Tax hike not likely for county residents
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The total budget is $62.6 million and has no tax increase. The current $2.31 property tax rate will remain in effect for budget year 2005-2006 if approved by the full commission.
Increased tax revenues from the local option sales tax were alluded to as part of the reason a property tax increase isn’t needed, though some commissioners expressed concern about the continuing decrease in the county’s fund balance, which dropped from $14.2 million on July 1, 2004 to $9.9 million on June 30 of this year – a decrease of $4.3 million.
With 1 cent of property tax generating $48,244, this decrease amounted to 89 cents of property tax.
Of the four members of the five-member committee present at the meeting, there was one dissenting vote from chairman George Smartt, who felt the budget was unrealistic since it did not address the problem of a shrinking fund balance.
“It’s inevitable,” said Smartt. “The tax increase is coming. The chickens are circling, to use a chicken analogy, and they’re coming home to roost. It’s just a question of how big the flock is and when they’re going to land.”
Even though the sales tax increase has added to the county’s coffers, some officials have advised not to depend too strongly on those funds, considering the effect the closing of Carrier may have on the county’s property tax base and the sales tax as well.
Smartt said later the reason for his dissenting vote was a simple one. He feels the county is putting off the inevitable, and a budget that doesn’t address a rapidly diminishing fund balance will cause problems.
The budget won’t actually go into effect until the vote from the full commission Aug. 15. Should the budget fail at that time, the county will have to go back to the drawing board and the budget will be returned to the Budget and Finance Committee.