TITLE
Title
FISCAL YEAR 2024-25 YEAR-END BUDGET ADJUSTMENTS
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SPONSOR
Sponsor
Michael Halford, County Manager
Toy Beeninga, Budget and Management Services
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BACKGROUND
Background
The North Carolina Fiscal Control Act requires a County to adopt a budget ordinance and remain within funding levels outlined within the ordinance. At the end of each fiscal year, Section 9-B of the budget ordinance authorizes the County Manager to transfer personnel funds to account for lapsed salaries, which are pre-budgeted savings from staff vacancies. Some departments, however, may not fully achieve their lapsed salary targets due to lower-than-expected vacancies. These transfers help manage overall salary spending across departments and maintain compliance with the Fiscal Control Act. This occurs every year and is a routine part of overall budget monitoring at the end of the fiscal year.
This year, to avoid separate notifications which may be confusing, the County is presenting these Manager transfers to the Board as part of broader year-end adjustments, including funding the mid-year law enforcement pay increase approved by the Board at the September 5, 2024 Work Session and address additional operating needs within the Sheriff's Office budget for jail medical services.
In September, the Board approved adjustments to move Deputy Sheriff and Detention Officer pay to the 60th percentile of the respective market rates. The estimated FY2024-25 cost was $4.6 million, of which $2 million was supported by the County’s annual compensation maintenance allocation. The remaining $2.6 million was expected to be offset by:
• $1 million in reduced overtime from filling 50 vacant positions, and
• $1.6 million in salary savings from across the organization.
Since implementation, vacancies have remained largely unchanged (decreasing from 111 to 109), and overtime savings have not materialized. In fact, due to higher pay rates, overtime costs have increased. As a result, the Sheriff’s Office is projected to exceed its personnel budget by $3.9 million.
Operating savings in the Sheriff’s Office are typically used to support year-end needs, but this year those savings are offset by the need for additional funds in the operating budget to address medical services for inmates requiring third-party medical visits/hospitalizations. Each year, the County works to manage those expenses; however, the expenses continue to rise.
To address both the personnel and operating needs:
• Emergency Services has generated $1 million in unanticipated special event and ambulance fee revenue. These funds will be used to cover Emergency Services’ overtime costs, freeing up other salary savings to redirect to the Sheriff’s Office.
• Additional funding capacity is available from economic development incentive payments that were budgeted but are not yet needed.
This action supports the implementation of the Board’s compensation adjustments, while maintaining overall fiscal balance through strategic use of salary savings, revenue adjustments, and available operating savings.
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BUDGET IMPACT
Budget Impact
General Fund
$1,000,000 increase in User Charges
$1,000,000 increase in appropriation to Emergency Services
$1,500,000 decrease to Economic Development & Assistance
$1,500,000 increase to Law Enforcement
Decrease Appropriation to (Personnel Transfers Outlined in Section 9B):
HHS: Public Health by $2,300,000
Planning and Development by $450,000
Juvenile Detention by $275,000
Animal Services by $250,000
Budget and Management Services by $200,000
Child Support Enforcement by $200,000
Information Technology by $200,000
Inspections by $175,000
Behavioral Health by $125,000
Transportation by $75,000
County Attorney by $75,000
Elections by $50,000
Solid Waste by $50,000
Increase Appropriation to (Personnel Transfers Outlined in Section 9B):
Law Enforcement by $3,975,000
HHS Administration by $115,000
Internal Audit by $95,000
Finance by $75,000
Human Resources by $70,000
Family Justice Center by $50,000
Court Services by $40,000
Fleet by $5,000
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REQUESTED ACTION
Requested Action
Approve necessary budget amendments and transfers, including increasing appropriation to Emergency Services by $1,000,000 and increase User Charges by $1,000,000; increase appropriation to Law Enforcement by $1,500,000 and decrease appropriation to Economic Development & Assistance by $1,500,000.
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