"On March 15, Chatham County Commissioner Chair Sally Kost presented the 2010 State of the County Address, highlighting major activities of the county and giving a summary of the county's financial position.
"County government has been impacted by the downturn in the economy, but because of strong financial planning and proactive steps to cut costs, Chatham County is in a sound fiscal position," Kost said. "Because of our planning, we have been able to begin construction on important facilities when construction prices and interest rates are low, at a major savings to taxpayers."
Kost noted that sales tax revenue has plummeted and interest earned on the county's cash reserves has fallen over the past two years by the equivalent of one cent on the property tax rate. She cautioned that the historic growth rate in the property tax base is not likely to continue in the near future.
The loss of sales tax revenue has shifted the mix of revenues so that the county depends much more on property taxes than it had in previously years.
"One would think that because we rely more heavily on property taxes than most counties that our tax rate would be significantly higher than the state average. However, our tax rate is not much higher than the state average," Kost pointed out.
Four surrounding counties, Durham, Lee, Harnett and Orange, all have higher tax rates than Chatham. "Those surrounding counties with a lower tax rate than ours all have a much lower investment in education that we do," she said.
Chatham's commitment to education spending is fourth highest in the state for overall appropriations for school operations in the 100 counties. "Only Durham, Orange and Dare provide a higher amount for schools, but Durham and Orange both have higher property taxes than Chatham and Dare County is authorized to levy a one-percent land transfer tax," Kost said.
The county was proactive in cutting budget expenses in both 2009 and 2010 by reducing operating budgets, delaying new facilities, eliminating salary increases and leaving positions unfilled.
Kost indicated that when comparing Chatham to the average per capita spending across North Carolina that the county spends significantly less per person. The statewide average is $1,397 per person and the average for counties with similar populations is $1,299 per person.
"Chatham's spending is far less at $1,088 per capita. This is a strong indicator of the county's higher level of efficiency," Kost said.
One impact of the economic downturn is that demands for key county services have skyrocketed. "The big challenge is that while the recession has taken a toll on revenues, it has substantially increased the demand for several services, especially in social services, health and public safety," Kost said.
"We are proud of the departments and employees who have shouldered these increasing workloads with limited resources in difficult times for our communities," Kost said.
Kost highlighted emergency preparedness as a specific function where much of the work is done out of public view. "Citizens share in the responsibility for being prepared for disasters and emergencies, but we also have clear role for overall community safety."
Kost commended the 11 volunteer fire departments located throughout the county and mentioned the challenges they face. These departments responded to more than 6,000 calls for help in 2009.
"Despite the economic situation, the county has been able to move forward with several important facilities," Kost said."These facilities are investments in our community and we have been able to take advantage of lower construction prices by moving forward now," Kost said.
She noted that the county expects to save nearly $6 million on the new judicial center, the Margaret B. Pollard Middle School, the joint library with Central Carolina Community College (CCCC), the Siler City Center of CCCC and the Sustainable Technologies building at CCCC in Pittsboro.
The county continues to have a strong relationship with the school board, Kost said. The school board successfully nominated the Board of Commissioners for the 2009 Outstanding County Board Award presented by the NC School Boards Association in November.
"Education spending for the current budget year increased by four percent, while we reduced the rest of the county budget by seven percent," Kost said. "Unlike many of the other school systems across the state, Chatham County Schools did not lay off any employees."
Kost said that economic development to provide more jobs and to expand the county's tax base is a top priority. "We have an outstanding Economic Development Corporation and they are moving into a major implementation phase of our long-term strategic plan."
The county will continue to finalize a draft Joint Land Use Plan with Cary. "State law currently allows Cary to annex with few restrictions. If Chatham County is to have a say in how eastern Chatham is developed, a joint land use plan is absolutely critical," Kost said.
A public hearing on the proposed joint plan will be held in August, with adoption of the plan scheduled for October.
Other major initiatives highlighted by Kost included:
Adoption of a voluntary Farmland Preservation Plan.
Creation of plan to "bank" land that can be used for future parks and/or schools, with a focus on securing land for a park in the Moncure area and a long-term lease for land on Jordan Lake for a park at Bells Landing.
Continued progress in implementing the new Jordan Lake Rules through a partnership with the Town of Pittsboro and other surrounding local governments.
Approval for land at Bynum Park to be used for a community garden.
Development of a 20-Year Parks & Recreation Master Plan to guide facilities and programs at current and future parks. Two park properties were donated to the county this year, including Briar Chapel Park and land donated by Carl H. and Margaret Atwater Strowd.
Kost said that the county's major challenges for the future include addressing the economic impact on the budget. "We expect state budget decisions to affect us as well, so this is a difficult reality when we already have made major budget cuts and some of these are not sustainable."
The opening of several new facilities next year, including the Margaret B. Pollard Middle School and the new Joint Library at CCCC in Pittsboro, will add new operational costs to the budget.
Other upcoming challenges highlighted in the address included:
Updating the Land Conservation and Development Plan.
Continuing efforts to expand infrastructure, especially high-speed internet access.
Offering competitive wages for staff and addressing staff workload pressures with limited resources."
To view the 2010 State of the County presentation (need Adobe Reader),
www.chathamnc.org/Modules/ShowDocument.aspx?documentid=12450
