What will you pay?

Cumberland County's current tax rate is $1.24 per $100 of assessed value. Residential property is assessed at 25 percent of the appraised value. The budget committee has recommended increasing the property tax to $1.31 per $100 of assessed value. A homeowner with a property tax appraisal of $100,000 would pay taxes on 25 percent of that amount, $25,000. That is then divided by $100 and multiplied by the tax rate. Currently, that homeowner would pay $310 a year in property tax. A 7-cent property tax increase would increase that to $327.50 a year, a difference of $17.50.



Tempers flared Monday as the Cumberland County Commission's budget committee approved a 7-cent property tax increase to cover the proposed budget's $1.35 million shortfall. The budget and tax increase were approved by the panel on a 7 to 1 vote and will now go before the full county commission for consideration at its July 20 meeting.

With the approved tax increase, the budget stands with a projected ending fund balance of $700,000, following additional cuts and transferring about $125,000 from the solid waste budget to the general fund budget. But one member of the committee felt more cuts should be made so a tax increase would not be necessary.

"With the economy the way it is right now, I don't think we should be raising any taxes," said Jim Inman, 1st District commissioner. He voted against the recommended budget and tax increase Monday. "That's why I went through here and was trying to cut everything I possibly could so we wouldn't have to raise taxes and hopefully wouldn't have to lay too many people off."

The committee had already agreed to stop longevity and step raises for all county employees. Inman suggested additional cuts that would have cut the deficit by almost $1 million, including not purchasing all the requested Sheriff's Department and ambulance service vehicles, not purchasing any uniforms for county employees, reducing travel allowances and closing three convenience centers.

Lynn Tollett, 3rd District commissioner, responded to Inman's no vote by saying he was prepared to stay until the committee reached a unanimous decision.

Inman said, "I've made all kinds of suggestions and I got knocked down on every one. I don't have a problem with that. The majority ruled. But I'm not going to vote yes to raise property taxes with the economy the way it is. If you want unity, that's fine, but I can't jump on the bandwagon."

Carmin Lynch, 9th District commissioner and chairman of the committee, said, "You've got to give us an alternative. With everything you gave us, you're $400,000 short."

"I've got my opinion. My opinion is we don't need to raise taxes," Inman said. "Don't sit there and tell me I have to vote yes to raise taxes just so we can have unity."

Lynch said, "I'm not objecting to your no vote. I'm asking if you have an alternative that comes up to $1.4 million and let's discuss it."

Mike Harvel, 7th District commissioner, told Inman, "If you've got people you would recommend to cut, I'll back you. But I haven't heard anyone tell me who they want to cut."

"You can't sit there and criticize and complain without bringing alternatives," Lynch said.

Inman said, "I did not criticize anybody. I didn't complain about anything. I did my job! I came up here with cuts and I tried to cut and you guys said no. That's fine, but don't jump my case."

Lynch said, "If you have an alternative, it's incumbent on you to put it out there, not just 80 percent."

Lynch moved to recommend the 7-cent property tax increase and the proposed 2009-2010 budget to the full commission. The motion was supported by Wendell Wilson, 6th District commissioner. An amendment by Nancy Hyder, 2nd District commissioner, to allow the six full-time employees at county convenience centers to be phased out over time rather than having to become part-time employees this year, seconded by Inman, failed 5 to 2.

A motion to raise taxes by 9 cents and return longevity pay to employees also failed 5 to 2, with Mike Harvel, 7th District commissioner, and David Gibson, 4th District commissioner, voting in favor.



Proposed cuts rejected

Inman recommended cutting the budget for buying uniforms in all county departments, saving $68,000. That would include the ambulance service and Sheriff's Department.

"Would they rather buy their uniform or have someone laid off?" Inman asked.

David Gibson, 4th District commissioner, said allowances for investigators at the sheriff's department had already been cut. But, Gibson worried about people in emergency services buying their own uniforms when they routinely come into contact with blood and other bodily fluids.

"Do you expect them to buy a $100 uniform to replace one they got blood on at a wreck?" Gibson asked.

Lynch said, "That is a further cut to the employee. Out of his frozen pay he gets to buy his own uniform."

Inman said, "I'm trying to keep from laying people off."

Inman also suggested reducing the number of Sheriff's Department and ambulance department vehicles planned for purchase, saving about $137,000.

Lynch said, "That's just piling the problems forward. But eventually we'll have to catch up."

Inman also suggested cutting travel for most departments by half, saving $22,466, with the exception of the health department, property assessor and the reappraisal staff.

Inman suggested reducing the fund balance reserve to $400,000, saving $200,000 to $300,000.

Lynch was uncomfortable with a minimum fund balance due to unknown expenses that may occur during the year, such as purchasing new election equipment to meet new state requirements in time for the 2010 election. He worried $600,000 would not be enough.

"There are so many things we can't control," echoed Harry Sabine, 1st District commissioner.

Lynn Tollett, 3rd District commissioner, added, "The things that have been put off the past few years, our time is coming. We've been real fortunate the last few years, but the odds are against us because we've put off so many things we're going to have to cover."

Inman also suggested closing three convenience centers, saving about $114,000.

Gibson said the trash that would then be tossed on the side of the road would not make it worth the cut.



Reduction in staffs to be considered later

While the committee looked at possible cuts to equipment and capital purchases, much of the county budget is used to pay salaries and benefits to county employees.

Harvel said, "We can pick this budget to death but we're going to have to do the taxes or let people go."

Harvel asked if it would be possible to reduce the ambulance service by one ambulance crew. He noted the department has seen reduced runs in the past year and collections were down. Removing one ambulance from service would be about six employees with a saving he estimated at $300,000.

Hyder said, "You're playing with lives."

"Positions is the only way you can cut the budget. I'm not saying that's what we should do, but it's going to have to be taxes or that," Harvel said.

Lynch said, "Unless you're willing to cut a service and take that person off, this same group is going to be sitting here doing this same budget next year."

Commissioners suggested the committee keep an eye on the budget during the year and re-evaluate staffing in January.

"If their business is still down next year, and they have the same number of employees, we need to look at that," Wilson said.

Tollett said, "We may need to scale back at the first of the year."



Other revenue sources

Lynch suggested the commission consider enacting a wheel tax to help with the budget. State law allows the county to enact a wheel tax without a referendum. The county legislative body can pass two consecutive readings of a wheel tax with a 2/3 majority. However, the voters of the county have the option of petitioning for a referendum.

Cumberland County voters rejected a wheel tax measure in Feburary 2008, with 12,716 voting against a $25 wheel tax and only 2,744 voting in favor.

Johnny Presley, 3rd District commissioner, said, "We're talking we're not willing to cut back, but we're going to go back and ask the people that are already taking cuts, losing their jobs, to pay a wheel tax or pay more property tax."

Tollett said, "Let's talk about what we've got that we can cut."

Presley said, "If it takes cutting back on employees or days they work to make the budget work, that's what we need to do. That's what other people have to do."

The recommended budget and tax rate, $1.31 per $100 of assessed value, is scheduled to go before the full commission during its July 20 budget. The budget will be published at least 10 days prior to that meeting.