UPDATED for June 29 print edition — On a 3-2 vote June 24, the Fayette County Commission adopted a total $88.6 million budget for the 2011-2012 fiscal year.
The budget includes a new 911 tax district for all homes in Fayette County, with a 0.2 millage rate that would cost $19 a year on a home valued at $250,000. It would be assessed on all homes in the county because all are served by the county’s 911 system.
The adopted county budget also accounts for a proposed increase for fire property taxes that will affect only residents of unincorporated Fayette County, Tyrone, Brooks and Woolsey.
For a parcel valued at $250,000, the fire tax increase will translate into about $39.04 a year; that figure was calculated to include a projected dip in the county’s EMS tax rate.
The budget projects to use about $3.1 million of an $8 million “rainy day fund” of cash reserves which have been compiled over the past several years by the commission in an effort to help weather the recession.
The use of cash reserves to balance the budget has led Brown to claim the county’s budget is unsustainable, particularly since there are a number of crucial projects that have remained undone over the past several years, he claims.
“We’ve been deferring millions of dollars in projects,” Brown said, arguing that the commission was on a path of “spending our fund balance until it reaches zero.”
Although Commissioner Allen McCarty joined Brown in voting against the budget, McCarty said he felt the budget was as tight as could be, and that any further cuts would involve reducing services.
McCarty also lauded county staff for doing a solid job in preparing the budget.
Voting to approve the budget were commissioners Herb Frady, Robert Horgan and Lee Hearn.
In terms of the property tax increase for fire services, that category has seen deep cuts in revenues over the past several years due to dips in property values, county officials have said.
Without the increase, the department would either have to completely deplete its unrestricted cash reserves to keep current staffing levels, or instead cut 15 positions, which could lead to the temporary closing of some fire stations, officials said.
The county currently has 32 firefighters working per shift.
With property values down again this year, the county will absorb a $2 million loss of revenue compared to the current fiscal year.
The entire $88.6 million combined budget includes $46 million for the general fund, and $14.5 million for “special revenue funds” which includes EMS and fire services along with E-911 services among others.
The water system’s budget will be $14.4 million, which does not include an additional $9.1 million in the budget for upgrades at both water treatment plants needed to meet new federal clean water requirements.
