 This year's budget, methodically sketched out over the past several
months by the finance committee, saw some the increases to some
budgets and continued cuts to others. Chairman Chuck Ruben presented
an estimated budget that ends 2008 with $95,000.
The county has two main revenue streams: property and sales
taxes. Tax caps limit property tax increases. A sales tax increase
that voters approved a couple of years ago was pre-recognized as
only a Band-Aid, Ruben said. It helped put this year's budget in the
black.
But because of continued demands, the county's future finances
remain a big concern to him and other board members.
The county finances are a complex system complicated by a number
of different departments, each set up differently, and some with
shared revenue streams or expenditures related to overlapping
government entities.
In addition to the increasing costs that everyone experiences,
there are also many unfunded mandates and cuts in revenues during
any fiscal year that are handed down from state and federal
government.
Ruben explained some of the budget decisions. One big change that
he actually began working toward last year has been to zero out as
many of the separate fund balances as possible. This allows for a
better view of where the general budget is at any given time. For
this year he tried to halve the bigger ones, with intentions to get
them to zero next year.
A number of these accounts need to have funds carried in them, as
they are holding accumulated funds for big projects or they could be
needed for an unanticipated big expense. Ruben said that these were
being brought down to the minimum contingency that is needed.
Some of the last-minute changes made to the budget:
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Raises of 2.5
percent are being given to courthouse employees. This is in line
with COBRA. That amounts to $33,356.
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The ambulance
service was budgeted to receive $85,000, but $15,000 was cut,
making it a $70,000 fund balance. They need a contingency fund
balance.
-
A change in state
regulations now makes it easier for counties to move property
tax money around. Liability insurance is paid out of property
taxes. This had a $440,000 fund balance. It was reduced
$140,000, to a $300,000 fund balance, which would almost pay the
next year's insurance.
-
The tuberculosis
sanitarium amount was reduced $10,000, to keep a $130,000 fund
balance available.
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The Logan County
Health Department was reduced $77,195, to carry an $878,906 fund
balance.
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Budgets coming out
of hotel-motel taxes, tourism and Main Street were increased, as
those funds are on the increase.
Ruben complimented both highway engineer Bret Aukamp and the
health department administrator, Mark Hilliard, for their efforts in
helping the county keep a balanced budget for the last four years.
Both have had their property tax levy reduced, which cut heavily
into their fund balances.
Hilliard recalled the cuts that have been made to the health
department. He said that the board of health prepared a budget based
on anticipated tax revenues of $377,702, with a deficit of $34,691.
The finance committee initially planned to levy the health
department the same amount as last year, $335,507, but cut that
amount to $300,507 -- $77,195 less than requested -- for a resulting
deficit of $111,886 for the year.
This would project an ending balance of $658,226 for the health
department's 2008 fiscal year. This amount is less than three
months' operating expenses, which the board of health feels is
essential to maintain, Hilliard said.
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Hilliard explained that need further. The health department finances
are complicated by having to deal with five overlapping fiscal years
that include state, federal and county. Grants could disappear in
the middle of a county fiscal year. There is a problem already this
year with the pandemic flu and bioterrorism grant. The state
combined those this year, and they just learned that the federal
government is not funding separate pandemic flu dollars. A loss of
bioterrorism dollars is expected.
Additionally, the state has passed new legislation, the Clean
Indoor Air Act, which goes into effect on Jan. 1, 2008. Local health
department and law enforcement will be responsible for enforcing
what looks like a labor-intensive, unfunded mandate, Hilliard said.
He added that the agency that collects the fine gets half; the state
gets the other half (having done nothing).
John Stewart expressed concern for the county highway department.
The highway department budget was cut $25,000 in committee this
year.
Ruben complimented Aukamp for maintaining the department: "Bret
has gone out of his way and found state funding to replace those
funds. He has done very good at coming up with different sources for
what he would have had to spend out of there. We owe him a big thank
you. He did a great job covering money that we didn't have and used
in other places."
Ruben asked Aukamp to explain the impact and future needs of the
highway department.
Aukamp said: "This is the fifth year that the property tax levy
has been reduced to almost nothing in the bridge fund. $1,000 was
levied last year and this year. The money that's been transferred
from those funds to other uses is significant. I sincerely hope to
see an end to that. Right now we are tending to borrow on our equity
of funds that had been built up 10, 20, 30 years ago. We're at the
point right now in our infrastructure that we can do this. But this
won't last forever, and I will be needing that money. We're OK for
this year. By next year, I'm already seeing some bridges that will
need replacing."
Ruben does not know where future funds will come from, "I'm open
to all suggestions," he said. We can't raise our property revenue.
We're limited by details. It has got to come from someplace else.
So, you're talking cuts someplace, mainly jobs, he said.
He said that the county's consultant, Andy Lascody, told him that
if we lay people off, we would not see any benefits from it for two
years because of unemployment benefits that would be paid out
The budget is always an estimate and is based on the most recent
past audit. However, last year and this year those audits were not
yet available. The audit for 2005 would have been used for the 2007
budget, but that could not happen as there were computer and fund
balance-related problems with getting that audit completed. The 2005
audit was just submitted to the state at the beginning of October.
Hence the 2006 audit was not available yet to use for the 2008
budget.
The budget is on display in the clerk's office at the Logan
County Courthouse.
The county board of the whole meets on Thursday night at 7 at the
courthouse.
If approved at the adjourned meeting Nov. 20, the new budget is
set to begin on Dec. 1.
[By JAN YOUNGQUIST]
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