Gary Olsen speaking at the budget review Wednesday. |
"Realistic' county budget reviewed by board, some programs trimmed Langlade County’s Director of Finance, Gary Olsen, detailed what he called a “realistic” budget for 2010 Tuesday evening for the board of supervisors, employees and representatives of a few agencies that receive county donations.
It was the first true airing of the budget document leading to a public hearing on Tuesday at 9 a.m., just before the October meeting of the county board, where the plan is expected to be approved.
It calls for an $8.4 million tax levy in what Olsen called difficult times.
Property valuations are down in Langlade County after steady growth for years. Add to that problem, the amount of interest money paid to the county is sharply down creating a pinch.
Olsen called the drop in interest payments “a kicker.”
For 2010, equalized values are expected to decline .54 percent, or $9,454,700, and stand at $1.731 billion. That comes after years of increases, including a high of 9.66 percent in 2002 and generally in the 5 to 7 percent range in subsequent years. The 2009 increase was 4.56 percent.
The tax levy will increase $245,015, right at the 3 percent limit allowed by the state, and is anticipated at $8.412 million. The tax rate is estimated at 4.85 per $1,000 of equalized valuation, a 3.56 percent or a 17 cent increase. That means that the owner of a $100,000 piece of property will pay $485 in county property taxes, a $17 increase.
The county levy is only a small portion of the overall tax bill that will be distributed to payers in December. Dollars for schools, state, and the city, town or village must all be added before the final bill is determined.
The county started the budget process at $418,385 over the amount needed to meet the state mandated freeze, which allows counties to increase their levies by the percentage of new construction or 3 percent, whatever is higher. With only a 1.15 percent gain in new construction, the county was allowed the 3 percent, or $245,015, figure.
During his presentation, Olsen outline the cuts that were made and addressed other problems..
He praised the work of the department heads for producing that “realistic” budget in face of the levy adding a nod to George Bornemann and the Finance Committee he chairs for their work on the document.
There will be cutbacks coming to the floor on Tuesday, including some in the areas of maintenance, parks, health and highway departments and office of district attorney.
Donations to AVAIL, the Boys & Girls Club and Family Corner Resource Center were each reduced by $2,500.
There were other adjustments as well. The cattle barn roofing project and Health Care Center carpeting were removed from the 2010 capital improvement plan. The committee also earmarked $25,000 from jail assessment funds, along with $200,000 in excess jail revenue, to help pay the debt service.
Property taxes account for 27.74 percent followed by intergovernmental revenues, which includes things such as state shared taxes and grants, at 22.7 percent.
Other revenue sources include other taxes, 5.11 percent; licenses and permits, .33 percent; fines, forfeits and penalties, .36 percent; public charges for services, 7.64 percent; miscellaneous, 3.08 percent; and other funding sources, 1.54 percent.
In the spending category, public safety took the biggest portion of the levy, 28.53 percent, followed by health and human services, 24.29 percent.
Other spending by activity includes general government, 21.13 percent; public works, 20.59 percent; culture and recreation, 4.53 percent; and debt service, .93 percent.
Only two county departments actually make money. One of them is forestry, which takes in funds from timber sales. Net income in that account totaled $934,526.
The other is the jail commissary account but there’s a catch. For 2009, the account took in $69,180 and spent $47,500, for a net income of $21,680. That money is in a separate fund that can only be used for the inmates and does not add to the county coffers.
Olsen explained that the $200,000 fund had been kept for debt retirement, and has been effectively used over the years. And he anticipates restoring it back to health after the current problems are addressed and economic conditions improve.
“It is one of those ‘rainy day’ funds,” Olsen said.
Bornemann’s reply was “it’s raining.”
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