County's 2012 budget ready for look public

Balanced by tapping cash reserves and a possible bond issue funded by potential wind farm property taxes, Whitman County’s 2012 budget is ready for the public.

“I think, based on what we have here, we’re ready to pass a budget,” said Commissioner Greg Partch.

Financial Administrator David Ledbetter told county commissioners Monday departments plan to spend $401,155 more than the county will get in revenue next year.

By finding other funding sources for $353,000 worth of capital improvements, Administrative Director Gary Petrovich said the deficit could be cut to $47,000.

That gap could be offset by leftover cash reserves commissioners dedicated to balance the 2011 budget. When the current year’s spending plan was approved, commissioners decided to balance it with $330,000 from the reserve funds.

Petrovich reported 2011 at this point appears to need about $220,000 of the reserve fund to balance. That would leave $110,000 which the commissioners could use next year, enough to fill the $47,000 hole.

The defrayed capital costs are $150,000 tagged to begin remodeling the courthouse and $203,000 in infrastructure for the information technology department.

Both items were slated to be paid out of the county’s 2012 tax revenue.

Commissioners are considering a general obligation bond issue to be covered with new property tax revenue from wind turbines at the Palouse Wind project. The derailed capital projects would be paid from the bond sale revenue.

“These are big ticket items, but it makes a lot of sense to do them, because it will save a lot of money,” said Commissioner Pat O’Neill.

Petrovich said the wind farm property taxes, which the county will begin collecting in 2014, are expected to generate between $800,000 and $1.5 million over the next 20 years.

Commissioners are also considering inclusion of new heating and air conditioning systems in the information technology building and jail in the bonds.

Those additional projects total $907,000.

Another option would be to pay for the heating systems through a statewide program that provides low-interest loans that can be repaid over many years based on energy savings.

Petrovich said he plans to meet this week with loan agents and with bonding agents to bring the cost alternatives to commissioners.

One factor not included in the 2012 budget is the potential impact from union contracts. The county is currently negotiating with unions representing road, solid waste and courthouse employees, as well as sheriff’s deputies.

“We have not taken into account the bargaining units and the contracts,” said Partch. “We we’ll just have to deal with the budget when we deal with that.”

Commissioners will conduct a pair of public hearings on the budget; one at 6 p.m. next Monday and one at 11 a.m. Dec. 19.

“Because it’s not near the mess it was last year, I think we could be in and out in a half hour,” predicted Partch.

Last year’s budget, pasted together after the sacking of the finance department, was not completed until the final Monday of the year.

“That sucked,” O’Neill commented.