Early tax collections helping county cash flow

Dyer County landowners have been a little more eager to pay their property taxes this fiscal year.

At 45.7 percent, collections are slightly higher compared to the same time period for the previous year (43.1 percent).

Tax notices are mailed in October, and taxes must be paid by the end of February. Landowners typically wait until the last minute to pay property taxes, but some are paying earlier.

That was good news for the Dyer County Commission's Budget Committee, which met last week to assess the county's financial situation. The increased collection rate has helped the county's cash flow.

The fiscal year - and a year's worth of spending - begins July 1. The bulk of revenues for the county General Fund don't arrive until halfway through the budget year. To make ends meet, the county borrows money from its Debt Service Fund and repays that when property taxes are paid. That normally works, but the budget is a bit tighter this year and county commissioners are nervous.

On Jan. 11, the budget committee reviewed a spreadsheet of revenues collected and expenses paid during the first six months of the fiscal year.

The General Fund has received 39.99 percent of anticipated revenues and spent 43.55 percent of budgeted expenses by Dec. 31, 2009.

For comparison, the General Fund had received 39.8 percent of revenues and spent 45.8 percent of expenses by Dec. 31, 2008.

Nancy Broadstone, the county's financial director, said the county has collected a little more revenues and spent slightly less money this year.

County Trustee Judy Patton said the collection of utility payments-in-lieu-of-taxes also increased to 53.13 percent this year. Only 44.6 percent had been collected in the same period during the 2008-9 fiscal year.

Sales tax collections, however, were down about 5 percent. Patton said the figures don't include the December holiday shopping season. The county expects to receive the December sales tax revenues next month. Patton hopes the sales tax collections will be good.

"They said it was a good December," she said, referring to purchases made at local businesses.

Sales tax revenues, of course, are not applied to the General Fund. Sales tax proceeds fund schools.

One potential savings on the expense side is the cost of repairs to the courthouse elevator. County Mayor Richard Hill said the county had anticipated spending about $125,000. The total cost is expected to be about $114,000.

Contented with the reports, budget committee members agreed to meet again at 9 a.m. April 12 to review revenues and expenses. Hearings on the proposed 2010-11 budget will begin in May.

In other business, the budget committee approved two budget transfers:

* In the Retired Senior Volunteer Program: Moved $6,831 from Social Security and $1,509 from Medicare to Clerical. The RSVP office received a new mentoring program grant and needed to make alterations in the way the money had been appropriated.

* In the Dyer County Health Department: Moved $9,850 from Salary Supplements to H1N1 Grant Salaries; $625 from Social Security to Social Security H1N1; and $150 from Medicare to Medicare H1N1. The department received a grant to hire a nurse to give H1N1 vaccinations. The county must pay the expenses first and is then reimbursed by the grant.