FRANKLIN COUNTY REPUBLICAN PARTY
101 WEST NASH STREET
P.O. BOX 909
LOUISBURG, NORTH CAROLINA 27549
(919) 496-1469
www.FranklinNCGOP.com

May 25, 2006

$69,473,189
No Tax Increase
But There are Fee Increases!

County Manager Chris Coudriet presented the commissioners on May 23 the 2007 fiscal budget which includes a 6.2 percent increase from 2006 in the general fund.

Here's the breakdown and some highlights:

-The total recommended budget for all funds is $69,473,189.
-General fund: $59,050,831 -- 6.2 percent over the 2006 approved budget
-Public utility fund: $5,907,692
-Fire protection fund: $1,907,320 -- no fire tax increase in any district
-Emergency 911 Communication Fund: $387,346
-Drug Enforcement Fund: $20,000
-Capital Reserve Fund: $2,500,000

The following is the entire document presented by County Manager Chris Coudriet to the Board of Commissioners May 23, 2006:

County of Franklin
North Carolina
Office of County Manager
113 Market Street
Louisburg, NC 27549
Telephone: (919) 496-5994
Fax: (919) 496-2683

May 19, 2006

Franklin County Board of Commissioners
113 Market Street
Louisburg, NC 27549

Dear Commissioners:

As county manager, it is my responsibility and great pleasure to recommend to the
board of commissioners a balanced budget for fiscal year 2007. The budget I recommend
is aimed at meeting the priorities clearly established by the board with a focus on
providing first class public education, ensuring proactive public safety, and meeting
policy obligations from previous years. Because of the board’s strong and bold
leadership, this budget firmly establishes Franklin County as the finest community in
North Carolina to live and work. Perhaps most important to note, this budget
accomplishes much for the citizens and businesses of the county without a property tax
increase. As such, I am recommending a property tax rate of 79 cents per $100 of
valuation for fiscal year 2007.
The total recommended budget for all funds is $69,473,189. Specifically, I am
recommending the county funds as follows:
• General Fund: $59,050,831 – 6.2 percent over 2006 approved budget
• Public Utility Fund: $5,907,692
• Fire Protection Fund: $1,907,320 – no fire tax increase in any district
• Emergency 911 Communication Fund: $387,346
• Drug Enforcement Fund: $20,000
• Capital Reserve Fund: $2,500,000
In developing this budget, the staff and I identified four key planning
components: 1) maintain the county’s overall healthy fiscal position, 2) factor for
realistic, conservative revenue estimations, 3) offer limited fund balance appropriation,
and 4) maximize fee for service opportunities.

Franklin County Board of Commissioners
May 19, 2006
Page Two
County Conditions
Franklin County is the ninth fastest growing county in the State of North Carolina
with a 2005 estimated population exceeding 54,000 people. Census data demonstrates
that between 2000 and 2004 Franklin County’s population grew [conservatively] by
5,622 people. These numbers suggest that over the same four year period Franklin
County added nearly 118 new residents every month. In 2005 alone the county issued
780 residential permits, which accounts for new construction and renovations, at a value
of some $85,505,000.
Growth, however, is not limited to residential development: In 2005 the county
issued 51 commercial permits accounting for new and expanding business development
valued at $17,400,000. Just three years ago the percentage of residential value to
commercial value in the county’s assessed tax base was estimated at 85/15, while today
that percentage, although not sufficient, stands closer to 80/20.
Population growth, commercial expansion, unemployment rates, and per capita
income have led the North Carolina Department of Commerce to identify Franklin
County as a Tier 5 county. Tier 5 represents the healthiest economic indicator the state
offers any county, and communicates to the state at large that Franklin County is well
prepared for business and personal investment in the coming year.
The tax administrator has established a fiscal year 2007 assessed tax base in
Franklin County at $3.441 billion. This base reflects a consistent, healthy increase as
with previous years and accounts for 4.75 percent growth over 2006. Property tax
collections for the proposed year and all previous years are estimated at more than $26
million. One penny of tax with a 96.7 percent collection rate will generate $332,745 in
revenue. As an illustration, a homeowner with a residence valued at $118,000 (the
county-wide average) and a 79 cent property tax rate will pay $932.
Sales tax collections represent an important component of the county’s revenue
structure. Unrestricted sales tax collections (those sales taxes not earmarked for school
capital improvements) for fiscal year 2007 are estimated at $7,850,000. This represents a
4.3 growth rate over the 2006 approved budget.
Although the assessed tax base and sales tax collections are estimated to grow at
healthy rates in 2007, these growth rates are not enough to adequately fund county
priorities. As such, a fund balance appropriation of $2,312,763 is recommended.

Franklin County Board of Commissioners
May 19, 2006
Page Three

County Priorities
Although every facet of county government is important and offers value to the
citizenry, the development process the county staff and I used for the 2007
recommendation was to meet the board’s priorities first then factor and balance the needs
for the remainder of governmental activities.
Education
The Franklin County public school system continues to experience steady growth
in its student population because of rapid population growth and high-quality student
instruction. The primary objectives of this recommendation focus on 1) expanding per
pupil county appropriations, 2) funding student population growth, 3) increasing the
teacher supplement, and 4) maintaining existing school facilities. As such, I am
recommending an $11,804,081 appropriation to the Franklin County public school
system. This recommendation represents a 7 percent increase over the 2006 approved.
I am recommending the board approve $10,601,444 for current expense funding.
This recommendation is based on meeting school needs in 2007, and establishing the
basic framework for a funding formula that will offer consistency and certainty in county
funding in future years. The recommendation is arrived at by defining the per pupil
county commitment, increasing that commitment by 4 percent, factoring for student
population growth as identified by the school system, and adding to the base amount to
increase the teacher supplement from $2,100 to $2,400.
I am also recommending the board approve $1,202,637 in school capital needs.
Although this amount is nearly equal to the 2006 approved amount, it does not budget
average daily membership (ADM) funds expected from the State of North Carolina –
estimated at $400,000. In the previous 2 fiscal years the county did budget ADM
revenue to help meet the school system’s capital needs. The financial strategy in 2007 is
to allow ADM funds to go unbudgeted and allow them to grow to meet future capital
needs, e.g., school expansion or debt service. This strategy requires an increase of
$400,000 in county funds to meet the 2007 school capital recommendation.
As presented, the public school recommendation accounts for 26 percent of the
general fund and represent 37.5 cents on the property tax rate.

Franklin County Board of Commissioners
May 19, 2006
Page Four
Public Safety
The public safety recommendation, which includes law enforcement, emergency
dispatch, fire protection, and emergency services, is $12,338,620. This accounts for 26
percent of the budget.
I am recommending the board approve 2 investigative positions for the sheriff’s
department, one of which is to focus on drug interdiction. Successfully uncovering
incidents of crime and disrupting drug operations locally will result in fewer crimes in the
future. This budget attempts to solidify the foundation for proactive law enforcement in
Franklin County.
Within the broader context of creating a proactive public safety system, I am
recommending a substantive reorganization of the emergency 911 center.
Organizationally, I believe the 911 center can operate more effectively if it is subordinate
to the county administration rather to one specific discipline or county agency, i.e., the
sheriff’s office. The law enforcement community at large (county and town agencies
alike), the fire service, and the emergency medical service should have equal, active
voices in determining dispatch protocols and policies. As such, I am specifically
recommending the board take 2 actions: 1) establish a 911 advisory board that allows for
development of dispatch and response protocols in a multi-discipline fashion and 2)
assign the 911 center as a department head reporting to the county manager’s office.
To allow for more effective management of the 911 center on a daily basis, I am
recommending the board approve one new dispatcher for assignment to peak shift
demand. In addition, the 911 supervisor should establish a shift leader structure to ensure
adherence to policy and protocol is accomplished and that resources are reassigned as
necessary while the supervisor is not present. As such, I am recommending the board
approve the shift leader management structure and instruct the 911 supervisor to
implement it using existing and recommended staff resources.
As previously noted, this budget recommends a static tax rate including the
varying fire taxes. I am recommending a fire protection budget of $1,907,320. Because
of available revenue versus stated need, I am pleased to recommend a .25 cent reduction
in the White Level fire district establishing that rate at 6 cents while still meeting the
department’s 2007 operational needs.

Franklin County Board of Commissioners
May 19, 2006
Page Five
Although the county does organizationally define the role of the fire marshal, it
has committed few resources in recent years to full execution of the duties. Providing for
coordination assistance to the fire departments and meeting the county’s existing
structure fire inspections is of great importance. As such, I am recommending the
board approve a deputy fire marshal position with priority foci as follows: 1) assist fire
departments with grant development, 2) lead advocacy efforts with local and state
agencies, and 3) conduct fire inspections for school facilities, day cares, and businesses.
In the spring of 2006 the board authorized a quick response vehicle (QRV)
program to assist the volunteer rescue squads in Bunn and Youngsville with night and
weekend ambulance coverage. In addition, the board approved a 24 shift schedule to aid
with QRV staffing and staff recruitment and retention. This budget recommendation
fully funds these initiatives for fiscal year 2007. I am also recommending a new
ambulance for the county’s emergency medical services operation, which will replace an
older vehicle and enhance operational capacity.
The planning and coordination components of emergency preparedness and
response grow more complicated every year. New state and federal preparedness
requirements and local expectations on the emergency response community demand
greater resource capacity. In this budget, I am recommending the board approve a
planning technician that will focus on development of a comprehensive emergency
management program including grant preparation and management for the response
community at large, operational planning for emergency incidents, and basic all-hazards
risk and prevention education. Because of the availability of state and federal grant
dollars, I believe in future years this position can be partially supported with resources
other than county taxes.
Continued Policy Obligations
Franklin County must meet every month its share of the Medicaid obligation.
Counties in North Carolina are required to pay a percent of the non-federal Medicaid
share. Locally, I am forecasting the obligation at $3,250,000, which is an 8 percent
increase over the 2006 approved budget. This recommendation, while less than what the
state’s medical assistance division projected, is reasonable when compared to previous
and current year spending patterns and linked to the continued success of cost
containment strategies identified and implemented by the state. My recommendation will
require that 10 cents of every property tax dollar collected be set aside to meet the
county’s continuing obligation to pay for Medicaid services. In fiscal year 2007
Medicaid expenses will account for 12.4 percent of the property tax rate.

Franklin County Board of Commissioners
May 19, 2006
Page Six
Debt service is separated by general fund obligations and public utility
obligations. The general fund debt obligation in fiscal year 2007 is $4,466,475 and
accounts for previously issued debt for schools and other county facilities and budgets for
new, not-yet-issued debt service from the 2004 public school bond referendum. Public
utility debt obligations in 2007 are budgeted at $1,677,171. Debt service in both funds is
$6,143,646. An important note: Franklin County continues to maintain its impressive A1
bond rating.
Public Utilities
The Franklin County public utility system continues to enjoy impressive growth.
In the current year, the system is expected to grow more than 25 percent, and I am
expecting a growth rate equal to or greater than 25 percent in fiscal year 2007. Although
the system is growing at a rapid clip, the system in its entirety is still relatively young,
thus the customer base is not what is necessary to make the system (water and sewer)
wholly self-supporting. However, the general fund transfer for fiscal year 2007 is
recommended at $300,000 which is $30,000 less than the 2006 approved budget. To
continue moving the public utility system toward self-sufficiency, I am recommending a
rate increase in both water and sewer services.
The water fund is budgeted at $4,528,693 and establishes a rate structure as
follows: 1) $25 base rate [2,000 gallon minimum], 2) $7 per 1,000 gallons after the base
rate, and 3) high-volume, multi-user, and municipal rates of $5.25 per 1,000 gallons. The
multi-user designation includes an $8 connection fee per month.
The sewer fund is budgeted at $1,654,096 and establishes a rate structure as
follows: 1) $30 base rate [2,000 gallon minimum] and 2) $7 per 1,000 gallons after the
base rate.
New Initiatives
After meeting the policy priorities of the board, the budget staff and I defined new
initiatives that will assist with current county operations, but will just as importantly help
move the county forward in strategic ways and enhance the operational effectiveness and
efficiency of the organization at large. These initiatives include:
• Creation of a long range planning program and planner assigned to the
planning and inspections department. This program and position will address
the growth challenges county-wide by focusing on land use policy, interjurisdictional
planning assistance, and capital facilities planning.

Franklin County Board of Commissioners
May 19, 2006
Page Seven
• Development of a wholly focused human resources program and associated
position to guide development of the county’s most important resource – its
human talent. Franklin County government is a large, complex organization
that requires professional coordination and implementation of personnel
matters including staff recruiting strategies, administrative policy
implementation, staff performance assessment, and diversity awareness.
• Reorganization of the income maintenance caseworker staff in the social
services department by enhancing staff capacity in the family and children’s
Medicaid unit and the food stamps unit. Caseload increases in both units
necessitate additional staff to minimally meet demand and performance audit
expectations.
• Deployment of a full time Care and Share program locally. In the 2006
approved budget, the board committed to part time management of Care and
Share’s administrative affairs. Demand for the program’s needs, which have
exceeded 1,400 households, are not adequately met by the part time hours
offered. A full time program commitment will allow the county to address
families in crisis and in need of emergency food assistance.
• Expansion of the county’s information technology department to include a
technician. The technician will increase the operating capacity of the
department to include network infrastructure construction and hardware
maintenance.
• Creation of a new Meals-on-Wheels delivery route as organized by the aging
department. This route will expand the number of elderly citizens afforded
high quality, nutritious meals that are otherwise limited to access because of
transportation or illness.
• Transition to next generation tax software that will create data and
operational efficiencies. The transition is necessary, if approved, before the
next revaluation begins; ideally with operation of the system 1 full year prior
to revaluation. Specifically, the tax administrator and I are recommending
transition to Tyler software.
• Deployment of next generation geographic information system (GIS)
software. Data layer development and management and creation of parcel
files are becoming more complex because of growth pressures and limited
technical capacity. Conversion of the GIS operation to ArcGIS will provide
for a more efficient and nimble property analysis capability.

Franklin County Board of Commissioners
May 19, 2006
Page Eight
• Transition to a solid waste enterprise partially funded in the first year with a
solid waste availability fee of $45 on all residences and businesses. The fee
reduces in the first year, and will eliminate in future budget years, the reliance
on the property tax to fund the solid waste operation, which includes a
landfill and 12 convenience centers county-wide. The solid waste availability
fee offers unlimited access to any convenience center and 2,000 pounds of
disposal at the landfill. In addition, solid waste will expand its convenience
center operations to 6 days per week: Monday through Saturday.
Personnel
Franklin County government has firmly established itself as one of the finest
public bodies in all of North Carolina. This accomplishment is directly attributable to the
ability to attract and retain a highly competent and talented work force. I intend to
continue the trend of preserving a motivated, highly capable work force by
recommending the following:
• $1,000 cost of living adjustment per employee
• full funding of career advancement
• full funding of experience pay
• continued participation in Blue Cross/Blue Shield of North Carolina
Meeting the priority goals of the board and funding new program and efficiency
initiatives that move the county forward require a commitment to an appropriate level of
staffing. This budget recommends 11 new positions, which are critical to a successful
county operation.

Summary
I am recommending a fiscal year 2007 budget that I believe addresses the
expectations of the board of commissioners: 1) it meets the policy goals defined by the
board, 2) it balances the budget with no tax increase, and 3) it maintains a healthy fund
balance position. Beyond these expectations, the staff and I have developed a budget that
sets appropriate fees for service and recommends a set of new initiatives aimed at
supporting the stated public policy goals of the board.
The 2006 approved budget began laying the foundation for a stronger, healthier
Franklin County. The 2007 recommended budget offers a sustainable approach to
guaranteeing a brighter future for the county, its residents, and its businesses. It is
because of the board’s progressive leadership and vision that county staff and I can
present to you a balanced budget that takes the county forward.

CLICK HERE TO BE ADDED TO FRANKLIN GOP E-MAIL LIST.

Franklin County Board of Commissioners
May 19, 2006
Page Nine
In closing, I must note that county staff, management and non-management alike,
worked hard and long to help craft this ambitious, smart spending plan for fiscal year
2007. It is the imagination and commitment of county employees that makes for the
innovations of this budget recommendation and will allow for sound execution of the
budget throughout fiscal year 2007.

Respectfully submitted,
Chris Coudriet
County Manager

cc: Kristen King, Clerk to the Board