Supervisors take first look at 2022/23 budget
Administrator recommends 13% increase, no tax rate hike
The Yuma County Board of Supervisors on Monday got a first look at the recommended budget for fiscal year 2020-23, which starts in July.
County Administrator Susan Thorpe recommended a budget of more than $520 million, an increase of nearly 13% over the previous year. The recommended budget reflects a hike in state shared revenues, an increase in reserve funds, employee pay increases of about 4% and a flat property tax rate.
The budget also reflects a minimum wage increase that goes into effect in January. Additionally, health insurance premium rates for employees remain flat with no increase in dependent premiums.
Thorpe thanked staff involved in preparing the proposed budget “particularly in light of the significant changes caused by the continuing but hopefully dwindling impacts of COVID-19 and the economic volatility we’ve seen recently.”
She added: “Yuma County remains in a strong financial position, and we’re bringing a financially and fiscally sustainable budget forward for next fiscal year.”
The total fund balance as recommended is $48.3 million, an increase of 43.16%. Thorpe recommended increasing each fund by 5% as a recession contingency in case of an economic downturn as currently being discussed at the national level.
“It’s important to keep a healthy fund balance in case of emergency or some unexpected reduction of revenues during the course of the year so the county can continue to provide essential and necessary services to the community,” Thorpe said.
The overall combined tax rate would remain the same at $3.6638. The county property assessed values of existing properties as reported by the county treasurer total $1.4 billion, an increase of 5.69% over the previous year. New construction is valued at $34 million, an increase of 0.10%.
The maximum allowable primary property tax levy is $38 million, including new construction, which would mean a tax rate of $2.6293. However, staff recommends a tax levy of $36 million, or a tax rate of $2.5082. The recommended tax rate would still bring in
an additional $2 million in property taxes over the previous year due to increased home values.
If a home was valued at $194,630 in 2022, which is the Yuma metro median home value according to Zillow, the property tax would have been $488.17 in 2022. If the home’s assessed value increased by 5% to $204,362 in 2023, that would mean a tax increase of $24.41 for the new year. The actual effect on the taxpayer depends on any changes in assessed value for their specific property.
The recommended staffing is 1,507 employees, which includes an increase of about 17 full-time employees.
The proposed general fund budget contains several continuing capital projects, including the new 197 Downtown County Building, Health Department Building, a new facility for the ITS/Public Fiduciary and Facilities Management, a virtual storage system for the courts, 102 S. Main St. Building for Recorder and Elections, Adult Probation HVAC equipment and controls replacement, exterior upgrades to the County Administration Building at 198 S. Main St. and the future Foothills Multipurpose Complex.
New general fund capital projects include website design and development, equipment upgrades for the new Division 7 and other courtrooms and relocation of the Public Defender Office and University of
Arizona Cooperative Extension.
Special revenue funds contain the following continuing projects: road construction on North Frontage Road, etc.; Flood Control construction at Smucker Park, etc.; a Health District metal storage building; a Library District book sorter for the Foothills branch and Main Library HVAC replacements; Jail District security camera and smoke control system upgrades; and the a new Tacna water supply and treatment system.
New projects include the Broadband Middle Mile Fiber Network covered by American Rescue Plan Act pandemic relief funds and fairgrounds relocation covered by Arizona Department of Emergency and Military Affair funds.
The supervisors were set to listen to individual funding requests from each department, agency and outside parties that receive county funding throughout Monday and Tuesday.
The supervisors plan to adopt the tentative budget on May 16 and hold a combined budget and Truth in Taxation hearing as well as adopt the final budget on June 20.
“Once we approve the tentative budget, any change that will be done has to be within that tentative budget. In other words, you don’t get a chance to increase it once you approve the tentative budget although you don’t approve the final budget until later,” Chairman Tony Reyes explained.