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HomeMy WebLinkAboutC.054.93010_1118uses till $533,000 more in county nancv, and $1,250,000 is transferred into rhe capital reserve. This accounts for almost $8 million in the increase, with the hndance being spread out annong all the other crpenditures. SCHEDULE E .shows a much clearer picture of how much the budget has really increased. In 2001-2002, the budget was $102,614,542. As you can see, FY 2002-2003 was a reduction over the previous year. Looking at both years, the increase is a little less than 496 a near. Although inflation has not been running at 4!, a year, the county growth and the weakening economy have increased the denund for services. SCHEDULE I shows the .schedule of tax values and rates. The county assessor estimates that total values will increase $2.1 billion over FY 2002-2003, or about 19.34, increase. Some of this is due to the revaluation, and some of it is due to growth to the base. We have had (thou[ 48' increase in value since the last revaluation. However, since the last revaluation we have increased schools by approxbntely 30%, Medicaid is up 79%,, public sgfety is up 45%, and general government is nip 42%. In addition to propegv taxes, the major source of our revenue is sales tares. We all are aware that the General Assemblv authorized the additional % cent in sales tax to make up for the reductions in state reimbursement. It is still too early to tell just how much that the additional % cent will bring tit, but our director of finance and administration conservatively estimates it will generate about $4.5 million. However, since we lost $3,152,186 in reimbursements, we will only net out about $1,347,814 in new funds. Obviously, this is better than the alternative; however, the actions of the General Assembly to rush through a budget that it knows cannot be supported by current revenue projections, does not instill in me a very high level of conjidence that we will go unaffected by the anticipated shortfall. There are still many wuvs the state can shift responsibility without providing adequate fouling. The state has done it before, and 1 believe it may no it again. I conclude this initial presentation with a look at the budget for the school systems. The proposed budget represents a return to the stater, commissioners" goal of funding schools with a 5% increase plus growth. In addition, the capital outlay amount for Mitchell Carnnnunin^ College is recommended to be established on a fixed basis just as the county is doing fm- the school systents. As has been presented several times in recent years, the increase to student enrollment at Mitchell Community College is increasing at very high levels, and in order for the college to make plans to address this increase, it has to be able to have an accurate way to project its capital revenue. It is recommended that the commissioners adopt a policy of funding the college capital program at an amount equal to % cent of the ad valorem tar rate. For FY 2003-2004, this amount is $629,795. This is still well below the request of the school, but it provides a tool for planning that is needed if the school it to get ready for the projected growth. This is the sixteenth budget I have prepared and presented to the board of commissioners for your consideration. Each and every one has been a challenge, but more recent budgets have been an even greater challenge. High rates ofgrowth, new and increased demand for faster and more efficient services, attacks on our revenue stream by the state and federal government, and a weakening economy have all been major contributors to the position i feel the county is in at this tittle. This budget, if passed as recommended, will require that the tax rate be set at 44.5 cents, and that we collect 95.81% of our taxes the ver v first year. Even at this rate, not enough is being put into capital reserve to adequately plan for future major capital needs, nor are we able to build our reserves to he prepared for the unespected or to take advantage of opportunities as they are presented. I urge the commissioners to consider leaving the rate at 47 cents and place into reserve the balance between what is needed to find the proposed budget and the revenue generated by that tax rate. This will obviously not be a popular move to make, but I feel it is justifiable. Regardless, I no recommend that as a rninirudm you approve the budget as it is recommended, and set the ax rate no less than 44.5 cents for $100 tit value.