This memorandum constitutes the 2021-2022 Budget Message I am required to submit to the Board of Commissioners of the Town of Weldon prior to June l, 2021 (G.S. 159.ll(b)). This message and the accompanying documents put forth a plan for the financial operation of the Town of Weldon for fiscal year 2021-2022. The Town does not operate an intragovernmental service fund nor does the Town's projected fiscal operation include a capital project or a grant project in 2021-2022.
The process of developing this budget included input provided by each of the Town's department heads prior to April 30 as required by G.S. 159-10. The overall goal of the 2021-2022 budget is to continue to provide the citizens of the Town of Weldon the same level and quality of services as were provided in the preceding 2020-2021 fiscal year. There are no significant changes in activities anticipated in the budget in terms of program goals and programs, and a few changes in revenue levels that will be addressed in the fourth paragraph of this message.
The proposed budget for 2021-2022 utilizes a tax rate of$. 72 for the General Fund, the same as the 2020-21 rate. With regard to the Fire District Fund, the-:Fire District tax rate for real and personal property in 2020-2021 was $.0859 per $100 valuation. The proposed budget for 2021- 2022 utilizes a tax rate of $.09 for the Fire District Fund and this tax rate has been approved by the Halifax County Commissioners.
The 2021-2022 proposed budget utilizes an appropriation in the General Fund from Fund Balance in the amount of$414,833. This represents an increase of$100,361 compared to the Fund Balance appropriated in the 2020-2021 budget. Coronavirus-related reductions in projected General Fund revenues, particularly in the areas of earned interest and local option sales tax revenues, are the cause of the projected increase in fund balance appropriated to balance the General Fund portion of the budget. It is anticipated that the federal American Rescue Plan (ARP) will appropriate to the Town of Weldon in excess of$200,000 in funds for use in the 2021 -22 fiscal year. We can anticipate a permissible use of these funds is to offset the Coronavirus-related reductions in revenue as well as finance-specific expenditures, thus decreasing the amount of fund balance that will actually be utilized in 2021-22. The ARP funds have not been included in the proposed 2021-22 budget but will be added to our budget in a subsequent budget amendment. The 2021-2022 budget does not appropriate any funds from the Fund Balances of the Water and Sewer, Fire District, Cemetery, and Library Funds. The Water and Sewer Fund budget utilizes no rate increases for 2021-2022 as compared to the rates in effect for 2020-2021.
With regard to expenditures, the 2021-2022 budget projects a decrease of $13,957 in the General Fund, an increase of$119,515 in the Water and Sewer Fund, an increase of$4,287 in the Fire District Fund, an increase of$10,500 in the Cemetery Fund, and a decrease of$2,836 in the Library Fund. Overall the 2021-2022 budget contains a total increase of $117,509 when compared to the 2020-2021 budget. With regard to employee salaries, a 1.13% increase (one step on the salary schedule) is provided for employees, both full-time and part-time, who worked a full year for the Town from July 1, 2020, until June 30, 2021.
As required by G.S. 159-11(a) the proposed budget you are receiving is balanced with both revenues and expenditures totaling $3,904,615. This is an increase of$117,509 as compared to the 2020-2021 budget.
Input from department heads revealed needs that have not been included in the proposed 2021- 2022 budget. These needs are detailed in a document following the expenditure section of the proposed budget and total $57,040. A significant portion of these needs, $21,540, are related to the ongoing effort to place our full-time employees on the proper step on the salary schedule.
This proposed budget and the accompanying documents have been placed on file with the Town Clerk where they are available for public inspection until the Budget Ordinance is adopted. The Town Clerk will proceed to make a copy of the budget available to all news media in the County and shall publish a statement that the budget has been submitted to the Board of Commissioners and the Mayor and is available for public inspection in the office of the Town Clerk. The statement shall also give notice of the time and place of the budget hearing.
With regard to next steps, I recommend that the Board of Commissioners set the date and time of June 14, 2021, at 6:30 p.m. for the public hearing on the budget. In light of the ongoing restrictions on indoor gatherings contained in the Governor's Executive Orders regarding the Coronavirus crisis, I recommend that the Board specify that persons wishing to provide input to the Board regarding the proposed 2021-2022 budget do so in writing and that their input be provided to the Town Clerk no later than 12:00 noon on June 14, 2021, so input received in this manner can be read into the record at the public hearing.
It is anticipated that I will present to the Board of Commissioners a Budget Ordinance for adoption at our scheduled meeting on June 28, 2021.
Enclosures: Projected Revenues 2021-2022
Water and Sewer Rates 2020-2021
Projected Expenditures 2021-2022
Possible Expansion Items 2021-2022
Download the Proposed Budget