The headlines we have read recently indicate that the recession has not yet turned the corner. I, for one, am optimistic that by the third quarter of 2009, we will see an upturn in productivity, and certainly, an increase in home sales.
It is easy to become discouraged, and people from all walks of life have reason to become so, but importantly, we again need to have faith and hope.
Kent County Levy Court is not immune to this economic downturn, but fortunately, we have a county administrator and a director of finance who saw the issue coming to the forefront in June 2008. At that time they began implementing cost-cutting measures, along with the various department heads, which allowed us to catch our breath and begin new cost-saving programs beginning in August 2008. It is absolutely amazing what teamwork will do, and at the same time, keep morale high. Employees’ comfort level is critically important in these challenging times, and your county government intends to keep it that way.
With this being said, we feel that the projected trend of expenses over revenue will cause our deficit to rise to $1,456,998 by June 30. Even considering the fact that we have reduced the building temperature, ordered all county vehicles to remain on county property except for county business, reduced our contribution to the Agland Preservation Program, eliminated most overtime, changed the rotation time for servicing county vehicles, urged personal payment for any special events attended, suspended all capital improvement projects, utilized e-mail vs. paper copies, eliminated nonessential travel and placed a temporary hiring freeze in conjunction with non-replacement of those who may be retiring, as well as offering an early-retirement option, presenting a balanced budget has been challenging. These cost-saving measures have saved the county nearly $2 million.
With all of these items being implemented and using a limited amount of our reserves, we think it is possible to stabilize the county budget for 2009.
Now the big test is 2010, which presents greater problems with unfunded mandates, as well as providing our citizens with adequate emergency health care and public safety. We have no choice but to continue to provide the quality EMS services that have done exceptionally well over the years, as well as receiving national accreditation for their outstanding and professional work.
Due to the uncertain times that now exist, your county government has had two retreats, one on Jan. 24, for eight and one-half hours, and again on Feb. 7, for four hours, to develop a plan of action for 2010. Naturally, there were no votes taken at these sessions, but they were duly advertised according to law. What is interesting to note is that every commissioner had an opinion as to what we should do to cover the projected $3,500,000 deficit for 2010.
Suggestions were as follows: Reduce the work week to four days, eliminate cost-of-living-adjustments, freeze the pay scale, utilize several million dollars from our capital reserves, furlough employees, enact employee contributions to dental and health benefits as well as to our pension plan, lay off at least five employees, reduce hours of work from 40 to 35 and initiate a 1-percent to 10-percent pay reduction for all employees. Other items were also discussed briefly as possible solutions.
The one item which will directly affect all of our homeowners is the consideration of a general property-tax increase. During the past 10 years, Levy Court has reduced taxes from 27 cents per hundred of assessed valuation to 25 cents per hundred. The one fair way to include everyone in this challenging time is to look at a fair number for a tax increase that would not dramatically affect anyone’s lifestyle, and yet, allow everyone to become part of the solution.
The number that is under consideration is a 6-cent increase in property tax, which, for the average homeowner, ends up being 8 cents a day, 53 cents a week, or $27.78 a year. This would be for a home that sold for $184,900 in 2008. For a more expensive home that sold for $875,000 in 2007, the cost would be 34 cents a day, $2.33 a week, or $121.32 a year. Naturally, no formal vote has been taken on this or any other subject previously discussed, but the time is fast approaching when decisions must be made.
I did read with interest that some municipalities are laying people off with little consideration for their employees’ ability to pay their bills or put food on the table. Your county government respects its employees and does not wish to create more burdens for them or longer lines for unemployment compensation.
For a minimal tax increase for the first time in many, many years, it is a small price to pay for a family to continue to feed themselves rather than to resort to federal or state assistance. Levy Court is confident that, since we have reduced taxes once, we can certainly do it again once the economy corrects itself.
We have been honest in the past and we will strive to be honest in the future. Managing your money wisely has prevented the proposed tax increase from being any greater, as well as saving jobs. It would be easy to lay off, but then, the burden becomes greater.
So, look to the future with optimism and rest assured that Levy Court is on the employees’ side and the taxpayers’ side. Don’t forget, the employees pay taxes, too — all 320 of them.