BOC opens 2012 budget talks

Trouble is, the digest — or overall county property value is projected to drop — and the same tax rate this year won’t generate as much tax money as last year. That means a $14.1 million budget in 2012 would require a higher tax rate.

So, does that mean county commissioners will raise taxes?

Well, don’t count on it.

BOC chairman Anthony Dove said Monday he doesn’t believe anyone at the commissioners’ table is in favor of such a move. Instead, county commissioners intend to cut more money from the proposed budget. And the group could also consider using reserve funds to balance a portion of the 2012 revenue shortfall.

“We’ll probably have to do a little of both,” said Dove, referring to expense cuts and use of reserves.

Dove said the county projects a $5 million fund balance at the end of 2011.

“Fortunately, because of the moves we’ve made in the past few years, we’ve built up enough cash reserves where we’re in good enough shape to look at all options.”

Commissioners know that the county will have to foot some increased health insurance expenses in 2012. While those increases were initially projected at 22 percent, the county is now looking at plans that will raise expenses by seven to 10 percent.

County commissioners must also relocate the Fine Finish facility on Hwy. 98, a matter that will certainly weigh significantly in budget talks. That building was constructed on top of an old landfill and the front portion of the building is sinking. The BOC has met in closed session several times in recent weeks to discuss a property acquisition for the facility. Dove said the board is down to two potential properties, one of which would involve an existing facility, with the other involving construction of a new building for Fine Finish. Dove said he expects the BOC to reach a decision soon.

The chairman said recently that the digest will be down by a projected nine to 10 percent. But he touched on that again Monday, noting that the digest hit might be a little less severe than that. He said that while residential values are down by roughly $28.5 million, the digest drop will be offset by some other factors, such as greater agricultural values, which are up $9 million.

“It (the digest) might not be quite as bad as it first looked,” said Dove.

Commissioners don’t know exactly how much they’ll have to cut for 2012, but the group is meeting this week with department heads to discuss their needs.

Dove said budget making is not an exact science, but an educated attempt at fiscal responsibility.

“A budget is a responsible guess about what is coming in the next year,” said Dove.

UPDATE: The next BOC budget meeting is set for 4:30 p.m., Thursday, May 26, in the BOC meeting room at the county government complex.