Council taps into rainy day

County departments made efforts to cut their 2016 budgets, but the total reduction was still far short of the amount needed.
County council, absent Ted Champ, unanimously voted Wednesday evening to transfer $500,000 from the rainy day fund to the county general fund to cover the difference. Council also decided to suspend giving new tax abatements through 2016.
At last week’s meeting, auditor Anna Culy said the budget was $631,608 higher than the Department of Local Government Finance would accept, based on the maximum amount Jay County is allowed to collect in tax levies. County departments cut a total of $190,000 before this week’s meeting.
“They really tried,” Culy said. “If you look at our salaries and you hold them out, you know, and then you just look at everything else … a lot of people operate on bare bones as it is.”
“I think they all gave what they could give,” council member Gary Theurer said.
The recorder’s office was responsible for more than one fourth of the reduction. Of its $85,143.94 budget for 2016, $50,000 will be paid out of the office’s records perpetuation fund, which is supported by fees paid when citizens get documents from the office.
The fund has $221,000 in it, Culy said.
In a sworn statement submitted to council, recorder Betty St. Myers said the fund has enough money in it to cover any technology or records management upgrades that might be necessary.
“That’s huge,” Culy said of St. Myers’ decision. “That was way more than I ever even anticipated.”
Not making cuts were veterans services (whose budget is $17,800.88, all but $1,580 of which pays wages), Jay Emergency Medical Services and the retirement center.

JEMS director Pat Frazee told Culy the department can’t operate on less than its 2015 budget of $1,237,538.64.
Retirement center director Patti Clevenger submitted a letter stating the center brings in revenue from residents and the sale of crops, and with increasing prices for fuel, electric, food and farming supplies a cut would be too difficult. Its 2016 budget is $439,699.28.
Though council used the rainy day fund — which has about $2.3 million in it — to cover the amount not cut, council members agreed that’s not what the fund is for.
“The rainy day was put in for an emergency situation,” Theurer said. “It’s not supposed to balance our budget.”
But short of cutting employees, council decided there wasn’t much left to do.
“If this keeps going on, that’s where we’re going to be,” council member Cindy Newton said.
Council member Jeanne Houchins questioned whether cuts in the 2015 budget could be made, but Theurer pointed out most departments did not have anyone in attendance to explain what cuts they could make.
The clerk’s office, for example, has $7,500 — the full amount — left in its official records line item. That’s not because it won’t be used, clerk Ellen Coats said, but because the office doesn’t use it until near the end of the year.
Theurer asked whether tax abatements help or hurt the county.
“It depends on who you talk to,” Culy said, explaining that they do have long-term economic benefits.
Commissioner Doug Inman suggested not offering tax abatements for a year and seeing what effect that has.
“What if this doesn’t get any better?” he asked. “What if things get worse and we have to start laying people off but we’re giving tax abatements?”
Council members Mike Leonhard, Mike Rockwell, Bob Vance, Houchins, Newton and Theurer unanimously voted to suspend giving new tax abatements through the end of 2016. Current abatements are unaffected.
Vance first motioned to suspend abatements for two years, but Newton, Rockwell and Theurer voted against the longer suggestion. Theurer then made the one-year motion.