County

est challenge in budgeting that will fund necessary county services is that projected expenditures will surpass projected revenue by $1.44 million.

Revenue/expenditure figures for the two previous fiscal year budgets were $24.7 million/$31.7 million in 2015 and $24.5million/$24.5 million for 2016.

The wide spread between revenue and expenditures for fiscal 2015 was due to the county paying nearly $8.6 million (from reserves) to satisfy its obligation to Erlanger hospital.

“Before recording this liability, the county was favorable $1,528,355,” Henson said.

Expenditures this year are projected as being $1.44 million greater than 2016, making a tax increase, cuts in service — or both — necessary.

The greatest increases for the coming year are opening a state court ($500,000), shifting the Keith Fire Station from volunteer to “career” firefighters ($500,000) and providing a cost of living increase ($300,000) for all county employees.

By percentage, the greatest increases in the upcoming budget would be 15.8 percent for judicial, 9.78 percent for housing, 8.7 percent for general government expenses, and an 8.2 percent increase in spending for culture and recreation.

Officials were aware that initial costs of establishing a state court are dear the first year, but that within a brief period such a court should not only pay its own way but generate revenue for the county’s general fund.

Discussion about improved fire protection service has been a regular topic of discussion during the past several years, with attention focused on replacing the station that serves the Graysville area and increasing the number of fulltime or career firefighters.

The department’s request to hire three firefighters for each of the three daily shifts at the station serving the Keith community is something commissioners are considering as something that could be postponed for another year.

Full-time staffing cuts the time it takes to respond from station to fire by about half, according to Chief Chuck Nichols.

But a recent decline in sales tax collections, coupled with state court startup costs, has led commissioners to question whether the time is right to add so many “career” firefighters to the county payroll this year.

Several taxpayers attending the commissioners’ Tuesday evening (Aug. 16) budget hearing asked if an increase in the sales tax rate could eliminate the need for a millage increase.

County Attorney Skip Patty answered by saying the state legislature approves sales tax rates. Currently, there is a 4 percent statewide sales tax.

Counties can adopt up to an additional 4 percent of additional taxes, but only by referendum and only for specified periods of time. Catoosans have voted to tax themselves 3 percent more by means of three 1 percent taxes: a special purpose local option sales tax (earmarked for specified capital projects), a local option sales tax (applied to general funds) and a special purpose local education tax (applied solely to capital projects in schools).

County resident Roger Nelson urged the commissioners to consider cutting expenditures. He noted local government has done a good job during the past six months by having revenue exceed expenditures by about $600,000.