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Hernando Today

Adjusting To Lean Times

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By MICHAEL D. BATES

Published: August 31, 2008

BROOKSVILLE - Editor's note: This is the first in a three-part series.

Hernando County commissioners find themselves in the unenviable position of having to tighten their financial belts and suck it in as they face the hard truth that the money stream has dried up.

Critics say commissioners should have been salting money away during the boom years and preparing for the leaner times they knew were coming.

For them, commissioners are like the grasshopper in the oft-repeated Aesop's fable who spent the summer hopping around while the ant was storing up food for the harsh winter.

Suddenly, winter came and the dying grasshopper saw the ant living large. Only then did the grasshopper realize it is best to prepare for the days of necessity.

Residents are being told to cut back on driving, conserve fuel and cut corners in their budgets to meet the new economic reality. Now, the county is being forced to do the same.

County commissioners are considering cuts at every level of government – from mass transit to animal control – because they know that property tax revenues will no longer be the engine to propel spending.

Budget numbers

From 2001 to 2008, Hernando County's expense budget, like other counties in Florida, increased at a disproportionate rate to its increase in population.

The county's budget increased more than 100 percent from 2001 to 2007, while the population increased about 20 percent.

Property taxes increased from $74 million in 2006 to $90.4 million in 2007 – a 22 percent increase.

The county's revenue sources from 2006 to 2007 went from $163 million to $185.4 million, a 13 percent increase.

Grants and contributions to the county went up from $6.2 million to $16 million from 2006 to 2007.

Total revenue increased from $163.8 million in 2006 to $185.4 million in 2008.

But then the calendar flipped over to 2008 and Amendment 1 passed in February. If peoples' homesteaded property had an assessed value of $75,000 or more, they received an additional $25,000 exemption.

Amendment 1 provided more relief for taxpayers but further reduced the county's revenues.

County Administrator David Hamilton and Budget Director George Zoettlein have said they need to close a $6.3 million gap between planned general fund expenditures and revenues. Zoettlein has unveiled a plan to lower that gap to $4.4 million without raising the current general fund millage of 5.43.

'Now We're Paying For It'

County Commissioner Rose Rocco said Hernando County faced a "perfect storm" of economic problems because of state-mandated cuts and Amendment 1.

For whatever reason, county leaders did not adhere to sound management practices in the past, Rocco said.

"Nobody was making decisions, that was the problem," she said. "It was, 'Let's wait for someone to come in and tell us what to do.' Now, we're paying for it."

Hernando County, she said, relied too heavily on consultants, did not properly supervise the issuance of contracts and neglected to monitor spending tactics.

"It was just a matter of complacency," Rocco said. "It was 'business as usual.' Now, it's not 'business as usual.' We're all taking a closer look at what we're doing. Nothing is getting by without more scrutiny."

Rocco credits County Administrator David Hamilton's streamlining initiatives for bringing new awareness to spending habits. Hamilton's "less managers and better management" policy should help bring more efficiency to county government, she said.

Hamilton said he is charged with "changing the culture" of Hernando County.

And that entails making better use of staff.

For example, when the county had to come up with ways to save THE Bus, he asked planning and transportation staffers to come up with clear guidelines and brainstorm options.

And he set timelines for getting it done.

As a result, the county was able to keep THE Bus intact and still trim more than $200,000 from the subsidy.

"I think it shows that, clearly, when challenged, (we) can do as good if not a better job of providing services with less money," Hamilton said.

Hamilton hopes to tackle future economic problems in like fashion.

"We have good people here, but they need clear direction and clear expectations," he said. "Perhaps in the past, we haven't set those targets."

What Our Series Will Show

Today, county commissioners are forced to prepare a budget for 2009 that must deal with the new reality. Budget cutting and streamlining is the order of the day.

With this issue, Hernando Today kicks off a series of stories under the umbrella, "Braking the Budget." The newspaper will take a hard look at the proposed 2009 budget and explore ways where the county can save money.

The series is scheduled to conclude before the first public hearing Sept. 11, when commissioners will adopt the tentative millage rate and budget and publicly announce the percent that the proposed millage exceeds the rolled-back rate.

Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.

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