County budget tough; has been tougher

After several years of being able to lower the county?s tax asking, the proposed 2009-2010 Jefferson County budget marks a change.

The proposed urban tax levy rate is set to increase from $6.83 to $7.06 per $1,000 taxable valuation ? still, the rate remains lower than during the 2006, 2007 and 2008 fiscal years. The proposed rural property tax levy rate is set to increase from $8.41 to $9.54 per $1,000 taxable valuation ? the highest it has been in five years.

The $1.13 increase in the rural levy rate can largely be attributed to a diversion of Local Option Sales Tax revenue. Whereas 100 percent of L.O.S.T. funds had gone toward property tax relief during the last 10 years, when the tax renews this spring, 20 percent of the money will go into the secondary road fund for bridge and culvert repairs.

?That was kind of a double whammy on the rural fund because you?re taking it out of the revenue, and you have to add taxes to make that revenue up,? Jefferson County Supervisor Steve Burgmeier explained.

He believes voters made the right decision though.

?We have a need to accelerate how we are replacing these bridges and culverts, and this will help us do that,? he said.

Another hit to the budget was an increase in health insurance costs, which have increased roughly $25 per employee per month. Those costs come out of the general supplemental levy, which is set to increase 20 cents to $2.20 per $1,000 taxable valuation.

In addition to hikes in health insurance, the county budget is covering a 2.5 percent raise in salaries for county officials, which translates into roughly $70,000.

?We?ve had a good relationship with our employees over the years,? Burgmeier said. ?I?m not saying it?s the perfect decision in these economic times, but it?s what we decided as a group, and Jefferson County, I think, can live with it.?

Additionally, Burgmeier explained property taxes are going up to help raise ending fund balances to 25 percent.

?To be fiscally responsible to the people of Jefferson County, I think we had to do that,? he said.

In particular, the basic rural services levy ? which contributes to numerous expenditures including the sanitarian, a couple deputies, recycling, the library and the landfill ? is increasing 90 cents to $2.48 per $1,000 taxable valuation. The levy had been proposed at $2.58 per $1,000 taxable valuation, but during a recent Jefferson County Board of Supervisors meeting, the board voted to drop the levy 10 cents, reducing its income by roughly $30,000, to lower the ending fund balance.

The debt service levy is set to increase from 28 cents to 30 cents per $1,000 taxable valuation. The supervisors recently approved borrowing up to $600,000 for renovating the courthouse and its parking, as well as up to $100,000 for a new ambulance.

The general basic levy is staying steady at $3.70 per $1,000 taxable valuation. The mental health fund levy also will see no change, remaining at 85 cents per $1,000 taxable valuation. Still, these levies will generate more revenue than in the current fiscal year, as valuation in the county is up roughly $21 million.

In all, property taxes should net nearly $4.77 million for Jefferson County, a little less than half of the entire anticipated revenue of $11.5 million. The county?s expenditures are estimated to total $11.87 million ? also drawing on the roughly $3.18 million in revenue reserves.

The county?s budget reflects large increases in spending on capital projects, which can be attributed to the bonds for the courthouse, and county and environment education, which reflects the $300,000 in state grants that will flow through the county for the Maasdam Barns.

During the budgeting process, several department heads were asked to make cuts in their proposed budgets.

Sheriff Jerry Droz was asked to cut $100,000 out of his budget asking and complied by cutting the purchase of a new vehicle and the salary for an additional jailer.

?It was hard for him, and it was hard for us to ask, but we had to have that amount to reduce our total general levy asking,? Burgmeier said. The county?s budget for public safety and legal services is set to increase roughly 3 percent.

After looking at spending during the past couple years and projected spending on mental health, central point coordinator Sandy Stever also was asked to cut $100,000 from her budget request.

?Mental health is not an exact science,? Burgmeier said. Although he does not believe that money will be needed in the fund, he said the budget has the potential to be amended. The mental health budget is set to increase roughly 5.9 percent.

Public health nurse Chris Estle-Tedrow is another department head who made cuts. She removed $30,000 from her proposed budget by scrapping plans to hire an additional part-time nurse.

Yet, the public health budget is set to experience a notable increase due to the county?s willingness to merge with the Jefferson County Homemaker Home Health Aide Agency, a service the office had contracted for but that would have gone by the wayside without the county?s increased support. Ultimately, Burgmeier said the revenue generated by the program should offset nearly all of its costs.

For the complete article, see the Friday, February 27, 2009, Fairfield Ledger.