First look at proposed county budget

Dahl proposes $96 million budge;, tax rates to remain stable

By Heather Michon
Correspondent

County Administrator Eric Dahl unveiled his proposed budget for Fiscal Year 2023 (FY23) during a work session at the Board of Supervisors meeting on Wednesday night (Feb. 2).

Dahl is proposing a budget of $96,290,691, a decrease of 14.8 percent compared to the amended FY22 budget. His proposed real estate tax of $0.884 would result in no increase for most homeowners, and all other county taxes would hold at current rates.

Much of the year-over-year decrease is due to the drop in requested funding for capital projects, or CIPs. Last year, the supervisors approved $25 million in CIP funding to debt-fund a wide variety of overdue or critically needed projects and equipment replacements. Dahl is proposing around $4 million in CIP projects this year.

The biggest increases in expenditures are in staff pay and salaries, which he projected would increase 62 percent over FY23. This would include the cost of a 5 percent cost-of-living increase, the creation of new positions and from turning part-time positions into full-time, and increased costs for health insurance. Health insurance rates generally come out midway through the budget season, but Dahl is currently anticipating an increase of around 6.5 percent.

At the time of the work session, the School Board had not yet approved its FY23 funding request to the county.

Dahl noted several pressure points on the county budget, including increased costs for public safety, new and expanding needs for water and wastewater infrastructure, increased costs for goods and services, and the need to maintain competitive salaries and benefit packages. 

At the same time, the county has benefited from state and federal funding relating to pandemic recovery. Changes in the state’s sales tax laws mean the county now receives tax revenue from online sales, and the new cigarette tax will bring in an estimated $200,000 a year.

The county’s fund balance currently has approximately $10 million in restricted funds and $13,800,000 in unassigned funds that can be used toward capital projects and other expenditures.

Dahl’s proposal is the framework for discussions over the next 10-12 weeks, and is likely to undergo some changes before it is done. A finalized budget and the setting of FY23 tax rates will be up for a vote on April 20 or April 27.

OTHER MATTERS

During their regular meeting before Dahl’s presentation, Supervisors voted to approve the advertisement of a public hearing to set a new polling place for voters in the Palmyra District in the wake of county redistricting. The county is proposing Beaver Dam Baptist Church on Rt. 250 as the new polling location. 

The FY22 budget called for debt-funded purchase and lease of $5,231,500 in vehicles and equipment, primarily for public works, the sheriff’s office, and the fire and rescue departments. The winning bid came from JP Morgan Chase Bank, which offered the money at a 1.37 percent interest rate for 10 years. Supervisors approved the proposal during a brief public hearing following a closed session.

With Mozell Booker absent for the evening, both measures passed by a vote of 4-0-1.