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LINCOLNTON – Lincoln County Manager Kelly Atkins and his staff are already laying the foundation for the county’s fiscal year 2023 budget. The first of several budget retreats designed to hammer out some details was held Jan. 13, allowing county commissioners a first look at the spending plan framework. 

ARPA funds

Last March, President Joe Biden signed the American Rescue Plan Act (ARPA), a $1.9 trillion COVID-19 stimulus package aimed at speeding up recovery from economic and health effects of the pandemic. 

“The unfortunate thing is we can’t spend the money how we want,” Atkins told the board. “There’s certain ways you have to spend it and it’s a very narrow scope.”

Commissioners authorized Atkins to move forward with staff recommendations for divvying up the $8.3 million the county has received in ARPA assistance. 

The largest chunk, $3.5 million, will go toward ventilation improvements at county-operated buildings. These improvements are factored into the budget on a rotational basis each year, but will be covered through ARPA funds rather than taxpayer dollars in FY23. 

Another $2.15 million will be used for premium pay for county employees. The one-time payout awarded to employees will depend on hiring dates. The funds are intended for those earning less than $74,000 annually; however, commissioners voted unanimously to spend $180,000 from the general fund to cover premium pay for all employees who worked through the pandemic.  

The final significant target for ARPA funds is the purchase and installation of advanced metering infrastructure at a cost of $2.3 million. The infrastructure, to be initially installed in the Denver area due to higher population density, will allow remote reading of utility meters.

The county is earmarked to receive another $8.3 million in assistance in July. While not set in stone, Atkins said he’d like to see that spent on county jail expansion.

“That would take a lot of heat off of our taxpayers with regards to funding a very expensive project at some point in the very near future,” he said.

Commissioner pay/benefits

During last year’s budget talks, commissioners approved a slight increase to their pay, with the board chairman receiving $13,500 annually and other commissioners $12,000. All receive additional allowance for travel and cellphone usage related to official duties. 

These numbers are marginally higher than average salaries of commissioners in similarly-sized surrounding counties such as Burke, Iredell, Catawba and Gaston. However, Lincoln County does not offer health insurance to commissioners, coverage more than half of the surrounding counties have added.

“I think what’s happening is, commissioners – many of whom are in similar situations to you all, being retired or whatnot and seeing insurance going up and up –  see an opportunity as part of a larger group to get a cheaper rate, so they do it,” Atkins said.  

Commissioner Cathy Davis commented on fellow commissioner Bud Cesena, who’s covered through a law enforcement career pension,, asking if a stipend would be provided for those who don’t need county insurance. 

“I have the hardest time making this a job,” Cesena said. “I started doing this as public service and I don’t see a whole lot of reason to change right now. As I’ve spoken in the past, I’m really uncomfortable taking a whole lot of money to do this.”

Cesena instead made a motion, considering they also worked through the pandemic, that commissioners receive a one-time stipend similar to what county employees will receive, which would be roughly $2,500.

“I’m not comfortable with an additional $11,000 on top of all the other money we get,” Cesena said. “That would be more than our bus drivers get paid.”

That $11,000 figure, approximately the county’s cost to provide an employee health insurance, wouldn’t necessarily be the stipend amount for commissioners who decline coverage, according to Atkins. 

“It may be a reduced stipend rather than the entire amount,” he said. “You can choose to take a stipend of not equal amount, but maybe 50 percent.”

Commissioner Anita McCall pushed back on Cesena’s motion.

“I hear what you’re saying, but I would rather us do as other counties have done, which is offer health insurance, but if you do not need or want it then allow each commissioner to trade it in lieu of a stipend,” she said. “I don’t know about you all, but I work 40-plus hours a week, which I think is necessary because I’m on the phone (with constituents) for two-and-a-half hours a night.”

Davis interjected, adding she believes other counties are including benefits to make the office of county commissioner more attractive, thus incentivizing more people to seek election. 

Ultimately, Atkins tasked Human Relations Director Candy Stevens to take a deeper dive into details of insurance packages offered in surrounding counties. Stevens will provide her findings at a February meeting before a vote on the matter.

County employee pay/benefits

The FY23 budget will include an additional $102,898 for employee salaries through an annual cost-of-living adjustment. Additionally, commissioners supported Atkins’ recommendation to increase bonuses to employees who reach predetermined years of service benchmarks. The bonus amounts have been stagnant since 1990, totaling roughly $30,000 each year, which will now increase to $50,000.

FY23 estimates show an increase of approximately $386,117 toward employee health insurance, 4.1 percent higher than last year, but down from the 8-percent jump experienced in recent years. 

Fund balance

While the N.C. Local Government Commission requires local governments to maintain a general fund balance of 8 percent of total operating expenses, the county recently implemented a fund balance policy targeting 20 percent or higher. The county has just over $23.2 million unassigned in its general fund, approximately 18.8 percent of the FY22 budget. Despite being under the self-imposed 20-percent benchmark, Atkins says it’s by design. 

“I say it’s by design because we’ve taken money from our general fund to put in our capital reserve fund,” he said. “We have projects ahead that we absolutely know we’re going to have to take out bank loans or state revolving loans on, so we’re basically earmarking that money to lower the debt ceiling that we would have otherwise had to assume as a result of not saving properly.”

Capital reserve fund

A previous board established a capital reserve fund for the county in 2019 funded with revenue generated by a penny on the tax rate, which put approximately $2.1 million into the fund the next two years.

The current board increased the amount from to 1.7 cents last year, adding nearly another $2 million to the fund in the fiscal year. With $2 million more expected in FY23 and two one-time transfers from the general fund – approximately $3.39 million in FY21 and another $6.5 million in FY22 – the total in the capital reserve fund at the end of FY23 is projected just north of $16 million. 

A capital reserve fund differs from a “rainy day” fund in that the governing body must list specific purposes for the. With several high-dollar projects on the horizon – specifically a new animal shelter, repurposing the old courthouse and several economic development opportunities – the capital reserve fund will be tapped to help offset anticipated debt related to those projects.

Capital priorities

Projects that come at a significant cost are prioritized and scheduled as part of the county’s five-year capital improvement plan. These projects are typically major non-recurring expenditures. 

Atkins had commissioners come prepared with a list of priorities, which were largely similar among the five board members.

An outdoor sports complex – an item regularly discussed in recent years – emerged as a high priority. In-fact, Atkins has been working with staff in search of land for a complex, and while nothing is finalized, he mentioned the Ironton Township area between Lincolnton and Denver as a likely site.

Other discussions included land acquisition for an additional industrial park, as well as a business park near the airport. Construction of a community park on 175 acres off of King Wilkinson Road in Denver was also prioritized, as was the completion of Westwinds Park in Lincolnton and general improvements to existing parks.

What’s next?

Three more county budget workshops are scheduled. The next, on Friday, Feb. 4, commissioners will get updates on public utilities operational needs.

With the passage of the 2021 Appropriations Act in the North Carolina House on Thursday morning (Nov. 18th) and Governor Cooper’s subsequent signing of the legislation into law, Representative Jason Saine announced that the new state budget includes over $20 million in funding for projects in Lincoln County.

Saine, chair of the House Appropriations Committee, highlighted many of the projects in a press announcement Thursday evening.

Saine said: “This funding has been a long time coming and will be a major help for needed projects in Lincoln County. Our community will see the benefits of these investments for decades.”

He added: “I am very pleased with the outcome of the negotiations between the House, Senate and the Governor and I especially appreciate the partnership that I have with State Senator Ted Alexander, in helping to support these projects throughout the budget process.”

Included in the budget act:

• $500,000 for the Lincolnton-Lincoln County Regional Airport Capital Improvements
• $4,500,000 for the current Lincoln County Courthouse [This will fund improvements needed before the County can pursue a possible public-private plan for use of the building.]
• $1,100,000 for Rescue Squad Park Soccer Fields
• $1,000,000 North Lincoln High School Soccer Fields
• $242,650 for City of Lincolnton playground equipment at Betty G. Ross Park 
• $91,300 for the Rail Trail in Lincolnton
• $2,000,000 for Amy’s House; to help fund construction of a new new shelter for victims of domestic violence
• $5,700,000 East Lincoln Fire Department’s new consolidated emergency center
• $1,750,000 for Lincoln County Landfill capital needs
• $200,000 for Lincoln County Sheriff’s Office for equipment
• $100,000 City of Lincolnton for capital improvements
• $20,000 for a new outdoor patio garden space at the Lincoln County Senior Center
• $2,700,000 for Capital Improvements related to roads in Lincoln County
• $200,000 for water and wastewater infrastructure projects for Lincoln County
• $87,465 annually for a District Attorney Investigator for Cleveland & Lincoln counties
• $698,277 for funding for startup and ongoing costs related to the new Public Defender office for District 27B (Cleveland and Lincoln counties)
• $500,000 to seven county school districts, of which Lincoln County is one, for “Life Changing Experiences,” a program designed to address life and community threatening activities that negatively impact teenagers, including alcohol and other drugs, dangerous driving, violence and bullying.

Saine had earlier expressed his pleasure at seeing the state finally have a current year budget, the first since 2018-19.  The General Assembly had passed budget proposals, but Governor Cooper had vetoed them for the last two years.  Cooper said he signed this budget because he felt it addressed many needs although he didn't get everything he wanted.  "From my perspective, I could not be happier," said Saine.