Services at every level are expected to drop due to sagging revenues - the bad news when it comes to Douglas County's proposed 2008-09 budget- said Douglas County Manager Dan Holler in a recent report to the Douglas County Board of Commissioners.
Reductions in services at the county's parks and libraries as well as closures at the fairgrounds and Topaz Lake are being considered. The congregate meal program as well as other senior programs will be on the chopping block.
"A lot of community programs that won't pay for themselves, like the (Easter) egg hunt and concerts in the park could also be eliminated," Holler said. "We won't be just cutting around the edges. The room will be filled (with concerned residents) as we go through this process."
County officials will be crunching the numbers over the next few months, as state law requires a balanced budget which must be submitted to the Nevada Department of Taxation no later than June 1.
The commitment of Douglas County employees, elected officials and staff are the county's greatest asset, Holler said.
With volunteer efforts from Douglas County residents, the reduction in services could be ameliorated.
"The county is in a fragile state, but we have a solid foundation from which to rebuild," he said. "The necessary pieces of the puzzle are in place to carry you into the next year."
Projections indicate Douglas County's budget deficits are driven by a drop in the sales and consolidated taxes. Portions of the state consolidated tax are down by an estimated $450,000.
"We typically see a $500,000 to $750,000 increase," said Assistant County Manager Michael Brown. "So that's at least a $1 million hit for the county's general fund."
Building-related revenues are down by $200,000 and interest earned on investments is down about $130,000. Gaming revenues continue their 8-year downward trend while room taxes are flat, all at a time when the economic slump fosters an increased need for social services, Holler said.
Property tax revenues are up by 8.5 percent, or $950,000, and the newly approved utility operator fee should garner an estimated $630,000 this year, just half of the projected revenues for next year when the fee will have been implemented for a full year.
A county reorganization recently approved by the Douglas County Board of Commissioners will save another $300,000, Holler said.
"The general fund is close to being balanced and current projections show we will be able to replace the reserves used to balance last year's budget," he said.
Room taxes provide revenues for everything from the library to Douglas County's Parks and Recreation Department and social services, but those revenues have dropped significantly in recent years, due in part to a lagging gaming industry and legislation that now siphons 65 percent for tourism promotion
The demand for social services puts more stress on the budget, but the biggest unknown for Douglas County is long-term care for indigents, an ongoing challenge that will hit hard in the coming years, Holler said.
"We will continue to use reserves to fund indigent care until a funding source is identified," Brown said. "We need a plan in place to address this funding whenthe reserves aren't there anymore."
Other counties are already struggling with indigent care, the funding mandated by the state, Holler said.
The development of primary jobs and related business activity has been one of the county's strongest assets, but unemployment is up to 5.4 percent, a .6 percent increase over last year's 4.8 percent figure, Holler said.
"One of our challenges is enhancing primary job growth in the manufacturing sector," he said.
The basic requirements include the availability of land, infrastructure and a qualified work force. In Douglas County that work force is often lacking, Holler said.
"If we can't meet those criteria, it doesn't matter how beautiful the community is," he said.
Budget hearings are set for 2 p.m. Tuesday and Wednesday. A third meeting is set for 2 p.m. April 10, all at the Douglas County Administration Building, 1616 Eighth Street in Minden.
All agencies and funds could be discussed at the meetings, but the March 18 meeting will focus on the East Fork Fire and Paramedic Districts, Douglas County Redevelopment Agency, Tahoe-Douglas Transportation District and the marjority of Douglas County funds.
March 19 will focus on the county's general fund, room tax fund, senior services, social services and related funds.
Susie Vasquez can be reached at svasquez@recordcourier.com or 782-5121, ext. 211.
What: Douglas County budget hearings
When: 2 p.m. Tuesday and Wednesday, and 2 p.m. April 10
Where: Douglas County Administration Building, 1616 Eighth St. in Minden
