcoming fiscal year’s budget. Officials say the pay plan will help retain county employees by establishing a competitive salary range that allows for advancement as an incentive for increased performance.
The approved budget for next year also includes $566,886 to pay teachers a 3 percent salary supplement, as well as $134,096 for bus driver benefits and raises. Both Griggs and Stiles opposed the expenses.
“We’re having to do this because we’re hemorrhaging teachers and [county] employees across the state line to Georgia and other [North Carolina] counties,” Commissioner Gary “Hippie” Westmoreland said. “One is as important as the other. How do you split hairs? I think we need to take care of both teachers and [county] employees.”
The budget also includes $106,612 to hire two new sheriff’s deputies, which the commission unanimously approved.
Although the projected budget for fiscal year 2022 reduces the rainy day fund to about $2.6 million, county officials believe the balance will be better off than that after receiving sales tax revenue for the final quarter of this fiscal year.
“Once FY21 is done, there may be some more money that can be added to that figure,” Anderson said.
“I feel very confident that I’ll be able to tell you that we’ll be adding to your fund balance, but I can’t guarantee that yet.”
To put the upcoming millage rate increase in perspective, a 4-cent tax rate increase on a property valued at $200,000 would equate to an extra $80 in property taxes each year, or less than $7 per month.
However, that amount pales in comparison to the increase that would be needed if a judge rules that the county’s insurance company does not have to pay any of the money awarded to a father and daughter following a civil lawsuit trial last month. If the county is forced to raise the millage rate to pay the $4.6 million awarded by a federal jury regarding the use of custody and visitation agreements, taxpayers could see a property tax increase of 12.78 cents, which is the increase needed to generate the money in one fiscal year.