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PROPOSED SALARY BUDGET FY 2019-2020 IT’S YOUR MONEY!
TOWN OF SUMMERFIELD PROPOSED BUDGET FOR PAY AND BENEFITS FOR FY 2019-2020 Fiscal year July 1, 2019 to June 30, 2020
This information is included for you as pay and benefits are the largest item in the town budget, and they increase every year. This is not related to job performance, and not to be critical, but to share with you, the taxpayers, how your mayor, council members, and manager are spending your money. Budget of $673,340 for 2019- 2020 Pay and Benefits includes the following overtime estimates: • 15 hours per month for Clerk • 5 hours a month for Town Planner • 10 hours a month for Parks and Rec Manager Annual increase in pay for town staff averaged 4% per year for past few years. Longevity Pay increases when employees reach milestone anniversaries: 5 years of service = 2% 10 years of service = 3% 15 years of service = 3.5% 20 years of service = 4% 25 years of service = 4.5% 30 years of service = 5% There were no scheduled longevity increases fiscal year 2019-2020. Longevity pay increases are in addition to annual performance pay increases. Information not yet available if there are Longevity pay increases for 2020-2021. Final fiscal year end pay and benefits for this chart will not be available until late 2020. Summerfield Pay and Benefits Summary for FY 2020-2021 has not yet been released. Draft Budget for Fiscal year ending June 30, 2020 was for nine employees, as the second Planner was not hired. Draft Budget for July 1, 2020 – June 30, 2021 includes ten employees, including a second Planner and two part time seasonal positions for the Athletic Park. Annual pay increases are estimated to be 2.75%. The draft budget for next fiscal year July 1, 2020 to June 30, 2021 is posted on town website www.summerfieldnc.gov Click on Administration, and Finance and Budget, and FY 2020-2021 Budget Development, and click on Draft Budget. This may be linked to the homepage in the future. Print copies are not available from the town.
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Town Mayor is paid $250 a month. Town Council Members are paid $200 a month.
For additional information about pay and benefits:
Town of Summerfield Personnel Policies and Manual P O L- 2 0 0 5 - 0 0 2 , R e v i s e d December 10, 2019
Budget Calendar
Tuesday, May 19, 2020 - 6:30pm at Community Center (could change to online). Monthly town meeting and public comments in general and/or on the budget are scheduled to be allowed at this meeting. Keep in mind new maximum is 3 minutes for public comments.
Thursday, May 28, 2020 - 6:30pm at Community Center – Special called meeting to publicly present final draft budget to the public. Print copies for the public are usually not available at this meeting. Budget related public
comments are scheduled to be allowed.
Tuesday, June 9, 2020 – 6:30pm at Community Center. June monthly town meeting.
Copy of the draft budget is available for view at town hall. 8:30 am to 4:30 pm, Monday – Friday.
Town Hall is open for business and not closed by Covid-19 Stay Home Orders. (The manager said it is ok to stay open as town hall has few visitors.)
Budget can be approved, or changes made, at meetings or a special called meeting prior to June 30, 2020.
Town council may also approve Budget Amendments during the Fiscal Year, and can be as much as $502,000 when they decided January 2016 (after the November 2015 election) to purchase the Vandergriff property at the end of Medearis Road. That was a 40% increase in annual spending approved as a Budget Amendment. Budget Amendments are on the Consent Agenda.
The draft budget for fiscal year beginning July 1, 2020 is $2,154,797, and projected to keep the same property tax rate (.0275). However, the budget includes $856,072 from Reserves to begin large capital projects. This draft budget shows spending 12% to 14% of Reserves. This Draft Budget for next fiscal year can be changed at any town meeting prior to June 30, 2020. Historically the Reserves/Fund Balance is $6 to $7 million.
The Annual Summary – Audit / Budget
shows deficits. Dictionary defines “deficit spending” “the practice of spending funds in excess of income, especially
by a government.” A small amount is held for future retirement benefits and may be shown as deficit. The Summerfield Annual Income chart shows a property tax income of about $435,000 per year, and with the property tax the town receives sales tax revenue of about $135,000. Other sources of income vary slightly from year to year.
The only way the town can raise millions to spend this year, or next year, is to raise property taxes, take on debt which would also raise property taxes, and/or spend the Reserves.
If they spend down the reserves you would have less Investment Income, and reserves would be gone. This fiscal year and next, sales tax revenue is projected to go down, and ABC revenue is increasing. The current town council frequently mentions “grants.” Council should not start projects until they have “grants” in hand for a specific project. The town shows $13,419,000 in total town assets - $6,374,225 represents fixed assets, land and buildings. The most valuable piece of land is probably the 13 acre “Gordon property” at 220 and 150 that has an AV=Assessed Value of $1 million. As commercial property it could have higher value. Government and businesses have cut back on spending for capital projects because of the economic uncertainty we face. This is not the time to begin multi-million dollar projects, and especially with no accurate numbers of cost to build and maintain.
Council Member Teresa Pegram was the only council member that stated opposition and that she would prefer not including any large expenditures in the upcoming budget and instead giving citizens a “tax holiday” because of the challenging economic environment due to the coronavirus pandemic. The mayor and council stated they would proceed with the new town hall (and more) and the manager should post an RFQ for a qualified architect.
Thank you to Alicia Flowers who made the motion Jun 9, 2009 to adopt the Annual Budget with a zero property tax rate, and included the funds to build the ball fields. Becky Strickland seconded, and Flowers, Strickland and Dena Barnes voted YES. Bob Williams and John Wray voted NO. The tax holiday served the needs of the people and town business did not suffer. The time is now for similar fiscal conservative actions in our town. Mayor BJ Barnes has stated the dollars are just “gotcha numbers.” The financial information provided to you is from Town Audits, Town Financial Statements, and town documents.
