Revised budget raises taxes
After nearly two hours of haggling, the Butler County commissioners Monday revised the 2008 county budget to restore funding to numerous organizations through a 2.5- mill property tax increase.
Five days after presenting a budget without a tax increase, the commissioners decided to raise taxes in the spending plan, which will now top the originally proposed $182 million.
The rate will go from 27.5 mills to 30 mills for next year.
Chief County Clerk Bill O'Donnell said the 2.5 mills will not pay for all of the roughly $6 million requested by the nearly 30 groups, but will cover much of the $5.4 million they received this year.
Under state law, the county can only raise the general fund tax to 25 mills. So the 30 mill tax rate will include 5 mills to pay off county debt service.
Ed Rupert, director of county property and revenue, calculates a 2.5-mill tax increase would cost the average homeowner $37.50 more in taxes.
The commissioners revised the budget in a 2 to 1 vote. Scott Lowe, commissioner chairman, dissented, saying he preferred a dedicated tax for the Butler County Community College, one of the organizations receiving county money.
He prefers a 4-mill tax dedicated solely to BC3.
Along with securing funding for the college, the dedicated tax would free up general fund mills. However, some county officials are concerned about implementing a dedicated tax as the college has significant reserve funds.
County Controller Jack McMillin estimated BC3 has up to $12 million in reserved funds.
"There's $8 million in cash sitting in the bank," he said.
Nicholas Neupauer, BC3 president, defended the surplus funds, saying they would be used for renovations and as backup funding if state funding is cut later.
Commissioners Glenn Anderson and James Kennedy both expressed concern about raising taxes higher to create a college tax.
Anderson said senior citizens who struggle to pay for food and medicine shouldn't be worried about a 4-mill tax hike.
After the meeting, Lowe said the college needs community support in the form of tax dollars despite having reserve funds.
Kennedy and Anderson supported a budget with 2.5-mill tax increase as a last resort.
Anderson, who is retiring at the end of the year, said he only would support the budget revisions to help the agencies seeking funding.
"I don't want to go out of office and be labeled a 'tax and spend Democrat,'" he said. "(But) we either have to bite the bullet and raise taxes or let the new board raise taxes. I can't let my ego get in the way of helping good people."
Before backing a tax increase, Anderson asked commissioners-elect Dale Pinkerton and Jim Lokhaiser what they would support. Both men deferred from stating whether there should be a tax increase.
"You are the people who have been in the job for the last four years," Pinkerton said.
He reiterated the 2008 budget could be reopened next month if the new commissioners deem it necessary.
Although voting against the new budget, Lowe agreed with Anderson and Kennedy the county is backed against a wall.
"No one likes to raise taxes," Lowe said.
The commissioners also discussed county expenses.
Kennedy questioned the $2.5 million allotted for court administration.
Tom Holman, deputy court administrator, replied there is no extra spending in the department.
Anderson complained about county vehicles being taken home by some officials, including the sheriff, warden and district attorney.
O'Donnell attributed most of the county's rising costs to construction and operation of the new county prison and a growing court system.
County officials also again discussed the idea of increasing the percentage of assessed property taxes. The county could raise the property tax assessment from the current 75 percent to 100 percent to generate more revenue.
Lowe said the county would have been in better financial shape if a property reassessment had been done. The last one was in 1969.
"We're suffering consequences because of that," Lowe said.
The proposed 2008 budget is less than this year's $189 million budget. O'Donnell previously attributed that decrease to construction winding down on the new county prison.
Borrowed funds are paying for the $40 million prison project. The new prison is to open in May.
The commissioners were pushed to revise the budget because any significant changes, such as restoring most of the donations to organizations, require the new document to be on display for 10 days before the expected Dec. 27 approval.
Kennedy said the commissioners were not taking the possible funding cuts lightly.
"This was not a frivolous action of the county," he said about the initially proposed budget.
However, Lowe said after the meeting a better choice for the county would have been to present the budget with the 2.5-mill tax hike rather than cut the funding.
