The season for crunching numbers has arrived for local units of government.
The budget outlook for 2011 varies depending on each community’s circumstance. The clerk-treasurers for several of the smaller Grant County communities say they are keeping their 2011 budgets similar to their 2010 budgets, as they don’t know what revenue projections will be.
“We’re just kind of holding our own right now,” said Michelle Sexton, clerk-treasurer for Van Buren.
Sexton said as Van Buren doesn’t have many houses with a high assessed value, property tax caps may not affect the community as much as others. She said Van Buren’s budget will be similar to last year’s, with no significant cuts or increases.
“I think we’re going to be OK over here,” she said.
Auditor Mike Burton said what 2011 will mean for Grant County’s communities varies, depending on the community.
“There probably will be more people hit the property tax caps, which means a larger revenue loss for certain units of government,” Burton said.
Jim McWhirt, Grant County Council president, said a community’s assessed value plays a role in whether homes will hit the property tax caps, thus decreasing revenue.
Also, how many taxing units there are in the community will play a role. A larger community with more taxing units will have more homes hitting the property tax cap, McWhirt said. Smaller communities, however, have less of a chance of hitting the caps, thus revenue could remain about the same as 2010.
Cities and towns must submit proposed budgets to the Grant County Council every year, according to the property tax law of 2008. McWhirt said the council performs a non-bonding review, which “doesn’t mean a whole lot.”
Since each community is somewhat competing for the local tax dollar, McWhirt said state legislators decided a centralized look at all budgets was necessary. The county council can suggest changes, but the change doesn’t have to be made by the town council.
Proposed budgets for local communities will be advertised this month, reviewed by the county council in August and September, and then public hearings of budgets will be held by local communities before they’re passed in the fall.
Jane Rockwell, clerk-treasurer in Upland, said she tried to cut the budget by 15 percent because she is expecting lower revenue in 2011 thanks to property tax caps.
She said town employees are cutting back on overtime by working comprehensive hours, and the town switched to a health savings plan, which helps the budget. One employee retired, but stayed on with the position as only part-time, Rockwell said.
Alma Caldwell, clerk-treasurer of Swayzee, said next year’s budget will be similar to this year, with no raises for employees. She said over the last couple of years, the town has been cutting back on office supplies, and road and street repairs are decreasing. With the increase in utility rates to pay for the new water tower project, Caldwell said people don’t want to see an increase in taxes as well.
“You just don’t buy anything you just don’t need,” she said. “We don’t have any luxuries in Swayzee.”
McWhirt said the county council will also be reviewing the budget for county government at the end of this month, and may approve it in September.
“My initial reaction, without seeing the numbers yet, is that we’d want to stay pretty status quo,” he said.