Budget Hearings, Day 1

Budget Hearings 2010
Monday, August 23, 2010

The county faces a nearly 20% reduction in revenue this year. Last year the council reduced expenditures about $1.2M – 7% -- from the previous year’s budget. Projections compiled by Umbaugh and Associates indicate that to maintain a safe minimum operating balance in the county general fund (15%), the council must cut general fund expenditures roughly $4.4M from the budget requests submitted by various county departments, which as submitted are already about $1.5M – 10% -- lower than last year’s approved budget.

Research and analysis performed by Umbaugh and by the Auditor’s office have found several options for shifting some expenditures from the general fund to other funds, at least temporarily, to help weather this drastic reduction in revenue. However, it appears that to avoid raising tax rates or creating additional revenue sources (new taxes), the council will likely have to draw down its reserves in order to make up the shortfall.

Generally, the council makes a preliminary approval of each department's budget, waiting to address salary issues until all the other budgeting for all departments has been completed. None of the budgets will be adopted officially until a final motion at a regular council meeting, and then the total budget will be sent to the state for approval.

NOTE: I will likely not be able to take notes for all the budget hearing sessions, but will do what I can. It should be remembered that these are my personal notes, and should not be construed as an official record or statement of policy of any kind of the council or any other county entity.

IT Department –
Initial request was for $1,183,642.40, an increase of roughly 62% over 2010 budget. Roughly $261,000 was related to a request from the Prosecutor to separate his office’s IT system from the county network. That figure would not include roughly $50,000 annually for the additional maintenance cost of a separate system. The Council cut this project and its costs, as well as reducing a few smaller items in anticipation of contract renewals for lesser amounts than had been originally submitted. Another “big ticket” budget request item was $100,000 for creation of a permitting system that could be used county wide. The council voted to defer that project for now. Total budget approved totaled $785, 042, with all but $2,000 to be taken from the Cumulative Capital Development (CCD)Fund through an additional appropriation request in January.

Clerk –
Requested $376,000, roughly 7% less than last year’s budget. The great majority of that is salaries. With a few minor cuts, and transferring some microfilm transfer duties to the fee-based records perpetuation fund, the council approved just over $354,000.

Elections –
A municipal election year means some savings, but it is also a redistricting year (following this year’s census) which will mean additional expenditures in other areas. Cut a total of roughly $101,000 from the general fund request, including about $81,500 shifted to the CCD Fund.

Treasurer –
Trimmed $400 from requests and transferred $7,000 for software maintenance to CCD Fund. Approved budget – very well-prepared by Treasurer Deanna Willhoite – will be 8% less than last year’s.

Coroner –
This office has seen a significant increase in both volume of work and cost of autopsies. The budget was approved as submitted, with an increase of about $10,000, or 20%, over last year.

Area Plan –
Changes in staffing resulted in combination of the Planner position with the Executive Director during this budget year, in part because of the reduction of territory falling under the County Plan Office due to Zionsville’s consolidation. Whitestown is also in the process of withdrawing from the county area plan office and creating its own, though the county will still have to finish out any applications it receives before that process is completed. Next year’s budget will reflect a higher salary for the Executive Director, but that will be more than offset by the elimination of the Planner position. Council trimmed almost $9,000 from the request, leaving an approved budget $14,000 less than last year.