Oops! : County forced to tighten budget after mistake
Posted on Wednesday, April 9, 2008
BENTONVILLE - Tuesday should have been a day of celebration. For the first time in a year, Benton County's monthly sales-tax revenue was larger than it was 12 months earlier. And it wasn't just a little increase - it was 8. 9 percent higher.
But there was no celebration because during the same meeting that comptroller Richard McComas told the Finance Committee of the salestax increase, he also announced a $ 402, 118 decrease in the projected sales-tax revenue for the rest of the year, prompting committee members to call for a tightening on spending.
The increase was the first since Bella Vista's incorporation in January 2007. This was the first month - because tax revenues reflect the sales of two months earlier - that the county was comparing this year's numbers to post-incorporation figures.
The county saw a 24. 24 percent decrease over the previous year in January, reflecting November's numbers, and a 27. 98 percent decrease in February, reflecting December figures. Both of those decreases are the result of comparisons with pre-incorporation sales.
But the decreases in salestax revenue projections have as much to do with Bella Vista as the monthly increase in actual revenue.
McComas said Tuesday the county neglected to account for the January and February 2007 revenues that reflected the inclusion of Bella Vista revenues. In other words, when the staff projected this year's budget, they forgot to take Bella Vista out.
"We just missed it," McComas said.
The county had originally projected a 3 percent sales-tax revenue increase for 2008, but after the first two months of this year, revenue was down $ 504, 473 from the previous year.
McComas told the Finance Committee he was decreasing the projected revenue for the remainder of the year by $ 402, 118, but in order to achieve even that decrease, the county must now see a 7. 5 percent increase over previous-year totals for the remainder of 2008.
To further complicate the 2008 budget, McComas reminded the committee that several projects have already been approved but have not yet been budgeted. The county also faces a lawsuit with Bella Vista over street work and a $ 66, 714 bill for unemployment costs.
Justice of the Peace Tim Summers challenged the Finance Committee to be more discriminating in allocating funds, paying special attention to the necessity of a project before voting for its approval.
"It's going to be a tight budget year," Summers said. "Who knows what's going to happen with the economy, so it's better safe than sorry."
The good news for the county is jail-fee collections. The county has collected $ 203, 620 more than it projected in daily fees. The committee spoke briefly about increasing the fees, which have not been changed since 1990, from $ 32. 50 per day to $ 35 per day. McComas said $ 35 per day is the jail's actual cost to house prisoners.
The committee decided to wait until Sheriff Keith Ferguson could discuss the idea before recommending action to the Committee of 13.
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