Budget: Higher fees, deeper cuts, tax hike

“I think we all realize we’ll have to take action next year to reorganize how we operate.

Si Stephens

San Juan County Auditor

Relying heavily on give and take, San Juan County commissoiners balanced a $30.1 million budget with higher fees, deeper cuts, and a property tax hike.

Commission Chairman John Evans voted against the 2002 fiscal package while commissioners Darcie Nielsen and Rhea Miller voted in support. All three commissioners voiced frustration with having to craft a budget while revenues dwindle and expectations of government services build.

Following approval Nov. 27 by majority vote, the budget was scheduled to be formally adopted Monday when the commission met in “special” session. The county’s financial plan forecasts year-end cash reserves of roughly $800,000. Expenses were sliced $484,377. Boosting fees for services – like building permits – is expected to bring an added $83,000.

For now, less unconventional moves to to save money were avoided. The commission backed away from several cost-cutting proposals presented at earlier budget debates including a six-day shut-down of offices, consolidating the departments of planning, permitting and environmental health, eliminating programs, or suspending the Land Bank conservation futures tax.

Instead, the $12.2 million county general fund – the largest of eight accounts funding public services and payroll – calls for raising fees, trimming targeted departments and collecting $500,000 of previously un-levied taxes from property owners. The county portion of property tax bills will rise 18 percent, or about $35 for a $250,000 home.

With Initiative 747 now limiting annual property tax growth to 1 percent, commissioners acknowledged funding public services in the future will requires creative solutions or votes of the people. Voters may lift the lid imposed by I-747, but they’llhave to be convinced government is doing all it can to control costs, said county Auditor Si Stephens.

“I think we all realize we’ll have to take action next year to reorganize how we operate,” Stephens said.

The budgetary balancing act takes its toll on roads. About $350,000 will be shifted out of the road fund to support general fund expenses. Currently, San Juan County diverts the second-highest percentage of funds from roads compared with the rest of the state, Public Works Director Tom Huse said. Siphoning more road revenue means various construction projects will have to be postponed, Huse said.

“It won’t affect our road maintenance schedule, but will have about half as much for construction next year as we’ve been able to do before,” he said. “There’s a growing list of projects we’ve deferred.”

Two vacant jobs in the road department will be left unfilled due to the levy shift. At this time, Huse is unsure whether this will affect other personnel in the department.

Permit Center Director Grant Beck knows how the $120,000 cut from his department will affect personnel. One management position – Land Use Administrator – will be left vacant while a planner who doubles part-time as building inspector will be laid-off. With 25 percent less staff reviewing permits, Beck expects the process to take longer and the summer schedule of inspections to be scaled-back.

While service slows, prices for permits become more costly with fee increases slated for early next year. Beck anticipates that $37 provisional-use permits soon will be history and homebuilders will see a jump in permit fees.

“I’m pretty sure we will keep the 1-percent value for determining the cost,” he said. “But the parts of the equation of estimating the value of a home is what we’ll be sitting down and taking a look at.”

Along with fee increases for Public Health care, department Manager John Manning expects service to slack a bit. One vacant nursing position will remain unfilled and clinic schedules are likely to suffer as less staff tackle a mounting caseload.

But local cuts are only half the problem Public Health faces, Manning said. With 51-percent of the department’s funding provided through the state and the Legislature preparing to battle over its upcoming budget, Manning said more cuts could lie ahead.

“Nothing’s final until it’s final,” he said. “We’ll probably be alright for the first six months of the year, but who knows what will happen when the Legislature gets to its budget next July.”

— Scott Rasmussen is Staff Reporter for sanjuanjournal.com and The Journal of the San Juans. He can be reached at (360) 378-4191 ext. 13 or email.

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