Fayette County

will pay off the mortgage if county commissioners approve the $65.25 million

budget proposed by staff.

Commissioners

this week are digging into the proposed budget for fiscal 2002, which

begins July 1.

A workshop

meeting was conducted Tuesday, with another set for all day today. Public

hearings are set for Thursdays, June 14 and 28, and final adoption June

28.

With interest

rates on the county's surplus funds running low, it has become profitable

to take the money out of investments and pay off the debt on the County

Administrative Complex, said finance director Mark Pullium.

County government

purchased the failed Stonewall Village office complex in December 1990

for just under $7 million, and spent about a million dollars to renovate

the facility to use as county offices.

The move saved

the county quite a bit of money, officials say, because the new building

planned at the time was expected to cost about $15 million.

"By paying

off Stonewall, we can save $600,000 interest," said Pullium. Money

is available because revenues were slightly higher and expenditures slightly

lower than the 2001 budget anticipated, he said.

Paying off

the debt will require a $3.9 million balloon payment, in addition to the

$500,000 annual payment, he said.

The proposed

budget is about 7 percent higher than the adjusted 2001 $60.97 million

budget, but no increase in the property tax rate is anticipated. Taxes

will increase as a result of state-mandated value adjustments, and public

hearings will be required because of that.

Cost of living

adjustments of 3.4 percent for employees are included in the budget, along

with an average of about 3 percent for merit increases.

Staff also

is recommending that the County Commission increase the contingency fund

to prepare for possible energy cost increases, and for funding possible

employee pay adjustments to keep local jobs competitive with those in

other nearby counties. A market study is underway.

If the commission

approves, the general fund contingency will go from $400,000 this year

to $1.2 million next year, and a new $320,000 contingency fund will be

created for fire services as well.

Sending Fayette

County inmates to a Union City jail to avoid overcrowding in the Fayette

County Jail is expected to cost $870,000.

Proposed expenditures

in the general fund are $43.15 million, including $1.8 million for capital

improvement project transfers. Enterprise fund activities will require

$12.7 million, and special revenue funds are pegged at $9.4 million.

Expenditures

for the county Water System are expected to be almost $12 million; fire

services $6.7 million; the sheriff's office $10.15 million.

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