Minutes of the Budget sessions indicate most departments held the line or sought less. Two of the biggest requested increases came in the Sheriff’s Office with 10% and County Commission with 6% for increased legal costs. …. the biggest ‘plug’ was the use of $ 1.15 million of county reserve funds. In addition, $ 100,000.00 of health department reserves was used as well as $ 80,000.00 of Senior Center reserve funds.

AVOC

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May 7, 2010

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Oconee spending will need more trimming – Reserve Funds cannot balance every year

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By Wendell Dawson, Editor, AVOC, Inc

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The Oconee Commissioners have completed this year’s budget hearings.It is one of the most important and probably is the hardest job of the commissioners.    Most department requests are meritorious and the BOC must balance them against revenue projections and tax increases.    However, budget requests are often seen as a Wish List.   It is and has always been significantly reduced in the final budget.   Actual figures by Department and County totals are not online or shown in the minutes.

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Generally though, revenue and spending has increased dramatically in the last ten years.   However, the bustling real estate market is not going to be back for several years.   We went through a bubble from 2001 through 2006-7.   Since then, we are seeing corrective activities at work and many dormant subdivisions and vacant lots.

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The Commission had a called meeting on May 5 to discuss and reconcile a difference in requested expenditures and projected revenue of $ 2.4 million.   Published reports indicate a number of things were cut and employees will be paying more in health insurance premiums of $ 167,000.00.   However, the biggest ‘plug’ was the use of $ 1.15 million of county reserve funds.In addition, $ 100,000.00 of health department reserves was used as well as $ 80,000.00 of Senior Center reserve funds.Thus more than half of the shortfall was passed onto employees and by using reserves.

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Using reserves is alright on a temporary basis.   However, the current revenue shortfall may not be that temporary.   Motor vehicle revenue was down by 4 % according to the Tax Commissioner.   The County claims the Property Tax Digest is only down by 4%.   However, sources familiar with the real estate market and values in Oconee County think that the digest needs reducing by approximately 20 %.   Properties are selling for less than the tax assessed values.   I have worked with such sales.

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Minutes of the Budget sessions indicate most departments held the line or sought less.   Two of the biggest requested increases came in the Sheriff’s Office with 10% and County Commission with 6% for increased legal costs.

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The biggest reductions came with the following: Code Enforcement at 9%; Planning at 14%; Senior Center 7%; Finance with a 6% decrease.  Two departments were down by 3%: Public Works and Information Technology.  Probate was down by 2%.   Fine and court revenue was down in Clerk of Courts, Magistrate and Probate Court.

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Unemployment is remaining high and state revenue continues to lag.    From a budget of approximately $ 21.5 bn a couple of years ago, the current state budget is about $ 17.5 bn.    A $ 4 bn shortfall impacts all areas of state government and local governments and school systems.

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According to Blake Giles and the Oconee Enterprise, May 6, 2010, the County Reserve Fund is about $ 10.2 million.   While a reserve fund is needed and is good to have, $ 10 Million for Oconee’s size seems excessive.   It is several times what it was when I left office at the end of 2000.   It shows that taxes have been too high.  
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The County needs to reduce its bureaucracy and consider more cost cutting.   (Some departments are doing that). The boom times are over for a while and reserve funds cannot prop us up for the duration.  

SEE:

Oconee County Budget Meetings Excerpts 2010.pdf x

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The Oconee Enterprise - May 6, 2010 -By Blake Giles

County employees can expect premium increase

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The Athens Banner-Herald - May 6, 2010 - By ERIN FRANCE

Oconee commission opts not to furlough

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Oconee County Observations –SPLOST ANALYSIS –Lee Becker -5-4-10

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Standard & Poor’s Knew – Lee Becker – 4-23-10
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The Oconee County Utility Department is asking the Board of Commissioners to approve a balanced $ 6.4 million budget for the fiscal year beginning July 1 that includes nearly $ 3 million in debt service.

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Oconee County Utility Department Proposes Water and Sewer Rate Increases

BOC Questions Rate - Lee Becker – 4-21-10
The Oconee County Utility Department has proposed increases in water and sewage fees beginning on July 1 that–if approved by the Board of Commissioners–would increase the base fee for monthly residential water use from $ 16.50 to $ 19 and the base monthly residential sewer fee from either $ 12.48 or $ 15.48 to $ 18……..

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One Man Out – Lee Becker – 4-20-10

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1-25-10 OCONEE COUNTY SALES TAX RECEIPTS FY 05-10.pdf x

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State tax collections fall again - Morris NS 5-7-10

http://www.onlineathens.com/stories/050710/bre_635817264.shtml

…ATLANTA — Georgia’s tax collections for April were 4.2 percent lower than the previous April, according to figures Gov. Sonny Perdue’s office released this afternoon.

…The biggest decline in April was in the area of individual income taxes, off $ 129 million or 16 percent.

…One positive area is sales tax collections which rose 7 percent in April……

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State revenue still spirals downward –AJC – 3-9-10

http://www.ajc.com/news/georgia-politics-elections/state-revenue-still-spirals-356675.html

..…..Tax and fee collections are down for the 15th consecutive month.

…February 2009 saw tax collections fall 35 percent from the previous year.

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Cobb schools cut 734 jobs – AJC – 4-22-10

http://www.ajc.com/news/cobb/cobb-schools-cut-734-485071.html

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Stocks Slide as Market Rout Triggers Trading-Systems Concern – Bloomberg - 5-7-10

http://www.bloomberg.com/apps/news?pid=20601087&sid=axs9U3Z22Hm4

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UNEMPLOYMENT UP TO 9.9%...
Broader Rate Increases to 17.1%...

WSJ -5-7-10

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Village shop owners deal with uncertainty – Walton Tribune – 4-25-10

http://www.waltontribune.com/story.lasso?ewcd=7093b76e5316f0a1

…….SOCIAL CIRCLE — While the fate of the Blue Willow Village is still up in the air, the owners of shops currently open are left wondering what will happen to their stores.
      The Village — a suite of shops behind the Blue Willow Inn Restaurant — is currently facing foreclosure………………..

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County BOE to continue with cuts Jackson Herald- 3-10-10

http://www.jacksonheraldtoday.com/archives/3227-County-BOE-to-continue-with-cuts.html

.     There’s no money for new textbooks…..

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Jackson sales tax income down 12.6% - Jackson Herald- 3-3-10

..Sales tax revenues to the Jackson County government in 2009 declined 12.6 percent.

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DeKalb may shut up to 12 schools - AJC -3-10-10

http://www.ajc.com/news/dekalb/dekalb-could-close-up-360267.html

DeKalb County may have to close as many as a dozen schools to help with its growing budget deficit….