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December 31, 2009

YOUR MONEY: Commissioners approve 18 percent tax hike

An 18 percent property tax increase translates into saving 75 Lawrence County government jobs.

That’s how one county official explained why the commissioners must tax property owners more next year.

Controller David Gettings explained the 0.95-mill increase the commissioners approved yesterday — an extra $95 on a home worth $100,000 — was necessitated by three major increases: salaries, health care insurance costs and the amount the county will be required to contribute to its retirement fund next year.

The commissioners approved a resolution that sets the total millage at 6.263.

That breaks down to 5.496 mills for general purposes, 0.657 mill for debt service and 0.11 mill as the library tax.

The measure also sets in place the county’s 2010 balanced spending plan totaling $83,916,199. That compares with a total of $82,650,760 from this year, representing a 5 percent increase.

“The tax increase based on the current numbers is necessary,” Gettings commented after the meeting, “and all I see are the numbers.”

The county started 2009 with a $1.5 million surplus in its general fund, he explained, but that surplus has been spent.

A similar amount will be needed to meet 2010 expenses, Gettings said.

In addition, the county must pay $700,000 as its contribution to the county retirement fund, and a $350,000 increase (about 13 percent) in health insurance costs for employees.

Also, a 3 percent wage increase was built into the budget for all union and non-union employees. That increase, about $350,000, is largely driven by contracts that include the 3 percent raises.

Those four figures alone constitute about $2.9 million that the county has to make up for, Gettings pointed out, and one mill brings in $3 million,

Calling the tax increase “fiscally responsible,” he pointed out that $3 million translates into 75 positions or 20 percent of the county employees, who otherwise might have had to be furloughed.

With the cost of unemployment compensation, “even more would have to go,” he noted.

“It would have been irresponsible to try to balance the budget on the backs of the employees,” Gettings said, adding, “We’d be putting 75 more Lawrence County people out of work.”

The commissioners had asked the county’s three bargaining units to consider a wage freeze next year, but their request was ignored. The unions represent 231 of the county’s 386 employees.

Commissioner Dan Vogler pointed out the commissioners are foregoing their annual cost-of-living raises, which amount to 2.4 percent under the consumer price index.

The 2009 salaries for each of the three commissioners was $58,018.64.

They had asked the other elected county officials to forego their cost-of-living raises as well, and all had agreed to do so.

According to county administrator James Gagliano, those raises would have totaled about $13,000.

Commissioner Rick DeBlasio pointed out the county will continue to institute a six-month moratorium on any hiring after a position is vacated.

He suggested that as employees resign in the coming year, the commissioners meet with the department heads to determine whether those positions can be eliminated.

“I would rather go through attrition than layoffs.”

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