Background/Purpose of Request:
It is my honor to present to you this recommended budget for the upcoming 2021-2022 fiscal year. Undoubtedly the budget process is the single most important accomplishment of the governing board and the staff annually. The recognition received over the years by the Finance Department has affirmed the quality work done during this yearly task demonstrating the high level of financial management adhered to by the County.
As the County has weathered the challenges of the pandemic well over the past fifteen months, it is now clear there are other new challenges which must be prepared for as the local, regional and national economy moves forward. While Brunswick County Government continues to perform well economically with strong revenue growth, the next nine to twenty-four months will determine how long the County’s upward trajectory will be sustained. The strong foundation of impressive financial management over the past twenty years allows the necessary flexibility for the County to endure potential changes in the economy.
While the last budget cycle was one of contracting expenditures and expected revenue declines, this new fiscal year budget is one of the conservative growth projections to accommodate the increased costs of doing business and necessary new positions brought about by the sustained population growth and the construction boom here in the County. Multiple in-person and virtual meetings were held with department officials to review their requested budgets in an effort to support modest growth in staffing and capital needs while staying within the current tax rate generated revenues. Unfortunately, even in a County with robust growth such as Brunswick, it is still a challenge to address all of the needs of a growing community. During the budget process, it was clear the departments were committed to working together to accomplish this difficult process knowing all departments wouldn’t get all funding requested.
The recommended budget is one that assumes a stable economy over the next year generating increased revenues coming into the County to cover increased operational costs. It is anticipated the growth will sustain at or near current levels or perhaps slightly decline depending on how well the national economy does.
The recommended budget includes no ad valorem tax rate change from the current 48.50 cents. The FY 2021-2022 budget proposal for all funds totals $291,541,119 which represents an increase of 9.8% over the budget adopted June 17, 2020. The general fund budget is balanced by utilizing a prudent fund balance appropriation of $2,877,600, net of the $1,343,880 in escrow funds held for the Holden Beach sand nourishment project, for non-recurring capital appropriations as compared to $2,878,480 in FY 2020-2021.
The county’s economy is experiencing substantial growth. Nationally, new job growth fluctuates monthly, and the March jobless rate was 6.2%. The average cost of a gallon of gasoline in North Carolina is considerably higher than a year ago at $2.69 from $1.65 per gallon. The Most recent statewide leading economic indicators are for March: the unemployment rate is up 0.3%, manufacturing hours worked are down 1.7% and average weekly earnings are also down 1.5%. Locally, in March of 2021 home sales increased 50.6% compared to one year ago and sales dollars increased 69.2% in the first quarter of 2021 over the first quarter of 2020 as reported by the Brunswick County Association of Realtors. Brunswick County’s unemployment rate is 5.8% compared to the State at 4.6% and the United States at 6.2%.
Consistently ranking as one of the fastest-growing counties in the United States, Brunswick County ranked thirteenth for 2019 in growth percentage and seventh among counties with a population of greater than 10,000. The county is included in the Myrtle-Beach Metropolitan Statistical Area which is the second-fastest-growing MSA in the nation at 3.3%. The State Data Center reported Brunswick County’s projected permanent population to be 150,889, up from the decennial census figure of 107,431. The county is ranked first in North Carolina population percentage growth and fourth in numeric population growth in the state indicating that people are increasingly choosing Brunswick County as a place to live.
As the past year has been consumed with constant issues related to the ongoing pandemic, the County has very successfully maneuvered through the unprecedented time. Likewise, the upcoming fiscal year may still be challenging, but the County will move forward to accomplish its goals in much the same fashion. Moving forward, this budget allows for maintenance of the County’s strong financial position and supports modest growth in spending.
The past year has been a very positive experience for me working with County staff and the Board of Commissioners to formulate this recommended budget for the next fiscal year. I especially want to thank the Director of Fiscal Operations, Julie Miller and Deputy County Manager, Steve Stone as their guidance has been invaluable in this process. Over the next month, I look forward to working with and assisting the Board to develop the final budget. Please feel free to reach out to us should you desire any further information or assistance during the budget process. |