Revenue decline impacts county budget

Paying the bills isn’t always easy – especially when income goes down.

Lincoln County went through such headaches with its 2010-11 budget by surviving a decline in revenue expected to add up to about $400,000. Commissioners had to make cuts in five departments but avoided using the total number of mills allowable to minimize property tax increases.

The county’s total mill levy adds up to 133.28 – less than the 150.27 mills that they could have used.

“We’re just not getting the interest income we’re used to getting,” Commissioner Tony Berget said. “Something has to give … you have to make some cuts.”

Berget said he believes other counties have been forced to use the maximum number of mills allowed.

Departments impacted by budget cuts included planning, roads, public safety, library and the health board.

“Others were asked to tighten their belts,” Berget said.

Tammy Lauer, county clerk and recorder, said many departments have operated on the same budget for the past three years with wages representing the only increases. Insurance costs have also impacted numbers.

Translating the numbers into a real-world example, Lauer said the owner of a $150,000 home would pay $22 to $23 more per year in property taxes.

The biggest revenue hit for the 2010-11 fiscal year originates with Secure Rural Schools funding. Just two years ago, the county received $4.07 million. Last year, the funds came in at $3.65 million. This next fiscal year, the funding is estimated at $3.25 million.

In addition, the county’s interest income stands at around $400,000. Just four years ago, interest income came in at $1.16 million.

The value of a mill on the 2010-11 budget is $31,282, up from last fiscal year’s $30,671.

Commissioner Marianne Roose, who has closely tracked mill yields since 1996-97, said she was surprised at the increased value.

“It actually increased $611 which I find encouraging since we lost so much industry,” Roose said. “I thought for sure it would go down … we’re always holding our breath. I was really pleased when we saw that it had actually increased.”

The lowest mill value over the past 15 years was $24,520 in 2000-01.

Talk had circulated that the Lincoln County Libraries budget was going to see significant cuts. However, the budget shows the mill levy dropping from 10.00 down to 9.99. Lauer said the library will need to cut some staff hours. Hours of operation are expected to stay the same.

The library’s budget equals $418,067 with $312,628 from tax revenue.

“The biggest increase would be in public safety – the sheriff’s department,” Lauer said. “The mill levy increased 66 last year, it’s 71 this year.”

The total public safety budget comes in at $3.35 million with $2.22 million originating through property tax revenue. Lauer said the cost of running a sheriff’s department continues to go up from year to year. Another factor is that last year, public safety received a sizeable grant to help with expenses.