There will be no new taxes in next year’s Butler County budget, but commissioners say that may not be the case for much longer.
The proposed budget includes an $84.6 million general fund and $249.8 million total budget.
The general fund budget, which factors in all county expenses, saw about a four percent increase this year.
“We need to be clear of the challenges ahead,” Commissioner Leslie Osche said.
Commissioners say that operational costs and infrastructure projects have grown over the last couple of years, while state funding for some programs remains either flat or declining.
“It’s not one aspect of the budget that’s challenging,” Commissioner Kim Geyer said. “When the state flat-funds the county for programs and services that we are mandated to provide, it catches up with you.”
Commissioners said this year’s budget took departments coming together to trim costs in order to keep the millage rate the same, just shy of 22. The county is capped at raising rates at 25 mills.
A one mil increase would bring in just under $2 million in additional revenue.
The county is estimating receiving about $55 million in real estate taxes and projecting nearly $20.5 million in other general fund revenues.
The main costs to the county remain in public safety and judicial, which account for more than 50 percent of the county’s expenditures. The county prison is the largest expense at a projected $18.6 million.
However, the prison does receive over $5 million for housing federal inmates.
The county is also making changes to how they allocate Act 13 funding. Previously the money was set aside for IT needs, the new 911 system, and the Butler County Infrastructure Bank. Under the new revisions, 68 percent of Act 13 funds, which are impact fees from natural gas drilling, will go toward the county’s fund balance.
The fund balance carryover into 2025 is just over $9 million.
“This move will help with our fund balance,” Osche said. “Which is critical, because when other counties were laying off employees or cutting programs during the state budget impasse, we were able to stay operational.”
“With all the growth Butler County has experienced, comes costs like infrastructure, programs, and maintenance,” Commissioner Kevin Boozel said.
There is the possibility of more homes coming onto the tax roll this year, as some new home developments could be complete this year. It’s another area Geyer cited as a lag in getting more homes fully occupied.
“The housing market has changed. We’re selling land and getting ready to build, but building the homes and people living inside them has dragged.”
While commissioners didn’t directly commit to any future tax increase or reassessment, they did say the county is facing “challenges ahead.”
“We’re going to have to make decisions over the next three to four years. We’re not prepared to for what that exactly looks like now,” Osche said.
She did say the county is capped at a millage rate of 25, saying that “leaves the county with little room for a tax increase.”
As for reassessment, Osche said that process can take multiple years and is costly. The last time the county was assessed was 1969 according to Osche.
“We can control spending the best we can. There’s a line and we’re reaching it,” Boozel said.
The proposed budget is up for public viewing on the county website and will officially be voted on in December.
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