With a $2.1 million general fund deficit looming, Douglas County commissioners were told Thursday they can anticipate making "very challenging decisions" as they work to balance the 2010-11 fiscal budget.
County Manager T. Michael Brown presented the board with a brief budget update as they head into public hearings April 12-13 before the tentative $125 million budget is due April 15 to the state.
Brown said because of the ongoing economic downturn, the budget challenges would be the same as in the past two years:
n Continued decline in county revenues;
n Reduction in the increase in property tax revenues. Brown said the county is about two years away from a decline in property tax revenues;
n Limited revenue-raising ability or desire for taxes;
n Pressing infrastructure/financing needs including road construction and maintenance and water and sewer utility funds;
n Social services support;
n Public safety, district attorney, court needs;
n State budget crisis.
Brown set up one-on-one meetings beginning Monday between commissioners and elected officials and department heads.
"I asked staff to not balance their budgets before they come to you," Brown said. "These are policy decisions and I don't believe staff is authorized to impact the public in our choices."
Brown said balancing the budget will come down to reducing expenditures based on priorities and raising additional revenues.
A reduction in expenditures would entail cutting county services which would result in layoffs and a reduction in employee hours.
Raising additional revenues would be through targeting specific fees, charges and taxes that correspond to the service provided, Brown said.
"You have hit the nail on the head," Commissioner Greg Lynn said. "Concentrate on the expenditure side, the well is dry on the revenue side."
The budget hearings will start with a comprehensive financial overview, Brown said.
That will be followed by actions taken to address budget challenges and discussion of each county fund.
Brown said staff will make recommendations to balance the budget followed by discussion of long-term needs.
"Sometimes your recommendations help out a lot," said Commissioner Doug Johnson.
Last year, the county balanced a $121.7 million budget which started out with a $1.58 million deficit.
