2016 2017 Proposed Budget May 31 2016 Presented

2016 -2017 Proposed Budget May 31, 2016 Presented by: Joseph Scherer, City Manager CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

v. Visuals in this presentation will be included in your Budget Notebook CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

City Manager’s Budget Message Fiscal Year 2016 / 2017 Mayor Doughtie and Members of the Roanoke Rapids City Council: In accordance with the NC Local Government Fiscal Control Act, the recommended budget for Fiscal Year 2016 -2017 is presented for your consideration. The budget document represents balanced revenues and expenditures. Achieving a balanced budget remains a challenge to provide effective services to our citizens. § The General Fund operating budget includes revenues and expenditures each totaling $16, 525, 626. § The property tax rate is recommended to be adjusted to a revenue neutral rate at $. 651/$100 of valuation. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Summary of Recommendations I am recommending the following action for the Fiscal Year 2016 -2017 Budget: Ø Current full-time employees are 142, I am recommending adding 1 new personnel in the Planning & Development Department and 3 new personnel in the Public Works Department. Ø Funding for employee benefits at the current level ØThe property tax rate remain at the rate of $. 651/$100 of valuation Ø The 2016 -2017 budget allows the City to continue to provide quality services at the minimum acceptable levels. ØRequires using $611, 000 installment financing and $660, 000 fund balance. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Economic Outlook q The State’s economy is at its strongest since the recession ended over 6 years ago, yet the pace of growth here at home remains below average. We anticipate the economy to continue on a slow and steady path, as we did last year. Little change in this scenario is expected over the next twelve months. q The national economy seems positioned for stable growth, the risks of small economic shocks curtailing the economy’s progress have been greatly reduced. q Recession Probabilities remain below 20%. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Economic Outlook q. For North Carolina, key economic indicators include Employment, Total Personal Income and Retail Sales, all of which are growing within the bounds expected in their revenue forecast. q. Greatest economic risks continue to come from a global economic downturn as well as other international risks, such as the ongoing volatility in the Middle East and the stability of the Chinese economy, along with the uncertainty, anticipation and expectations associated with a newly elected President. q. Inflation has been minimal with low gas prices and stagnant wage growth. Inflation rates aren’t expected to reach or surpass 2% until 2017. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Economic Outlook q Roanoke Rapids unemployment rate as of March 2016 was 8. 4%, a decrease of. 1% compared to March 2015. The State rate was 5. 5% as of March 2016. q Consumer confidence continued on its sideways path, posting a slight decline in April, following a modest gain in March. Consumers' assessment of current conditions improved, suggesting no slowing in economic growth. However, their expectations regarding the short-term have moderated, suggesting they do not foresee any pickup in momentum. (Consumer Confidence Index) CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Economic Outlook The annual budgets produced during the past few years had required a very careful approach to revenues. This resulted in continued major deferments of maintenance items and severely reduced capital spending. This year’s budget attempts to address some of the more critical needs in infrastructure maintenance and capital items. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Roanoke Rapids Budget & Economic Data Fiscal Year FY 97/98 FY 98/99 FY 99/00 FY 00/01 FY 01/02 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 City Expenditures (1) $ $ $ $ $ 8, 758, 794 9, 264, 729 9, 523, 559 9, 631, 367 9, 997, 217 9, 272, 221 10, 644, 661 10, 824, 411 12, 272, 179 13, 015, 974 17, 909, 927 13, 010, 207 13, 265, 713 14, 125, 545 14, 706, 857 14, 404, 909 15, 353 15, 549, 621 City Population 15, 991 15, 804 15, 676 16, 957 16, 979 16, 943 16, 904 16, 821 16, 741 16, 721 16, 609 16, 569 16, 552 15, 731 15, 691 15, 543 15, 392 Unassigned Fund Balance $ $ $ $ $ % Fund Balance 2, 805, 266 2, 427, 554 2, 741, 224 2, 972, 320 2, 033, 611 1, 893, 970 1, 801, 248 1, 751, 257 1, 327, 786 1, 454, 935 1, 246, 024 2, 331, 164 3, 895, 065 3, 727, 208 4, 218, 104 5, 275, 566 4, 149, 411 4, 367, 805 32. 0% 26. 2% 28. 8% 30. 1% 20. 3% 20. 4% 16. 9% 16. 2% 10. 9% 11. 2% 8. 3% 17. 91% 29. 4% 26. 4% 28. 7% 37. 0% 28. 0% Co. Unempl. Rate (6) Retail (5) Sales (3) City County $ 344 m $ 514 m $ 331 m $ 504 m $ 328 m $ 502 m $ 315 m $ 503 m $ 305 m $ 510 m $ 333 m $ 586 m $ 357 m $ 628 m $ 380 m $ 655 m $ 216 m $ 341 m $ 240 m $ 344 m $ 230 m $ 334 m $ 294 m $ 407 m $0. 00 $ 342 m $0. 00 $ 350 m $0. 00 $ 368 m $0. 00 $406 m $0. 00 $421 m $0. 00 $450 m 8. 6% 8. 4% 7. 0% 10. 1% 9. 6% 8. 6% 7. 3% 6. 7% 13. 8% 12. 5% 13. 6% 13. 2% 11. 1% 10. 6% 9. 5% # Full-time Employees 157 154 153 156 154 156 158 156 165 158 139 134 137 143 Tax Base (2) $ 703 m $ 728 m $ 879 m $ 876 m $ 879 m $ 934 m $ 901 m $ 876 m $ 860 m $ 905 m $1, 077 b $1, 110 b $1, 128 b $1, 130 b $1, 159 b $1. 192 b $1. 189 b Outside Funds Secured (3) $ $ $ $ $ 610, 562 2, 738, 732 4, 545, 280 3, 738, 508 3, 607, 800 3, 077, 500 2, 649, 804 2, 267, 718 5, 942, 050 2, 349, 768 1, 287, 889 1, 346, 717 1, 670, 328 605, 459 1, 350, 000 894, 179 685, 423 685, 977 Tax Rate $ $ $ $ $ Building Permits (8) $ 11. 6 m $ 12. 8 m $ 10. 9 m $ 9. 1 m $ 21. 4 m $ 19. 2 m $ 13. 5 m $ 19. 8 m $ 32. 4 m $ 36. 5 m $ 17. 8 m $ 9. 7 m $ 11. 9 m $12. 0 m $9. 6 m $10. 1 m $11. 3 m 0. 53 0. 49 0. 509 0. 499 0. 574 0. 624 0. 624 Long Term Debt (4) $ $ $ $ $ Collection Rate 3, 659, 456 5, 173, 869 4, 702, 458 4, 281, 035 4, 268, 393 3, 784, 527 3, 388, 425 3, 086, 214 7, 658, 554 25, 725, 045 26, 425, 105 25, 449, 086 23, 648, 444 20, 370, 000 19, 690, 000 18, 965, 000 18, 195, 000 17, 375, 000 97. 38% 96. 36% 96. 94% 97. 75% 97. 06% 91. 04% 95. 32% 97. 41% 97. 39% 97. 68% 96. 38% 94. 20% 95. 60% 96. 70% 96. 50% 96. 96% 98. 70% 98. 57% Cash and Investments (7) $ $ $ $ $ 5, 024, 420 4, 639, 580 5, 484, 949 5, 802, 847 5, 450, 121 5, 947, 350 4, 748, 239 4, 710, 023 2, 755, 892 2, 885, 038 2, 730, 864 3, 337, 251 4, 578, 544 4, 455, 222 5, 187, 835 5, 877, 499 6, 035, 515 5, 306, 725 Highlights of City's Fiscal Year Audit Report FY 2014 -2015 * The Fiscal Year 2014 -2015 audit rendered an unmodified opinion, which means that the financial statements of the organization are free of material misstatement and follow auditing requirements. * As of June 30, 2015, there were no material subsequent events that were required to be reported. * The Unassigned Fund Balance percentage for the City is above the required State Stabilization percentage of 8%. The City maintains a fund balance percentage of 25%. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870 * There were no material weaknesses or findings to be reported on behalf of the City.

Revenue – Major Sources q. Ad Valorem (Property Tax) q. Sales Tax q. Utility Franchise Tax q. Powell Bill q. Solid Waste User Fees CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Ad Valorem (Property Tax) q City’s primary source of revenue q 49% of total General Fund Budget q Projected 2016 tax levy $7, 660, 503 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Ad Valorem (Property Tax) Tax rates and prior year budgeted amounts are listed below (receipts for FY 2016 is based on a 98% collection rate) 2010 2011 2012 2013 2014 2015 2016 0. 624 0. 574 0. 624 0. 651 6, 798 6, 768, 485 6, 862, 753 6, 977, 275 6, 872, 871 7, 332, 371 7, 660, 503 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Sales Tax Revenues q City’s second largest source of revenue q 19. 2% of the total General Fund Budget q Proposed sales tax revenues for 2016/2017 totals $2, 954, 907 q 3. 75% increase compared to 2015/2016 appropriation CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Sales Tax Revenues Appropriated Sales Tax Revenues are listed below: 2011 2012 2013 2014 2015 2016 2017 1, 804, 217 2, 070, 113 1, 938, 632 2, 005, 894 2, 090, 541 2, 817, 600 2, 954, 907 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Utility Franchise Tax q. City’s third major source of revenue q 8. 06% of the total General Fund budget q. We project this revenue source to increase based on year-todate actual revenue collected during FY 2015/2016 q. Proposed franchise tax revenues for 2016/2017 totals $1, 320, 569. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Utility Franchise Tax Appropriated Revenues for Utility Franchise Taxes 2011 2012 2013 2014 2015 2016 2017 1, 176, 167 1, 113, 582 1, 229, 631 1, 200, 000 1, 320, 569 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Powell Bill Funds q. City’s fourth major source of revenue q 3. 21% of the total General Fund budget q. Proposed Powell Bill funds for 2016/2017 totals $463, 891 q. Powell Bill is calculated using population plus street miles CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Powell Bill Funds Appropriated Revenues for Powell Bill Funds 2011 2012 2013 2014 2015 2016 2017 464, 734 458, 877 467, 824 473, 244 475, 217 470, 060 463, 891 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Solid Waste Fees q. Solid waste user fees are the fifth largest source of revenue q. These fees are designated to cover the actual cost of providing this service CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Solid Waste Fees q. We are recommending no increase in solid waste user fees. q. The calculation for this fee is as follows: solid waste/refuse budget, debt service and administrative cost CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Solid Waste Fees Fiscal Year Solid Waste Fee 2016 -2017 204. 50 2015 -2016 204. 50 2014 -2015 204. 50 2013 -2014 199. 25 2012 -2013 199. 25 2011 -2012 188. 59 2010 -2011 188. 59 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Departmental Summary General Fund Operating CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Departmental Summary – General Fund Operating (Please note that this total does not include transfers to the Roanoke Rapids Theatre) Department Amount General Government $ 3, 305, 698. 00 Fire $ 1, 759, 475. 00 Parks & Recreation $ 1, 865, 056. 00 Planning $ Police $ 3, 049, 205. 00 Public Works $ 3, 646, 801. 00 Total Fund Summary 494, 253. 00 $14, 120, 488. 00 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Personnel & Employee Benefits Personnel q We currently have 142 Full Time Employees q Police and Fire report minimal vacancies q. Recommending a 2% raise for all employees 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 165 158 139 134 134 141 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870 142

Employee Benefit Package Benefit Annual Cost Group Health Insurance $1, 357, 414 Dental $ 51, 000 Life Insurance $ 7, 800 Longevity $ 96, 600 Christmas Bonus $ 37, 500 Employee’s Assistance Program $ 3, 616 Health Reimbursement Account $ 60, 000 3% 401 k Employer Match $ 81, 885 11% Increase $2, 000 towards deductible CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Debt Service DEBT SERVICE INFORMATION TOTAL DEBT Public Works (Rear Loading Trash Truck) BB&T Police Department-13 Crown Vic's (BB&T) Sun. Trust Bank (Fire Ladder Truck) Police Department (Vehicles) First Citizens Bank Neighborhood Resource Center (First Citizens Bank) Firestation #2 (First Citizens Bank) Sub Total Grand Total Economic Development Project (Theatre) Current FY Total Debt Service = INTERES T ANNUAL RATE PRINCIPAL INTEREST FEES PAYMENT $ 1. 790% 33, 738. 72 $ 2. 360% 68, 982. 66 $ 1. 385% 93, 377. 37 $ 1. 850% 29, 951. 12 $ 2. 150% 20, 475. 67 $ 3. 000% 55, 521. 30 $ 302, 046. 84 $ 5. 51% 820, 000. 00 $ 1, 122, 046. 84 $ 1, 748. 79 $ 8, 533. 34 $ 6, 648. 01 $ 2, 874. 90 $ 3, 798. 54 $ 39, 000. 00 $ 62, 603. 58 $ $ - $ $ 988, 769. 52 1, 515. 00 $1, 051, 373. 1 $ 0 1, 515. 00 CURRENT YEARS OUTSTANDIN BALANCE G $ 35, 487. 51 $ 77, 516. 00 $ 100, 025. 38 $ 32, 826. 02 $ 24, 274. 21 $ 94, 521. 30 $ 364, 650. 42 $ 97, 697. 90 $ 149, 711. 61 $ 480, 000. 00 $ 155, 400. 00 $ 176, 676. 25 $ 1, 300, 000. 00 $ 2, 359, 485. 76 $ 1, 810, 284. 52 $ 2, 174, 934. 94 $17, 375, 000. 00 $19, 734, 485. 76 CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870 **Principal Balance $17, 375, 000. 00 after July 1 st payment of 3 annual 11/16/2016 2 annual 2/28/2016 4 annual 4/26/2018 5 annual 7/19/2018 7 annual 8/30/2021 17 annual 8/30/2031 14 Revenue Fund 7/1/2027

Community Contributions Outside Agency Requests Agency Amount Status Beautification Committee $ 1, 500. 00 Funded Roanoke Valley Rescue Squad $ 17, 000. 00 Funded Halifax-Northampton County Airport $ 25, 000. 00 Funded CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

In Closing We continue to strive to present a recommended Annual Budget that is balanced, protects the investments made in the past, fosters a work environment that ensures the safety of those who serve the City, and provides for services as economically and efficiently as possible. Respected citizens, outside agencies and City departments requested substantial new and additional funding for a variety of programs and services. Many of the requests were reasonable, yet the available dollars to help everyone were very limited. As such, most were not included in my recommended budget. Joseph Scherer, City Manager CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

What’s Next? Ø Public Hearing 5: 15 p. m. June 14, 2016 Andrews Building Ø Adoption of the 2016 -2017 Budget 5: 15 p. m. June 21, 2016 Andrews Building CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870

Availability of Proposed Budget The proposed budget will be available online at the City of Roanoke Rapids website on Wednesday – June 1, 2016 A detailed copy of the Proposed Budget is available in the City Clerk’s Office for Public Inspection. CITY OF ROANOKE RAPIDS * 1040 ROANOKE AVENUE * ROANOKE RAPIDS, NC 27870