The DeKalb County Commission’s Budget Committee is finding itself in a tough spot as it works through the upcoming county budget details. Officials say that revenues are not keeping up with expenditures, which is forcing the county to use more of its fund balance to balance the budget each year.
The Budget Committee has been looking hard at where to trim the fat of the budget, but they are finding it hard to find any cuts that would make a meaningful difference. The main reason for budget woes seems to be raises for county employees, something that committee members do not want to touch.
That leaves few options for committee members, with County Financial Advisor Steve Bates recommending a tax rate increase by almost 27 cents per $100 of assessed value (.2692). The proposal would amount to a property tax rate of $2.00 per $100 of assessed value, an increase from the current tax rate of $1.7308.
The problem seems to be an inherited one for the county commission. Four years ago, the previous commission increased the property tax rate by 29 cents per $100 of assessed value to $2.1235 but after reappraisal two years ago, property assessments changed and the county’s certified rate dropped to $1.7308. The new rate was expected to generate about the same total amount of local revenue as the previous year.
According to Bates, if the county does not either make cuts or raise taxes, the county could possibly have to borrow money as soon as October to meet its obligations. That, coupled with other pressing issues, such as overcrowding and the possible decertification of a portion of the DeKalb County Jail and the need for a new school, are backing commissioners into a corner.
According to Sheriff Patrick Ray, the DeKalb County Jail will soon be inspected by the state, and the old lower section will most likely be decertified. Currently, 17 women that are housed at the jail would have to be sent to other area jails, costing the county $55 daily to house them. It would cost the county as much or more than $360,000 per year for the female prisoners, assuming that the number of prisoners did not rise.
Some proposed cuts to the budget include donations to non-profit organizations such as the Chamber of Commerce and the PBS station WCTE, which broadcasts the Smithville Jamboree each year. While committee members have looked at those donations, they are just a drop in the bucket compared to the overall budget problem.
Others have proposed a wheel tax, but such a tax would have to be designated towards a project such as a school or jail, and would most likely face a referendum vote.
For the current fiscal year, the county general operation is expected to dip into its fund balance by up to $1.7 million dollars. According to Bates, County Mayor Adcock said a tax increase of .2692 cents would get the county general fund out of the red and into the black (at least $54,582) by the end of the 2023-24 year.
Whatever the budget committee recommends will have to go to the full county commission for a full vote.
If approved the county property tax rate would break down as follows:
· County General: $1.2583, up from the current level of 0.9891 cents
· Highways/Public Works: 0.0326 cents (no increase)
· General Capital Projects: 0.0733 cents (no increase)
· Debt Service: 0.1060 cents (no increase)
· General Purpose Schools: 0.5298 cents (no increase)
Total proposed tax rate: $2.00, up from current level of $1.7308 cents
