Although county officials hope to avoid a tax hike, the final decision on Rowan’s tax rate may come from Raleigh.

County Manager Tim Russell is recommending a balanced budget of $91 million for the 2001-2002 fiscal year, which starts July 1. It would maintain the current tax rate of 63.5 cents per $100 of assessed valuation.

That’s a $635 property tax bill on a $100,000 home.

His budget message contains a no-frills approach to continuing services at the current level, while pointing out need for additional personnel or improvements. But in a time of plant closings and a soaring jobless rate, Russell said he can’t recommend raising taxes.

Russell has scraped and stretched to come up with dollars to meet more than $4 million for new or expansion items.

By abandoning the deal to fund students at the state per-pupil average, the county can save nearly $1.5 million next year. With the change, the cost for new students is estimated at $483,000, instead of $2.1 million required to keep pace with the state average.

Among a few new items Russell recommends are a new South Rowan ambulance station, additional parking adjacent to the Rowan Justice Center and seed money to revamp the Nature Center at Dan Nicholas Park.

It will require almost all of the county’s tax growth revenue to pay for cost-of-living increases and medical insurance hikes for county employees. Those two items total almost $1.5 million.

Russell has supplied county commissioners with a three-inch thick budget workbook containing his recommendations for a tight year.

Commissioners have set June 4 and 5 for budget workshops. A public hearing will be scheduled later.

The manager cautions against adopting the budget and setting a tax rate before the General Assembly completes the state budget.

Russell and other county officials across the state fear legislators may take away monies which traditionally come to county coffers.

Earlier this year, the state withheld $810,000 in reimbursements of intangible taxes, promising to send the money if the state budget shortfall improves.

But state budget woes have worsened, and Russell does not expect to get the $810,000.

The worst scenario is that the legislature will end reimbursements for repealed taxes. The county currently gets $3.9 million from those reimbursements.

If the reimbursements end, the county could be forced to hike property taxes by at least 5 cents to make up the shortfall.

If necessary, Russell said commissioners could enact an interim budget and tax rate, to meet the legal requirement that a rate be set by July 1.

Citing the increasing jobless rate in Rowan, Russell is recommending very little new spending.

No new positions are recommended. Heads of county department and other agencies requested 63 new positions, with Sheriff George Wilhelm asking for nearly 40 new positions.

The total requests for new positions and equipment for all departments total almost $10 million.

Russell and Finance Director Leslie Earnhardt have scraped the bottom of the budget looking for dollars.

Combing through the $88- million continuation budget, they cut $1 million and earmarked that money for the new or expansion budget.

In his budget message, Russell recommends a firm policy on releasing used vehicles and buying new vehicles. He suggests keeping vehicles until they pass 125,000 miles.

The budget includes money for 14 new patrol vehicles, two new ambulances, $50,000 for a hazardous materials truck; one truck each for General Services and Parks and Recreation and two for Animal Control.

In several instances in his budget message, Russell cites the need for more services but concludes the county can’t afford new or expanded services now.

The new ambulance station in southwestern Rowan is the only expanded service Russell endorsed.

During a retreat earlier this year, commissioners gave a top priority to the new station.

Instead of building a new station in the Atwell Community as originally recommended, Russell is now recommending closing the ambulance station in Landis and moving to a new site near the intersection of N.C. 152 and 153.

EMS officials contend that the new location would reduce the response time to Atwell and Enochville areas, but they admit the move would increase the response time into Kannapolis and Bostian Heights.

The ambulance station will cost $218,000, including land, construction, a second ambulance and crew.

Much of the available money is directed to county employees for a 3.4 percent cost-of-living increase and to cover increased medical insurance costs.

The county pays all the costs for medical insurance for its employees. This year costs for the self-funded program skyrocketed, going $800,000 over what the county had allocated.

To cover next year, the county must pay 41 percent increase — from $310 to $437 per employee. This year, the county implemented a wellness program to try and control medical expenses. Employees who don’t participate in the program must pay $50 a month for health insurance.

A copy of the budget for public inspections is available at the Rowan County Manager’s Office at 130 W. Innes St.

Contact Jessie Burchette at 704-797-4254 or jburchette@salisburypost.com .

Tax facts

Total tax base: $7.8 billion

Tax rate: 63.5 cents

(1 cent on rate equals $750,000)

Total property tax revenue: $48.1 million

Increase over 2000: $2.1 million

Total sales tax: $16.1 million

Total revenue: $90.9 million