© 2002-2005 Hart County Board of Commissioners 

  

HART COUNTY GOVERNMENT 2006 BUDGET

Includes General Fund and Special Revenue Funds

Jon Caime, Hart County Administrator

Executive Summary:

This budget consists of a General fund budget and Special Revenue fund budgets.  The total budget is $13,585,570 which is $1,777,818 less than the total FY05 budget primarily due to a reduction in major capital projects associated with the completion of the current SPLOST II sales tax this fiscal year.

The General fund budget is $8,263,386 which is a 1.75% increase over the FY05 budget.  This increase is a very modest increase especially in light of the increased CPI of 3.6%, increased costs of energy, insurance, and the addition of new positions.   Budgeted General Fund revenues are $7,770,391 accounting for a budgeted deficit of $492,996 to be drawn upon from fund balance if the deficit materializes.  A more detailed discussion and analysis is included in this narrative. 

Three draft budgets were presented over a five month budget adoption period.  A first draft was created with extensive backup documentation on the requests submitted.  In an effort to be more efficient, this final draft does not include the backup documentation which was a part of the first draft.  The first draft is available for public review should more information or backup be needed by the user.  This final budget is the draft results of extensive work sessions with the Hart County Board of Commissioners and interviews with department heads, constitutional officers, and budget managers.

Millage Rate:

This year the Hart County Board of Commissioners has lowered the millage rate 10%.  This marks the fourth year in row that the Board has lowered the millage rate with a total millage reduction of 26% in four years.  (See “Hart Co. Unincorporated Millage Rate” chart). 

Hart County has moved up the ranks in the State with the 5th lowest millage rate out of 159 Georgia Counties.  A local comparison of adjacent counties (see “05 county Millage Rates-Local Comparison” chart) shows that Hart County’s millage rate is significantly lower than our surrounding counties.

General Fund Revenues

Generally accepted wise governmental management advises a minimum general fund balance of approximately 25% of the general fund budget to be kept in the event of unforeseen emergency situations that may arise during the year.  During the past two fiscal years a budgeted deficit never materialized and in fact the Hart County fund balance (cash) reserve has grown 5% for the past two consecutive years and now is approaching 50% of the budget.  This has taken place by wise management of expenses, conservative budgeting, and growing revenues. 

The final budget FY06 recognizes the fact that we have a healthy fund balance that can be drawn upon to fund some needed budget increases that have been postponed in the past.  We must be cautious however to balance needed increased funding needs and maintaining a healthy fund balance.  It is expected that we will need to draw upon our fund balance this year.

The revenues estimate in this second draft uses the 10 month revenues received to date FY05, as well as the past three year history (02,03 & 04) of revenues.  Some key revenues are discussed in detail;

  1. Real & Personal Current Year:  Traditionally the County has used a very conservative approach to this revenue source by applying a 90% collection factor to the actual digest figures.  Historically for the recent past, the county has actually collected in excess of 90%.  This year the administrator is recommending using a more realistic collection factor based on the anticipated FY05 collection rate.  The revenues presented in the second draft are based on the Boards adoption of the rollback millage rate which is 10% lower than the FY05 rate. 
  2. LOST:  The LOST (Local Option Sales Tax) (not SPLOST) estimate is based on several years of data on actual revenues received each month and the expected growth in the revenues.  This revenue is a direct reduction in local property taxes.
  3. Homeowner Tax Relief Grant:  We will receive this grant again this year.

A chart entitled “Revenue History” shows the audited general fund revenues for the past five years.  The average growth has been 5% per year.  Conservative fiscal estimating for general fund revenues accounts for FY06 revenues of $7,770,391.  However this amount is less than the FY04 actual audited revenues and lower than the 10 month FY05 projected revenues. 

If FY05 follows the 5 year historical trend averaging 5% growth over the actual revenues observed for FY04 then we would expect FY05 revenues to be approximately $8,200,000.  Again in FY06 we could potentially expect a 5% increase in revenues which could result in an FY06 general fund revenue total of $8,400,000.  We must be cautious not to be overly optimistic with our revenue projections as economic and other factors may have a negative effect on current revenues.  Therefore we have used a conservative revenue estimate for FY06.

Analysis of all Revenue Sources:

Three charts are included analyzing revenue sources.  The first chart (“Value Equivalents $100,000 House”) shows the various revenue sources and their estimated equivalent value to the current property tax millage for a $100,000 house.  For example applying the current millage (2005) rate to a $100,000 house would create approximately $175 in revenues.  The other revenues are not generated from property taxes and if these other revenues did not exist from other sources then the dollar value shown in this chart would be needed from property taxes to continue these services at their same level.

A similar second chart is presented to illustrate the same point.  This chart (“Millage Equivalents”) shows the various revenue sources and their equivalent millage value.  For example if Hart County did not have the current SPLOST II sales tax, then the Hart County Board of Commissioners would need to raise millage 3.36 mills to have the same revenue and provide the same level of service.

The final chart (“Revenue Sources FY06”) illustrates the source for the various revenues.  Only 27% of the revenues in the FY06 budget are derived from property taxes.  The SPLOST II sales tax generates a full 21% of the revenues.  The LOST sales tax generates 15% of the revenues.  Other special revenue funds such as capital grants, insurance premium tax, and the solid waste charges, account for 18%.  The final 20% is from other General Fund revenues such as fines, fees and other sources.

This year the SPLOST II sales tax will expire (4/1/06 or sooner).  This revenue source is a critical function for provided services without raising property taxes.  This revenue source pays for paving and maintaining roads and bridges, pays for capital projects for economic development, installing water lines in the County, City capital projects, purchasing capital for fire protection, and for construction of recreation facilities. 

The voters of Hart County will vote on a SPLOST III referendum in November of this year.  If the vote passes a budget amendment will be created to expend these funds beginning this fiscal year.  If the vote fails, the proposed capital projects that are budgeted in FY06 for SPLOST II will have to be curtailed or canceled.  In addition, if the vote fails, property taxes will have to be raised in 2006 if the same level of service is desired.

General Fund Expenditures:

General fund expenditures are budgeted to exceed budgeted revenues by $492,996.  However as stated above the revenues are expected to be higher than budgeted based on past revenue growth creating a more balanced budget.  Any budget unbalance is recommended to draw upon the fund balance rather than increases in fees or taxes.  General fund expenditures recognize the potential for revenues approaching $8,400,000 coupled with a very healthy fund balance to fund expenditures that have been postponed in the past fiscal years. 

A pie chart is presented with a breakdown of expenditure categories (see “FY06 General Fund budget expense breakdown” pie chart).  In comparison with FY05, General Government, Public Works, and Judicial Categories account for 1% less each in the overall percentage of the whole general fund expenditure budget.  Culture, Housing and Development and Public Safety have increase 1% each in the overall percentage of the whole general fund expenditure budget.  Health and Welfare has remained stable.

TOP CHANGES:

The largest percentage increases in the FY06 budget over the FY05 budget are in the following departments: 

  1. 492% Increase in BOE- Due to expected appeals from the reevaluation
  2. 112% Increase in Elections- Due to this being an election year
  3. 107% Increase in Economic Development- Due to the need for more effort to offset the negative effects of the current local economic situation with facility closures.
  4. 28% Increase in EMS due to the need for an additional EMS crew from the increased call volume

More important is the largest dollar increases in the FY06 budget over the FY05 budget are in the following departments: 

  1. EMS ($271,769) due to the need for an additional EMS crew from the increased call volume
  2. Highway & Streets ($150,230) to fund two specialized equipment operators that will be able to grade our dirt roads properly and two additional equipment operators to help with the backlog of needed road work.
  3. Economic Development ($65,225)- Due to the need for more effort to offset the negative effects of the current local economic situation with facility closures.
  4. Probate Court ($27,831) to fund a position to lower costs for running elections (machines) and better control future costs of these machines

DETAILED BUDGET INFORMATION:

·        Education Expenses:  The Education Fund was used this past year to fund education expenses.  This fund is scheduled to be liquidated as soon as the funds are used up so some education funding may move back to the general fund this year. 

·        Fuel:  Fuel costs have risen and have had an impact on our FY06 budget. 

·        COLA:  The current cost of living is 3.6% higher than August 2004.  The Administrator has included a 2.5% COLA to all eligible positions.  In addition the State has mandated a 2% COLA for eligible State employees.  These COLA costs have been included in the wage figures presented in this draft budget.  BOC pay increase is not included in BOC wages.

·        Insurance:  The Hart County Board of Commissioners has decided to increase our liability coverage limits from $1M to $3M which increased the cost of coverage. Workman’s compensation coverage costs are not available yet.  Medical insurance will rise 7% which is a modest increase. 

·        14000 Elections:

  1. This is an even year where we will anticipate higher costs due to elections.  
  2. The electronic voting machines will cost a large sum of money to get ready for the votes.  The Elections superintendent is requesting a full time person so that we can learn how to program these machines ourselves (in probate court budget).  With a full time person we should see a significant decrease in line item 52.1314.  The full time person will also cover the part time position currently budgeted in this budget. 
  3. Also note that a runoff is not budgeted however if a runoff occurs a budget amendment will be needed.

·        14100 Registrars: 

  1. This board is requesting an increase in the Board Pay and making the part time position into a full time position.  The Administration is not recommending the full time position.  The wage expense shown under administration does not include an increase in the board pay. 
  2. The board is requesting two person coverage 45 days before the election for absentee balloting, administrator is not supporting this request. 
  3. The board is asking for all four registrars to be paid for 10 days prior to the election as well as additional part time help for advance voting.  The administrator supports this so that the voting public does not have to wait any longer than necessary during advance voting. 
  4. The Board is asking for 5 voting machines.  The elections superintendent will allow the use of 5 of our existing machines this coming year so the administration is not supporting the boards request on this item.

·        15300 Law:  Actual costs may be higher than recommending depending on the legal costs in FY06

·        15450 Tax Commissioner: 

  1. The Commissioner is requesting a 5% pay raise for his employees.  The Hart County Board of Commissioners has authorized the Administrator to look at all wages that have not been recently adjusted.  If a wage adjustment is warranted the BOC has committed to making those adjustments retroactive to October 1, 2005. 

·        15500 Tax Assessors:  Has requested a substantial increase. 

  1. They are requesting two more full time employees and an increase in the temporary employee budget.  The administration is not recommending either of these as the current full time staff is higher than it has ever been and the current staff is most trained staff we have had in the recent past. 
  2. The BOA is requesting that the board pay be doubled.  This is not included in the administrator recommended budget. 
  3. The BOA is in need of transforming their mapping system.  There are several line items (51.1200, orthophotography, included in this budget that are in support of transforming the BOA mapping system.   Most of these mapping costs will be one time costs.  The Hart County Board of Commissioners has chosen not to fund this.

·        15550 Risk Mgt:  A speculation on increased costs of insurance has been applied based on the increases observed in the recent past. 

·        15650 Buildings: The costs for running the new industrial park will need to be evaluated further.  The JDA has some funds available that may be used to pay off debt or run the new park.  Costs anticipated for the new park include electricity for the lights and bush hogging/landscaping.  TI will pick up their share of these costs and as new tenants come in they will pick up a share. Tenants will eventually pay 100% of these costs.  

·        21800 Clerk of Court: 

  1. Document backup of court documents will be completed FY05 backing up these records to 2004.  However documents were created in 2005 and will continue to be created. The BOC has funded a part time employee to backup newly created records. 

·        24500 Probate:  See elections. 

  1. Includes a new full time position to replace 28% part time position (probate) and 5% part time elections person.  Full time position is proposed by Probate Judge to learn the programming for the electronic voting machines so that we are not at the mercy of Diebold and required to pay about $7,000 per election for Diebold’s labor each election. 

·        26000 Juvenile Court:  The County Administrator has been progressively moving expenses in the past few years to the proper department so that we can have a true picture of the actual expenses for running each department.  The Clerk of Court spends some postage and office supply funds for Juvenile Court functions.  These costs are shown in this department for the first time.

·        27000 Grand Jury: 

  1. FY06 is a higher expense year as are all even years.  (See FY04 & 02). 
  2. The Board of Equalization has been paid out of this department.  This year the Administrator has moved these expenses (BOA pay “Jury Script”) to the Board of Equalization department.

·        28000 Public Defender:  Costs reflect new contract

·        28100 BOE:  See 27000 for BOE pay item moved to this department this year.  Also expected appeals this year due to reevaluation.   Appeals budget based on FY03 costs from last reevaluation.

·        33000 Sheriff:

  1. Salaries: FY05 added an investigator position and a Deputy position for additional Courthouse security.  The full years costs for these positions were included in the FY05 budget even though only a portion of those expenses would be paid for in FY05.  This was done so that the entire budgetary impact of these added positions was reflected in the fiscal year where the positions were added. 
  2. This year the part time positions that have been included in regular wages have been pulled out into a separate line item for better tracking and accountability of these expenses.
  3. Vehicle replacement is now on a schedule (54.2200) (see the vehicle replacement schedule).  According to the Maintenance Director, the vehicles need to be replaced at 200,000 miles.  Before the County Administrator developed a replacement schedule the BOC would replace vehicles as funds allowed or the board decided to.  Because of this the County did not purchase replacement vehicles for several years in the past and then more recently began to replace a large number of worn out vehicles.  As a result of this the County will have a glut of vehicles that will need to be replaced in 4-5 years.  Over the next 5 years we will be replacing an estimated 15 vehicles.  10 of these 15 will be replaced in years 4 and 5.  The Administrator is recommending that we keep a steady number of vehicles replaced each year and is therefore recommending we purchase 3 vehicles per year for the next five years.
  4. GCIC (54.2500) was not budgeted for the past several years although we have had this service and paid for it.  Therefore it is included in the budget this year.
  5. Livescan ($19,635) is a grant that the department has applied for.  If we are awarded the grant the BOC will need to determine if they want to accept this grant and associated costs.  There will also be a revenue associated with this line item.
  6. MANNs Unit (57.2170) is not recommended for funding.
  7. Spanish Speaking Interpreter:  Needed due to the increased case load with non-English speaking cases.

·        33260 Jail:

  1. Includes two full time jailers.  Turn over at the jail is high, offering a full time position is expected to decrease turnover.  Also jail should have three jailers on duty at all times.  One must remain in tower.  One would respond to cells and third is available for back up if adverse situation happens with response to cell incidents.

·        34200 Adult Corrections: 

  1. Charge for detail supervisor has been exempted for one more year. 
  2. Charge for gasoline- a $0.10 surcharge is added to our cost for this and is a revenue generator.

·        36000 EMS:  The EMS staff has remained at the same level for at least 20 years however the call volume has gone from 43 calls in 1974 to a peak of 273 in 1995 when we quit doing some non-emergency transports.  In 2002 the total call volume was 212 calls.  However of 110 of the 1995 calls were non-emergency related and 163 calls emergency related.  In 2002 the non-emergency call volume was only 13 and 189 calls were emergency related.  That is an almost 400% increase in total calls since 1974 and a 50% increase in emergency related calls from 1995 to 2002.  Non-emergency calls can be scheduled and responded to as convenient to the department.  Emergency calls however are a burden at the current staffing level.  This years budget request is for an additional 6 person crew to handle the increased call volume.

·        37000 Coroner:  Another expense that was paid for by the State in prior fiscal years is being passed on to the County.  The cost for transporting bodies to the crime lab is an expense that shows up in the part time wages.  Our part time coroner help is used to provide this service.

·        41000 Public Works: Wages includes increasing the grade for the specialist position from a 10 to an 11.  This position was a grade 12 and was lowered due to the fact that we could not find qualified staff to handle the complexity of this position should handle.  We now have a person who has proven capable of managing the complexity needed for this position.  The public works director and the environmental compliance director are not included in the Administrators budget.

·        42000 Roads: The wages includes two skilled motor grader positions approved in FY05 but were never filled and a pay grade was never set, grade is set at 15.  These two positions will be responsible for continuous grading of dirt roads.  Two additional equipment operator positions (grade 13) have been added to help with the back log of road work. Additionally the administrator has included raising the road foreman position from a grade 16 to a grade 19.  The second in command at the assessors office was just put in place at a grade 19 and the road foreman position is just as valuable as that position. 

·        44100 Water and Sewer: Is no longer supplemented through general fund

·        61000 Recreation:

  1. The new park will come online this year creating additional workload for this department.  The department is requesting an additional full time grade 9 person.  Administrator recommended a part time position this year and to see how the workload is managed for future years.
  2. The department is also asking to start a new summer camp program.  The director has been asked to bring a more complete plan to the BOC after the Rec Advisory Bd has approved this program, for the BOC to evaluate this program further before it is started. 
  3. Other costs associated with the new park are shown under notes 5 & 6.

·        65100 Library:  The Library Audit showed a fund balance of $107,290.  This years budget includes a one time challenge grant for capital improvements where the Library board will match the funds allocated by the County for various projects.  The need for a library fund balance would solely be for operating reserve for an emergency situation or short term operating reserve.  However the County Administrator recommends that a longer term operating reserve for the library is not needed.  In the event that there is non-funding by their funding sources a longer term operating reserve will only be postponing the inevitable (closure) by using the reserve. 

·        71300 Ag Resources: Has requested a substantial increase in travel expenses.  Administrator is recommending that travel be conducted using County vehicles rather than solely reimbursement.  Department is requesting new copier and copier expenses have risen.  Need to look further into copier needs.  Water Authority is now being billed for their portion of the building costs.

·        75000 Economic Development:  Our Economic Developer (Bob Evans) works only part time several days per week and will be “retiring” sometime in the near future. Hart County has been fortunate to have Bob as a part time economic developer.  He is highly respected in the State and has decades of successful recruitment experience.  The Economic Development Department is recommending a new position of a full time, aggressive economic developer, who has experience in business recruitment and retention to work will our current part time economic developer.  This person would get to know the contacts that Bob has developed over his career and be able to learn from Bob’s many decades of successful economic development.  If Hart County is going to be proactive in attracting and retaining business we must invest in economic development.  The department has requested a large salary due to the quality of person we need to hire.  The County Administrator has moderated this salary to fit better with our other current salary offerings. 

·        75630 Airport Authority: 

  1. If grants are offered to the airport, the County Administrator is recommending considering matching funding for those grants when awarded during the fiscal year.  The Federal and State governments are offering some 90-95% funding of capital airport improvements so the Counties need to take advantage of this opportunity while it exists.
  2. The County Administrator has asked the Airport Authority to brief the BOC on proposed projects as well as their operating expense request. 

FUND 110 Economic Development Funding:  In FY04 & 05 the DDA was funded from this fund.

DRUG ABUSE 201:  Eligible expenses are funded for the Sheriff for the DARE program and related activities.

EDUCATION FUND 202:  This legacy fund is to be liquidated.  Education expenses are to be paid from this account in FY05.  Remaining funds are to be liquidated in FY06.  This may require a transfer of expenses budgeted in this fund back to the General Fund during the fiscal year through a budget amendment. 

INSURANCE PREMIUM 203 FUND:

The insurance premium fund is a fund that uses no tax revenues from City residents.  This revenue source has been growing approximately $50,000 per year for the past few years.  Each year we budget revenues based on prior year revenues.  While a healthy fund balance exists, this fund is critical for funding the long range needs of the County fire operations and a healthy fund balance should continue to be relied upon to fund future growing needs of County fire protection. 

·        15950 GAMtns Fees:  Because of State law, the General fund can no longer be used to pay the County’s RDC dues.  For several years now we have been considering the potential for moving from the GAMtns. RDC to the NEGA RDC.  From an economic standpoint the NEGA RDC charges $0.80 per capita compared to the GAMtns. $0.96 per capita.  It is the County Administrator’s opinion that Hart County is more influenced by the NEGA region (Athens) compared to the GaMtns Region (Gainesville) and is recommending that the BOC consider moving towards changing RDCs. 

·        35000 Fire:  

  1. The Part Time Fire chief has requested wages for a full time fireman for the Shoal Creek Station and for a full time chief.  This budget includes increasing the part time fire chief pay and that the fire chief work with the volunteer stations to change the bylaws to allow a full time chief to be hired by the County. 
  2. The new full time fireman is not included in the budget.  The BOC has included wages for part time firemen.
  3. Education and training has been increased.  There is no better investment than training of our full time and volunteer firemen. 
  4. After years of planning we will have started our training facility with the installation of the pump test pit and hopefully a mobile burn building.  Protecting the lives of the firemen, through proper equipment, protective gear, and training, is the highest priority.  Additional costs for turn out gear, pagers, hoses and hydrants further this goal. 
  5. A second important priority is continuing to support our volunteer firemen.  The community is blessed to have volunteers who will sacrifice their time and safety for the community.  The BOC continues to support the volunteers through this budget and the recent changes that have been put in place.  The two existing full time firemen have been a great asset to the fire department.  They continue to test and maintain the previously neglected fire hydrants in the County.  They continue to support the volunteers by performing maintenance tasks on machines and equipment to minimize the volunteer’s impact to their own time. 
  6. Included in the FY06 budget is continuation of the BOC implemented 100% retirement contributions to eligible volunteers that were started last year. 
  7. Also included is new turn out gear, pagers and equipment for new volunteers and replacement of existing worn out equipment.

·        44100 HCWSA:  During the SDS discussions with the City of Hartwell, the City pointed out that we should not be funding the HCWSA through general fund.  Therefore during FY05 we moved HCWSA expenses to the County tax only 203 fund.  In addition a goal was set by the BOC where would reduce the HCWSA funding by a minimum $27,000 annually until we are no longer funding the Authority in about 4 years. 

·        45100 Solid Waste:  In order to be able to fund the HCWSA through the 203 account, we had to shift some solid waste expenditures to the 540 tipping fee enterprise fund.  Included in the solid waste wages is two additional part time solid waste convenience center operators for a proposed new convenience center at the transfer station.  This issue is discussed further in the 540 enterprise fund budget.  If the center is not funding the extra wages can be removed from the 203 account.

204 JAIL SURCHARGE:  Eligible expenses for operating and maintaining the Jail are included in this budget.  This helps to offset the general fund expenses for operating the jail. 

206 BEHAVIORAL HEALTH ACCOUNT: 

This account has been established as a depreciation account to fix future needs such as a new roof, HVAC etc…  The supplement to the Mental Health agency in the general fund pays for this depreciation through a “rent” charged to this agency.  There have been rumors circulating the Mental Health Agency will be consolidated operations to another county.  If this occurs this account will no longer receive revenues and the correlating general fund supplement to the agency will be recommended to cease.  We will also investigate the possible reuses of the building at that point.  The building was funded through federal funds and will have restrictions on reuse.  A potential beneficial reuse may be to relocate some of the Courthouse offices (non-court functions) to free up space in the Courthouse and provide a short term space relief for the Courthouse facility.

215 E911: 

  1. The E-911 coordinator was assigned additional tasks replacing the tasks formerly handled by the road department secretary (a position that remains unfunded).  This position has increased in responsibility and complexity and is recommended for a grade increase from a grade 10 to a grade 11. 
  2. Telephone expenses for the fire stations were charged to this account and should be charged to the 203 account.  This has been corrected this fiscal year.  In addition special security phones were installed in the courthouse and are now included in this line item.
  3. Projecting revenues is a difficult task due to the fact that current revenues can be as much as 6 months behind.  Corrections are made with our audit each year to account for some of this delay. 
  4. This account has a healthy fund balance.  FY03 ran a deficit because we used some of the fund balance to pay off long term debt so that we could save in interest payments.  FY04 ran a slight excess and FY05 is expected to have a slight excess therefore the fund balance should grow slightly.  It is expected that FY06 will run a deficit although the deficit shown should be less than shown in the budget.  This deficit can be directly related to the proposed capital replacement in FY06.  The computer equipment is about 5 years old and is in need of replacement.  The $50,000 capital is to replace this equipment.  No other capital replacement is expected for the next 5 years until we should once again upgrade our equipment.

216 DFACs:  A long term lease with the State pays the lease purchase costs for this facility as well as maintenance costs.  A depreciation (fund balance) is available for major expenses such as replacement of a roof, HVAC etc…

218 VICTIMS ASSISTANCE:  No budget request was submitted. Draft budget based on FY05 expenses and revenues.  We are only a custodian to this account and do not take an active role in managing expenses.

250 GRANT FUND: 

  1. This budget will probably have to be amended in FY06 as new grants become available and/or as existing grants get completed. 
  2. It is important to note that there are many additional grants that are included in the general fund.  Grants that must be paid for by the County (primarily non-capital) and are later reimbursed by the grant are usually funded as expenses and correlating revenues in the general fund. 
  3. Capital grants where the grant pays the expenses up front and/or the grant may be able to be paid for from SPLOST and then reimbursed back to SPLOST are budgeted in this 250 fund.  
  4. Grants that were funded in FY05 that are expected to also be in the FY06 budget include the CBDG (east) water line project and two employment incentive grants. 
  5. The Employment incentive grants are revolving funds where the initial grant is paid to a business to expand or retain jobs through a loan to the industry.  These loans are then paid back to the County.  As the loan is paid back to the County the fund continues to grow until the loan is paid off.  At any time the County may loan those funds out to another business and the process continues.  A separate fund will be set up for the EIP grant/loan.  A second EIP grant is anticipated in the near future.

320 SPLOST I:  This account is budgeted to be liquidated.  The fire test pit is scheduled to start in August and will probably continue into FY06.  The fire training paving grant will also be expended in FY06.  Expected FY05 carryovers have been budgeted in FY06 although some of the FY05 carryovers may be paid from FY05 funds and may not appear wholly or partly in FY06.

322 SPLOST II:   Expected FY05 carryovers have been budgeted in FY06 although some of the FY05 carryovers may be paid from FY05 funds and may not appear wholly or partly in FY06.  At this point it is expected that full SPLOST II revenues of $12,000,000 will be received.  If the revenues fall short, then the FY06 budget will have to be amended to account for the shortfall in revenues.

The FY05 budget includes YTD (year to date, what we have already spent) as well as projected expenses for the last two months of this fiscal year.  The FY06 budget has line items that will need to be further defined by the Hart County Board of Commissioners in FY06.  These lines items will liquidate the various area allocations with the exception of economic development. 

Economic development is proposing to keep a reserve of $280,250 to pay for 5 years of debt payments.  This will payoff the EMC 10 year loan and pay for 5 more years of the 40 year USDA loan.  At the end of this 5 year period there will still be an estimated $465,000 in debt owed for the 40 year loan.  If the SPLOST III referendum passes then the Administrator recommends funding long term debt payments out of the SPLOST III revenues and liquidating the economic development SPLOST II account rather than carrying these revenues forward until 2011.

If the SPLOST III referendum fails, the Administrator recommends re-budgeting FY06 so that funds for items such as road paving can be stretched beyond FY06.  If the referendum fails then the voters will have a second chance in 2006 to pass a referendum.  Otherwise a property tax increase will be required to maintain roads and provide funding for other current or proposed SPLOST expenditures. 

SPLOST III:  If passed in November we would expect to start to receive revenues in May or June of 2006.  If the SPLOST passes we will need to develop a budget for this in FY06.

540 Tipping Fee Enterprise Fund: 

  1. This fund has been established to pay for the remaining solid waste expenses (some expenses paid from the 203 fund) and to fund a reserve for the long term liability associated with the closed landfill.  This fund has a healthy fund balance however most of this fund balance should be reserved for the landfill liability. 
  2. The County Administrator is again recommending a slight budget deficit for FY06 to fund expenses.  A deficit would be funded from a fund balance transfer. 
  3. This budget includes many solid waste expenses that were transferred in FY05 from the 203 account due to the funding of the HCWSA. 
  4. Included in this budget is money to set up a convenience center at the transfer station.  This expenditure is highly recommended due to the very high liability with the current transfer station operation.  Currently everyone dumps on the transfer station floor.  This floor is usually slippery, wet, and has numerous hazards.  In addition, large equipment and trucks are constantly moving into and out of the transfer station.  We have had several accidents from citizens slipping on the floor and the hazard potential is simply too high to continue this practice.  This project is proposed to be further defined in FY06.
  5. 45600 (Landfill): The long term management plan for the landfill includes continued required methane and groundwater testing.  In addition we will be required to verify that the methane migration problem has been resolved.  If the problem still exists at this point we will probably be required to proceed with phase 4 of the methane remediation which is preliminarily estimated at $300,000.  If we must proceed with phase 4, then a budget will be adopted at that point.     

The groundwater action plan is required to be revisited in FY06.  The budget for this item is $50,000.

Hart County Unincorporated Millage Rate         General Fund Expenses per Capita