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Property values likely to continue climbing
By Emily Elders
With the recent uproar over a proposed building moratorium and several planned subdivision development ordinances, county commissioners found that their Thursday (Feb. 22) budget work session had more information than they had expected about high revenues from property valuations and new construction.
Finance officer Darlene Fox and county Manager Ken Westmoreland went over this year’s numbers with a focus on operating expenses and revenues in preparation for the creation of next year’s budget, which should be given to commissioners sometime in April.
The picture Fox painted of growth in property valuations, transfers, permits and tax collections showed a rosy county future if the budget continues to follow trends that have developed rapidly since 2002.
At Westmoreland’s suggestion after the news, commissioners unanimously approved hiring two new planning department employees this year in preparation for creating the proposed ordinances, with two or three more to follow during the next fiscal year.
Property valuations rose from $1.1 billion in 1992 to slightly more than $6 billion in 2006, counting a revaluation in the 2005 fiscal year. Property tax collections in 2006 are expected to net the county more than $21 million this year, according to Fox, who projects a 97.03 percent collection rate.
The increase is expected to continue.
“We’re projecting growth in property tax revenue to stay consistent over the next six years,” said Fox, basing her projections on a 4.8 percent annual growth rate due to new construction.
This would bring the assessed value of county-taxed property to more than $8.3 billion, not counting a revaluation which is scheduled to take place in 2008.
Commissioner William Shelton asked for projections on revenues generated from that revaluation.
Westmoreland said even a conservative estimate projects a continuous rise in property values.
“Our preliminary projections are showing a total assessed value between $10.5 and $11 billion after the 2008 reevaluation,” he said.
Revenue has also been generated from an increase in building permits, according to Fox. The number of 2006-07 permits has reached 1,703, with four months to go (though these include not only new construction but additions, improvements, and other construction), up from the 1998-99 year-long figure of 1,398. Permits generate revenue – in the case of this fiscal year, more than $700,000 to date for county coffers, Fox said.
The rate of property transfers is also significantly higher, following a consistent growth trend from 2002. From that year, the rate of transfers has increased 35.8 percent – from just over 3,000 to almost 4,500.
Property taxes make up part of the general fund, the operating pot for the county. Three other areas bring revenue into this fund – other local taxes, intergovernmental revenue (grants and state funding) and permits and fees/sales and services – with another category collecting miscellaneous revenues, such as interest earnings.
“These numbers look good too,” Fox said.
She cited a 10 percent increase that brought sales tax revenues near $10 million, along with an increase in interest earnings and the completion of grant-funded projects during 2006 as factors influencing these other types of revenue.
Though it may seem like this revenue will be pure profit, Fox said budgeted expenditures are expected to increase right along with the revenues.
The general fund expenditures traditionally fall into one of four categories – education, general government, public safety and human services – with a catch-all miscellaneous category for other expenses.
The biggest effect this growth will have on the county is in its ability to fund capital finance projects, Fox said. She quoted the county’s current financing potential at $766,934, but projected high increases through 2012 for an estimated $3.1 million.
In comparison to other counties’ operating revenues and expenditures, Fox said Jackson is improving its standing in the competitive markets of western counties.
Other issues board members discussed included cost-of living-raises, attracting qualified individuals to county jobs, and increased fuel and utility costs.
Commissioner Tom Massie asked Fox for more information at the next work session about the rate the county pays employees for personal vehicle use, which she had quoted for this year at 40.5 cents per mile with a projected increase for next year up to 48.5 cents.
“I’ll be interested to see the number of people using personal vehicles versus the county vehicles,” he said.
Fox noted that many of the trips taken by Health Department employees are for work-related conferences, but that much of the county’s personal vehicle use is accounted for in those figures.
Improvements to the planning department, including at least two new staff members during this fiscal year and up to three in the coming fiscal year, were discussed, along with suggestions from Westmoreland about improvements to both the building and grounds maintenance departments. The security of the jail and increased workloads at the Department of Public Health were brought up by Massie and Commissioner Mark Jones, respectively, but these issues were pushed back for discussion at the next budget work session.
Westmoreland said he would continue working on the budget with the goal of finalizing it by April 15.
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