Council sets budget guidance

It’s time to start the budget process.

But no one knows what that process will bring.

Jay County Council on Wednesday discussed the uncertainty of budgeting during the coronavirus pandemic and laid out some initial guidelines for department heads to follow when forecasting their spending for 2021.

Jay County auditor Anna Culy explained to council that it’s difficult to tell who the coronavirus pandemic will impact budgets for 2021 and beyond.

But, she said, tax collection is expected to be down in a variety of areas, including local income tax and tax funding related to travel.

It’s also unclear whether there will be help from the federal government to help cover costs related to the pandemic.

“I don’t know what it’s going to look like,” said Culy. “I don’t know how bad it’s going to be yet.

“I don’t know if we’re going to get reimbursed.”

Despite all of that uncertainty, council needed to provide some guidance to department heads in order for them to begin working on their 2021 budgets.

Following some advice from Culy, council advised that funds related to the purchase of supplies, equipment and capital expenditures should be frozen for 2021. Additional appropriations will not be allowed except in emergency cases.

“It’s time to start reining it in now so we don’t have to cut and reduce later,” said Culy. “It’s time to be careful and cautious, for sure.”

Council members Jeanne Houchins, Ted Champ, Cindy Newton, Mike Rockwell, Amy Runyon-Barrett and Faron Parr, absent Gary Theurer, decided to tell department heads to move forward with 3-percent raises while advising them that such increase may not be possible.

Council members had discussed a lower starting point but decided to give themselves room because once the notice to taxpayers is advertised the budget amounts can be reduced but cannot be increased. Decisions on raises will depend heavily on the impact of the coronavirus pandemic on funding as well as a wage study by consulting firm Waggoner, Irwin, Scheele & Associates that was already underway.

Jay County has some wiggle room, having finished 2019 with a general fund balance of more than $3.57 million. But, Culy pointed out, it would not be wise to spend through that surplus in a single year with so much uncertainty about what will come down the road.

“I’m just glad we built up our general fund,” said Rockwell. (The general fund balance has steadily grown since dipping to $289,381.01 at the close of 2014.)

The county auditor’s office will advertise the notice to taxpayers in August, with county council’s budget review to follow at 5:30 p.m. Sept. 2. The public hearing and first reading of the budget will be at 6 p.m. Sept. 16, with budget adoption scheduled for council’s regular meeting Oct. 14.

Council members also gave initial approval for an additional appropriation of $6,318 from the clerk’s perpetuation fund for the purchase of desks and chairs. The office is currently going through a renovation. The appropriation was approved 4-0 with Houchins and Parr abstaining.

In other business, council:

•Gave final approval to the following additional appropriations: a total of $178,500 from the rainy day fund to pay employees who worked when Jay County Courthouse was closed because of the coronavirus pandemic; $85,833 from the infrastructure fund for a new chiller for the courthouse; $75,000 and $50,000, respectively, from wind farm economic development funds for the construction of the new Farmer’s Building at Jay County Fairgrounds and the Arts Place Capital Campaign; $30,766 and $10,000, respectively, from local income tax economic development funds to fund a full-time employee’s salary for one year at Purdue Extension and census-related work and advertising; $6,500 from the cornerstone perpetuation fund for the location of cornerstones; and $970 from the for equipment repair for Jay County Sheriff’s Office.

•Approved the following transfers: $900 to medical and hospital supplies from drug testing, $500 to medical and hospital from drug testing, $480 to wages — part-time from wages – repair and maintenance and $50 to miscellaneous supplies from travel — mileage, all in the retirement center fund; and $2,500 to clerk supplies from clerk election postage.

•Appointed Ted Champ to serve on the Jay County Regional Sewer District board replacing Roy Bunch, who resigned. Houchins said the board is also awaiting appointments from Portland Mayor John Boggs and Dunkirk Mayor Jack Robbins to fill seats previously vacated by the resignations of Randy Mann and Phil Ford.