BUDGET MESSAGE
FY23 ANNUAL BUDGET
Budget Message
May 16, 2022
Honorable Chairman and Members of the Cabarrus County Board of Commissioners:
It is my honor and privilege to submit the Fiscal Year 2022-2023 (FY23) Recommended Budget. Staff prepared this budget in accordance with the laws of North Carolina, guided by the Board of Commissioners’ strategic priorities.
Fiscal Year 22: A look back
In planning for FY22, commissioners adopted a budget aligned with the County’s strategic priorities of having:
- A Thriving Economy
- A Healthy and Safe Community
- Available Culture and Recreation opportunities
- Sustainable Growth and Development
- A Transparent and Accountable Government
The FY22 budget focused on several important elements of a successful community.
It funded high-quality educators and schools, which are crucial to a thriving economy. The County-paid supplement for certified staff employed by Cabarrus County Schools (CCS) and Kannapolis City Schools (KCS) increased for the ninth consecutive year. For the 2022 school year, CCS had the 16th and KCS had the 53rd highest average teacher supplements out of the 115 Local Education Agencies in the state. Just 10 years ago CCS ranked 37th and KCS 70th in the state.
This progress would not have happened without your commitment to this important priority.
School facilities also received substantial funding in the FY22 budget, including just under $55 million to replace R. Brown McAllister Elementary School, complete construction of Roberta Road Middle School, design a new Northwest High School and replace five school roofs. The budget set aside just over $12 million for school facility projects like flooring and playground replacements across both districts and Rowan-Cabarrus Community College.
Through all our efforts, we continue to work toward a County where our children learn, our citizens participate, our dreams matter, our families and neighbors thrive and our community prospers.
PERSONNEL: The most important commodity
To ensure we provide competitive compensation compared to other jurisdictions, the FY23 budget increases public safety salaries between 5 and 15 percent for 287 positions, including Deputy Sheriff, Senior Deputy Sheriff, Telecommunicators, Fire Captain and more. These adjustments are a result of the recently completed market study that compared our public safety pay rates to comparable cities and counties throughout North Carolina.
In addition, the budget also includes funds for a 1% cost-of-living adjustment for all employees and merit pay increases of up to 4% based on their individual performance. Competitive pay enables us to attract and retain high-quality employees to allow us to serve the community better.
Under the leadership of Sheriff Van Shaw, the Sheriff’s Office continues to provide essential services ranging from traffic enforcement to criminal investigation to jail operations. The FY23 budget adds 12 positions for the Sheriff’s Office, including a Captain, four (4) Deputy Sheriffs and six (6) Detention Officers to provide needed services. Expenses associated with the proposed Captain and two Deputy Sheriff positions will be paid by the Town of Harrisburg through their contract for law enforcement services.
Additional funding of $921,006 for the Cabarrus Health Alliance will allow the hiring of two (2) additional On-site Wastewater staff members to address substantial wait times for septic and well permits; two (2) Food and Lodging staff members to complete required inspections; and a school nurse for Roberta Road Middle School. This funding also covers inflationary costs for personnel.
From the 2020 to 2021 calendar years, the call volume for Emergency Medical Services (EMS) increased by 15% to more than 35,000 calls for service. During that same time, EMS maintained a response time of under eight minutes. Night shift has become more challenging during the pandemic, leading to vacancy rates of over 10 percent for both full- and part-time personnel. To combat this problem, the budget adds two (2) Paramedics to maintain appropriate response times and prevent ambulance shut down. We are currently exploring shift differential pay to attract current and future employees to consider the night shift.
Those positions will help, but we must also think creatively about how to overcome the challenges of attracting talent. The budget proposes three (3) Paramedic Trainee positions that will attend the new Paramedic Academy at Rowan-Cabarrus Community College. Upon completion of the program, these trainees would move into full-time Paramedic positions with a two-year employment commitment to the County. This approach provides another pathway to addressing staffing challenges within EMS.
For our Human Services - Adult Services Division, the budget adds a Social Worker III to address the rising number of Guardianship and Adult Protective Services cases. Guardianship is a legal relationship in which a person or agency is appointed by the courts to make decisions and act on behalf of a person who does not have adequate capacity to make those decisions. The division is currently responsible for 63 individuals, with expectations of increasing next year due to policy changes at the state level. Similar policy changes at the state and federal levels have made an additional Social Worker II in the Special Assistance In-Home Program necessary. This program provides at-home support services for Medicaid-eligible individuals at risk of entering an adult care home.
Human Services also has a need for additional staff in the Child Welfare Division. The budget adds two (2) Social Worker Investigative/Assessment positions to work a non-traditional schedule (3 p.m. to midnight) during the busiest time of the week; a Social Worker Supervisor III to oversee their intake staff; a Social Worker Supervisor III to oversee family assessments; and a Social Worker III to receive intake calls. The division has experienced significant turnover in the past year, and continues to manage high caseloads. These positions will provide much-needed stability.
Veteran’s Services continues to assist veterans and their families with filing claims for benefits. Staff assists with filing of over 1,000 claims each year, resulting in more than $10 million in benefits for local veterans. The budget adds a Veteran Services Officer to help veterans get the benefits they have earned. While this is not a mandated service for counties, the need is great and continues to grow each year.
The county’s rapid growth continues to increase the workload for the Construction Standards Division. The budget adds two (2) Code Enforcement Officers and a Permit Associate to complete residential and commercial property inspections and issue building permits for residents and developers. These positions will be funded using additional inspection and permit fees collected by the County throughout the year. As in the past, these positions will remain vacant until the demand increases beyond current staff abilities.
It is an exciting time for the Cabarrus County Public Library System. The system will add its sixth branch location in late 2024 with the opening of the new Afton Ridge Library and Senior Center. Additionally, the system will open expanded facilities in Mt. Pleasant and Harrisburg within the next five years. The budget adds a Deputy Director to oversee the growing system’s external programs, marketing and outreach.
The remaining recommended positions address current deficiencies. They include:
- An Assessment Associate to provide support for personal property appraisal staff to increase customer service and responsiveness.
- A Cyber Security Analyst to monitor the County’s internal and third-party security prevention and detection solutions, which ensures the integrity and protection of the County’s network and systems.
- A Grounds Maintenance Mechanic to increase efficiency by providing in-house maintenance and repairs on equipment and small engines.
- A Heavy Equipment Operator to meet growing demands with a consistent level of customer service at the Construction and Demolition Landfill.
- A Network Engineer to manage, configure, install, and analyze network security, infrastructure, voice, wireless and building security systems.
- A Resource Conservation Easement Specialist to review, record and monitor easement for programs that preserve county land.
- A Strategy Manager to oversee strategic planning and performance efforts for an accountable government.
In total, the budget funds an additional 39 positions across County departments. While this request is well short of what was asked for by department leadership, these additional positions are crucial to strengthening essential County services in the year ahead.
Another new employment pathway included within the budget is a Management Fellow Program and increased internship opportunities. The three (3) Management Fellows will be recent graduates or students in Master’s-level programs interested in serving full-time in a high-priority area of the county. Interns will be recent graduates or current students at a community college or university who are willing to serve part-time for three to six months. Both programs align with the Board’s goal to create opportunities for people to see value in the work of County government. They also support our commitment to succession planning and continuous improvement.
Fiscal Year 23: Where we’re going
The FY23 budget funds critical investments while maintaining a property tax rate of 74 cents per $100 of assessed valuation for a third consecutive year. That brings the General Fund Operating budget to just under $318 million.
We understand the importance of a competitive – and stable – tax rate for residents. The County’s Five-Year Financial Plan assumes the tax rate will be maintained in FY24 as well (with a revisit scheduled for the FY25 budget process). The FY25 budget will be impacted by new property values that will become effective January 1, 2024 – an opportune time to consider a tax rate adjustment if the board desires.
Our services contribute to the well-being and quality of life for residents. This requires strategic investments as the county grows. However, staff is also mindful that any investments must be balanced with the impact on taxpayers.
We believe this budget strikes that balance.
Although the population of Cabarrus grew by 27% from 2010 to 2020, the county continues to uphold its reputation as a wonderful place to live, work and visit by providing an enhanced quality of life.
The University of Wisconsin Population Health Institute’s County Health Rankings puts Cabarrus at 13 out of the 100 North Carolina counties across key health measures, such as crime rate, unemployment and health outcomes. These results are due in large part to our dedicated public safety agencies and the Cabarrus Health Alliance.
This budget includes additional funding for these core areas.
Finally, this budget enhances County recreational opportunities with the upcoming construction of a new library; senior center and park facility in the northeast part of the county; added or updated amenities at Frank Liske Park; and an additional phase at Rob Wallace Park.
This message details three major areas of the budget: personnel, education and capital (building) projects.
EDUCATION: Key to a thriving community
We cannot overstate the importance of making strategic investments in our education partners: Cabarrus County Schools (CCS), Kannapolis City Schools (KCS) and Rowan-Cabarrus Community College (Rowan-Cabarrus).
As always, part of the investment helps attract and retain top educators.
The FY22 budget included funding for a 10.5% local supplement; however, the CCS Board of Education went beyond that, choosing to use one-time federal funding to increase the local supplement to 12% for the 2022, 2023 and 2024 school years. After the 2024 school year, there will be insufficient funding for the supplement to remain at 12% without budgeting additional local funding. The budget includes funding equivalent to 1% of the County-paid local supplement for certified staff to begin reserving the funds that will be needed to cover the shortfall in two years. The remaining 0.5% needed to fully cover the shortfall will be recommended for the FY24 budget.
In addition to the supplement, the CCS budget includes additional funding to cover the rising costs of locally paid staff and technology; expenses for the new Roberta Road Middle School and Cabarrus Health Sciences Institute; and an additional $561,000 to improve facilities and grounds maintenance. The CCS budget totals $73.6 million, an increase of 3.6%.
The County-paid local supplement for KCS lags CCS due to the requirement to allocate an equal share to each school based on enrollment. In essence, an additional dollar provided to KCS would require an additional nine dollars for CCS, making a significant supplement increase cost-prohibitive. Given that challenge, the budget includes funding for a 0.5% increase in the County-paid local supplement for certified staff employed by KCS. The KCS budget totals $8.9 million, an increase of 3.1%.
The County is required to provide equal per-pupil funding for residents choosing to attend a charter school. Charter school enrollment continues to rise, with an estimate of nearly 3,000 students. That’s a 21% increase over the past three years. This results in total per-pupil funding of $6.3 million, an increase of 14.4%.
The County is required to provide equal per-pupil funding for residents choosing to attend a charter school. Charter school enrollment continues to rise, with an estimate of nearly 3,000 students. That’s a 21% increase over the past three years. This results in total per-pupil funding of $6.3 million, an increase of 14.4%.
Last year, the County and CCS agreed that operating expense funding for continuation and local supplements would instead go to deferred maintenance projects until FY25. The district is using one-time federal funding to cover the gap until that time. Total funding reserved in the budget is $4.9 million, with $4 million for CCS, $487,887 for KCS, and $345,693 for charter schools. With this reserved amount, the operating budget totals $93.6 million.
Rowan-Cabarrus serves nearly 19,000 students each year through 55 degrees, 36 diplomas and 101 certificate programs. The college plays a vital role in workforce and economic development within the county and region. Additional funding for utilities, personnel and a new Building Automation Technician—co-funded by Rowan County—are included in the budget. This results in total funding of $3.95 million, an increase of 5.3%.
CAPITAL PROJECTS: Funding for preservation and growth
The FY23 budget includes $38.2 million from the General Fund to the Community Investment Fund (CIF) for current and future debt payments. The budget also includes $22.1 million from the County’s pay-as-you-go (PAYGO) program. PAYGO is the use of cash rather than debt to pay for needed capital projects.
The County will not issue new debt in FY23, which is consistent with our every-other-year cycle.
PAYGO will fund a significant number of essential projects, including:
- • $11.6 million for various projects at County facilities. Examples include utility and RV lot improvements at the Cabarrus Arena and Events Center; paving the overflow parking lot at the Concord Senior Center, Concord; and tennis court renovations at Frank Liske Park.• $4.2 million for Cabarrus County Schools to fund their Top 20 deferred maintenance projects. Project examples include multiple fire alarm system replacements, roof replacements and playground replacements. These projects would have a positive impact on 15 schools across the district.• $2.5 million for Cabarrus County Schools to replace the roof at W.M. Irvin Elementary School and Harris Road Middle School. With these two projects, the County will have funded seven (7) complete roof replacements in the last two years.• $2.3 million for Rowan-Cabarrus Community College to renovate Building 2000 for law enforcement, EMT/paramedic and certified nursing assistant programs. Completion of this project will free up needed space on the 7th floor of the Sheriff’s Administrative Building for their use.• $2 million to program and design a new public safety training facility adjacent to Frank Liske Park in Concord. The facility will assist local emergency medical services, fire departments, and law enforcement in meeting their training requirements. This project will be in partnership with Concord, Harrisburg, Kannapolis, and the volunteer fire departments. The County’s share of construction costs for the project will be included in the FY24 budget.• $1.5 million for Kannapolis City Schools to fund various deferred maintenance projects including flooring replacements, security cameras and paving repairs.
Funding sources for these projects are noted in the Cabarrus County Capital Project Ordinance scheduled for adoption by commissioners in June 2022, in addition to the general budget ordinance. Capital projects planned for beyond FY23 are included in the budget document for information purposes and will require a staff recommendation and formal adoption by the board before proceeding.
While continued capital investments are necessary, it is important to set aside additional funding needed for new facilities. The additional expenses will receive funding with current resources. Two years ago, the county used this budgeting method for the courthouse renovation/expansion project. Funds were budgeted for additional staffing and operating expenses, even though the facility would not open until 2023. Since then, these funds paid for one-time capital projects, allowing us to prevent facilities from unnecessary deterioration. With this budget, the funds shift fully to staffing and operating the new courthouse.
Consistent with this approach, the budget sets aside $3.2 million to cover a portion of the future operating expenses for the Library and Senior Center at Afton Ridge and the new behavioral health facilities in Kannapolis. These funds will become available for one-time capital projects until the facilities open. We plan to recommend reserving additional funding in FY24 as well. This will ensure that both projects have sufficient funding ahead of opening without negative impact on the tax rate.
The Library and Senior Center at Afton Ridge will become the County’s sixth library branch and third senior center location, with annual operating expenses estimated to be in the $3-4 million range.
For the behavioral health facilities, we were fortunate to receive a $30 million grant from the state for designing and building two facilities off Kannapolis Parkway. One will provide behavioral health urgent care for those age six and older and a 16-bed adult facility-based crisis center. A second will provide a 16-bed facility-based crisis center for those between the ages of 4 and 17 years old. Facility-based crisis centers offer short-term, medically supervised service 24-hours a day, seven days a week, 365 days a year as an alternative to hospitalization or emergency department visits. These facilities will be designed over the next year with an intended opening in 2024. Although Cabarrus County will not directly operate the facilities, the County will have a financial role to play, with rough estimates in the $3-5 million range annually, based on Guilford County’s experience with similar facilities.
In closing, I would like to thank our entire workforce for their commitment to the programs and services that make Cabarrus County a special place. The last two years were difficult as we navigated a pandemic.
Countless staff members contributed to the development of this budget, but I would like to mention a few specifically: Rodney Harris, Kyle Bilafer, Lundee Covington, Rosh Khatri, Yesenia Pineda, Elie Landrum, Wendi Heglar, Suzanne Burgess and our department leadership team all helped develop a fiscally responsible budget that responds to community needs.
Finally, I commend the Board of Commissioners for their leadership over the past year. Your dedication to the citizens of our county is admirable and noticed daily by our staff and those that live, work and play in our growing county.
We look forward to your thoughtful consideration of the recommended budget and input from our residents before the budget adoption on June 20.
Respectfully submitted,
Michael K. Downs
County Manager