County budget hike minimal; levy is up
Jefferson County is proposing a 2010 budget that includes an increase in the mortgage filing tax along with other measures to cover a gap fueled by less support from the state and sharply lower sales tax revenue.
The proposed budget recommends the county spend $847,276 more than the $222,445,440 lawmakers approved for 2009. A $48.68 million tax levy, an increase of $2.3 million or 4.96 percent from the current budget, will be spread out over an additional $361.67 million in taxable property value generated through new construction and revaluation conducted last year.
The bigger tax base allows the county to drop its tax rate, albeit slightly, for the sixth consecutive year, this time by 2 cents per $1,000 of true value.
"We think this is a very appropriate budget for the board," said Robert F. Hagemann III, the county administrator and budget officer.
The county expects to lose $1.5 million in sales tax revenuecompared to earlier projections,as well as $500,000 in interest earnings and at least $2 million from the state.
"There's a minimum $4 million challenge to be met," Mr. Hagemann said. "We trimmed items on the expenditure side, but even with that, it did not equal the loss on the revenue side."
The county budget team, which includes members of the administration, predicts increases in other uncontrollable costs, including a $1.5 million increase in health benefit costs and about $2 million more for contributions to the state pension fund.
The budget team is asking for a one-quarter percent tax on mortgage transactions, to be added to one-half percent that goes to the state and a one-quarter percent that goes to the municipality where the transaction took place. The team expects to raise $500,000 in revenue from July through year's end with the tax. To enact the tax, the county would need to have a law pass both houses of the state legislature and be signed by the governor, in addition to passing a local law.
"It's user-based, so if you're not buying a house, you won't see it," Mr. Hagemann said. "And among the closing costs, it is not a major impact."
On a $100,000 mortgage, the county would receive a tax payment of $250.
At least one county legislator does not support the proposed tax.
Scott A. Gray, R-Watertown, chairman of the Finance and Rules Committee, said the county should be making cuts instead of creating new taxes.
"It makes closing costs more expensive for people buying homes," he said.
The budget team is also recommending using $1.5 million of the fund balance to make up for expected lower sales tax revenues, about $28.8 million instead of $30.3 million predicted earlier by the county for both 2009 and 2010. The recommended budget includes using a total of $7 million of the unexpended fund balance, which is predicted to be $13 million overall. Mr. Hagemann said the additional use of the fund balance is a one-time procedure.
"This budget gives us a little bit more time to do analysis," he said. "Any changes to programs will have long-term effects."
On the spending side, county departments plan to cut 18 positions through attrition and retirementin the 2010 budget .
Through this and six more unfilled positions, the budget predicts a savings of $1 million, Mr. Hagemann said.
The county is again holding off on most capital projects, most notably in the Highway Department. Though several projects are scheduled to begin under the county's six-year master plan, the proposed budget calls for the department to work only on continuing projects.
Mr. Hagemann said this presents a policy quandry for the board. The risk on holding off on capital projects is that the county could fall too far behind on capital projects and that costs of projects will continue to rise, Mr. Hagemann said.
"For a year or two, while things are figured out by the state, we can wait," Mr. Hagemann said.
The budget team recommended no changes to support for any of the county's authorized agencies, the group of nonprofits that the county supports through occupancy, or bed, tax money.. Legislature Chairman Kenneth D. Blankenbush, R-Black River, said he will wait to hear the suggestions of other legislators before making his own mind on the matter.
"We are going to be as conservative as we can with the 2010 budget, anticipating increased cuts for 2011," he said.
Legislators will hear a presentation on the budget at 5 p.m. tonight and use the next three days to suggest amendments. The public hearing on the budget will be 7 p.m. Nov. 10 in the board's chambers.
BY THE NUMBERS
Jefferson County proposed budget for 2010:
Proposed budget: $223,292,716, up 0.34 percent
Proposed tax levy: $48,684,216, up 4.96 percent
Proposed tax rate: $6.68 per $1,000 of true value, down 0.21 percent
Proposed tax, house with a true value of $75,000: $501, down $1.50
Proposed unappropriated fund balance: $6 million
