Council postpones salary decision

The Jay County Council postponed decisions on salaries for county employees for 2011 until it looks over proposed budgets for each department.
 “We are in a very tight position,” said council president Gerald Kirby early in the meeting. “I’m going to hold off (on any decisions) until the very last thing.”
The council is faced with some uncertainty about how serious the effects of property tax caps will be on the county’s cash reserves for next year. The council has asked department heads throughout the year to try to trim 2011 budgets as much as possible.
Jay County Auditor Nancy Culy said the county’s maximum levy in 2011, the total amount of revenue the county can generate for its tax-driven funds, is about $4.6 million — an increase of about $100,000 from this year.
Culy also informed the board that recent estimates indicate the county could see a 16 percent drop in income tax revenue next year.
The county’s adjusted gross income tax (CAGIT) was just above $3.06 million in 2010, but is expected to slide to around $2.56 million next year.
Despite a 16 percent slide, Culy informed the council that it was “better than a lot of counties.”
With the information Culy had coming into Wednesay’s meeting, she said if the council granted no salary raises this year, it would have an $800,000 cash reserve in the county general fund to work with.
The reserves would decrease to $772,873 with a 1 percent raise, $718,618 with a 2 percent raise and $637,236 with a 3 percent raise.
Council member Marilyn Coleman reviewed a sustainability report that was conducted by the county’s financial consultant Greg Guerrettaz that showed the county is on a downward slope with its reserves.
In 2004 the county boasted $2.05 million in reserves and, if things continue on the same path, would be $44,000 in the red by 2013.
“We are losing over time,” Coleman said. “That’s why I’m just very hesitant about raises.”
When asked about what she expects will happen with insurance, Culy told the council that she expects a 15 to 20 percent increase in insurance expenses this year.
The council, however, did address a few measures that can help to prop up some of its tax-driven funds.
Members approved holding a public hearing to adjust the county’s Local Option Income Tax rates. The council plans to decrease the homestead replacement portion of LOIT and increase the public safety portion by the same amount.
The move will not result in an increase in income tax, but could result in slightly higher property tax bills for those eligible for the homestead credit.
It would allow funds to be spend for police, fire and other emergency services.
The council had discussed raising the total LOIT rate by a .05 percent, but council members said they experienced resistance from taxpayers.
“They’re comfortable with the wash,” said council member Dan Orr.
“It only puts the money in the side of the budget that we could use,” Kirby said of the LOIT adjustments.
The move will also increase the general fund’s reserves, since the council will be able to pay some of the costs of the sheriff’s department and Jay County Jail out of the LOIT public safety fund.
Guerrettaz also recommended that the council fund a full time assistant billing clerk for Jay Emergency Medical Service. JEMS has been running on a budget deficit, in part because the department was months behind on sending out billing.
JEMS has received help from an auditor’s office employee, who will stay on full-time in that capacity. Culy said that position has already been budgeted for next year.
“I’ve brought in $75,000 more dollars,” said JEMS billing clerk Marla Grady, since receiving the extra help in the office.
Third, Coleman said Guerrettaz suggested broadening the scope of use of the cumulative capital development fund, which has mostly only be used for bridge or road repairs. The fund’s use, if expanded, could also be used for emergency capital equipment purchases.
Kirby also dismissed rumors that the council was considering expanding the use of Economic Development Income Tax funds for purposes outside of economic or community development.
“There never was any plan … to take EDIT money and put it in county funds,” Kirby said.
The council will review departmental budgets Tuesday and Wednesday at 6 p.m. in the commissioners’ room of the courthouse.[[In-content Ad]]