FY2021 Budget Presentation Final - Town of Maggie Valley · Budget Summary: Quick Facts •The...

Town of Maggie ValleyFY 2020-2021Proposed Budget

MAGGIEValley

North CarolinaEst. 1974

Nathan Clark, Town Manager

Tuesday, May 19, 2020

Outline • Budget Message� Budget Summary� Fund Balance� Taxes & Fees� Personnel� Major Projects� Beyond the Horizon

• Department Review� Administration � Public Works� Police� Festival � Board of Aldermen� Parks� Debt Service� Powell Bill� Soco Road Capital Fund� Sewer � Budget Alternatives

MAGGIEValley


Budget Summary: Quick Facts

• The proposed FY19-20 Budget is balanced with respect to revenues and expenditures

• Meets all requirements of the North Carolina Local Government Budget & Fiscal Control Act

• Maggie Valley’s FY 20-21 estimated total tax value: $394,984,584�FY 19-20 Tax Value: $391,420,616�A net gain in value of $3,563,968 (1.7% increase)

• Town of Maggie Valley Proposed Budget Tax Rate = $0.43�FY 20-21 Estimated Tax Revenue = $1,596,528�Projected Tax Revenue is 2.23% less than FY19-20 MAGGIE

ValleyNorth Carolina

Est. 1974

Quick View: Fund Totals•General Fund - $2,663,643

�10.09% decrease from FY19-20

•Sewer Fund – $883,038�6.35 % decrease from FY19-20

•All Funds - $3,546,681� 16.44% decrease from FY19-20

MAGGIEValley


Fund Balance• “Fund balance available” is the statutory concept that describes the amount of funds local governments legally have available to be appropriated in the coming fiscal year.

• The Local Government Commission requires all municipalities to keep at least 8% in unappropriated fund balance, their recommended levels for small towns is much higher.

• Estimated FY19-20 Fund Balance� $3,442,164 (114.95%)

• Proposed FY 20-21 Budget: Fund Balance Transfer $123, 968 (110.27%)

MAGGIEValley


Fund Balance Snap Shot FY Ending Total Undesignated % to

Expenditure

2008 $1,209,324 $1,065,999 51.57

2009 $1,451,541 $1,277,847 72.17

2010 $1,678,207 $1,604,867 67.24

2011 $1,906,268 $1,726,406 82.49

2012 $1,916,848 $1,728,287 77.44

2013 $1,998,384 $1,802,205 83.16

2014 $2,121,853 $1,916,914 100.72

2015 $2,367,202 $2,111,097 110.72

2016 $2,554,639 $2,406,189 107.22

2017 $2,520,466 $2,199,864 97.77

2018 $2,901,053 $2,735,294 110.57

2019 3,046,057 $2,748,182 123.67 MAGGIEValley


Taxes & Fees

Property Tax• The proposed FY20-21 Budget is based upon a property tax rate

of $0.43 per $100 assessed value� Tax Rate is Lowest in Haywood County

• Property Tax is the largest source of revenue for the Town and is based upon real property assessments performed by Haywood County

• Town’s Total Tax Value is $394,984,584� 1.7% increase from Town’s Total Tax Value in FY19-20

• Fundamentally each $0.01 of the tax rate equals $37,129� That is an decrease of $533 in “penny value”

• Based upon a 94% collection rate, property tax revenue is expected to be $1,596,528� Reduced Collection Rate is 2.97% due to COVID-19; similar rate to “Great

Recession” MAGGIEValley


Tax Collection Rate By Budget Year95

.44%

95.2

2%

95.3

8%

94.7

9%

96.6

7%

95.7

6%

97.1

5% 98.2

9%

96.4

9% 97%

94%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Property Tax Collection By RateTax

Collection Rate

92% 93% 94% 95% 96% 97%

Tax Revenue

Generated$1,562,559 $1,579,543 $1,596,528 $1,613,512 $1,630,496 $1,647,481

Penny Value $36,339 $36,734 $37,129 $37,524 $37,919 $38,314

Difference of Values

by Collection

Rate

(-) $33,969

(-)$16,985 $0 (+)

$16,984(+)

$33,968(+)

$50,953 MAGGIEValley


Sales Tax • Sales tax is the second largest revenue source for the

Town’s General Fund. • Sales Tax distribution can occur using the Ad Valorem or

Population method. • It is each county’s prerogative to establish how sales tax

is distributed� Haywood County has chosen the population formula.

• Based upon Haywood County Sales Tax Projections the Town should receive 1.81% of total collected sales taxes = $357,265� 18.7% decline from FY19-20; COVID-19 related.

MAGGIEValley


Sales Tax Revenues: FY 08-21

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021MAGGIE


Est. 1974

Fees• Sewer Capacity Capital

Charge� Unchanged at $6.75/gpd ($810

Per Bedroom)� Replacement cost $16.00/gpd ($1920

Per Bedroom)

• Sewer User Fees� User Minimums are unchanged� Over the minimum rates are

unchanged

• Planning & Zoning Fees� Unchanged

• Solid Waste Fees� Unchanged ($5 monthly)� 56% of Cost

Motor Vehicle Fees� Unchanged� 15% Projected Revenue Decline

based upon SL2020-3� $6,481 Supplement to Non

Powell Bill

Appendix I & Appendix II in Proposed Budget for Rate Sheet Details

MAGGIEValley


Personnel

Salary & Wages •Proposed FY 20-21 Budget recommends:

No COLA IncreaseNo Merit IncreaseNo Career Track

�Suspend Adoption of FY19-20 Pay Class Study- Indefinitely

MAGGIEValley


Salary & Wages �Proposed FY20-21 Budget recommends:�$10,679 for a pay class modification, promotions and educational attainment for a handful of employees

�Police Officer Retirement / Separation Allowance (SL 143-166.42) $13,087

�Total Increase = $23,766MAGGIE


Est. 1974

Health Insurance• On April 1, 2016 the Town of Maggie Valley joined the North Carolina State

Health Plan for Teachers and State Employees (SHP).

• SHP runs consistent with a calendar year (January 1-December 31) not fiscal year (July 1-June 30)� The Town, as per the State’s recommendation, has budgeted for a 5% premium increase.

• Total budgeted amount for employee health insurance coverage is $295,761

• Recommended coverage amounts remain 100% employee, 80% dependent for all employees. Providing 80% dependent coverage to all employees at a cost of $18,767� Previous policy provided dependent coverage to new hires on graded scale- hurt

retention and recruitment MAGGIEValley


Work Force Composition

•Four Departments�Administration (5)�Police (11)�Public Works (4)�Sewer (3)•23 Total Full Time Employees

MAGGIEValley


Major Projects

Soco Road Improvement Project• Town of Maggie Valley Pedestrian Safety Action Plan was adopted by the Board of Aldermen

on November 14, 2016

• The Adopted Plan is a result of the Town Center Master Plan process that Began in FY15-16

• Project will focus on pedestrian islands, crosswalks and signage. Bike Lanes have been removed; road will remain five (5) lane highway

• The Total Project Cost is estimated to be $2,370,000

• The STPBGP is an 80% (FHWA) : 20% (Town) reimbursable grant� $35,000 Engineering Costs (PAID March 2017) / $360,000 Construction Costs

• Design Work on Project is ongoing

• FY19-20 Board of Aldermen Established Capital Project Fund� FY19-20 $120,000� FY 20-21 $120,000 (proposed)� Fund Total = $240,000

MAGGIEValley


Beyond the Horizon

Sewer User Rate Increase• Early Drafts of the Proposed FY20-21 Budget included a Sewer Rate Increase to both minimum and over the minimum rates

• Rate increase is justified to offset expenditures associated with Inflow & Infiltration repairs

• Maggie Valley ranks 7th Cheapest System out of 45 WNC Systems� Maggie Valley: $16.00 minimum� WNC Average: $25.11 minimum� WNC Median: $22.87 minimum

• Artificially Low Rates disqualify Town when seeking grant funding� Reinforced in written comments section of failed AIA grant MAGGIE


Est. 1974

•

MAGGIEValley


Haywood County Revaluation• Haywood County is in the midst of a property revaluation that will become

effective January 1 2021• Last two “Revals” have been unkind to Maggie Valley

� 2011-2012 Lost $18,689,499 (4% of Total Value)� 2017-2018 Lost $22,828,375 (5% of Total Value)

• After each revaluation year Maggie Valley adjusted tax rate; but adjusted it less than “revenue neutral value”

• Property Owners not all effected equally:� 41% of Parcels Lost Value� 6% of Parcels Unchanged� 31% of Parcels Gained Value

� Imbalance between residential and commercial values has grown MAGGIEValley


US Census• The 2020 US Census is currently underway. The Census is designed to count

population to establish the composition of the US House of Representatives as dictated by the US Constitution. The Census is taken every 10 years

• During the 2010 Census Town of Maggie Valley population was established at 1,050. It was thought to have been 1,610 as reported by the State Demographer within the Office of Budget and Management.

• Population matters because it determines our sales tax and franchise taxes

• If we lose the same population rate as a result of the 2010 Census in the 2020 Census our sales / franchise tax loss will be $141,359.

• Maggie Valley structure/address response rate is 23.4%.� Vacation / Seasonal / Second Homes� Outpacing Total 2010 Repose after First Phase

MAGGIEValley


Department ReviewGeneral Fund Department Review

MAGGIEValley


General Fund Summary FY20-21Department Budget

Administration $475,317

Public Works $674,329

Police $1,078,210

Festival $108,442

Board of Aldermen $136,546

Parks & Recreation $15,503

Debt Service $0

Powell Bill $55,296

Soco Road Capital Fund $120,000

Contingency $0.00

Total $2,663,643

Revenues $2,663,643MAGGIE


Est. 1974

General Fund Comparison: FY20-21 & FY19-20Department FY20-21 FY19-20 Difference

Administration $475,317 $571,323 ($95,915)

Public Works $674,329 $685,013 ($10,684)

Police $1,078,210 $1,116,107 ($37,897)

Festival $108,442 $154,349 ($45,907)

Board of Aldermen $136,546 $109, 321 $27,225

Parks & Recreation $15,503 $18,100 ($2,597)

Debt Service $0 $93,983 ($93,983)

Powell Bill $55,296 $94,582 ($39,286)

Soco Road Capital Fund

$120,000 $120,000 $0

Contingency $0.00 $0.00 $0

Total $2,663,643 $2,962,687 ($299,044)

Revenues $2,663,643 $2,962,687 ($299,044)MAGGIE


Est. 1974

AdministrationUDO/Codification: $10,000• Town of Maggie Valley is

nearing the completion of its Zoning Code Revision; transitioning from a traditional Zoning Ordinance to a Unified Development Ordinance.

• This allows the new UDO to be digitized for improved transparency and ease of user use.

File Room: $20,000• Town is in need of file storage

space to retain documents required by State Retention Law.

• 2 Fire Boxes

• 7 Standard 4 Drawer

MAGGIEValley


Public Works Vehicle Request� 2021 Ford F-550 Dump Truck: $52,200� Oversized Dump Bed for more efficient brush pickup� Replaces current 2008 Dump Truck which will be surplused� Expected surplus revenue is $15,000

� 2020 Ferris IS 2100 Zero Turn Mower: $9,200

• Non-Powell Bill Street Maintenance: $46,000� Valley Creek Run = $37,963� Other projects = $8,037

� TDA Wayfinding Signs: $15,000 MAGGIEValley


Police DepartmentNew Purchase of Police K-9• Current K-9 “Moses” retired

in May 2020 for health reasons

� K-9 Purchase = $8,000� Training = $3,000� Living Expenses = $1,800

Total Cost = $12,800

No Police Vehicle Purchase (1st Time Since 12-13)

MAGGIEValley


Festival Grounds•No New Projects are Proposed in FY20-21 Budget

•$15,000 July 4 FireworksMAGGIE


Est. 1974

Board of Aldermen • $65,000 has been recommended to be placed in the Board’s Economic Development & Place Making Line Item. �Community Amenities = $40,000�Façade, Sign & Landscape Grant Program = $25,000

• Virtual Technology Package� $5,000

• Professional Services of $27,000 remains unchanged; Town Attorney Fees unchanged

MAGGIEValley


Parks •No New Projects are Proposed in FY20-21 Budget

MAGGIEValley


Debt Service •Debt Service = $0

•Town of Maggie Valley General Fund is Debt Free

•No new debt proposed for FY 20-21

MAGGIEValley


Powell Bill •Town of Maggie Valley Powell Bill Street System has grown to 6.79 mi (+0.12mi) with addition of Nottingham to Castle Court•Town pavement resurfacing maintenance allowance is $37,160�Brannon Forest Drive (Airish to Cul-de Sac)�3 Shots of BST 1200 LF

�Brannon Forest Drive (Turn A Bout to Cripple Creek)�1 Shot BST 1.5” Asphalt 850 LF

MAGGIEValley


Soco Road Capital Fund• Funds held in reserve to help pay for Soco Road Improvement Project

• STPBG 80% NCDOT : 20% Town

• Town’s total share is estimated to be $360,000�FY19-20 $120,000�FY 20-21 $120,000�FY 21-22 $120,000

MAGGIEValley


Contingency•This department consists of funds that are set aside for unanticipated expenses or as a place to hold funds to be used at a later date for a specific purpose.

• In this year’s budget it is recommended that $0 (total amount within contingency) be directed into the Town’s Contingency Fund.

MAGGIEValley


FY20-21 Budget Visuals

MAGGIEValley


How your tax dollars are spent FY20-21Tax Value of your property: $100,000 $300,000 $500,000 $700,000

Maggie Valley Property Taxes Paid $430 $1,290 $2,150 $3,010

How your tax dollars are spent?

Administration $78 $235 $392 $549

Board of Aldermen $23 $68 $113 $158

Debt Service $0 $0 $0 $0

Festival Grounds $18 $54 $89 $125

Parks & Rec $3 $8 $13 $18

Police $178 $533 $889 $1,244

Public Works $111 $331 $56 $778

Soco Road Capital Fund $20 $59 $99 $138 MAGGIEValley


FY 20-21 Revenue Sources

Property Tax62%

Sales Tax13%

State Funding8%

Fund Balance5%

Solid Waste3%

Motor Vehicle3%

Powell Bill2%

Other/Misc4%

Property Tax Sales Tax State Funding Fund Balance Solid Waste Motor Vehicle Powell Bill Other/Misc

Expenditure By Department FY20-21

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000

Police

Public Works

Administration

Board of Aldermen

Soco Road CF

Festival Grounds

Powell Bill

Recreation

FY11-FY21 General Fund + Sewer Fund Budget Comparison

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

11 12 13 14 15 16 17 18 19 20 21

General Fund Sewer Fund

What is a Penny on Tax Rate Worth? FY11-2139

,419

40,7

90

38,9

17

38,7

36 39,2

73

39,7

02

39,5

64

40,6

52

38,8

86

39,0

07

37,1

29

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Sewer Fund

Sewer Fund Summary FY20-21Department Budget

Administration $453,530Operations $2239,169

Debt Service $190,339Contingency $0.00

Total $883,038Revenues $883,038 MAGGIE


Est. 1974

Sewer Fund Comparison: FY20-21 & FY19-20

Department FY20-21 FY19-20 Difference

Administration $453,530 $461,112 - $7,582

Operations $2239,169 $288,024 - $48,855

Debt Service $190,339 $193,761 - $3,422

Contingency $0.00 $0.00 $0

Total $883,038 $942,897 - $59,859

Revenues $883,038 $942,897 - $59,859 MAGGIEValley


Appropriated Fund Balance• For the first time since FY17-18 the FY20-21 Budget

relies on a “retained earnings transfer” of $148,454 to balance our Sewer Utility Fund

• Transfer needed to account for loss in projected revenue due to COVID-19. Less people using system =less revenue

• Revenue projections have been cut by 22.5% compared to FY19-20. MAGGIE


Est. 1974

Sewer Fund•Sewer Capacity Capital Charge �No proposed increase

•Sewer User Fees�No proposed increase

�PROPOSED INCREASE FOR 21-22

�Complete Sewer Fee Rate Sheet is located within Budget Amendment-Appendix I MAGGIE


Est. 1974

Leachate Agreement• March 2019 Town of Maggie Valley and SantekEnvironmental of North Carolina entered into an leachate agreement.

• The proposed budget estimates the Town will receive 285 loads this year which will generate $40,000 in revenue.

• Revenue is unpredictable; varies based upon weather conditions and landfilled material�FY19-20 has generated $55,000 (393 Loads)

Sewer Fund•Debt Service�Wastewater Treatment Plant total annual loan payment for is $193,761

�The Town owes $1,620,640 on its WWTP

�The Town will will issue its final payment on the WWTP in 2028.

MAGGIEValley


Budget AlternativesRevenues and Expenditures

Revenues: Solid Waste Fee

�Each $1 added to solid waste monthly fee generates $17,280

� Town Fee Lowest in County� Canton: $13.50 Clyde: $10 Waynesville: $9 Maggie Valley: $5

� Cost of Service growing more expensive; fee helps off set expenses

� Not included in budget because it adds additional monthly costs to residents � Current Fee $ 5 month / $60 annually

� Proposed Fee $6 monthly / $72 annually ($12 added cost)� Proposed Fee $7 monthly / $84 annually ($24 added cost)

MAGGIEValley


Expenditures: Salary Increases� No Proposed COLA, Merit or Career Track in FY20-21 Budget

� Each 1% Salary Increase = $11,665

� Not included in budget because Fund Balance was used to balance budget

MAGGIEValley


Effective Date 1% 2% 3%

July 1 $11,665 $23,330 $34,995

January 1 $5,833 $11,665 $17,498

Expenditures: Public Works New Hire� Discussed at length during Budget Retreat

� Public Works Work Load + Responsibilities Continue to Increase

� Additional Public Works Technician I/II allows Public Works to work more effectively in daily duties i.e brush, mowing, street / side walk maintenance, FG/Park maintenance

� Annual Cost of New Hire: $34,527- $59,983

� One Time Expenditure v/s Annual Cost

� Not included in budget because Fund Balance was used to balance budget MAGGIE


Est. 1974

Expenditures: Police Vehicle

� 1st Year Since FY12-13 No New Police Vehicle Purchase

� Stretching / Expanding Fleet Life

� Average Fleet Age Without Purchase: 3 Years� Average Mileage Without Purchase: 40,637

� Fleet Age With Purchase: 2.5 Years� Mileage With Purchase: 35,030

� Cost to Purchase one (1) Police Vehicle � 2021 Dodge Durango AWD SUV- $32,560� Police Equipment Package – $5,050

� Not included in budget because Fund Balance was used to balance budget. MAGGIEValley


Expenditures: Building Improvements

� Building Improvements� Exterior Door Replacement

� $10,200 � Common Space Tile Replacement

� $11,800� Drywall Lobby + Interior Hall

� $8,500

� Cost = $30,500

� Not included in budget because Fund Balance was used to balance budget.

MAGGIEValley


Questions – Comments •Board of Aldermen•Department Heads•Media / Public

MAGGIEValley


FY 20-21 Budget Calendar•June 2: Work Session I•June 9- 6:30PM: Public Hearing on Budget�Earliest Board could adopt Budget

•TBD: Work Session II •July 1: Budget Adoption Deadline

MAGGIEValley


Thank you

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