fy 2017-18 recommended budget presentation.ppt · fy 17-18 recommended budget • total general...

Primary Budget and Capital Plan Goals

• Maintain current property tax rates

• Maintain high service quality

• Proceed with efforts to develop a “meeting and events center” in the Islander Drive area

• Pursue significant grant funding for acquisition of 29.7 acre tract

FY 17-18 Recommended Budget


Primary Budget and Capital Plan Goals (continued)

• Plan for transition of Emerald Isle EMS to a Town department during FY 17-18

• Plan for expansion / renovation of Fire Station 1 in the next two years

• Provide reasonable salary increase for Town employees and maintain current employee benefits package


Other Important Budget and Capital Plan Goals

• Structurally sound budget

• Retire existing Fire Engine debt early to improve FY 17-18 budget position

• Maintain strong customer focus

• Maintain high priority on community aesthetics

• Maintain responsible capital replacement strategy


• Total Town Budget = $9,886,167 across all funds

• General Fund = $9,454,176

– $350,976, or 3.86% increase from FY 16-17 original budget

– Early retirement of Fire Engine debt in FY 16-17

– Sales tax distribution changes

– Maintain and enhance service quality – two key enhancements

– Priority capital investment

• Future Beach Nourishment Fund

– $747,991 to be reserved for future nourishment activities, consistent with established plans


• No change in General Fund tax rate – 15.5 cents

– 14 cents for general services, 1.5 cent for beach nourishment

– Town remains 2nd lowest of 21 NC oceanfront municipalities

• No increase in annual solid waste fee

• No change in beach nourishment special district tax rate –4 cents

• A few minor fee increases

– building permit fees, preschool / afterschool / summer camp fees

General Fund Revenues FY 17-18 Recommended Budget


• Total General Fund property tax revenues ~ $4.29 million

– Average value ($361,149) taxpayer’s annual General Fund tax bill is approximately $788 ($560 plus $228 annual solid waste fee)

– Increase of ~ $50k due to growth, previous conservative estimate

• Sales tax revenues projected at $1.85 million

– Increase of $101,000 from FY 16-17 adopted budget

– Would be approximately $1.92 - $1.95 million if not for SB 126

– Revised estimates for SB 126 project $1.803 million - $47k less than FY 17-18 Recommended Budget

• Electricity sales tax is projected to decrease by $35,000 from FY 16-17 original budget


• Solid Waste fees expected to generate nearly $1.5 million

• Additional $32,500 of development permit fees anticipated – Proposed permit fee increase roughly half of this amount

• Fire grant revenues = $122,158

• Golf cart permits, beach driving permits, parking fees, ABC revenues up

• No General Fund balance appropriated– Adjusted fund balance projected at nearly $2.1 million at June 30

– Approximately 22.1% of FY 17-18 Recommended Budget

General Fund Expenditures FY 17-18 Recommended Budget


• General Fund budget honors Board’s expressed priorities

– #1 priority to maintain General Fund property tax rate

• Key FY 16-17 General Fund budget amendment

– Early retirement of Fire Engine debt ~ $190,000

– “Frees up” ~ $96k of budget capacity in FY 17-18 and FY 18-19

• Islander Drive land purchase

– To further develop the “meeting and events center” concept

– $60,000 for first of 5 annual payments for Town share;

pay-as-you-go funding to repay internal financing arrangement


• Three new Fire positions to expand staffing on emergency scenes; one additional per shift

– Approximately $163,000

– Funded 75% by Federal grant

• Total Town contribution of $390,000 for EI EMS

– Additional $185,000 from service fees

– Planned March 1, 2018 transition date to Town department

• Additional Parks Maintenance position to improve NC 58 landscaping and bicycle path maintenance

– Approximately $39,000 total cost


• New sidewalk along Old Ferry Road $30,000– 50% funded by fundraising proceeds

• New Welcome to EI sign, other landscaping improvements – New sign ($15,000) will include new logo and Nice Matters

– Additional $10,000 for other landscaping features

• New Town software system– Approximately $17,000 for 3 years to replace outdated applications

– Enable tax payment information to go online


• New equipment to improve asphalt repair quality $21,400

• Employee compensation

– 2.2% cost of living adjustment for all employees, consistent with change in CPI $79,190

– Maintain employee health insurance benefit

• Switch from BCBS to NC League of Municipalities plan to avoid 28% premium increase ($112,000)

• Transfer to Future Beach Nourishment Fund– $400,000, equivalent of 1.5 cent of General Fund tax rate

– Additional $60,000 for first year of internal financing arrangement


• Includes $84,000 for beach access walkway replacements at Fairfax, Beachview, Whitewater

• Replacement of 6 vehicles = $191,000

– Three Police vehicles, one Parks and Recreation truck, one Public Works truck, one Fire Dept ATV

• Other notable items:

– $13,000 for replacement school bus for rec programs

– $15,000 for small area storm water solutions

– $72,000 for County inspections contract

Capital Replacement / Improvement Program

• Five year plan for replacement of major capital equipment, plus a few new capital projects

• Total cost of projects = ~$37.8 million over 5 years

– Scheduled vehicle and other capital replacements

– $3.0 million for Surfside Realty Tract purchase in FY 17-18, to be funded by $2.545 million in grants and $455,000 Town debt

– $1.25 million for reno / expansion of Fire Station 1 in FY 18-19

– $900,000 for new Fire aerial truck in FY 18-19

– $15 million for next realignment of Bogue Inlet channel / beach nourishment in FY 19-20 (State grant, room tax, Town reserves)

– $15 million for eastern EI beach nourishment in FY 21-22

(room tax, Town reserves)

Capital Replacement / Improvement Program

Budget Perspective

• With recommended 15.5-cent General Fund property tax rate, the average-value property owner would pay approximately $47 of property tax per month to Town of Emerald Isle; less than:

– Monthly cable bill

– Monthly smartphone bill

– Daily cup of coffee at nice coffee shop

– Dinner for two at a moderately-priced restaurant

– Movie night out for family of 4

– Tank of gas for many vehicles

Budget Perspective

Budget Perspective• Average-value property owner in EI pays approx $506 annually for general services (14 cents of rate). The same value property in other towns pays (for general services):

– Oak Island $ 993

– Duck $ 758

– Kitty Hawk $1,083

– Carolina Beach $ 776

– Nags Head $ 975

– Surf City $ 939

– Sunset Beach $ 578

– Wrightsville Beach $ 480

– Bald Head Island $1,847

Budget Perspective• FY 17-18 Recommended Budget includes 61 full-time positions (4 new positions, with 3 funded by grant)

– FY 07-08 budget included 63 full-time positions

• Since FY 01-02 (16 years), the Town’s property tax rate has:

– Decreased in 4 of those years

– Stayed the same or “revenue-neutral” in 8 of those years

– Increased in 4 of those years

• Since 2001, Town has secured more than $33 million in grants and outside funding sources for beneficial projects

Budget Perspective

Only (effective) tax rate increase in past 7 years –1 cent for 2013 Community Improvements Package

Budget Perspective

Budget Calendar

• Budget Workshop and Public Hearing

– Tuesday, May 16 1:30 pm

• Budget Workshop – Tuesday, June 6 6 pm (official public hearing)

• Budget Adoption – Tuesday, June 13 6 pm

• Other meetings as necessary or desired

Recommended Budget is the Town Manager’s recommendation.

The Board of Commissioners should adjust this recommendation in any manner that more clearly represents the Board’s priorities.

fy 2017-18 recommended budget presentation.ppt · fy 17-18 recommended budget • total general...

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