Robbinsville – The Graham County Board of Commissioners unanimously approved the county’s 2021-22 budget at its regular meeting Tuesday.
The general fund of the 2021-22 budget totaled $18,611,891, with property taxes making up the largest single piece, at just over 35 percent of the general fund. The collection rate as of June 11 was 97.5 percent. The county’s millage rate remains the same, at .65.
Overall, the budget represents a five percent increase from the 2020-21 budget, which was cut by that amount due to the potential financial impact of the COVID-19 pandemic.
“When we were doing or analysis, we saw that our overall tax base had decreased slightly – but not materially – and following North Carolina General Statute 159, the board budgeted total property tax revenue based on are 19-20 collection rate, which was at 96.56 percent,” said County Finance Officer Becky Garland.
Garland also lauded county taxpayers for the 97.7 collection rate.
“That’s a testimony to the diligence of our taxpayers, and we surely appreciate that,” Garland said.
She also said the county had seen an 18 percent increase in sales tax revenue, compared to the 2019-20 budget.
“Using the 2020-21 budget was not conducive because we budgeted based on worst-case scenario for this year we’re closing out,” Garland said.
County Manager Jason Marino said he was satisfied with the 2021-22 budget, alluding to the uncertainty of the past year and the scaling back of the 2020-21 budget as a result.
The budget also includes a three percent cost of living adjustment, which amounts to an approximately $225,000 increase in payroll. The budget also includes a two percent increase for employee health insurance amounting to approximately $26,000.
Separate from the general fund, the budget also includes $1,653,565 in American Rescue Plan and Coronavirus Aid, Relief and Economic Security (CARES) Act funds. Of those funds, $1,639,565 are from the American Rescue Plan and $14,000 come from the CARES Act.
The county has already received half of its American Rescue Plan Allotment.
The budget includes $723,500 in debt service for the Robbinsville High School and Robbinsville Elementary School projects and 292,000 in payments on the county health and human services building.
Transfers for capital projects increased by $383,000 in comparison to the 2019-20 budget.
Some capital projects budgeted for included a new ambulance at $230,000, a transfer of sales tax to schools above debt service at $200,775 and a transfer of quarter cent sales tax to capital reserve at $445,000.
Additionally, the 2021-22 budget brings the county’s appropriations to local charities back to pre-pandemic levels.
Lake Santeetlah
Several residents of the Town of Lake Santeetlah expressed concerns regarding a potential millage increase, with some banding together to present ways around the increase.
The final budget approved June 10 has been dropped by $39,457 from the original draft budget presented, by lowering the tax rate from the planned .350 to .296 and removing $5,000 from the town’s planned front entrance.
Administrative expenses were also reduced by $11,000, public buildings by $2,000, roads and grounds by $2,000, public safety by $500 and transfer to reserves by $23,000.
Additionally, the budget included donations to nonprofits, the Santeetlah Volunteer Fire Department and to the Graham County Sheriff’s Office for security services.
“Considering that the town has spent over $250,000 in repairs and upgrades to the water system – and the estimated cost of paving all roads will cost $600,000 – this budget is far from excessive,” Mayor Jim Hager wrote in the narrative included with the budget.
The water budget included a $5 increase to the base quarterly rate and adding a $20 monthly water availability fee for vacant lots.
Land purchase
The town is also set to purchase a parcel of land it has been using for several years, under the mistaken assumption that it was owned by the town.
It turned out the land was owned by Georgia native Nathaniel Hansford.
“If you go to Graham County Mapping right now, it shows that we own that,” Hager said.
Hager said the plot was the sole place that the town could put a water tank.
“We did about $250,000 worth of upgrades to our water system and to do that, we had to take the big tank offline to have it painted and repaired inside and out,” Hager explained. “Back in 1995, the town council was pretty short-sighted and they sold that piece of property knowing it was the only place in town you could bring in a temporary water tank.”
He said the town had recently negotiated with Hansford to purchase the property. Hager emphasized that Hansford had been easy for the town to work with and that the town planned to soon purchase the land at the price of $95,000.
Hager said the entire process played out over the course of a few weeks.
“We had to have it. It’s the only place where we could put that new tank,” Hager observed.