Commissioners OK $9.4 million budget for coming year

The Lincoln County commissioners on Wednesday approved a $9.4 million budget for the upcoming year, which is expected to raise both property taxes and department costs.

Over the course of developing the final budget of $9,447,920, county commissioners had to trim nearly 30 mills, about $900,000, from the funds requested by all county departments.

“It was a long process, it always is,” Commissioner Greg Larson said. “I think the cuts we made were reasonable. We can still provide adequate services.”

The final general fund budget approved is set at 106.86 mills, approximately $892,000 less than last year, but Lincoln County Clerk and Recorder Robin Benson said this decrease is attributed to departments outside the general fund now taking on their own insurance costs. Previously, these costs where covered by the insurance fund within the general fund.

Overall, the approved budget actually raises property taxes, but taxpayers can already expect a rate-hike after passing the $4 million, five-year school levy earlier this year.

Benson said the taxes are also increasing because county revenues are down while operating costs are rising, especially with a hike in insurance expenses.

“Because of the continued revenue decrease and continued increase in costs, we’re levying pretty much everything we’re allowed,” she said.

Revenue sources in decline include recording fees, Clerk of Court fees, investment earnings, and federal and state shared revenues.

The budget includes a one percent cost-of-living increase in wages for county employees. The insurance cost adds about 10 percent in expenses for each department and $774,170 less in cash reserves than was in the account last year.

The budget also allows the commissioners to hire a county administrator in the coming year, duties that had previously been taken on by Commissioner Mark Peck. Larson said the county is not currently in a hiring freeze, but if a department employee retires, that position may not be refilled.

In order to bring the county budget within distance of the allowable mill amount Lincoln County can tax its residents, the commissioners chose last week to use approximately $290,000 from the payment-in-lieu-of-taxes fund to cover the requested department funds rather than use general fund monies. The payment-in-lieu-of-taxes fund is essentially money given by the federal government to supplement the loss in property taxes when there’s a lot of non-taxable federal land in the county.

Larson said in order to offset falling revenues and increasing costs, the county is going to explore different ways to save costs. This might include researching how technology can replace manpower, he said.

“Again, we’re concerned with providing the best service possible with the best cost. With technology changes and improvements, some may be altered in the way they’re provided today. That’s just the way things change,” Larson said.

Larson added that the county will contract an outside firm to examine the insurance provider’s costs and services to look for places that can be trimmed within the policy.

Larson, who completed his final budget approval on Wednesday before he terms out in November, said he felt good about the final document approved on Wednesday.

“I’m leaving it in good hands with whoever succeeds me. People are just going to have to be prepared for some changes,” he said.

Reporter Seaborn Larson may be reached at 758-4441 or by email at slarson@dailyinterlake.com.