12/10/2008: "$51+ Million County Budget Passed"

$51,592,880.00 county budget was approved and passed by the County Council on Tuesday. The good news? That is a $16,738.00 decrease over the budget amount presented at the past public hearing on the budget; but the bad news is the County reserve (money to pay the bills at the end of year) is now less than the County Administrator, the Auditor, and the rest of the Budget Team had recommended.

There was -in the words of Councilman Kevin Ranker- a request in the eleventh hour and fifty-nine minutes, for $25,000.00 to be added back into the budget.

The motion by Councilman Gene Knapp was made to approve a request by the Assessor, and members of his staff, for the increase to keep an employee on at full time, as opposed to half time.

The Council had been told that without the increase there was some doubt that the Assessor’s office would have staff time to review new building permits and construction for taxing purposes, and if they failed to do this, it could end up costing the County over $300,000.00 in lost tax revenue.

Not all of the council was convinced, and Knapp’s motion failed.

After the adoption of the budget, Council Member Rich Peterson told his colleagues, “Very early on, the new council ought to get really, really serious about taking a levy lid-lift to the public.”

The County is limited to a one percent annual increase in revenue from taxes on existing property without voter approval. Flat property tax revenue in conjunction with falling sales tax income, has forced the County to rely more heavily on user fees and reduced services.

Peterson concluded his remarks by saying, “This wasn’t easy and none of us enjoyed it, but I think there is a whole lot of it coming, unfortunately.”

Auditor Milene Henley and Administrator Pete Rose have warned the Council that more cuts could be required before the end of next year, if sales tax revenue declines further. The 2009 budget as adopted includes a cash reserve of $1.27 million; approximately $230,000 less than Auditor Henley had said was the minimum desirable level.