Two Bucks and a Nickel, Can We Hold On?

Though the third month of 2013 is just approaching, the fiscal year for Jefferson County is winding down and the budgeting process for the 2013-2014 fiscal year is in full swing. Jefferson County Finance Director Helton stated that the County side of the financial picture appears to be in a good place heading into the next fiscal year, with healthy fund balances in most areas. Of more concern to Helton is the School Budget, which has been impacted by increased operational costs and reserves on its fund balance. Department of Education officials are currently working on numbers that will be presented to the Jefferson County Budget Committee later this Spring. Director Helton stated that the audit numbers are not in yet, however it appears that the County will fair well when the totals are released. The County has around $93 million dollars in primary debt, with some of that debt scheduled to slide off in the next 3-4 years and a significant amount dropping off in around the 10 year mark. In response to questions regarding a property tax increase for the 2013-2014 budget year, Helton stated that it greatly depends on the Department of Education Budget. He said that he hopes to avoid an increase for another year, however there are other factors that could weigh into the property tax equation. Should the County proceed with investment in the proposed Megasite project, the numbers could change depending on the direction that the County Commission uses to finance the project. Helton said that he has been working on preliminary numbers based on a $50 million dollar investment with a 30 year bond and the tax increase comes to around 28 cents. He clarified that the 28 cents would be for direct costs, however it does not take indirect costs, such as a need for new schools, roads and increased personnel into account. Helton said that, using numbers provided by the Younger Report, the County should have the funds to accommodate those expenses. EDOC Director Wagley stated last week that the Megasite would be considered a high impact property and that organic growth from the site would provide the most significant fund generation for the County during the Megasite incentive period. Sales tax, beyond a minimal percent, is directed to the School System and Hotel Motel tax currently goes to the Chamber of Commerce. Helton stated that, should the County Commission invest in the Megasite project, the sales and hotel/motel tax division would need to be redirected to the County funds to off set the cost of the project. Should the County Commission approve a request for additional funding for the certification phase of the Megasite project in the amount of nearly $2 million additional dollars for the 2013-2014 fiscal year, a funding source will have to be identified. Helton will be prepared to offer options to the Commission regarding the issue, which is anticipated to come as a request from the Industrial Development Board and be presented to the County Budget Committee this Spring.