By Tim Garner
Approval of the county’s $37,131,681.00 Fiscal Year 2023-2024 General Fund budget highlighted the Avery Board of Commissioners meeting on Monday, June 5.
All commissioners–Chairwoman Martha Hicks, Vice-Chairman Tim Phillips, Dennis Aldridge, Wood Hall (Woodie) Young, Jr. and Robert Burleson–were present for the meeting, as were County Manager Phillip Barrier, Jr., Assistant County Manager and Clerk to the Board Cindy Turbyfill, County Finance Officer Caleb Hogan and County Attorney Michaelle Poore.
Under terms of the new budget, the county’s tax rate will be 40 cents per $100 valuation (same as in 2022-2023). That includes 33.5 percent in general tax and 6.5 percent in fire tax. The proposed budget includes no over-all (General Fund) tax increase. But the fire tax was increased by one cent from 5.5 cents.
The General Fund budget total includes $2,625,210.00 in appropriated fund balance.
The budget was approved by unanimous vote (5-0) by the commissioners following a public hearing during the meeting. A public hearing must be held via State of North Carolina law before a budget may be adopted. Each year a new budget must be adopted on or before June 30 as terms of a new fiscal year budget would start on July 1, according to state law.
This marks the sixth consecutive year that there will be no tax increase in the county’s over-all budget.
County officials project expenses to increase 14.63 percent from the 2022-2023 fiscal year. Therefore, they used $2.6 million from the county’s fund balance to keep from having to implement an over-all tax increase.
“This 2023-2024 budget achieves the goals of the Board of County Commissioners in maintaining exceptional levels of service to our citizens and businesses. It also ensures that the county continues to be fiscally responsible in planning for future needs,” Hicks said to High Country Press.
She added that all county employees will get a Cost of Living Adjustment (COLA) in the new budget and that the fire tax penny increase will be used for buildings and property for the county’s fire departments.
Always one of the largest parts of the county budget is the funding provided to Avery County’s public schools.
The school system’s funding by the county is often the second highest only behind public safety, and is so again in the 2023-2024 budget.
Public safety was allocated $11,820,905.00 for 2023-2024
And for the 2023-2024 fiscal year, the Avery County School System (Board of Education) requested $5,731,800.00 in operational funding. That is a 16.5 percent increase over the last fiscal year (2022-2023), when its request was $4,920,000.00. The county commissioners funded last fiscal year’s operational funding request by the school system in full.
For fiscal year 2023-2024, the county commissioners allocated the school system $5,400,000.00. That amounts to a 9.8 percent increase in operational funding provided from the last fiscal year, although it is $331,800.00 less than the school system requested for the upcoming fiscal year.
In capital funding to the school system, the county commissioners allocated $750,000.00. That is a 15.4 increase from the last fiscal year, when they gave the school system $650,000.00.
The school system requested $800,000.00 in capital funding last fiscal year (2022-2023). According to County Finance Officer Caleb Hogan, school system officials did not request a certain financial amount in capital funding for the 2023-2024 fiscal year, but instead gave the county an amount of $5,483,534.00 that would cover costs of the system’s needs.
Hogan noted that $2,163,000.00 of the school capital funding needs would be for the purchase and installation of a new roof for Cranberry Middle and Freedom Trail Elementary schools, which are housed under the same roof.
He added that the county hopes to obtain some state financial assistance and grant funds to help pay for the roof.
Hogan also said that the county funds 77.33 school staff positions locally and the rest are funded through state and federal appropriations. He added that the county also joins the state in providing funding for the Pre-Kindergarten program in all the elementary schools in the county and that “because of the Board of Commissioners’ commitment to education, they help provide funding to help make that program tuition free.”
According to Faith Cope, Chief Financial Officer for Avery County Schools, the county provides a recurring amount of $70,000 (5 percent) for the Pre-Kindergarten program.
Another part of the total $6,607,773.00 allocated for education funding in the 2023-2024 fiscal year budget is for Mayland Community College, which will receive $457,773.00. That includes $427,773.00 in operational funding and $30,000.00 for capital funding. Both amounts were the same as requested by college president, Dr. John Boyd.
Hogan noted that the county’s General Fund Debt Service budget total of $1,294,789.00 is entirely designated for the Avery County School System’s capital needs, specifically at Avery County High School and Banner Elk Elementary School.
Also, county departments requested $3,597,888.00 in capital outlay expenditures for 2023-2024. The new budget includes $1,708,767.00 of those requests.
In other county business:
County Administrator Andrea Turbyfill reported to the commissioners that the county collected $95,155.62 in delinquent taxes for the month of May 2023 and that $3,983,906.57 has been collected in taxes through the first five months of this year (January, February, March, April and May). She noted that the county’s tax collection rate is currently 98 percent.
Barrier, Jr. told the commissioners that Mike Tanck, Director of Government Affairs for Charter Communications, notified him that the North Carolina Growing Rural Economies with Access to Technology (GREAT) Grant, has been signed by all necessary parties. Avery County is a beneficiary of this grant that Charter Communications entity Spectrum was awarded, which will bring gigabit high-speed internet access to homes and various businesses in the county.
Charter Communications, Inc., is an American telecommunications and mass media company with services branded as Spectrum. Its fiber-optic buildout will connect Gigabit Broadband Internet service in the county with starting speeds of 300 Megabits per second (Mbps). It is funded by the GREAT Program with a total project investment of approximately $2.65 million.
Barrier, Jr. said Spectrum has already brought internet service to 222 homes and 12 small businesses in the county. He added that the county is contributing $198,505.50 in matching funds to Spectrum Southeast, LLC, as part of this project. He also noted that Avery is using American Rescue Plan Act (ARPA) replacement funds for this match.
The ARPA is a $1.9 trillion stimulus bill passed by the United States Congress and signed by President Joe Biden in March of 2021. The bill was a response to the coronavirus (COVID-19) pandemic and sought to speed the United States’ recovery by addressing both the health and economic impacts of the pandemic. In addition to provisions like direct checks to individuals, an expanded Child Tax Credit and enhanced unemployment benefits, the bill also included $350 billion in funding to states and local governments to address losses in revenue that they had during the pandemic. ARPA funds have broad categories that funds can be spent on that include investing in broadband infrastructure.
The GREAT grant is one of nine already awarded to Spectrum to expand fiber-optic broadband infrastructure to areas in North Carolina that currently lack access to high-speed connection. Spectrum is North Carolina’s largest broadband provider, serving 2.8 million customers and employing nearly 11,000 residents in the state.
Barrier, Jr. also said that the High Country Council of Government adopted a Digital Inclusion Plan for the seven counties in serves-Avery, Watauga, Ashe, Mitchell, Wilkes, Alleghany and Yancey. Funds for the plan’s implementation will be provided by the State Employees Credit Union (SECU) and the Dogwood Trust. The funds include $225,000.00 given by Dogwood Trust to the Avery-Mitchell-Yancey (AMY) Regional Library System for digital outreach libraries, public W-Fi Internet and support of Rural Faith Community efforts.
The commissioners also made the following service agency appointments:
*Avery County Morrison Library Board-Clayton Harpold and Ruth Shirley
*Avery-Mitchell-Yancey (AMY) Regional Library-Ruth Shirley
*Avery County Social Services Board-Debbie Gragg and Commissioner Tim Phillips
*Avery County Planning Board-Bradley Calhoun and Jason Edward Grindstaff
*Toe River Health District (which governs Avery and Mitchell County Health Departments) Board-Commissioner Robert Burleson
Additionally, the commissioners reached a 3-2 consensus in a recent budget workshop meeting against forgiving a loan owed to the county by the Town of Banner Elk.
In September 2014, the then-Avery Board of Commissioners entered into an intergovernmental agreement with the Town of Banner Elk for the county to sell the old elementary school to the town. The purchase price was for $1,000,000.00 for the school and the land on which it sits, contingent upon the town paying water usage fees (estimated to be $30,000 to $50,000 in all) for the building throughout the life of the 12-year loan.
The town began making yearly loan payments of $83,333.33 to the county in July 2015. And the town has made payments totaling $666,666.64 on the loan, according to a letter Banner Elk Mayor Brenda Lyerly sent the commissioners dated March 3, 2023.
Lyerly also said in the letter at the time of the purchase, town officials did not know how the school property would be utilized, but realized its importance to the character of the town and felt strongly about protecting it. Lyerly added that the Banner Elk Town Council has made an ambitious commitment to fund the payments for the property through fundraising, and not to create an extra tax burden on its citizens. She noted that the school has been developed into a Cultural Arts Center that houses a community book exchange, professional theater group, local artist gallery co-op and classroom space renovated by Mayland Community College.
Additionally, the mayor wrote that the town plans to add public parking, sidewalks, lighting and greenspace improvements to the property as part of a likely multi-million dollar investment by the town. She stated that these improvements will impact the downtown area and increase use and development for local businesses, which also are county businesses.
Lyerly further remarked in the letter that the town’s stewardship of the property and dedication to its uses have complimented Avery County as its benefits those living in, conducting business in and paying taxes in the county. To that end and because of the huge financial investment for improvements to the property, Lyerly wrote that the town council consisting of herself, Mike Dunn, Mayor Pro-Tem, Charlie B. VonCanon, Robert Tufts and David Lecka requests that the county forgive the town’s final four loan payments.
Hicks, Young, Jr. and Aldridge were against forgiving the loan, while Phillips and Burleson were in favor. Therefore, since a majority of the Board of Commissioners opposed forgiving the loan, the town will still owe the county until the loan is paid off.
However, the commissioners agreed to consider allowing the town to extend the payments out over a longer time period to lower their yearly cost.
According to Hogan, the town still owes the county $333,333.35 on the loan, which he said has zero percent interest.
Former County Commissioner Glen Johnson spoke during the public input segment of Monday’s meeting, expressing his opposition to the loan being forgiven, stating that “most of the county’s citizens would not be happy with that.”
Banner Elk Town Manager Rick Owen also addressed the Board of Commissioners about the loan and said that town officials “are not being divisive” when they requested the loan forgiveness. He thanked the commissioners for their consideration of the request—those who supported it as well as those who opposed it.
The commissioners will next hold a bi-monthly meeting on Monday, June 19, before their July 3 regular monthly meeting. Both meetings will begin at 3:30 p.m. and will be held in their Board Room on the second floor of the County Administration Building, located at 175 Linville Street in Newland.
The 2023-2024 Avery County Budget follows:
SECTION 1:
The following amounts are hereby appropriated in the General Fund for the operation
of Avery County Government and its activities for the fiscal year beginning July 1, 2023
and ending June 30, 2024, in accordance with the chart of accounts heretofore
established for this County:
General Government 4,747,243
Public Safety 11,820,905
Transportation 1,388,756
Environmental Protection 3,482,900
Economic & Physical Development 510,299
Human Services 6,295,810
Cultural & Recreational 781,156
Education 6,607,773
General Fund Debt Service 1,294,789
Transfer to Revaluation Fund 125,000
Transfer to High School Renovation Project Fund –
Transfer to Component Unit (Airport) 77,060
Total Appropriations 37,131,691
SECTION 2:
It is estimated that the following revenues will be available in the General Fund for the
fiscal year beginning July 1, 2023 and ending June 30, 2024:
Ad Valorem Taxes 19,807,000
Local Option Sales Tax 8,037,326
Other Taxes & Licenses 750,000
Unrestricted Intergovernmental 194,900
Restricted Intergovernmental 2,627,155
Licenses & Permits 401,500
Sales & Services 2,401,600
Investment Earnings 200,000
Other Income 87,000
Fund Balance Appropriation 2,625,210
Total Estimated Revenues 37,131,691
SECTION 3:
The following amounts are hereby appropriated in the 911 Emergency Telephone System Fund for the operation of the system for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Addressing & Data Provisioning –
Operating Expenses 117,634
Capital 78,710
Total Appropriations 196,344
SECTION 4:
It is estimated that the following revenues will be available in the 911 Emergency Telephone System Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
911 Charges 100,736
Interest on Investments 375
Fund Balance Appropriation 95,233
Total Estimated Revenues 196,344
SECTION 5:
The following amounts are hereby appropriated in the Fire Districts Fund for the operation of fire protection services for the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Fire Association 18,159
Elk Park Fire Department 105,965
Crossnore Fire Department 102,414
Linville Fire Department 191,994
Frank Fire Department 113,853
Green Valley Fire Department 85,282
Banner Elk Fire Department 134,725
Newland Fire Department 94,450
Fall Creek Fire Department 100,640
Seven Devils Fire Department 43,940
Beech Mtn. Fire Department 66,063
Fire Commission 2,095,482
Avery County Ladder Truck Co. 37,817
Linville Central Rescue Squad 99,609
Fire Commission Buildings 500,000
Total Appropriations 3,790,394
SECTION 6:
It is estimated that the following revenues will be available in the Fire Districts Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Fire Tax Levy Revenue 3,790,394
Transfer From General Fund –
Total Estimated Revenues 3,790,394
SECTION 7:
The following amounts are hereby appropriated in the Revaluation Fund for revaluation of property in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Personnel Expenses 111,365
Operating Expenses 17,800
Capital –
Total Appropriations 129,165
SECTION 8:
It is estimated that the following revenues will be available in the Revaluation Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Transfer From General Fund 125,000
Fund Balance Appropriation 4,165
Total Estimated Revenues 129,165
SECTION 9:
The following amounts are hereby appropriated in the High School Renovation Project Fund for the construction of a new classroom and office building during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore
established for this County:
General Construction 18,351,763
Architect/Engineering/Consulting Fees 1,106,471
Permits, Insurance, Surveys, Other 212,316
Furniture 775,489
Attorney Fees 50,000
Total Appropriations 20,496,039
SECTION 10:
It is estimated that the following revenues will be available in the High School Renovation Project Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Transfer from General Fund 7,436,045
Proceeds from Bank Financing 11,000,000
Proceeds from Interest Income 112,968
Proceeds from Lottery Fund 1,947,026
Total Estimated Revenues 20,496,039
SECTION 11:
The following amounts are hereby appropriated in the Ag Building Community Room Project
Fund for the construction of a community room addition during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
General Construction 1,395,000
Architect/Engineering/Consulting Fees 71,700
Permits, Insurance, Surveys, Other 18,300
Furniture 65,000
Total Appropriations 1,550,000
SECTION 12:
It is estimated that the following revenues will be available in the Ag Building Community Room Project Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Fund Balance Appropriation 1,550,000
Total Estimated Revenues 1,550,000
SECTION 13:
The following amounts are hereby appropriated in the Special Revenue Fund for the Opioid Settlement Fund in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Opioid Settlement 1,724,306
–
Total Appropriations 1,724,306
SECTION 14:
It is estimated that the following revenues will be available in the Special Revenue Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Opioid Settlement Revenue 1,724,306
–
Total Estimated Revenues 1,724,306
SECTION 15:
The following amounts are hereby appropriated in the Grants Project Fund for community development in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Neighborhood Revitalization Program 750,000
–
750,000
SECTION 16:
It is estimated that the following revenues will be available in the Grant Projects Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Grant Revenue 750,000
SECTION 17:
The following amounts are hereby appropriated in the Special Revenue Fund for the Deed of trust Fund in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Deed of Trust 20,000
–
20,000
SECTION 18:
It is estimated that the following revenues will be available in the Special Revenue Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Deed of Trust Revenue 20,000
SECTION 19:
The following amounts are hereby appropriated in the Special Revenue Fund for the Fines and Forfeitures Fund in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Fines and Forfeitures 180,000
–
180,000
SECTION 20:
It is estimated that the following revenues will be available in the Special Revenue Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Fines and Forfeitures Revenue 180,000
SECTION 21:
The following amounts are hereby appropriated in the Special Revenue Fund for the Payee Representative Fund in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Payee Representative 200,000
–
200,000
SECTION 22:
It is estimated that the following revenues will be available in the Grant Projects Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Payee Representative Revenue 200,000
SECTION 23:
The following amounts are hereby appropriated in the Grants Project Fund for the American Rescue Plan in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
Broadband Expansion 3,250,000
Provision of Government Services 160,241
–
3,410,241
SECTION 24:
It is estimated that the following revenues will be available in the Grant Projects Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Grant Revenue 3,410,241
SECTION 25:
The following amounts are hereby appropriated in the Grants Project Fund for the DSS State Budget Grant in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
General Construction 1,442,870
General Construction Renovation 776,930
Architect/Engineering/Consulting Fees 223,180
Permits, Insurance, Surveys, Other 10,000
Furniture 133,453
Site Prep –
Total Appropriations 2,586,433
SECTION 26:
It is estimated that the following revenues will be available in the Grant Projects Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Grant Revenue 800,000
Grant Revenue 750,000
Fund Balance Appropriation 1,036,433
Total Estimated Revenues 2,586,433
SECTION 27:
The following amounts are hereby appropriated in the Grants Project Fund for the Probation State Budget Grant in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
General Construction 538,000
Architect/Engineering/Consulting Fees 12,000
Permits, Insurance, Surveys, Other 25,000
Furniture –
Site Prep 25,000
Total Appropriations 600,000
SECTION 28:
It is estimated that the following revenues will be available in the Grant Projects Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Grant Revenue 600,000
Fund Balance Appropriation –
Total Estimated Revenues 600,000
SECTION 29:
The following amounts are hereby appropriated in the Grants Project Fund for the General Capital State Budget Grant in Avery County during the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the chart of accounts heretofore established for this County:
General Construction 430,000
Architect/Engineering/Consulting Fees 10,000
Permits, Insurance, Surveys, Other 10,000
Furniture –
Site Prep –
Total Appropriations 450,000
SECTION 30:
It is estimated that the following revenues will be available in the Grant Projects Fund for the fiscal year beginning July 1, 2023 and ending June 30, 2024:
Grant Revenue 450,000
Fund Balance Appropriation –
Total Estimated Revenues 450,000
SECTION 31:
There is hereby levied a tax at the rate of thirty-three and one half cents ($0.335) per hundred dollars ($100) valuation of property listed as of January 1, 2023 for the purpose of raising revenue included in “Ad Valorem Taxes” in the General Fund in Section 2 of this ordinance.
This rate of tax is based on an estimated total valuation of
property for the purpose of taxation of $6,014,453,140 and
an estimated collection rate of 96.5%.
SECTION 32:
There is hereby levied a tax at the rate of six and one half cents ($0.065) per hundred dollars ($100) valuation of property listed as of January 1, 2023 for the purpose of raising revenue included in “Fire Tax Levy Revenue” in the Fire Districts Fund in Section 6 of this ordinance.
This rate of tax is based on an estimated total valuation of
property for the purpose of taxation of $6,014,453,140 and
an estimated collection rate of 96.5%.
SECTION 33:
The Budget Officer is hereby authorized to transfer appropriations as contained herein in accordance with the Avery County Board of Commissioners Policy Manual.
SECTION 34: Copies of this Budget Ordinance shall be furnished to the Clerk to the Board of Commissioners and to the Budget Officer and Finance Officer to be kept on file by them for their direction in the disbursement of funds.
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