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The property tax increase, at the 1.6
percent maximum allowed by tax caps, is expected to yield $40,000,
bringing the total general fund levy to $874,000. On a $90,000 home
that would mean $1.68 more in property tax next year. Tax caps are
based on the Consumer Price Index.
In the draft on file in the county
clerk’s office, which according to board chair Dick Logan may not
include all changes, expenditures for all funds total $4.7 million.
Revenue projected from all sources totals $4.34 million. This
includes federal and state payments, interest, fines, fees, and
service charges.
Before Thursday night’s meeting the
Finance Committee had cut $300,000 from general fund budget
requests. Of this, $135,000 came from building and grounds, $69,000
from the sheriff’s department and $50,000 from juvenile probation.
These included $25,000 for major building repairs and $50,000 for
two patrol cars. Electronic monitoring made the cut in juvenile
probation possible. At least a dozen other funds were cut by smaller
amounts.
In addition, a net of $250,500 was
shifted from other funds to the general fund. This included $75,000
from the ambulance fund and $151,500 from the liability insurance
fund. Both have sufficient balances to cover two years of projected
expenses. The health and highway department funds are both slated
for a 1.6 percent increase, canceling $16,000 of the gain from the
other two funds. [See "Committee
finalizes county budget proposal."]
Going into Thursday’s meeting the
general fund deficit stood at $163,000. The full board made two
adjustments, adding $25,000 to general fund expenditures and
reducing the farm fund balance by $13,000.
The board voted a 3 percent increase in
the salary line item for each department, to be used for raises for
nonunion employees. This does not mean an automatic 3 percent raise
for each employee. Department heads are to distribute the money at
their discretion. County Clerk Sally Litterly said department heads
consider merit, longevity, education and other factors in
determining raises.
Roger Bock made the motion for the
salary increase, which passed unanimously. The cost is expected to
be about $25,000 for 31 full-time and seven part-time employees.
The second adjustment came in funding
for the Economic Development Council. In 2002 economic development
received $20,000 from the general fund and $5,000 from the farm
fund, which consists of revenue generated by the county farm. The
Finance Committee raised the farm fund contribution to $12,000 and
cut economic development from the general fund.
Bobbi Abbott, executive director of the
Lincoln/Logan County Chamber of Commerce made an impassioned plea
for more than the $12,000 allocated by the Finance Committee: "I
really do appeal to you to invest in the future of this community. …
We absolutely need to increase tax-producing revenues," such as
through the commerce park backed by the EDC.
Saying, "We’ve got to invest in our own
selves," board EDC representative Terry Werth moved to give economic
development $12,000 from the farm fund and $20,000 from the general
fund. Dale Voyles amended the motion to allocate $25,000, all from
the farm fund.
[to top of second column in this article]
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The board voted 8-4 in favor of the
amended motion. Roger Bock, Doug Dutz, Lloyd Hellman and Rod White
dissented. Board member Jim Griffin was absent. Dutz, who chairs the
Law Enforcement Committee, said he would rather restore money cut
from the sheriff’s department. Abbott and Werth unsuccessfully
argued for a three-year commitment to EDC funding to help attract a
good director of economic development.
Finance Committee chair Rod White
pointed out that the farm nets about $16,000 per year and $4,000 is
already earmarked for soil and water conservation. Therefore, the
farm fund will show a $13,000 deficit for fiscal year 2003. However,
the fund balance on Dec. 1, 2002, the beginning of the fiscal year,
is estimated at $111,000.
The 12 members present voted
unanimously to file the budget with the two adjustments. By statute,
the budget must be filed in the county clerk’s office 30 days prior
to enactment, which will occur at the Nov. 19 board meeting. White
said it is legal but not economical to change the budget between
filing and the final vote. Reprinting the multi-page document is
expensive.
In introducing the discussion, White
emphasized that this is the third year of deficit county budgets not
because departments are spending excessively but because revenues
are falling. In the current year, the $314,000 projected deficit
increased to $420,000 even though several departments did not use
all their allotments. The shortfall in revenue was greater than the
amount of money returned. In addition, some state reimbursements are
down.
Fortunately, seven years of surplus
(1994-2000) preceded the three deficit years. Accountant Gary
Hetherington of Sikich Gardner in Springfield said: "What we want to
do is keep this thing in balance over time. It’s not useful to look
at one year in isolation. … The only reason we have surpluses is to
cushion years when we don’t." The general fund cushion at the start
of fiscal year 2003 is estimated at $2.4 million.
Hetherington pointed out that the
relatively low general fund property tax rate of .2373 percent is
the result of conscious choices by the board. "In those years when
we had surpluses, we kept reducing the tax rates," he said. And now
tax caps keep the rate low.
In addition, there is no growth in
assessed valuation. White said farmland assessments have fallen 10
percent for two years and are expected to do so another year.
Commercial and home values have risen at about the same rate,
resulting in the flat total valuation.
Hetherington said that the general
philosophy used in preparing the budget, appropriate to a deficit
year, was to shift taxing ability from other funds to the general
fund to tide it over. To keep expenditures low, the contingency line
item, normally $70,000, was eliminated. However, the board retained
all county departments and jobs.
White is
leaving the county board this year after 10 years as finance chair.
[Lynn
Spellman]
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