County planning on surplus — for now
Posted on Wednesday, November 19, 2008
So far, there is about a $51,000 planned surplus in the Washington County general fund budget, but this could change Thursday, when Quorum Court Budget Committee of the Whole members plan to finalize the figures.
Thursday is also when county judge-elect Marilyn Edwards plans to visit with the committee to propose items for the county judge’s office. County Judge Jerry Hunton had held off on asking for money for the office because he did not want to speak for the newly elected judge, explained County Comptroller Boyd Darling during a budget committee meeting Tuesday night.
Once the budget is forwarded by the budget committee on Thursday, it will go to the Quorum Court for a vote in December. Part of the vote Thursday will be to reduce the property tax millage from 4.5 to 4.4 mills.
Also set to be approved as part of the budget is a 1.5-percent increase in the merit pool as well as a cost-of-living salary increase of 25 cents per hour for full-time employees. On the revenue side, officials are anticipating a flat sales tax next year.
The proposed general fund budget as of today is about $21 million, with revenues and expenditures coming in about even.
This balance resulted from some recommendations made by Darling and Justice of the Peace H.L. Goodwin Jr., who is chairman of the Quorum Court Finance Committee.
A little more than $1 million had to be cut from the general fund budget to balance it, and there ended up being a surplus.
To get to that point, Goodwin and Darling recommended anticipating an additional $1 million in carryover from this year. This is primarily to pay for about $764,600 in departmental requests for the general fund — most of them were for capital expenditures, but some were for operating expenses and about $300,000 anticipated to cover the cost of 2009 having one more pay period than usual. There will be 27 instead of 26.
Another recommendation to further balance the planned expenditures and revenues in the general fund was to reduce the earlier discussed $1.5 million in reserve for census transition by about $500,000.
This census transition is the expectation that the county will take a major hit in sales tax revenues in 2011 due to new census figures because of annexation of county land into cities. The reduced population in unincorporated areas of the county could result in a lower percentage the county general fund and road and bridge fund receive from the county-wide 1-cent sales tax. Those funds receive about 23 percent of the revenue, and that could decrease to as low as 18 percent by 2011, but it is difficult to determine, officials say. Darling said it could go from 20 to 23 percent.
Justice of the Peace David Daniel says he feels good about cutting the $500,000 from the transition reserve because the county is still two years away from the anticipated revenue loss.
Goodwin said the expected shortfall amount is not known at this time. He said, however, that if the county can “put a lid on expenditures” and put back the $1 million next year, it should be in “pretty good shape ” when 2011 arrives.
Justice of the Peace Tom Lundstrum voiced worries about the economic downturn’s effect on the county’s finances.
“I’m very concerned with not knowing what the economy’s going to be in 2009,” he said, adding that the sales tax revenue crisis could occur before 2011.
He also talked about the county’s building projects that include a new parking deck, renovation of the Historic Washington County Courthouse and recent purchase of the Terminella Building for use by the Public Defender’s Office.
Money for the historic courthouse is coming from a revenue bond issue reimbursed by court costs and fines, while funds for the Terminella Building purchase and renovation and new deck are coming from a surplus for such projects. The total cost for all the projects is about $16 million.
The measures of trimming the reserve for the census transition and anticipating the estimated $1 million in carryover were the main steps taken to balance and leave about an $86,000 surplus in the general fund.
That surplus was reduced Tuesday night, however, when the budget committee approved an expenditure of about $35,000 to help pay for three teachers’ salaries and supplies at the Washington County Juvenile Detention Center. The teachers are mandated, and it is anticipated that grant funds will not meet the needs this year. This expenditure leaves an estimated $51,000.
In other budget-related matters, Darling said the remaining parts of the budget will balance when he plugs in revenue projections.
FEEDBACK:
Something to say about this topic? Submit a Letter to the Editor online
