Budget work could wrap up Tuesday for county

When Bourbon County Commissioners meet Tuesday, they might be ready to approve the fiscal year 2017 budget for publication.

Commission Chair Barbara Albright and First District Commissioner Lynne Oharah said Friday the budget discussion will continue. After the budget is published, a public hearing will be held before it is officially adopted.

On Aug. 16, Terry Sercer, CPA with Diehl, Banwart and Bolton who assists the commissioners with the budget, reported the preliminary estimate is a mill levy increase of 3.062, which would generate an additional $462,137.

On Friday, after a third budget work session, County Counselor Justin Meeks said the mill levy could increase from 1.5 to 3 mills.

Oharah said the challenge is the county does not have a $400,000 carryover from 2016 into 2017, due to increases in health insurance.

"It's not due to any equipment purchases, it's due to increases in expenses," Oharah said.

He said another challenge is the future implementation of legislation which will place a cap on property tax increases without voter approval. House Bill 2088 goes into effect Jan. 1, which will prohibit cities and counties from increasing property taxes beyond the consumer price index level.

Also in the mix are unfunded state mandates. He said to comply with newer state gun laws, new security has to be put in place at the courthouse -- at the county's expense. Legislation also phases out some filing fees at the register of deeds office.

"Our revenues are remaining flat but our expenses are going up," Oharah said. "The key is, if we don't keep that mill levy in check this year, it's going to be difficult to do."

On Aug. 16, commissioners said they have several options they are considering: a reduction in workforce; overall budget cuts in commodities; contributions to outside agencies; county contribution for employee health insurance; health insurance in the long term; raises for employees; fees charged for services provided by the county; and the mill levy structure.

On Friday, Oharah said when there is a reduction in the workforce, there also has to be a reduction in services.

He said the Road and Bridge fund was decreased by $300,000 in 2016, and that budget remains flat in 2017.

"No one likes a mill increase, but we're between a rock and hard spot," Oharah said.

He said Sercer was given three options to look at and present to the commissioners Tuesday. Oharah said the options are variations with the same elements.

"It's a work in progress," Oharah said. "The legislators need to leave county revenue streams alone. If people don't like what we're doing, they vote us out. If the legislators want to start controlling expenses, they need to start in their own backyard."

"What's happening for the commission is they're having to make decisions they've never had to make before to look at the budget impact of not being able to raise any additional revenue ever," County Counselor Justin Meeks said.

He said the county has the ability to increase a limited number of fees. The treasurer's office has the ability to implement a new $3 administrative fee on vehicle tags. By law, the fee could be as much as $5. That fee will generate enough revenue to equal one mill, Meeks said.

He said health insurance has increased "substantially" during the past three years nationwide and will continue to increase. Meeks said the "educated" guess is Bourbon County will face a 9 percent increase in 2017.

"What's really important is, we're the only entity in the county that cannot increase fees. We're totally tax-based funded," Meeks said. "The reality is, we're going to have less services for the patrons in three years."

He said roads will go from asphalt to chip-and-seal and people will have to stand in line longer at the treasurer's office.

"We can't afford 140 miles of paved roads," Meeks said.

Property tax lid

HB 2088 states "increases in property tax dollars levied beyond the rate of inflation generally require voter approval..."

The legislation provides some exemptions, but Meeks said there are only two that would likely ever apply to Bourbon County: expenses related to a declared federal, state or local disaster or emergency and increased costs above the consumer price index for law enforcement, fire protection or medical services.

Kansas District 13 Senator Jake LaTurner was involved in the creation of the bill.