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Eleven of the board members were in attendance at the board of whole
and had received their copies. Bill Martin was absent due to an
injury. For the past two months the committee painstakingly pored
over every line of the 67-page document and weighed requests against
projected revenues and expenses. High energy and fuel costs,
increasing liability and health insurance, and other expenses have
all been of major concern in recent years. This year the financial
planners had to factor in how much shortfall there might be from
sales, income and property taxes and other revenue sources, due to
the current economic climate.
"We made significant cuts in the revenues where we thought
certain taxes will not be bringing in the same amounts they brought
in, in years past because of the economy," Ruben said. "We kept
tight where we thought attainable."
No new taxes
Property tax provides the largest source of revenue for the
county. An increase in the property tax levy may be seen
without raising taxes. One factor would be due to new construction.
Another is that the consumer price index is added to the old rate.
This is not a tax increase.
In 2008, property taxes brought in $1,127,414. In 2009, $848,530
was budgeted. In the 2010, $627,262 is projected.
This year's consumer price index provides around a
tenth of a percent increase. Finance chair Chuck Ruben told the
board that in dollars this amounts to about a $3,000 increase, which
you can essentially call zero in comparison with the size of the
Logan County budget. "So, there's very little growth in the tax levy
from property tax," he said.
In September the committee factored in all the department budgets
and special requests and then looked at the proposed expenditures
versus anticipated revenues. They saw a deficit of $925,816.
The 2007 audit had just come in and was used to project figures
for this budget. Also of importance was the bottom line at the end
of last year. Whatever is left over in the general fund from one
year rolls into the next year.
The audit first showed an ending general fund balance of $81,000.
However, that figure diminished after some corrections were made and
fell to $19,000.
For several years it has been the committee's goal to reverse the
trend of the declining general fund balance. These funds serve as a
reserve that is needed to buffer any surge of expenses when revenues
such as property tax payments might lag. A reserve would also be
important to have in case of an unanticipated catastrophic
occurrence. Auditor Helen Barrick recommends having a minimum of 20
percent of the county expenditures in reserve. With Logan County
expenditures being an estimated $6 million, $1.2 million would be
appropriate.
The committee began the job of looking at how or where to make
cuts. It was agreed that rather than tell this department or that
department how to make their cuts, the decision process would be
left up to the department heads. They could best decide what was
best for their department. A special meeting was called to meet with
the department heads to get their responses on how they would cope
with various levels of cuts.
Ruben explained to the board that a 10 percent reduction in
department budgets would have provided a $490,000 balance. A 5
percent reduction would have left $233,000.
"We decided that the 5 percent reduction was probably the way to
go. We then added in the raises and a few other adjustments," Ruben
said. The final result would provide a $175,000 ending fund balance.
The budget includes cost of living raises for all full-time,
nonunion county employees. The 3 percent pay raise for all county
employees amounts to about $40,000.
Ruben thanked the committee for all their hard work. He said that
during the process there was some agreement and some disagreement.
The floor was then opened for board comments on the budget. Not
all portions of the budget met with the approval of all the board
members.
Board members' first responses:
David Hepler -- I just got my copy and plan to read it over and
get some feedback.
Pat O'Neill -- I cannot vote in favor when salary and
compensation is a large majority of our expense. This budget raises
wages and, what it boils down to, cuts services. I don't think this
is something we should do in light of hard economic times.
John Stewart questioned putting the chamber of commerce request
for $5,000 under the airport-farm budget rather than the historic
sites budget.
Ruben said that the finance committee wanted to help them, but
funds were not available to meet the request out of the historic
sites budget.
The county cash rents the airport property where the balloon fest
has been held in recent years. Currently alfalfa is put in so that
the crop is out in time for the festival.
The finance committee saw providing the funding out of the
airport-farm fund as a natural fit. This year there was a large
increase in land rent at both the airport and the farm. "Essentially
we're giving them (the chamber) their payment for rental of the
ground back to them," Ruben said.
Stewart disagreed that county government should be giving money
to organizations. If you're going to do that, then you should look
at Railsplitter, maybe Emden Homecoming, Atlanta and Mount Pulaski
fall festivals, and where's it going to stop? he questioned. "This
is the county government, supposed to be running the government, not
giving it to organizations to have festivals and such," he said.
[to top of second column] |
The county receives a 1 percent hotel-motel tax that goes to
tourism. In 2008 the county received $113,000 from that tax. The
2009 budget was budgeted at $150,000, but with the recession, 2010
has been budgeted at $135,000.
The county also receives a 0.25 percent special-use tax, of which
half the funds are designated to go to Main Street Lincoln and the
other half allotted to historic sites, with funding granted by
request.
Historic Sites Motel Tax Fund
2010 anticipated
revenues:
-
Main Street, $16,250
-
Historic sites, $16,250
-
Total: $32,500
2010
expenditures:
-
Main Street, $15,000
-
Atlanta Library and Museum, $3,750 (Downey Building and Palms
Grill project)
-
Logan County Genealogical & Historical Society, $2,300
-
Postville Courthouse, $2500
-
Mount Pulaski Township Historical Museum, $3,250 (chair lift)
-
Emden Historical Society, $500
-
Hawes Grain Elevator Museum, Atlanta, $1,250
-
Civil War statue, $10,000
-
Heritage In Flight Museum, $2,100
-
Emden Whistle Stop Depot, $750
-
Total: $41,400
The account will carry over a fund balance of $10,370 to this
budget, which would leave a balance of $1,470 at the end of 2010.
Each of the historic sites listed below Main Street had requested
twice the amount of the numbers above. The requests were for
specific needs that would be beneficial to tourism and thereby
expected to increase tourism revenues in Logan County.
In the initial stage of cuts, the finance committee recognized
that the chamber pays nearly the same amount they were requesting
for the balloon fest into the farm account for rent of the property
for the festival. It would be a wash to move their request to the
farm fund, as Ruben put it.
Then, by cutting each request by half, everyone would get
something.
Those requesting the funds from this account were notified that
their funds would be allocated by request in two rounds during the
coming year and are subject to money coming in.
Jan Schumacher pointed out that there are taxes collected to go
for historic purpose and asked if he was opposed to that.
Stewart said that he was not opposed to the tourism-based tax
going to tourism.
Kevin Bateman agreed with Stewart. "You're opening up something
here," he said. "There could be a line out the door for almost any
kind of festival or just about anything in the county."
Chuck Ruben -- "We do have a compelling issue of time on the
budget." He recommended that anyone with an issue on one item see if
there would be enough support from the board to see about removing
that one item from the budget by amendment, "as opposed to throwing
out the whole document."
Ruben and farm committee chairman Bob Farmer said that bids to
farm the county-owned ground went up this year from $80 to $127.50
per acre, increasing revenues in that fund.
Terry Carlton, board chairman -- I understand your point: "What
about the other events that take place around the county?" It's not
just a matter of giving them $5,000. They are paying the county for
the use of that land. Taking the funds from the airport-farm fund is
a trade-off.
The other aspect is the tax gained for Logan County. It's a
premier event that happens in Logan County. There is a significant
spike in the hotel-motel taxes in that period. The county gets both
a 1 percent and a 0.25 percent allocation from the motel-hotel
taxes. The county receives significant revenue during that time
period.
(Figures from this month's clerk and recorder report -- In July,
the combined 1 percent and 0.25 percent hotel-motel taxes returned
$6,706. In August it was $20,600. This figure does not take into
account all the dollars that were spent at local eateries and retail
businesses, including fuel stops during the three-day event.)
Stewart put forth a motion and Bateman seconded it to remove the
$5,000 for balloon fest from the farm fund.
Jan Schumacher added to her comments that the revenue the chamber
of commerce generates for the county (with this event) makes it a
worthy expense.
Finance chairman Chuck Ruben assured everyone that amendments
could still be made up to the time of final approval. He urged
acceptance of the document as a whole. The board tentatively
approved the draft Thursday evening. If accepted tonight (Tuesday),
it would be posted for public viewing for 15 days and then would be
reviewed and amended at next month's board of whole and ready for
the board's final approval at the adjourned meeting in November.
Vice chairman Pat O'Neill called for a verbal straw vote, which
sounded votes for each direction, and he called it favorable to
removing the $5,000.
He then called for a vote on approving the budget, which yielded
a couple of nonsupport calls but more strongly indicated that the
budget would pass.
[By
JAN YOUNGQUIST]
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