Budget challenges loom for Marion County [Pella Chronicle, Iowa]

Dec. 30--PELLA -- As the Marion County Government begins its annual budget discussions, the struggle between possible tax increases versus a reduction in services to residents has commenced.

The Marion County Board of Supervisors met in special session Wednesday morning. Several County department heads were also present. County Auditor Jake Grandia gave the supervisors a brief description of anticipated fiscal changes for fiscal year 2012-13, which begins July 1, 2012.

"The good news is, it looks like taxable values didn't go down," Grandia said. In his earliest calculations, he estimates that the County's valuation increased by $48 million. Much of that is due to increased agricultural land valuations. If the County stays at its current general fund tax levy, there should be a $168,000 increase in that fund. The County's 2011-12 budget is over $21.3 million.

"I have no desire to change levies," Board Chairman Sam Nichols said. The board was united in that it does not want the County expenses to exceed revenues in the coming fiscal year. The County maintains fund balances and reserves.

There are still many unknowns regarding the County's finances before the next fiscal year. For instance, the County does not know what its health insurance costs will be. As the budget process moves forward, the board has suggested to department heads that they plan for a 2 percent consumer price index increase and a 5 percent health insurance increase when submitting budget plans.

The issue of elected officials' salaries has not been determined either. At the Dec. 9 compensation board meeting, a recommendation was made to prorate these officials' salaries to the 22nd percentile (to match where Marion County ranks among Iowa counties in population) and provide the CPI increase of 2 percent and an additional 1 percent salary increase.

Sheriff Ron Goemaat indicated his support for elected official raises, citing that they did not receive one last year. Goemaat was not only thinking of himself, as within his own department there are five employees whose salaries are based upon percentages of the sheriff's pay. These people have also gone without raises, while union members have steadily received them. Goemaat added that he is also a taxpayer and does not want to see tax increases.

"I'm pulled both directions," Goemaat said. Nichols asked the department heads what they thought about the possibility of the board giving each department a sum of money, then allowing the department heads to determine how to spend it. This may lead to a department head's decision to reduce staff.

"I'm not saying that's what we're going to do," Nichols said.

"That would be difficult," Goemaat said. The sheriff's office has a $2.8 million budget this fiscal year, which includes some self-funded items. Goemaat said costs continue to increase, and, regarding personnel, most of the positions within the department are required.

The board and department heads began to make comparisons, first among departments. Grandia stressed that departments within the County cannot always be directly compared.

"There's such a wide variety," Grandia said. "Some get outside revenue, some don't."

Supervisor Craig Agan furthered the comparisons by pointing out that some Marion County employees actually live in Lucas County. Because of this, their cost of living may be less than some who stay in Marion County.

"If that particular employee were to work in Lucas County, they'd make about two-thirds of what they're making," Agan said. "I think we're pretty fortunate (to have the tax base Marion County has)."

But others felt that the comparison between Lucas and Marion counties is not a direct one. Goemaat said that wages and expectations of services are less in Lucas County. If serves were reduced in Marion County, residents would be disappointed.

"I don't like to pay taxes either, but I also like quality services," Nichols said. Supervisor Jim Kingery agreed that Marion County needs to keep a high level of services.

"We're going to have to pull back," Agan said. Kingery said that the Secondary Road Department already has. County Engineer Roger Schletzbaum told the board that if his department does not do the work it does, someone else would have to pay for car repairs or face some other consequence of the inaction.

"We are the front line," Schletzbaum said. He included the sheriff's office as part of the "front line," and is necessary to protect people. Goemaat and his department have been performing home checks for residents who spend their winters outside Marion County. This is included in the services to which Marion County residents have grown accustomed. Agan suggested that perhaps things such as home checks could be performed by private security agencies. He believes all departments should ask what is essential and what is fair. Goemaat said diminishing services will have an impact and the public may respond.

"I know where I will refer them," Goemaat said. He asked the board outright if Marion County is to the point it needs to reduce services. Immediate reaction from the board were looks of concern on the supervisors' faces.

"I don't know. It all concerns me," Agan said.

"I don't think we're moving forward," Kingery said. "I expect us to slip a little more."

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