A lower tax rate and record setting sales tax revenues were highlights of the proposed Craven County 2023-24 budget presented to the board of commissioners this week.
During their May 15 meeting, County Manager Jack Veit told commissioners that the total recommended general fund budget for fiscal year 2024 is $142,269,569, a decrease of $8.2 million or 5.4% compared to the current budget through the end of April 2023.
The budget would set the county’s ad valorem tax rate at 44.48 cents per $100 of valuation, a 20% decline from the current county tax rate of $56 cents per $100 of valuation.
Viet said the proposed new tax rate would be revenue neutral with no fund balance appropriation.
The proposed tax decrease comes following the 2023 revaluation of all real property in Craven County that saw property valuation increase by an average of 42.03%. Veit said the revaluation resulted in a general increase in taxable values of $3.2 billion over the current fiscal year’s estimated value of $10.4 billion.
County revenues for the first 10 months of the current fiscal year are $4 million ahead of last year, Veit noted, while expenditures through April are running ahead by approximately $16.8 million.
The revenue increase, Veit said, is due in part to the strong growth experienced in Craven County’s sales tax collections, which were running 9.7% ahead of last year through April. He said county sales tax collections have outperformed virtually all projections and expectations, a consequence of high inflation and rising prices due to supply-chain pressures.
“We have experienced record-setting growth in sales tax over the last couple of years,” Veit commented. “This trend is not expected to continue at this level, however some growth is anticipated.”
The budget calls for overall county capital outlay costs to rise by $1.7 million, with the largest expenditures reserved for maintenance projects and replacement of infrastructure in technology, facilities, and recreational improvements. Out of the total $5.5 million in capital expenditures budgeted for fiscal year 2024, $2.6 million is funded with transfers from the county’s Capital Reserve Fund.
Total salaries and benefits in the 2024 recommended budget are $4.9 million higher than last year, with a recommended 4.5% cost of living increase for employees. The budget also recommends a total of 18 new full-time county positions, including four social worker positions, and a human resources training and development coordinator.
The budget also includes funding for an opioid program manager that will be funded through $8,611,057 of phase one Opioid Settlement funds Craven County is expected to receive between 2022 and 2038. Veit said the county’s opioid epidemic remediation efforts require the development of a new department to continue the county’s current opioid education and outreach efforts that began in 2018
The exact funding to be awarded in connection with the second phase of the Opioid Settlement funds is unknown but it is expected to be close to the amount awarded in phase one, Veit said.
The proposed budget allotment for Craven County Schools would remain flat at the school board’s requested amount of $22,004,991.
The budget shows school system capital outlay requests of just over $2 million, including four category 1 projects over $100,000 such as resurfacing tracks at Havelock and West Craven high schools, a new boiler for New Bern High School, and building a canopy over the walkway at Vanceboro Farm Life Elementary.
A public hearing for Craven County’s proposed FY 2023-24 budget will be held on Monday, June 5, at 6 p.m. in the Commissioners’ Boardroom, located on the 2nd floor of the Administration Building at 406 Craven Street, New Bern
The budget is available to the public in the county manager’s office at the Craven County Administration Building, 406 Craven Street, New Bern, on weekdays between 8 a.m. and 5 p.m. It is also viewable on the Craven County website at: cravencountync.gov/.
By Todd Wetherington, co-editor. Send an email with questions or comments.