No tax increase, committee says

Bedford County Financial Management Committee has recommended budgets that would keep from increasing property tax rates.

"It's no time for a tax raise," County Mayor Eugene Ray said after the meeting.

The finance committee approved a school system budget, and tentatively approved a county general fund budget, pending resolution of an issue about depreciation for Volunteer Fire Services Inc. Those budgets will now go to the county commission for final approval.

But the budgets considered Tuesday night will mean no across-the-board pay raise for county employees, and could result in the closure of one or more county ambulance stations.

The sluggish economy has resulted in sluggish tax revenue for the county. This, coupled with rising costs for food and fuel, has made this a tight year for local budgets.

Even the general fund budget approved Tuesday night, which requires most county departments to cut their spending by 5 percent, represents deficit spending and is therefore projected to reduce the county's "fund balance" -- the reserve funds needed for cash flow and unexpected mid-year expenses -- by $1.4 million over the course of the fiscal year.

"We're spending more than we're taking in," said County Finance Director Robert Daniel. He noted that if energy costs increase dramatically during the coming year, the county must have some funds available to address that.

The spending will mean no across-the-board pay raise for county employees, and could result in closure of a county ambulance station.

A flyer had been circulated to county employees complaining about the lack of a pay raise and urging employees to attend the committee meeting. The small third floor courtroom was standing-room-only.

"I don't believe in wasting money," said Register of Deeds Johnny Reed, "but I believe in paying my employees, and they deserve what they've earned."

Instead of a cost-of-living increase, county employees will receive a one-time $400 bonus under the proposed budget. In the case of departments which have longevity or step raises for employees, that bonus will be reduced by the amount of the raise.

Educational incentives offered by some courthouse offices were eliminated as well.

"I think if we're cutting, we cut," said Commissioner Joe Tillett.

Daniel said he understands that the state is giving bonuses instead of pay raises this year.

Commissioner Bobby Vannatta asked whether the only options were cutting department budgets or raising taxes. Daniel said that is the case.

"We've used every method we can come up with," said Daniel, and hard decisions had to be made.

Bedford County Emergency Management Services, which has been building a new headquarters station, had asked for money for additional employees to be able to staff it. Those employees were turned down, and BCEMS director Chad Graham told the committee he and his board will have to look at how best to allocate its existing employees. One possibility would be to staff the new headquarters station but close smaller stations like the one opened earlier this year in the Cascade School area.

The BCEMS board will hold a special called meeting at 4 p.m. Monday at the current EMS headquarters on Union Street.

Bedford County Communications Center had asked for four additional dispatchers. The county won't fund the new positions, but the Emergency Communications District -- an independent agency which is funded, not by tax revenue, but by surcharges on telephone bills -- may be able to fund two of them.

The committee discussed the budget for Volunteer Fire Services Inc., an independent agency that receives a contribution from the county for the lion's share of its budget. VFSI's budget includes a $123,187 line item for depreciation that finance committee members thought could be safely eliminated but that VFSI officials and their auditor said is required because of the difference in accounting procedures for governments and independent agencies.

The finance committee will discuss more about the VFSI depreciation issue at a special called meeting which had already been scheduled for Monday night. The finance committee, and then the full commission, will meet Monday night to take care of housekeeping issues before the close of the fiscal year.

The county will not have its full budget passed and finalized by that time, so the commission will need to pass a "continuing resolution" allowing departments to continue operating at their current spending levels until a new budget is in place. A continuing resolution has been the standard procedure for decades, although at one point county officials had hoped, because new financial policies and procedures, to have a budget in place before July 1 this year.