Proposed four-cent tax increase to fund CIP, budget in Charles City for FY2015-16

A four-cent tax increase on the county’s real estate rate in an effort to support Charles City’s Capital Improvement Plan (CIP) was proposed during the Mar. 24 regular meeting of county supervisors.

County finance director Michelle Johnson presented the county’s proposed local funding budget for FY2015-16 to county leaders and the public. Johnson and county administrator Zach Trogdon are proposing an amount of $13,799,224 in local dollars to execute county operations for the upcoming fiscal year. Johnson commented after the meeting that a final figure that includes state and federal dollars designated to Charles City had not been finalized, but he expects it to be near the $20 million mark. The county’s general fund accounts for $7,670,500 of local funding, with social services ($504,537) and utilities ($494,423) among other areas of investment.

The county’s real estate tax is proposed to increase from 72 cents to 76 cents per $100 of assessed value. The recommendation was made to help the county in funding the CIP for county and school projects. A four-cent tax increase would bring in an additional $323,000 in revenue, or roughly $80,750 per penny.

Charles City’s CIP is estimated at $2,468,100. Along with the $323,000 from the proposed tax increase, additional funding from the CIP would include $500,000 from the recent Waste Management settlement, and $280,000 in carryover funds from unexpected revenue from Waste Management. In total, CIP startup funds total $1,103,200.

Major county projects in this year’s CIP include replacing the Mt. Zion well ($500,000), multiple wastewater projects ($345,000), and renovations to several county buildings and facilities. A grant of $655,000 for broadband and high-speed internet is also another major project for the county. In total, county CIP tasks are estimated at $1,771,724.

For county schools, $696,376 will be provided for capital improvements. Proposed items for addressing include the schools’ one-to-one initiative, purchase of two school buses, replacing cooling towers at the elementary school, replacing heating boilers, updating snow removal equipment, and improving lights, sound system, and scoreboard at the high school stadium.

For the first time in many years, county schools are expected to be fully-funded for operations in FY2015-16. Johnson’s recommendation of providing $4,806,568 comes after she and Trogdon discussed the figure in detail.

“We looked at the revenue stream and for the first time it is exactly where it needed to be,” Johnson said after the meeting. “When we looked at the requests from the school, their budget was clear and concise, and myself and Mr. Trogdon felt confident to support their request.”

Superintendent of schools David Gaston said he is pleased by the opportunity to be fully funded for FY2015-16.

“I’m remaining cautiously optimistic because this is just a proposal that has to head to public hearing, but I am glad to see that the county understood what our schools needed to bring out the best in education for our students,” the superintendent said.

A focal point of the FY2015-16 budget targeted collaboration and consolidation of services. Collaborations included Fire & EMS funding, combining services as recommended by a 2012 DECIDESMART study, funding local agencies, and transferring the animal control department to the sheriff’s department.

Trogdon commented that while the process was hard work, he believes the county is taking steps in the right direction for a brighter future.

“I hope we lay down a marker to bring focus to this area,” Trogdon said. “We are working to reach out to the community, and funding our agencies through this budget is a way to do that.”

District 2 supervisor Bill Coada expressed elation over the budget and CIP proposals.

“I’m so happy to see this CIP in place,” he said. “This is no longer a dream, but this is a reality.”

Supervisors will receive comments about the budget and CIP during a public hearing on Tuesday, April 7, 6 p.m. Action on the budget is expected to be taken one week later during an April 14 meeting.