Budget Process

Budgetary Adoption

The District budget process must comply with North Carolina General Statutes and the MSD Revenue Bond Orderas amended to date. TheBondOrderrequires thattheDistrict adoptits finalbudgeton orbeforeJune 15 of each year. North Carolina General Statutes mandate an annual balanced budget ordinance based upon expected revenues, along with a budgetmessage, to bepresented to the governing board no later thanJune 1 and mandates a public hearing be held. The Bond Order calls for a preliminary budget hearing 30 days prior to adoption if requested by a certain percentage of bondholders. The budget calendar is designed to provide for inputby all stakeholders into asystematic anddeliberate process.

FortheOperationsandMaintenanceBudget,theprocessbeginswiththemissionstatementasapprovedbythe Board. Each Division or section of the District develops a specific mission statement setting forth its role in supporting the overall mission of the District. Next, key responsibilities are defined for each unit, with associated goals and objectives. To evaluate progress, performance measures are identified and tracked for the previous three years. Once the District staff develops the operational activities required to implement the mission-directedstrategies,necessary resources can bequantifiedand presentedin abudgetary format.

Because payroll and benefits represent such a large proportion of expenditures, and because an experienced andappropriatelycompensated,well-trainedstaffisnecessarytoaccomplishtheDistrict’smission,extraeffort ismadetoensuresalariesandbenefitsarecompetitivewithoutbeingexcessive.Tothisend,ahumanresources consultant prepares a salary survey every three to five years that compares District pay scales with other utilities and governmental entities in the area. During those years a consultant is not retained, the Human Resources Director and other staff take surveys among regional governments and wastewater utilities of intendedincreasesand types/levelsofbenefits considered.

After reviewing comparative data, the Finance and Personnel Committees take an active role in ratifying increases of cost of living and merit pay, as well as contributions to health insurance and other employee benefit programs. Before approval of any new positions, the Board must be convinced of the cost-benefit, efficiency, and programmatic benefit.