County tax levy increases by one cent

Red Willow County commissioners adopted a $16.5 million budget for 2008-09 and approved a tax levy that increased by a penny during a public hearing, special hearing and weekly meeting Monday morning.

Commissioners approved the county's final budget of expenditures -- as published in the Sept. 10 edition of the Gazette -- of $16,495,506.88.

The tax levy increased from 35 cents (per $100 of valuation) in 2007-08 to 36 cents for 2008-09, a levy that will generate $2,330,644.73 in personal and real property taxes.

The county's proposed budget of disbursements in 2007-08 totaled $18,397,116.98, and required $2,158,698.86 in personal and real property taxes. Actual expenditures in 2007-08 were $11,993,654.26, and in 2006-07 were $11,882, 469.01.

The county's valuation increased $30,630,209, from $616,771,106 to $647,401,315.

Commission Chairman Earl McNutt called the budget process, "a struggle. I wish we could do something positive about this tax situation."

A penny in tax generates about $64,000, said fellow commissioner Leigh Hoyt, and will help offset increases in the cost of fuel and steel, and consequently in the county's road and bridge fund. Commissioners cut about $170,000 from the general and road/bridge funds, and with cuts made by other departments, were able to reduce a proposed 2008-09 budget by about $200,000.

McNutt was very reluctant to raise taxes, saying, "There's a limit. We can't just raise taxes every year."

McNutt said he would like to be able to hold the county's tax levy steady, something that may have been possible, he said, if the City of McCook had agreed to share the new half-cent sales tax approved by McCook tax payers in November 2007 and put into effect July 1, 2008. Commissioners indicated in September 2007 that the county would use one-fourth of the new one-half cent sales tax proposed by the city to fund capital improvements in the county's roads.

" ... can't do anything about it now," McNutt said, but he added that if the county had gotten a portion of the city's sales tax, commissioners might not have had to increase the tax levy.

McNutt said the additional penny also will help the county rebuild the cash reserves it has spent down over the past several years. "But it's not helping MY cash reserves," said Roberta Felker, a rural McCook resident who, with her husband, frequently attends commissioners' meetings, objecting to increases in taxes and other increases that she says masquerade as "surcharges."

"We have to keep up with the rate of inflation," McNutt said, "and we have to pay for the services that people expect." McNutt, Hoyt and Downer have all predicted that the next budget cuts may have to be made in the number of employees the county has.

Hoyt said he would like to see more tax payers at commissioners' meeting and especially at budget hearings. "They just don't know what a nice bunch of guys you are," Felker said with a smile and a chuckle. "You don't bite."

In other action, commissioners:

* Increased the base of restricted funds within the new budget by an additional 1 percent.

* Adopted resolutions to transfer $585,898.19 from the general fund to the county's self-insurance fund, and $440,232.89 from the general fund to the road/bridge fund.

* Started foreclosure proceedings on 11 real estate properties, in McCook, Indianola, Bartley and Lebanon, each of which is two years or more delinquent in taxes and assessments. Taxes due on the 11 parcels range from $182.15 (plus interest) to $1,196.66 (plus interest).

* Conducted a closed session with County Attorney Paul Wood and members of the McCook Economic Development Corp. board of directors to discuss litigation.