Mayor Calls Financial Round Table

Staff Photo by Jeff Depew

Staff Photo by Jeff Depew

Jefferson County Mayor Palmieri held a public meeting with Jefferson County Finance Director Potts, Budget Committee Chairman Scarlett and Finance Committee Chairman McGraw to discuss Jefferson County’s current financial situation going into budget season and alternatives that could be viable to quell the financial crunch.

Potts stated that debt payments represent around 8% of the County’s budget. However Jefferson County finds itself $3.8 million in the financial hole and that is before any increases are presented to the budget committee for mandated items, such as insurance, that will likely increase in cost. The Finance Director suggested that adjusting the current tax rate, as well as cutting expenses are first steps. Additionally, the Commission must look toward the future to address the eight year financial push and keep from extending the debt beyond what is palatable for the County. Along those lines, Potts suggested minimal fund balance usage, paying down principal when possible, encouraging new business and considering a hybrid benefit plan for future hires.

Mayor Palmieri expressed his concern that Jefferson County will continue to repeat history if decision makers do not assess where, historically, poor financial decisions were made. He wants to look toward wise expansion and some new revenue streams. Palmieri said that not every avenue of new revenue will bring in high dollar amounts but it all adds up in the final tally. The Mayor suggested looking toward an entertainment tax would apply to sporting events, plays and the Jefferson County Fair, as a means of bringing in around $10,000. He also suggested an increase in the hotel/motel tax and a 15 cent per ton mineral tax, which he estimates would add around $500,000 to the County coffers. Palmieri would also like to see the County investigate a Recreation Complex that could be used to attract traveling teams and tournaments, which have a potential to increase sales tax as well.

Chairman McGraw concurred that he would be open to investigating a mineral tax for the County mineral resources and would like to see a focus on recreation, for both financial and health benefits. The Chairman called for a serious look at all tax avenues that are available. As a physician, McGraw said that he is concerned about the tobacco usage in the County, as well as drug usage. He would like to investigate the possibility of a tax or fee on schedule drugs in Jefferson County. McGraw said that that Jefferson County has three options-raise taxes, cut services or bring in new revenue. On that note, he addressed the CEO of the Jefferson County Chamber of Commerce, Helton. The Finance Chairman acknowledged that there has been some deserving criticism of the Chamber of Commerce and EDOC. He said that the County needs to be able to depend on the Chamber to bring in new revenue to Jefferson County and the Chamber and the County must act as partners to meet the needs of the tax payers.

Helton stated that he is considering bringing a proposal that would increase the hotel/motel tax from 4% to 6% and the tax, in its entirety, would go to fund the Chamber of Commerce in lieu of property tax. He indicated that there could come a time when the Chamber of Commerce would ask for an increase in funding, which would be in the nature of an investment for the County in future revenue.

Budget Committee Chairman Scarlett, who remained largely quiet throughout the meeting, said that he would like to consider a broad based tax that would be spread out among large demographics, noting the vast difference in funds needed to meet the financial obligations and those that are available. Scarlett suggested looking toward a utility meter fee, which would be a flat fee of $1 per month, that would generate a large amount of revenue without placing a heavy financial burden on the citizens of Jefferson County. He noted that such a fee would require legislative approval but it could be seriously beneficial to Jefferson County.

In closing Mayor Palmieri stated that Jefferson County has reached a critical financial stage and hard decisions will have to be made. Looking beyond the current revenue base is imperative and decision makers need to be open to new avenues of bringing money into Jefferson County, without always going to property taxes for relief. The Mayor said that an enormous amount of funding is given to non profit organizations ( excluding fire departments ) and that the County Commission must look at cutting those funds, noting that most non profits garner financial support from the private sector and via grants or other means. Jefferson County Mayor Palmieri said that Jefferson County is just not in the financial position to ask taxpayers to fund anything beyond the necessities and even those will have to be pared down.

Source: K. Depew, News Director