Burke budget reflects cautious optimism

With Hurricane Helene’s devastating effects lingering in Burke County and economic uncertainty looming, the proposed 2025-26 budget stresses incremental improvements and cautious optimism.

There’s a conservative cost-of-living adjustment (COLA) for county employees; a half-cent property-tax cut; and small funding increases for schools and public safety.

Burke County Manager Brian Epley took a little more than an hour to present the 25-26 fiscal year budget to the board of commissioners Monday night.

The board will vote on the $116 million budget — 2.8% higher than last year — following a public hearing at the June 16 meeting.

Factors beyond local control played big roles in the document’s development.

The past year saw Helene, an unprecedented natural disaster, wreak havoc on Burke and the rest of WNC. Recovery efforts will take years, if not decades.

Meanwhile, the county’s cost of doing business has gone up $1.3 million. And a slight uptick in the tax base of 1.96% has been swallowed up by the rate of inflation — 2.4% over the last 12 months.

In addition, the Trump administration’s economic policies have been followed by fluctuations in the stock market and proposals to reduce funding for several federal programs.

In short, it’s no time for overly ambitious planning. But that doesn’t mean Burke is in bad shape, Epley explained.

“There’s not dynamic change (in the budget),” Epley told the board. “There is not a new program or a new idea or concept in this year’s budget. But it’s how do we do all the things we’re doing and how do we do them better?”

“If we get 1% better in all the things we’re already doing, we can make a fundamental difference in the outcome for our community.”

Burke County employees would see the outcome in the form of more money in their paychecks.

The 2.25% raise, which constitutes the first phase of Burke’s human capital investment plan, would go into effect in July if the budget passes.

Phase 2 would be the continuation of the county’s “pay for performance” incentive program that allows employees to earn up to a 3%, one-time bonus for performance.

The incentives, Epley said, are good for morale and have resulted in significant talent retention improvements. In Epley’s three years at the helm, the county has gone from 33% worker turnover in 2022 to just 12% this year.

“We’ve really seen, for three years in a row, some of the best talent retention metrics that Burke County has seen,” Epley said.

The tax cut itself, though small, is Burke’s second in the last three years. The rate would drop from 56 cents per $100 of property value to 55.5 cents. That represents an annual savings of $10 on a $200,000 home.

Public safety would also get a 3% boost in funding.

Epley cited recent improvements in the response time for emergency calls — from more than 3 minutes to less than a minute — as evidence the increased funding would bring quantitative results.

The budget allocates $30 million for public safety, the most of any sector of county service.

Public schools would see an increase in funding of $250,000. At $20,500,000, school funding makes up 23% of the budget.

The county’s allocation to public schools has grown from $16.3 million three years ago — a 25% increase — and Burke has risen from 99th to 86th in the state in per-pupil expenditures. This year’s increase would add $22.75 per student annually.

Epley said Burke is the only county in the region to reduce class sizes in that time frame.

In addition to those increases, the commissioners’ capital improvement plan is still on pace. Work is in full swing on a new EMS base and Animal Services building, and bids are out for architectural design on renovations at the Department of Public Health and Department of Social Services facility.

Barring unforeseen roadblocks, the county’s financial rating appears solid.

The county still carries an AA-plus bond rating, one step lower than the highest possible rating of AAA. Burke’s fund balance stands at 32.8% of the general fund, easily meeting the board’s goal of maintaining a 25% balance.

“I do think that Burke County is in a strong position,” Epley said. “I think that our purpose, values, and direction are clear. I think that our human capital indicators and performance metrics department by department are strong.

“Our fund balance and debt ratios compare very favorably. We have been able to maintain a lower taxing rate, and we’re in the process of implementing your strategic plan and your capital improvement plan, all with what I would consider a purpose-driven concept.”