Fiscal Year 2024-25 Budget

The Cabarrus County Board of Commissioners voted Monday (June 17) to adopt the Fiscal Year 2024-25 (FY25) budget, which takes effect on July 1.

The plan sets the tax rate at 57.6 cents per $100 of assessed value.

With that, owners of a $356,350 house (the median single-family assessed home value in Cabarrus as of the 2024 revaluation) would pay $2,052.76 a year in County property tax.

The approved plan calls for $200,000 in surplus funds generated from the adopted tax rate be allocated to establish a revolving loan fund for affordable housing assistance. The Revolving Fund Council will administer the fund in cooperation with WeBuild Concord. Also, County staff will identify an additional $1.8 million in funds not expected to be used during FY25, bringing the total affordable housing fund to $2 million.

The original Recommended Budget presented to commissioners in May called for a tax rate of 60 cents per $100 of value, which would have generated a surplus of $15 million over two years (FY25 and FY26). That funding would be used to cover a projected budget shortfall in FY27 and FY28.

That surplus was removed from the final FY25 approved budget.

The approved budget ordinance consists of the General Fund ($379.9 million), the Community Investment Fund ($74.2 million), the Landfill Fund ($2.45 million), the 911 Emergency Telephone Fund ($473,775), the Fire Tax District Fund ($9.55 million), the Social Services Fund ($450,000), the Intergovernmental Fund ($2.6 million), the Workers Compensation and Liability Fund ($4.9 million), the Health and Dental Insurance Fund ($19.54 million) and the Opioid Settlement Fund ($670,866).

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Cabarrus County places a high priority on maintaining services for residents and investing in public safety.

CabCo Recommended FY25 Budget Infographic

Tonight, County Manager Mike Downs presented the Fiscal Year 2024-25 (FY25) Recommended Budget, aligning the County with those key elements. Downs broke down highlights of the $391 million plan during commissioners’ May Regular Meeting.

The recommendation reduces the tax rate to 60 cents per $100 of assessed value – a 14-cent drop from FY24.

With that, owners of a $356,350 house (the median single-family assessed home value in Cabarrus as of the 2024 revaluation) would pay $2,138.10 a year in County property tax.

At that rate, “the County can sustain services, many of which are state-mandated, and make critical investments in staff, capital and other needs,” Downs said. “Analysis shows that short of an economic downturn, this rate should be sustainable and provide a degree of certainty for taxpayers over the next four years.”

Part of the budget process includes a five-year plan that details expected changes in revenue and expenditures.

The recommended tax rate would generate a surplus of $15 million over the next two years (FY25 and FY26), which would in turn be used to cover a projected shortfall in FY27 and FY28.

Shaping the FY25 Recommended Budget

Results of the County’s revaluation featured prominently during budget discussions due to unprecedented growth in real property values across Cabarrus.

The revaluation process is dictated by State law with minimal local control. Revaluations must occur at least every eight years, but the State can direct compliance sooner if values fall or rise more than 15% from the going market rate.

Cabarrus values established on January 1, 2020 were determined to be more than 15% lower than market rates in 2022. That would have required a revaluation no later than January 1, 2025.

“Faced with this, the County followed Board policy and maintained the four-year revaluation cycle as recommended by the Department of Revenue,” Downs said. “The valuation increase is consistent with recent statewide trends. Although increases can cause sticker shock, data shows the results are not an outlier nor inconsistent with current market conditions.”

In addition to revaluation, the local and national economic outlook factored in the development of the Recommended Budget.

The County’s population continues to grow. An estimated 240,512 residents call Cabarrus home as of 2023. Continued growth results in higher property values and increased sales tax collections, which increase revenue. Growth also brings extra expenses to sustain services. Nearly a quarter of the County population is under the age of 18, increasing demand and funding needed for school facilities.

Here are some highlights of the proposed FY25 budget:

Prioritizing public safety and enhancing social services

The largest new expense in the FY25 budget—significant increases to public safety salaries—was approved unanimously by commissioners in March 2024. These increases recognize the contributions of Sheriff’s Office, EMS, Fire Services and Emergency Management professionals.

They are also competitive, improving recruitment and retention.

The FY25 budget also funds:

• Eight new positions for EMS to place a 14th ambulance into service. This additional ambulance will provide coverage 24/7/365, improve response times and reduce the need for standby coverage
• A new armored van and truck for the Sheriff’s Office Special Response Team to enhance incident response capabilities
• A Simulation Technical Specialist and a Logistics Specialist for EMS to enhance in-house training and to manage distribution of medical supplies, equipment and other items
• One additional Deputy Sheriff to provide security at the Concord Library branch

While position needs exist across departments, the Department of Social Services (DSS) continues to experience significant turnover and must remain compliant with State and Federal guidelines. Failure to do so can result in significant financial penalties or even takeover by the State of a program or the entire department.

Ten new positions are recommended for DSS, including:

• Three Eligibility Specialist II and an FNS Eligibility Supervisor II in Food and Nutrition Services
• A Licensing Social Worker III, Quality Assurance Evaluator and Community Social Services Technician in Child Welfare
• An Intake Social Worker II in Adult and Family Services
• An Administrative Specialist I in Child Support Enforcement
• An Administrative Specialist III within DSS Administration

Addressing education partnerships and unprecedented capital needs

Overall, the Cabarrus County Schools (CCS) operating budget increases to $90.2 million – $8.5 million over FY24. Kannapolis City Schools (KCS) operating budget increases to just under $10.5 million – up $1.16 million from FY24. Additional funding for both CCS and KCS covers increased costs for personnel, including salaries, certified supplements and benefits. This funding also covers inflation- and enrollment-related cost increases for instructional, staff training, building maintenance, utilities and technology.

For Rowan-Cabarrus Community College (RCCC), additional funding for salary and benefit increases and utilities are included, resulting in total funding of $4.6 million, an increase of 6.2% from FY24.

As part of the FY24 budget, the Board approved new financing for 13 projects totaling an estimated $180 million. Projects included the public safety training facility, relocation of DSS and several education projects. Given market conditions, the debt issuance was delayed until FY25 to address changing needs.

The budget request submitted by Cabarrus County Schools “was the largest in recent memory,” Downs said. Totaling $1 billion, it addresses projected enrollment growth over the next decade.

As a first step in meeting the 10-year request, an additional $170 million is needed, for total financing of $350 million. The added funding would allow CCS to construct two elementary schools that would open in August 2026.

An additional $54 million would be allocated to RCCC for construction of a Workforce Innovation Center and for substantial renovations to Building S201.

The balance of the additional funding will go towards closing gaps for approved projects, including the $20 million shortfall for the Regional Behavioral Health Center. The County received $32.5 million from the State for this critical project, but the overall budget to deliver the full scope of the project is currently $55 million.

Board action will be requested in June to authorize projects for construction-period financing. Although the total July 2024 issuance is a substantial investment, the proposed plan funds these projects without impacting the FY25 tax rate, Downs said.

In addition to debt-financed projects, the budget allocates $27.6 million of cash reserves to meet other capital needs for CCS, KCS, RCCC and the County.

The FY24 budget runs from July 1, 2024 through June 30, 2025.

The County hosted multiple budget-specific Government 101 public events earlier this year. Officials gathered at locations around the county to provide an overview of the budget and revaluation processes and answer questions.

In February, the board held its two-day retreat to officially kick off the budget season. They have also held two workshops.

A budget public hearing is slated for the June 3 Work Session. The vote is scheduled for the Regular Meeting on June 17.

To view the proposed FY25 budget, visit www.cabarruscounty.us/budget and click the tile that says “FY25 Recommended Budget.