COUNTY TAXES INCREASE AS UNCERTAINTY ABOUNDS
Mike McCagg
ccSCOOP News
01-06-10 - 5:30 p.m. - Under the new budget that took effect on January 1, county taxpayers are paying an average of 11 cents more per $1,000 of assessed property value.
In December, the Board of Supervisors approved a $146.6 million budget for 2010, which represents a $6,469,914 increase in spending over 2009. The 4.6 percent spending hike requires a 4.2 percent increase in property taxes to be collected from residents, county Budget Officer and Treasurer Ken Wilber told ccSCOOP. Under the spending plan, the tax levy increases 4.2 percent to $40.29 million and the tax rate per $1,000 assessed property value increases to $5.61. The actual rate varies based on the equalization rate for each municipality. |
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The budget, however, carries a significant number of uncertainties, not the least of which is Governor David Paterson’s decision to withhold state aid to municipalities. Wilber said the state already started withholding funds, including $340,000 due on December for child welfare payments. “That’s the beginning of it,” said Wilbur. “There will be more.”
In fact, the uncertainty level is so high that the Board of Supervisors has already started “refiguring” the budget based on various factors resulting from the delay of state aid payments said former Board of Supervisors Chair Art Baer. While that does not mean any cuts in programs or services at this time, it does mean that vendors are going to have to wait a little longer to be paid and the county is going to keep a better track of how much cash it has on hand at all times, Baer said. Specifically, the county has reduced the number of times it cuts checks to pay vendors and others owed money from twice a month to only once a month. This allows more cash to flow into the county in between payments and more interest to be earned. Baer also said the county is keeping a constant watch on the amount of cash it has on hand.
In a letter to the Board of Supervisors in mid-December, Baer stated that “circumstances beyond our control during the year may require the Board of Supervisors to take necessary steps to further reduce costs, which could result in program reductions and may include employee layoffs and other needed actions.” With state and federal aid making up two-thirds of the county budget, “A slight change in the state of federal funding is very, very significant to the accounting of the county,” said Baer.
Wilber said that while the county has a significant reserve–approximately $16 million–“a prolonged slump in state or federal payments could deplete it fast.”
As to the budget’s spending, the $6.5 million increase will cover $4.2 million in capital fund costs associated with making the courthouse ADA compliant and continuing upgrades to the Ockawamick building, as well as road and bridge work, Wilber said. In addition, the county’s contribution to the state retirement system is increasing by 80 percent, or $2 million, and health insurance costs for the county are jumping 14 percent. The county is also budgeting $3 million from its general reserve fund to cover the increased retirement costs and $4.37 million from the capital fund to cover capital project costs.
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