By Gary Nelson / gnelson@crossville-chronicle.com
County commissioners on the budget committee have a lot to think about over the weekend.
"I doubt I'll even sleep," said 7th District Commissioner Mike Harvel.
Commissioners serving on the budget committee recessed their meeting Wednesday evening until next Monday in order to "sleep on" a variety of scenarios designed to raise revenue for the county's general fund and to balance the budget.
Earlier this week, Cumberland County Finance Director Nathan Brock revealed projected revenues for the county's general fund for fiscal year 2009-'10 would be around $21.2 million with expenditures in county departments coming in at a projected $22.6 million. Brock reported to commissioners on the budget committee that it leaves the county with a negative fund balance of $759,267. The deficit is after commissioners requested all departments to turn in proposed budgets with a five percent reduction and going through each budget line by line making nearly $200,000 more in cuts. The committee unanimously agreed the county needs to start the year off with a fund balance of at least $600,000 to $800,000 in order to keep county services running smoothly and uninterrupted. Adding the negative $759,267 to the minimum $600,000 leaves the county in the predicament of having to raise at least $1.35 million.
"I knew it was going to be bad, but I didn't think it was going to be this bad of a year. I just don't want to have to lay any people off or lose jobs," said 1st District Commissioner Jim Inman.
Increased health insurance costs and reduced rates on the sale of recyclable materials from the convenience centers and recycling center have made a significant hit on the county's revenue and projected expenditures.
Commissioners on the committee were hoping for at least $250,000 of funds to transfer from the sanitation fund, but were disappointed Wednesday evening to learn it will only yield $98,000. Last year the sale of recyclable materials for the county was down more than $200,000.
Commissioners have discussed several options to reduce expenditures without cutting services or jobs in the county.
Cumberland County Solid Waste Director Wayne Blaylock reported earlier in the month that if the remaining six full-time employees went to part-time positions at minimum wage, it would save the county around $107,000 annually. The first year it would cost the county around $53,000 to pay the buyouts at a rate of $320 per year worked for each employee.
The committee previously discussed possibly closing the centers at 4 p.m. instead of 6 p.m., which would save around $65,000 per year in wages and operating expenses.
Harvel suggested closing the convenience centers on Sunday instead, leaving the hours during the week the same.
"I think people will remember it being closed for the day better than they would if it closed an hour or two earlier," 2nd District Commissioner Nancy Hyder said.
Other options to save funds and reduce expenditures discussed by the committee included freezing the pay scale with no pay increases for county employees and suspending longevity pay to county employees who have several years of service.
"Both of those would save around $200,000 each," said 9th District Commissioner Carmin Lynch.
"What if we were to transfer two cents from the debt service for this for one year? That could help some," Hyder said.
Inman asked, what about a freeze on vehicle purchases for the sheriff's department and ambulance service?"
Lynch said it would save $180,000 from the ambulance service and $117,000 from the sheriff's department.
"If you do that, you're putting off the inevitable though, and next year we will have to buy double the vehicles," Lynch said. "If we out a property tax increase of seven cents and do cents for the school system we could leave the debt service fund alone."
"This is the worst time in the world to raise (property) taxes. I don't know if we can collect it. We're at a six percent delinquency rate now," Inman said.
First District Commissioner Harry Sabine, who attended the meeting, said, "I agree with Carmin to increase at least five to seven cents in the property tax rate. If not, you're just postponing the problem until next year." Sabine currently does not serve on the budget committee, but gave his input.
"I'm sorry to say, but we just don't have any more places to cut," said Harvel.
"If we raise the property tax rate seven cents from $1.24 to $1.31 and that's in addition to cutting the raises this year and the longevity pay and making all the full time convenience center employees go to part time, it will give us $600,000 in the fund balance and fund the budget," Lynch said.
"It's going to be real hard, but we have to keep things going," Harvel said. "It's a big decision."
This 2009-'10 fiscal year general fund also includes the funds for the sheriff's department and county jail fund for the Justice Center and jail expansion as well as the new Art Circle Library opening.
Commissioner Inman moved to recess until Monday, June 29, at 4:30 p.m. and 4th District Commissioner David Gibson supported the motion. It was unanimously approved.
Commissioners Lynn Tollett, 3rd District, and Greg Maxwell, 8th District, did not attend the meeting.
