The Fremont County Commissioners conducted a pair of public hearings on the 2006 preliminary county budget on November 22nd. One hearing took place during the Board's regular meeting that morning with another hearing at 6 p.m. to afford working people an opportunity to participate. The Commissioners offered a preview of a budget that will see expenses grow by 1.67 percent while revenues will increase by only 1.13 percent.
The Commissioners and Fremont County Sheriff Jim Beicker explained that it will be a difficult year in '06 and that citizens could start seeing some services impacted by budget cuts. Beicker noted that his department will try to cope in part with the tight budget by not funding two positions.....a clerk in the front office and a supervisory position in the detention staff at the jail. The Commissioners said the Road and Bridge Department will do without six staff positions which are being eliminated by atttrition.... people who will not be replaced. Even with that, the Commissioners say the Road and Bridge Department will be limited to doing only basic road maintenance with limited gravel resources and no money available for chip sealing or asphalt overlay. The only exception will be work on two roads to Cripple Creek with chip seal oil and asphalt being paid for by a $400,000 state gaming impact grant.
The Commissioners explained that the biggest revenue impact deals with specific ownership taxes which is money collected from motor vehicle registration fees. It wasn't realized until last February that a $225,000 shortfall in specific ownership taxes to the county in 2004 and again in 2005 was due to the $48 million in school construction bond issues approved by voters in Canon City RE-1 and Florence/Penrose RE-2 School Districts in November of 2003.
The Commissioners and Fremont County Sheriff Jim Beicker explained that it will be a difficult year in '06 and that citizens could start seeing some services impacted by budget cuts. Beicker noted that his department will try to cope in part with the tight budget by not funding two positions.....a clerk in the front office and a supervisory position in the detention staff at the jail. The Commissioners said the Road and Bridge Department will do without six staff positions which are being eliminated by atttrition.... people who will not be replaced. Even with that, the Commissioners say the Road and Bridge Department will be limited to doing only basic road maintenance with limited gravel resources and no money available for chip sealing or asphalt overlay. The only exception will be work on two roads to Cripple Creek with chip seal oil and asphalt being paid for by a $400,000 state gaming impact grant.
The Commissioners explained that the biggest revenue impact deals with specific ownership taxes which is money collected from motor vehicle registration fees. It wasn't realized until last February that a $225,000 shortfall in specific ownership taxes to the county in 2004 and again in 2005 was due to the $48 million in school construction bond issues approved by voters in Canon City RE-1 and Florence/Penrose RE-2 School Districts in November of 2003.
Because specific ownership taxes are distributed based on property tax mill levies, it meant that the two school districts would get larger portions of those tax revenues because of new mill levies for the bonded debt. That redirected large sums of specific ownership taxes from every unit of local government that relies on property taxes to the school districts. And because the reason for the shortfall was not recognized until last spring it meant that the '04 and '05 budgets were balanced by drawing down Fremont County's cash reserves. 2006 marks the first time that the shortfall of three-quarter million dollars over three years will be dealt with in a county budget. Comissioner Ed Norden explained that the county should be carrying a general fund reserve of $1 million to $1.5 million but was actually set to end 2005 with only $197,000 in reserves. 2005 budget savings should help close out the year with about $500,000 in reserves. But trying to get those reserves back to a more respectable $700,000 level will force spending cuts elsewhere.
The Commissioners said even while sales tax revenues should increase by about five percent and the county's property tax assessed valuation is up by nearly 11 percent, it won't help keep pace with the spiraling costs for fuel for the Sheriff and Road and Bridge Departments, costs of inmate care in the jail, and child welfare costs in the Human Services budget.
The Commissioners note in fact that because the TABOR amendment will limit revenue growth in 2006 to about five percent, the growth in property valuation will actually mean that many people may pay less property taxes to county government next January. That's because with the assessed valuation increasing by 11 percent but TABOR revenues growing by only 5 percent the property tax burden is spread out among more people and businesses. Thus for some, it will mean a lower property tax bill for their portion to county government.
The Commissioners warned that unless solutions are found to the revenue shortfalls in 2007 and beyond the county may be forced to eliminate more non-essential government services. The Commissioners said they plan to discuss those issues with citizens at more town hall meetings in 2006 in a search for proposals that might be taken to voters for their consideration next November.
The Commissioners said even while sales tax revenues should increase by about five percent and the county's property tax assessed valuation is up by nearly 11 percent, it won't help keep pace with the spiraling costs for fuel for the Sheriff and Road and Bridge Departments, costs of inmate care in the jail, and child welfare costs in the Human Services budget.
The Commissioners note in fact that because the TABOR amendment will limit revenue growth in 2006 to about five percent, the growth in property valuation will actually mean that many people may pay less property taxes to county government next January. That's because with the assessed valuation increasing by 11 percent but TABOR revenues growing by only 5 percent the property tax burden is spread out among more people and businesses. Thus for some, it will mean a lower property tax bill for their portion to county government.
The Commissioners warned that unless solutions are found to the revenue shortfalls in 2007 and beyond the county may be forced to eliminate more non-essential government services. The Commissioners said they plan to discuss those issues with citizens at more town hall meetings in 2006 in a search for proposals that might be taken to voters for their consideration next November.