LAKE COUNTY >> The Lake County Administrative Office plans to unveil its recommended preliminary budget for the 2016-2017 fiscal year at the Board of Supervisors regular meeting Tuesday, suggesting that $12 million be set aside for the Valley Fire recovery.
The appropriations bring the budget’s total to about $214.7 million, county administrative officer Carol Huchingson said, but they also have forced the county to significantly decrease funding to many different areas — especially the general fund, which is proposed to have $6.6 million less than last year.
“Lake County is facing one of its most challenging fiscal years ever…” Huchingson wrote in a memo to the BOS. “Staff is committed to very conservative budgets, for the next two to three fiscal years, while we regain ground lost due to the unprecedented disaster.”
In addition to the large costs, lost revenues associated with the fire are also contributing to the tight budget.
According to the memo, revenues for the general fund are projected to be $600,000 less than the 2015-2016 year mostly thanks to decreased transient occupancy taxes (also known as a hotel tax), Mediacom franchise fees and information technology revenues.
Property tax losses from the hundreds of destroyed structures were also significant but the county doesn’t know the shortfall’s extent. To get a better idea of that number for the final recommended budget in September, assessor-recorder Richard Ford has kept the tax rolls open.
Until then, the budget will account for property tax revenues as they were before the fire because the county is assuming that the $1.3 million in backfill money from the state’s proposed budget will make up for the loss.
“At this very preliminary stage, property taxes have been budgeted with the expectation that they will remain consistent,” Huchingson added.
But not all revenue sources are projected to decrease. In fact, sales taxes are budgeted near pre-fire levels due to “significant local spending” while recording fees are expected to rise as more people rebuild.
Remarkably, the county isn’t recommending any job cuts or furlough days for its employees; it only froze hiring.
“Doing so would result in an extremely negative impact on the local economy,” she said. “Moreover, service levels could not possibly be maintained with such additional cuts.”
The meeting begins at 9 a.m. at the Lake County Courthouse.
