Can Warren County government make it 15 years without a property tax increase? The county’s Financial Management Committee doesn’t think so.
Members met and reviewed a budget sent to them by the county Budget and Finance Committee for fiscal year 2017-18. After discussion, the budget was rejected because members don’t feel it includes enough money to cover county expenses.
As presented, the county’s beginning budget as of June 30, 2017 is $4.8 million. The estimated ending fund balance on June 30, 2018 is $1.5 million.
In addition to a shrinking fund balance, Debt Service will decrease during the year from $8.4 million to $8 million.
Director of Schools Bobby Cox questioned some of the line items.
“It looks like, to me, there are a lot of the revenues which are less than the expenditures,” said Cox.
Finance Department director Linda Hillis confirmed Cox’s calculation.
“That’s pulling the fund balance down pretty good,” said Cox. “I guess my question is, down the road, what’s the plan?”
Commissioner Terry Bell, chair of the Financial Management Committee, replied, “It’s the same as what you do with your budget. Ever since I’ve been on here you’ve used $2 million or something out of your fund balance. There’s always money built in there. You have to build it in there, even though you know you aren’t going to use it. You could trim, if you need to. We know it’s in there, but you can’t cut it but so close.”
Cox says the school system is using far less of its available funds to balance its budget.
“I saw that all the way through the budget, revenues less than expenditures,” said Cox.
Commissioner David Rhea asked County Executive Herschel Wells if the budget, as presented, covers all the expenditures facing the county – jail expansion, school projects, etc.
“No, this doesn’t cover anything we need to do,” said Wells. “This doesn’t cover anything for the schools or anything like that. In fact, Debt Service is spending $397,000 more than it’s taking in.”
Rhea stated, “That doesn’t make sense.”
Road Superintendent Levie Glenn asked how this might impact county roads.
“How is this going to affect us down the road with future projects?” asked Glenn. “Is there going to have to be more revenue?”
Wells replied, “There will have to be more revenue.”
“Will it be a big bunch at one time instead of small steps?” asked Glenn. “I know I’ve heard the talk about increases. I don’t know if we are going to get down the road and something is going to come up and we’re going to have to fund it.”
According to Bell, there is about $800,000 built into the budget – funds to cover an architect, ADA improvements, land purchases, etc. – and if the money isn’t used, it will revert back into the General Fund at the end of the year or into Debt Service to cover the $397,000 shortage.
“If I figure it right, that’s going to be spent,” said Rhea.
Wells replied, “Half of it won’t. The $400,000 will go back into Debt Service. It won’t be used to cover the school projects or the jail.”
The proposed budget was rejected 5-2. Wells, Rhea, Cox, Glenn and Commissioner Tommy Savage voted against the budget, while Bell and Commissioner Gary Martin voted in favor of it.
With an approval from the Budget and Finance Committee and a rejection by the Financial Management Committee, the consolidated budget for fiscal year 2017-18 will be presented to the full Warren County Commission in August for its consideration.