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Hernando Today

County Faces $1.6 Million Shortfall

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By MICHAEL D. BATES

Hernando Today

Published: January 7, 2009

BROOKSVILLE - County commissioners got the grim news Tuesday from their budget director: the general fund faces a $1.6 million revenue shortfall from what was originally budgeted for fiscal year 2009.

On top of that, the county property appraiser's office is projecting a possible $3 million property tax reduction as the county begins its fiscal year 2010 budget cycle.
Budget Director George Zoettlein is projecting reduced revenue of $4 million as a starting point for the 2010 budget.

Zoettlein topped that off with news that the county will see a $1 million reduction in sales tax and other revenue sources.

Zoettlein didn't tell commissioners anything they didn't already expect. But it did give them a sobering portent of things to come.

"What you're saying is that we really have our work cut out for us, don't we?" Commissioner Dave Russell asked Zoettlein.

"Yes sir, you do," Zoettlein replied.

Commissioner John Druzbick encouraged all departments to look at possible cost-cutting alternatives to help the county through these lean times.

"We really have to start thinking differently on how we've been doing business in the past," Druzbick said.

Zoettlein did offer one ray of hope: the budget shortfalls are early projections and could change as his department starts developing a budget over the summer.

County Administrator David Hamilton told the board he would monitor all expenditures and give regular reports to the county board on the state of its fiscal health.

Russell said the county must look at stabilizing the budget and avoid the "precipitous drop" during these tough times.

As a result of these projections, the budget office plans to advise all department managers and Constitutional officers to review their expenses.

Impact fee revenues are projected to be down $1.7 million from budgeted amounts and "show no immediate signs of recovery," according to Zoettlein.

The decline in the building industry has led to huge losses of money in the Development Services department. The difference between projected and budgeted revenue in that department is an estimated $917,000.

That department this week announced the layoff of six additional employees due to a decrease in permit revenue.

Zoettlein will bring a budget resolution back to county commissioners in February asking them to approve an adjusted 2009 fiscal year budget.

On a related matter:

County commissioners voted 4-0 to increase the 2009 budget by $12.3 million to allow for uncompleted projects from last year to be carried over to the new fiscal year.

That means the 2009 budget will be adjusted from $465.2 million to $477.5 million.

Each year, certain purchase orders remain outstanding because projects have not been completed or departments have not received the final billing, he said.

The contracts for the purchase orders are carried over at the same costs. The money has already been allocated and set aside, Zoettlein said.

The money used to cover those purchases is set aside in the old year's budget and are brought forward into the new one to cover the encumbered purchase orders.

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

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