Proposed 2009 Budget Drops $37M

Faced with a shaky economy and under pressure to make deep cuts, Budget Director George Zoettlein on Monday unveiled a proposed 2009 budget that keeps intact the county's 5.43 millage rate.

The proposed 2009 fiscal year budget is $384 million, a decrease of $37 million (or 8.87 percent) from the previous year. Tax revenue decreased in 2008 by $7 million, or 7.63 percent, thanks to the downturn in property values and new construction.

The general fund, the county's operating fund supported by property taxes, declined $6.4 million, or 5.15 percent - from $125 million to $119 million.

The general fund decreases were spread across-the-board by departments and due mainly to the passage of Amendment 1, county commissioner-requested cuts and the decrease in property values.

Zoettlein is proposing $96.8 million in expenditures compared to $83.4 million in revenue, leaving a fund balance of $22 million.

Property values have decreased by 10.38 percent, or $1.1 billion. New construction was down by $304 million, or 43 percent from the previous year. Plummeting single-family home permits, coupled with caps placed on taxable revenue by the state and Hernando County's approving of a $50,000 exemption for low-income seniors "will equate to a marked reduction in tax revenue for fiscal year 2009 and into the future," Zoettlein said.

"Everything the public asked for, we've done," Zoettlein said. "We've streamlined the budget and we're not done yet."

The county's balance forward cash shows a decrease of 21.68 percent - from $137 million in 2008 to $107 million in 2009 - with prior years' projects being completed and not being carried forward into the new fiscal year.

During recent community workshops, an overwhelming number of citizens said in a survey they didn't want public safety and law enforcement jeopardized.

To that end, Zoettlein has left the sheriff's department requested budget of $32.8 million basically intact, subject to commissioners' discussion and approval.

The transportation trust fund decreased by $6.4 million, or 20.26 percent, due in part to a decline in gas tax revenue.

Although Zoettlein's budget doesn't reflect a millage increase, that could change depending on commissioners' actions at upcoming meetings.

County Administrator David Hamilton will present the balanced budget to county commissioners at today's board meeting, which begins at 9 a.m. at the Hernando County Government Center, 20 North Main St. in downtown Brooksville.

Hamilton admits there is work to be done before a final document is unveiled.

Options for final recommendation include cutting more money from the board of county commissioners' departments, reducing planned funding to the county's capital plan and reductions from the Constitutional Officer's budgets, Hamilton said.

Other highlights from the proposed 2009 budget include:

• Spring Hill Fire Rescue District's budget is up 1.38 percent, or $201,664.

• There is a recommendation to cut the number of government departments from about 25 to 12.

• Many managers and supervisors would receive retirement buyouts.

• Employees would receive a 2 percent pay adjustment, with upper management possibly getting less.

• Projected revenue coming in next year in the general fund is just over $81.7 million or equivalent to what the county received in 2005.

County commissioners will hold a budget discussion, with citizen input, at their July 22 meeting. If needed, they will continue that discussion the following morning.

Two public hearings will be held in September.

The new budget, with recommended changes, will go into effect Oct.1.

Between now and then, the budget numbers could change as commissioners meet with department managers and hear from the public.