Public hearing tonight at 7 p.m.
Polk County commissioner Tom Pack, who recently proposed a county budget that caused commissioner Renée McDermott to say he was “trying to play Santa Claus,” walked into the county meeting Monday, June 6 wearing a Santa Claus hat. The gesture was evidence of the continuing disagreement among commissioners about the county’s proposed 2011-12 budget.
Commissioners continued their debate June 6 on which budget proposal is best: Polk County Manager Ryan Whitson’s no tax increase proposal or Pack’s tax decrease proposal.
Residents can weigh in on the debate tonight, June 13, during a budget public hearing at 7 p.m. at the Womack building in Columbus.
Commissioner McDermott read a statement during the June 6 meeting saying the Pack/Owens budget would “damage” the county (see the full statement on page 7). McDermott and commissioners Cindy Walker and Ray Gasperson support Whitson’s budget proposal, while commissioner Ted Owens supports Pack’s proposal.
Pack and Owens argued that the county has ample fund balance, with Pack saying the fund balance is projected to be $4.8 million at the end of this fiscal year.
McDermott said the county’s fund balance would pay the county’s operating expenses for only three months. She said the county will have capital needs in the future, such as replacing the Lake Adger dam and building a water plant.
“To have three months backup in these uncertain times is certainly not much,” said McDermott. “We also have other capital needs in the future. Why borrow the money if there’s a way we can build up reserves without paying interest charges and increase our debt? I’d rather do pay-as-you-go.”
Pack said the county finance officer is conservative and the county averages ending each year with a revenue surplus of between $500,000 and $750,000 after expenditures to add to the fund balance. Pack also questioned the county’s decision to pay off $1.9 million of debt, which was paid with fund balance last year before Pack was elected.
Pack said, looking back at the last two years, the county’s excess at year-end 2010 would have grown by $1.4 million if monies hadn’t been spent. The year before, Pack said, the fund balance would have grown by $1.59 million.
“Our fund balance is growing,” Pack said. “We are putting money away… this year you paid off $1.9 million in debt with fund balance so it dropped the fund balance by $1.9 million.”
But McDermott argued the county saved hundreds of thousands of dollars in interest by paying off debt early.
“Pack and Owens argue that we should spend every cent of revenue, even revenue they fantasize is still available from two years in the past,” McDermott said. “That money was already used by the majority to pay down Polk County’s debt. It’s no longer available. They make no provision for capital reserves in any year, even though it’s well known that we have capital needs now and that more will appear in the future. No responsible businessman would do that.”
Pack’s budget proposes to pull $244,798 out of fund balance to give taxpayers a tax cut equal to $300,444.60, or a 1.14-cent reduction in the tax rate.
McDermott said last week that Pack’s tax reduction would equal a little more than $10 for a taxpayer with a home worth $100,000. The exact tax savings for Pack’s proposal would mean an $11.40 tax bill decrease for a $100,000 home or a $22.80 decrease for a $200,000 home (see the chart on page 6). McDermott said on a vehicle worth $10,000, Pack’s tax cut would mean a savings of $1.
Pack’s tax cut would decrease the tax rate from its current 52 cents per $100 of valuation to 50.86 cents per $100 of valuation.
“What would commissioners Pack and Owens’ budget and proposed 1 cent tax cut do for taxpayers?” asked McDermott. “It would save a taxpayer with a $100,000 house $10 a year.  It would save a taxpayer with a $10,000 car $1 per year. That’s all. But what would that budget do to Polk County, its children and other citizens? A lot of damage.”
Pack’s budget includes raises for some sheriff’s office, jail and communication employees and leaves the employee insurance deductibles at $500. Whitson’s proposed budget includes no salary increases and money to put into future Lake Adger dam repairs and a fuel contingency. Whitson’s budget proposes for employee health insurance deductibles to rise to $1,000 beginning on Jan. 1, 2012 to avoid adding an estimated $160,000 to insurance in the budget.
Owens said commissioners have heard the county has an increase in revenues and made suggestions for capital improvements, including improvements at Stearns Gym and possibly the purchase of a tractor for the recreation park and a truck for the maintenance department.
“I’m not sure you understand the budget,” Owens told McDermott. “I’ll be honest with you.”
Pack said his budget is very sustainable, saying there is about $240,000 for next year for one-time expenditures and the county will have that money for the next year’s budget, plus the average $500,000 to $750,000 average end of the year excess.
“That leaves us money for future projects and it continues to grow,” said Pack. “Anyone who understands the budget can see that it’s a sustainable budget. You can play politics all you want. “
Commissioners could make changes to the budget following tonight’s public comments.
A poll the Bulletin recently ran on its website asked residents if commissioners should lower taxes as Pack has suggested. The majority of persons who answered the question were not in favor of a tax cut, with 110 “no” votes, or 56 percent, compared to 87 “yes” votes, or 44 percent. Five residents also called or came into the office to answer the poll, with three of those residents voting “yes” on the tax cut and two residents voting “no.”
Commissioners are scheduled to adopt the new budget next Monday, June 20. The new budget year will begin July 1.

Pack’s proposed tax cut
Annual tax bill @
Home value     52 cents   50.86 cents   Annual savings
$100,000        $520        $508.60         $11.40
$150,000     $780           $762.90          $17.10
$200,000     $1,040       $1,017.20        $22.80
$250,000     $1,300       $1,271.50         $28.50
$300,000     $1,560       $1,525.80        $34.20
$400,000     $2,080      $2,034.40       $45.60
$500,000     $2,600      $2,543.00       $57.00
$600,000     $3,120       $3,051.60       $68.40
$700,000     $3,640       $3,560.20      $79.80
$800,000     $4,160       $4,068.80      $91.20
$900,000     $4,680      $4,577.40       $102.60
$1 million     $5,200      $5,086.00       $114.00

Note: Annual savings is based on a tax rate of 50.86 cents per $100 of valuation, or a 1.14 cent tax decrease from the county’s current 52 cent tax rate. One penny in Polk County generates $262,770 in revenue. Pack is proposing to cut the tax rate by $300,444.6. The tax bills shown do not include any local fire tax or the transfer station availability fee.