County may face tight budget, manager says
By COBY LaRUE
Staff
With revenue projections showing little or no growth in Alleghany
County's first budget figures, the county may be in for a tight
budget year, County Manager Don Adams told the commissioners during a
workshop March 19.
Adams said the most current figures were estimates based on eight
months of this fiscal year.
According to the data, which also included figures for past years,
the county's growth last year was down to $6 million. Growth in the
county's tax base and other revenues gives the county additional
funding without requiring tax or fee increases.
In tax years 1999 through 2003, growth of more than $40 million per
year was realized. Negative growth was reported in 2003-2004 (minus
$23.7 million), but Adams said that was the year that the closing of
Bristol Compressors hit Alleghany's books. Growth in the period from
2004 through 2006 was around $20 million. Projections for the coming
year show a 16 percent drop in service fees and a modest 3.8 percent
growth in tax income, for a potential growth of about minus $18,000.
Adams pointed out that the typical increase in requests is $1 to $2
million. "Traditional revenue growth usually can take care of
standard increases such as cost of living raises, insurance increases
and operational increases...the potential for no growth in revenues
will make it difficult to deal with even the standard increases,"
wrote Adams. "Any major changes in programs or new initiatives
generally require additional revenues, or requires the significant
reduction/elimination of other programs and initiatives or requires
the elimination of standard increases."
In addition, Adams stated that the fund balance for the county is
near the recommended level for a county the size of Alleghany. In the
past, the commission has at times used the fund balance to help
balance the budget.
"If these projections remain true, I will not recommend that any fund
balance be used to balance next year's budget," wrote Adams.
One area where the county can make up some ground is in Medicaid
reimbursements. The county received about $328,000 recently from the
state and had planned to use that money to pay down debts.
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