Auditor: Costs are down by 1 percent
By Steve Herring
Published in News on February 8, 2016 1:46 PM
Averaged over the past three years the cost of Wayne County government is down by 1 percent, according to an audit of the county budget for the fiscal year ended June 30, 2104.
"Your revenues are actually down by about a half of a percent over the prior year," Danna Layne of auditors Nunn, Brashear & Co. told Wayne County commissioners Tuesday morning. "But as a taxpayer it (the one percent) tells me that you are taking care of things without charging me.
"When we look at the statistical data provided by the LGC (Local Government Commission), you actually compare more with a Wake County or one of the larger counties as far as percentage of assets and things like that."
"Your debt is low compared to your size and your reserves are high," said Paul Nunn, also of Nunn, Brashear & Co. "You have a lot of dedicated employees out there that we work with during the audit."
Also, down is the cost of operating the county's proprietary or business-type activities -- solid waste, emergency management services, sewer, the airport and EMS non-emergency transports. That cost is at its lowest in three years at $1,524,432, Ms. Layne said.
"This $65 million (for operating governmental activities) is an increase of 1.95 percent over the prior year," Ms. Layne said. "Go a couple of years back, it is actually a decrease of 4 percent. As you tend over a three-year average, it is actually down by about one percent. So you are really not spending a lot. You are not increasing your expenses over time."
"What I am seeing on this statement, you have your expenses, and then you have income to offset those expenses," Chairman Joe Daughtery said. "So actually net cost from the dollars generated from tax revenue was $65,459,370.
"Going further from what you just said, over a three-year period, that is actually down by one percent."
"Right. When you average a three-year period," Ms. Layne said.
Daughtery said that represents the three years of the current board and represents a 1 percent reduction in costs to local taxpayers.
Again, averaged over a three-year period, Ms. Layne said.
"I am sorry, but I am going to toot our own horn here a little bit because this is big news because most entities increase their expenditures by, on average, one and a half to 2 percent (annually)," Daughtery said. "Over a three-year period that would be a 6 percent increase.
"If I am understanding you correctly, what we have done through our management is actually reduced over spending by 1 percent over three years?"
But Commissioner Ed Cromartie noted that the figures were as of June 31, 2015.
"So it does not factor in anything that we have obligated ourselves to since then," he said.
Ms. Layne said it does not and that she would not have that information.
"Next year may be a little different," Daughtery said.
Cromartie asked Ms. Layne and Nunn if they could say what would be a "safe" amount by which the county could reduce the property tax rate over the next two or three years and not hurt its ability to fulfill its obligations.
Ms. Layne said she would not feel comfortable throwing out a figure.
"It really depends on what kind of goals you set and what kinds of projects that you have in mind that you want to accomplish over the next couple of years," Nunn said. "There are a lot of variables, a lot of moving parts to that question."
Daughtery said some of that might be outlined when commissioners hold their planing retreat next week to set goals.
Going further into the audit, the general fund total revenues of $101,017,888 exceeded the budgeted $99,794,178 by $1,223,710, Ms. Layne said.
Expenditures were under budget by $17 million-- $93,646,578 actual compared to $110,646,590 that was budgeted, she said.
Property taxes account for 52.87 percent of the governmental activities revenues followed by human services at 19.31 percent (mostly federal and state funding) and local option sales tax at 17.52 percent.
Human services are responsible for 31 percent of expenditures, followed by education at 25.46, public safety at 22.45 percent and general government at 12.82 percent.
The fund balance of $52,126,470 in the general fund is down by $18 million. But of that total approximately $14 million is being used for the new jail ($10 million) and agricultural center ($4 million), Ms. Layne said.
However, when special revenue and capital project funds are included the balance is up by $2.7 million, she said.
Ms. Layne said she calls the use of the $18 million "purposeful planning."
"You took the assets of the general (government) and started on some projects that are needed in the county like the new jail and some of the ag center," she said. "So you moved about $14 million of that $18 million were for the jail and the ag center. But overall, I want to remind you that you increased the fund balance by $2.7 million."
Rather than keeping cash in low-yield bank accounts, County Manager George Wood is advising the board to use the funds by shifting from a cash asset to an asset of a building, Daughtery said.
The fund balance for the general fund is $52,126,470 of which $34,998,832 is either restricted, committed or assigned leaving the county with $17,127,638 (with no restrictions) over and above what the county is required to set aside, Ms. Layne said.