Wednesday, June 13, 2001
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Wednesday, June 13, 2001 |
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County eyes $65.25 million budget By DAVE
HAMRICK
Fayette County will pay off the mortgage if county commissioners approve the $65.25 million budget proposed by staff. Commissioners this week are digging into the proposed budget for fiscal 2002, which begins July 1. A workshop meeting was conducted Tuesday, with another set for all day today. Public hearings are set for Thursdays, June 14 and 28, and final adoption June 28. With interest rates on the county's surplus funds running low, it has become profitable to take the money out of investments and pay off the debt on the County Administrative Complex, said finance director Mark Pullium. County government purchased the failed Stonewall Village office complex in December 1990 for just under $7 million, and spent about a million dollars to renovate the facility to use as county offices. The move saved the county quite a bit of money, officials say, because the new building planned at the time was expected to cost about $15 million. "By paying off Stonewall, we can save $600,000 interest," said Pullium. Money is available because revenues were slightly higher and expenditures slightly lower than the 2001 budget anticipated, he said. Paying off the debt will require a $3.9 million balloon payment, in addition to the $500,000 annual payment, he said. The proposed budget is about 7 percent higher than the adjusted 2001 $60.97 million budget, but no increase in the property tax rate is anticipated. Taxes will increase as a result of state-mandated value adjustments, and public hearings will be required because of that. Cost of living adjustments of 3.4 percent for employees are included in the budget, along with an average of about 3 percent for merit increases. Staff also is recommending that the County Commission increase the contingency fund to prepare for possible energy cost increases, and for funding possible employee pay adjustments to keep local jobs competitive with those in other nearby counties. A market study is underway. If the commission approves, the general fund contingency will go from $400,000 this year to $1.2 million next year, and a new $320,000 contingency fund will be created for fire services as well. Sending Fayette County inmates to a Union City jail to avoid overcrowding in the Fayette County Jail is expected to cost $870,000. Proposed expenditures in the general fund are $43.15 million, including $1.8 million for capital improvement project transfers. Enterprise fund activities will require $12.7 million, and special revenue funds are pegged at $9.4 million. Expenditures for the county Water System are expected to be almost $12 million; fire services $6.7 million; the sheriff's office $10.15 million.
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