The 2010 budget cycle for Lyon County won’t be an easy one. On the flip side, surprises and major changes aren’t anticipated either.
Lyon County Controller Dan Slater offered some insight on 2010’s budget cycle, which is set to start in the coming weeks. The county waited until after April to start the budget cycle, which allows three solid months of history to work with, Slater said. Still, with sales tax not being collected until July 1, it’s going to be a “best guess” scenario.
The county expected to start collecting in October 2008 the 1 percent sales tax voters approved in August 2008. Because of interpretation of the sales tax law and the fact that the county would be exceeding its 1 percent sales tax cap, however, the sales tax collection was delayed while special legislation was passed to allow the tax collection.
Despite the sales tax delay, Lyon County Commissioners already promised taxpayers a $1.5 million decrease in property tax. They held up to this promise even though there was no way to fund it. That leaves the county with the possibility of tapping into reserves.
Slater said the next year’s budget is based on what money is not spent in the previous year. This year because of the sales tax shortfall, which is estimated to be more than $800,000, the county will go into 2010 with less carryover. Slater said still, it’s always a best guess how much money will be left to carry over.
“In the past our guesses have been pretty good,” he said.
Right now every department is under budget for the year, Slater said. The revenue numbers aren’t great, but the county was prepared for that. Sales tax collection for the courthouse is unstable at best with one month collections being good and the next month being not so good, Slater said.
Slater said unexpected expenses happen all throughout the year, which can deplete reserves.
“Right now there’s a $60,000 bill for gravel in this week’s accounts receivable,” Slater said, speaking of the recent floods.
Reserves are important for dealing with unscheduled emergencies, but a reserve has to be replenished, Slater said. With recent floods, the $60,000 for gravel is just a drop in the bucket, Slater said. Gravel washed off roads has to be replaced.
Slater said if the county were to have a flu outbreak, hundreds of thousands of dollars would be spent on quarantine and vaccinations. That would be another tap into reserves.
“Part of my job is to make sure departments have enough to do their job but not more than they need,” Slater said. “I respect departments for saying ‘This is what I need to keep roads safe.’”
Slater said he sees both ends of the budget spectrum — the department that is asking for the allocation and the county’s need to hold the budget down.
Slater said another challenge this year could be cuts in funding at the state level. Programs like the juvenile justice program is largely funded by the state. If the state cuts that funding it would be up to the county whether or not to make up the difference. The same would go for the mental health center or the community health center, Slater said.
All are necessary services for county residents, Slater said.
Two of the three county commissioners are new and this is their first budget cycle.
“For a commissioner, a budget is really confusing,” Slater said. “These guys are doing their homework. They are asking questions.”
Slater said he isn’t anticipating any major changes for the 2010 budget. He doesn’t see any areas that are looking at major money increases. He also doesn’t see any places where they can cut budgets.
“It’s business as usual,” he said.