County gov’t focuses on shaving expenses

So, Madison County BOC chairman Anthony Dove has asked each department head in the county government to shave five percent off their budget next year, a move to offset anticipated revenue shortfalls in 2010.

“We’re in a different time than we were two or three years ago,” said Dove. “This is painful but necessary. And in the process, we may see some positive effects on the government. It gives them a chance to look at things in a different light.”

Dove also notes that the county government may have to address revenue shortfalls in 2009, too.

“There could be some adjustments for this year,” he said.

The chairman said the county property tax collection rate is at 89 percent right now and that the budget is set on a projected 97 percent collection rate.

Dove and finance director Kathy Clark are meeting with county department heads to discuss expenditures. They will soon present county commissioners with a six-month breakdown on where each department stands fiscally.

So, are county departments living within their means?

“Some are, some aren’t,” said Dove. “There are some I’m concerned with. During good times it’s not as much of a problem if one goes over a little, but during harsh economic times, it’s imperative that everyone stays on budget.”

Dove said he doesn’t anticipate the commissioners raising the mill rate in 2009, despite revenue shortages. He noted that county property taxpayers are already going to feel the pinch of the state’s decision to eliminate the Homeowners’ Tax Relief Grant, which will tack on another $233 to homeowners’ bills, according to tax commissioner Louise Watson. And commissioners don’t want to place any more burden on taxpayers.

Last year, the commissioners avoided a tax rate increase. However, they had to pull $221,000 from their fund balance to cover expenses. Dove said the county now has a fund balance of just over $3.8 million, which is close to the amount recommended for county government reserves. County governments try to keep a fund balance equal to at least three months of operating expenses. Madison County’s budget this year is $14.2 million, meaning it would take $3.55 million to operate the government for three months. Dove said the commissioners, who will soon begin discussions on the 2010 budget, will try to avoid dipping into the fund balance again this year, but there’s not guarantee it can be avoided.

While times are tough, Dove said the Madison County government is in better shape than some other counties that are saddled with significant construction debt. Madison County planned to double the size of its jail, but officials held off on the project as the economy took a turn for the worse.