Montrose County Projects Increases From Property, Sales and Use Taxes



MONTROSE – Montrose County’s preliminary budget for 2013 shows signs of an improving economy, represented by projected increases in revenues from property, sales and use taxes.

Monday’s presentation, which was held during a regular meeting of the county commissioners, was for informational purposes only and acted as a start to a series of public hearings that will be held until the 2013 county budget must officially be adopted on Dec. 14.

According to County Manager Jesse Smith and County Finance Director Cindy Bennet, property tax revenue, based on the county’s net mil levy of 20.07, is projected to be approximately $11.3 million. This marks an increase of $1.8 million over 2012 property tax revenues.

Sales and use tax collections are projected to finish 2012 on a positive note with an increase of 7.1 percent over 2011 and are expected to continue to climb modestly in 2013 at a rate of 5.2 percent. Over the past four years, sales and use tax revenues have improved from a 7.5 percent decline in revenues in 2009 to a .6 percent decline in 2010, to a 2.2 percent decline in 2011, and then, finally, projected increases in revenues by 7.1 percent in 2012 and 5.2 percent in 2013.

Thanks to projected increases in revenue from property taxes, the county’s general fund revenue is expected to increase by 6.2 percent in 2013. Total expenditures from the general fund in 2013 is expected to be $1.3 million, or 7.4 percent, lower than the 2012 revised budget. Balance the increase in revenues with the decrease in expenditures and the proposed 2013 general fund budget reflects a $52,537 increase in the ending fund balance.

In all of this, the general fund’s share of property tax collections is projected to increase approximately $1.7 million in 2013, but Smith emphasized that this is the result of a decrease in the county’s TABOR Refund/Credit Mil Levy calculation. The county is not increasing its property tax mil levy.

After reducing staffing levels by just over 31 positions from 2011-2012, the county will continue to reduce staffing in 2013 by eliminating 2.6 Full Time Employees. And while staffing will be reduced, the 2013 budget reflects an increase in pay for some county employees.

The overall increase in salaries and wages from 2012 to 2013 is projected to be 2.9 percent. Some employees will receive a performance based merit increase, others will not.

Smith said the county has gone four years without any salary increases and that a recent study showed that the county has dropped considerably below market in employee salaries.

“When you do that, what that says [to employees] is that I can leave here and go someplace else and make more money,” Smith said. “People who have that ability are usually our best people. We are going to lose nine experienced people this year from road and bridge. That hurts. It is critical that you try not to have that happen.”

Going forward from Monday’s presentation, Smith said there will be a series of public hearings held to discuss the proposed 2013 budget with meetings planned for Nov. 21 and 29. On Dec. 14 the commissioners, at a special Friday meeting, must formally approve the 2013 mil levies and formally approve the 2013 budget as well.

“Great job,” Commissioner David White said after the presentation on Monday. “It shows there are some positives in the local economy for one thing but keep in mind, this is preliminary. The fact of the matter is it must go through these hearings and we will, in fact, see changes. This is preliminary.”

The preliminary 2013 Montrose County budget can be viewed at http://www.co.montrose.co.us/index.aspx?NID=97.



gjarvis@watchnewspapers.com

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