LAKE COUNTY — The county”s budget remains balanced but does face some challenges, according to the midyear report prepared by the County Administrative Office.
“As always, there are several adjustments that needed to be made to the budget at midyear, but I”m happy that overall the County”s financial condition remains very strong and we were even able to increase our budget for contingencies as part of the midyear adjustments,” County Administrator Kelly Cox stated in an email Thursday evening.
Cox and other county staff members discussed the budget situation with the Board of Supervisors (BOS) Tuesday afternoon at the Lake County Courthouse.
The 2011-12 budget is in balance, and general fund contingencies increased by almost $240,000, according to the report.
However, the county faces several potential challenges, including state realignments, department shortfalls and declining tax rolls.
Shifts to social services and public safety programs have the county paying for some things previously funded by the state.
For other departments, the loss of federal and state grants could be key.
The District Attorney”s Office recently found out it didn”t receive a domestic violence grant that paid for part of the salaries and benefits of three department employees, and libraries could lose $200,000 in funding next fiscal year, according to the report.
But the “primary concern” is falling property taxes, according to Cox.
“If it comes in lower than the current year, it will definitely be a challenge and budget reductions may be necessary,” he said.
The report referenced decreasing values in residential and vineyard properties as the leading causes. A 5-percent reduction in property tax roll value would result in a $1 million loss for the county general fund, the report stated.
“Next year is going to be a really, really difficult year,” District 3 Supervisor Denise Rushing said.
The BOS unanimously passed a resolution approving amendments to the adopted budget, including reserve adjustments, transfers and position changes — several departments asked to eliminate some vacant jobs.
