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County faces financial crisis
‘Tight’ budget getting tighter
Published Wednesday, November 19, 2008
For the past three years, the Covington County Commission has used a portion of a 2005 bond issue to make ends meet by loaning the capital improvement money to other county accounts or funds that ran short in operating funds.
But the $6.2 million bond issue has a clause stating that all of the money should be spent on capital improvements within three years, county administrator Brenda Petty Wednesday explained to members of the commission.
“This month is three years,” she told them in an almost all-day workshop meeting designed review county operations with two new members of the commission, Chairman Lynn Sasser and Commissioner David Ellis.
“We’re going to have to do something with it this year,” she said.
At present, she said, $540,000 has been loaned from the capital improvements fund to the General Fund and to each of the four commission districts to cover cash shortages or budget overruns, just as it has in previous years.
For the past three years, or the life of the bond, Petty said, the county has had to “loan” the capital improvement funds to other county operations to meet cash shortfalls, which Alabama law allows counties to do. The loans typically are made near the end of the fiscal year, then repaid to the capital fund account when property taxes are paid, leaving the county in its best cash position of the year.
At one time, the commission had planned to use the remaining capital improvement funds to join forces with the City of Andalusia in constructing a recreation facility. Most recently, commissioners voted to build ball fields “when they had the money,” and also said they would use the capital funds to replace leaking roofs, including the one on the courthouse. Wednesday, commissioners added the installation of an elevator in the courthouse to list of possible uses for the money.
Commissioner Carl Turman expressed support for adding an elevator.
“We need an elevator,” Turman said, adding that the wheelchair lift currently used to assist people who need to get to the second floor of the courthouse, “is a piece of junk.”
While commissioners discussed a number of ways they could spend the capital improvement funds, they did not address how they would cover cash flow problems in the coming year if the money is no longer available to loan to other funds.
Meanwhile, Petty had more grim financial news for the commissioners: A very tight budget adopted for the current fiscal year is about to get tighter.
Before the new commission took office in November, the previous commission adopted a budget in which it projected only $105 more in revenue than it planned to spend in the fiscal year that began in October. Already, that budget is more than $150,000 tighter, Petty said.
Part of that crunch is the result of state actions, Petty explained.
In late October, the state Alabama County Commissions Association notified county governments that the share of Alabama Trust Fund profits earmarked for county governments is expected to be 60 percent less than counties received last year. The decrease is related to the decline in value of stocks, and bonds held by the state’s huge trust fund.
“We included in our budget $220,000 in revenue from this fund,” Petty said. If the state allocation is indeed cut by 60 percent, it will cost the county approximately $132,000 this year. The funds are usually disbursed in April.
The county also receives forestry funding. In the past, the county has used those funds to help pay for its share of the cost of having resource officers or deputies in the county schools. New guidelines dictate how those monies are used and education is no longer an allowed use. That puts another $45,0000 hole in the budget.
Ellis, who was only this month sworn in as a commissioner, urged fellow commissioners of the need to “start addressing some of these things.”
Commissioners discussed three possible revenue-producing measures which will require the approval of the Alabama legislature.
They did agree they should adopt a resolution in support of a proposed local bill that would double the costs of pistol permit, but the approximately $37,000 that bill would generate could only be used by the sheriff for law enforcement expenses as he saw fit.
Commissioners also briefly discussed asking the legislature to approve an increase in the county lodging tax, but did not discuss how much of an increase they would ask for. At present, the county has a 2 percent lodging tax that generates about $5,000 a month, or approximately $60,000 a year.
A third idea floated was to research and ask the legislature to approve a local oil and gas severance tax. County engineer Darren Capps was asked to provide more information about the possible tax.
Comments
Posted by LordOfDiscipline (anonymous) on November 20, 2008 at 6:26 a.m. (Suggest removal)
How about just stop blowing all the money and start trimming some fat off the budget. Last thing we need is another ball field in this weak economy.
Try not buying new vehicles every year. Mine is 11 years old and still runs great.
Posted by flawson (anonymous) on November 20, 2008 at 7:10 a.m. (Suggest removal)
The rumor is a certain person is making over six figures per year doing a job that should pay half that and start having the commisioner meet at night where the working people can attend and speak to their commissioner about the job they are or not doing.
Posted by hambone (anonymous) on November 20, 2008 at 8:50 a.m. (Suggest removal)
Flawson that's about the only sensible comment up until this point. Lord of discipline you mention ball fields, please you know nothing about this. It has been proposed that the ball fields can and will pay for itself. Surely you know nothing of this. The numbers for the county have risen for such action to be taken, this is about 12 years in the making! Most say well the arena has been a nightmare, well i believe with some self interest in the past has made it what it is today and has become a large financial liabilty. But the amount of revenue that could be generated from such a venue could actually benefit the community from increase sales of lodging, food, gas, and etc.. You know the article spoke of lodging tax. This has been where the sports has received its funding as something written by Seth Hammett. The lodging tax is to cover sports, arts, and whatever else the commission sees fit as it's written. $60,000 for the tax, we don't get $60,000 for sports for the county, so the kids hasn't been able to get everything that is due because of that exception clause. So the children are being cheated. Lord of discipline that's who is being cheated the children, I have three in the county school system and they have not a ball field that is theres. We fall to the judgment and decision of the city. As you'll see in the months to come of we have to follow the city as I have been informed of this just this week. So the county has never really received what has been intended for the children!! I guess maybe we'll see my children's, children may have a place of their own? But no we are in a weak economy and if not careful an ever weaker community...
Posted by Helper (anonymous) on November 20, 2008 at 8:59 a.m. (Suggest removal)
Just a Little FYI:
The County COmmissioner should have though about the building of the Arena project a little more. Why are you going to build an arena without AC so that you can't hold concerts in it? So the county can bring in more money but using for concerts and other indoor trade shows. Why are the county paying the person in charge of the arena a $100,000 a year to run the arena when it is not even used FULL-TIME????? Why are you paying county workers new vehicle every year? Why can't we build the fields for the kids in the county? The way I look at it is, we build the fields for the kids, we bring in the Regional, State, and even WOrld Series tournments each year and we can make the money back. Because people will come to Andalusia, stay in Andalusia, eat in Andalusia, and even shop in Andalusia while they are here. So there we go: SALES TAXES FOR ANDALUSIA, and COUNTY TAXES FOR THE COUNTY!!!!
Posted by hambone (anonymous) on November 20, 2008 at 2:24 p.m. (Suggest removal)
bamadude the city is in the county, just the same as the state taxes comes from within the county and city. there is a bed tax for lodging in covington county. a proposed tax could be tobacco. even little of river falls has a city tax on tobacco. i mentioned this personally to harold elmore last year in assistance to replace funds and to initially fund the start up for the ball fields. area recreation parks hold i know softball tournaments that bring in an tremendous amount of revenue. my daughter plays travel softball and i know that on average of $150 - $200 per tournament that I spend. so figure that on 10-15 teams for a average tournament. but the whole thing as far as the county arena, surely there has to be a better plan and management. to give a guy a raise when the arena is busting budget. not sure of the concept. the whole thing on the county administrator is rediculous if she is making six figures and totally off the wall if tony wells also makes this as well. i just hope and pray with the adjustment of the new leadership, that covington county heads in a new direction.
Posted by pingbalata (anonymous) on November 20, 2008 at 5:50 p.m. (Suggest removal)
This comment really does'nt do justice to the extent of the problems facing the county...but I just wanted to let people know why the ballfields are not being built. It is all about ego. Specifically the powers to be in the city recreation dept. and the county leaders cannot come to an agreement as to who will be in charge of the fields. The county has had such poor treatment in the past I cannot blame them for their reluctance to move forward. A partnership with the city would cost the county tremendously financially and would in all likelihood would leave it with little or no say in the actual day to day operations of the facilities.
Posted by sweetnannie (anonymous) on November 20, 2008 at 6:32 p.m. (Suggest removal)
It's so silly to be fighting over ball fields. If the arena had the backing of the Chamber of Commerce and the Tourism Committees it should be bringing it much revenue. They need to work together for the best of the county. Then the monies would be there to benefit everyone, even those who don't have a ball field. Your vision has to be larger than yourself. Get the vision Commissioners. It's all not just here in the county. You need to look beyond our walls for the revenue to pull into our county. That's your job too.
Just like the County Fair, it hasn't grown in 39-40 yrs. Sure it's in a different place, but really hasn't grown. That's because you're happy with it as it it. I think another group sponsors this event, but what are you doing to support it? Why can't the county begin it's own festival a different time of the year using it's own facilities bringing in big events? Get a vision for our county! Let the people bring ideas or look for ideas from other commissions. Get off the couch and do your jobs. Plus some of the money that needs to be spent this year needs to be spent to put in A/C in the arena. That would be the first thing. Duh!
Posted by andybulldog (anonymous) on November 20, 2008 at 6:52 p.m. (Suggest removal)
I think the ballfields would bring a tremendous amount of revenue to the county. But I have to agree, getting the city of Andalusia and the County to come together on any agreement is like spitting on a forest fire. As for the county cutting back, I myself have to drive my own personal vehicle to work everyday. But day after day alot of those county employees use those vehicles as their own after hours, running kids back and forth to school, ball practice, etc. Let's talk about the potential liability that puts the County under. Have an accident on the County vehicle regardless if they are authorized or not, guess who's picking up the tab (if and when it results in injury)? Why can't they park those vehicles? Surely, I understand a Deputy or something, but I'm not talking about them. The wear and tear on those vehicles, the gas expense. Give me a break. And how many bass boats does the County own? I don't think the County owns any, but I sure do see some on the weekends and after hours being pulled up and down the road by a County vehicle. Let's cut the fat. Park those vehicles and tighten up across the board. There is alot of fat that can be trimmed from the County budget and alot of other actions to take to save ALOT of money. It's time someone stepped up and stops the abuse in the county. And along with that, we'd have alot more cushion in the budget.
Posted by bobthathead (anonymous) on November 20, 2008 at 7:21 p.m. (Suggest removal)
What about all the Trucks and cars that are took home every day? If it's not something to do with law enforcement they all should be stoped. Also.. mileage anyone looked at that? I bet that would help save many dollars... Put a copper top on the court house.. the cost would be up there but , it would be many many years (100 years poseable) before ever replacement would be again... Somebody needs to open there eyes.. and theses 6 figure income people needs to be looked at also.... This is tuff times ,, We got to get TUFF with them...
Posted by admin23 (anonymous) on November 20, 2008 at 8:45 p.m. (Suggest removal)
Finally the people of Covington County are opening their eyes to what a few of us have been saying for years. There are far too many county employees making an outrageous amount of money for the job that they actually do and too many county employees(Deputies) not making enough to make ends meet. They are having to have two or even three jobs where a select few make enough to have two houses! It's not fair and I'm glad that the people here in Covington County are finally getting wool swept away from their eyes.
Posted by LordOfDiscipline (anonymous) on November 21, 2008 at 1:04 a.m. (Suggest removal)
My point was that they are trying to get money from somewhere right now to pay for stuff right now. A Ball Field is not a certainty. It is a gamble that might payoff in the future. All this "For the Children" stuff is an emotional response that should not be in the equation when business is being decided on.
If they raise taxes and/or fees now, do not expect them to go back down.
People are not spending money. When that happens, the right thing to do is trim the fat under a shortfall situation. Some may lose their jobs. Sorry.
If someone is making 6 figures to "Manage" an empty facility, this should be given as an example in every meeting where raising taxes is dicussed.
Posted by mbishop (anonymous) on November 21, 2008 at 7:36 a.m. (Suggest removal)
The county really does need their own ball fields. As a softball umpire for the city it's a shame to see that the city and county can't agree. Shoot there are so many girls in the softball league from the county that they do need them. The county should have gotten money from the city when they let city girls play on their county teams b/c the city didn't have enough to form a 13-15 year old team. The reason the city won't agree is because the city league would probablly lose its charter in dixie cause all the players are county players. The city needs to make an agreement with Opp to, to play their teams. Ain't nothin' wrong with a little bit of traveling. And a ball field aint a gamble. You have any idea Lord of Discipline how much the county made last year of a tournament that they hosted at Kiwanis. If we could have ball fields to hosts tournaments year round it would pay for itself if not in one year in two. And shoot if the county ain't gone give them their own fields the city could at least use the money the county pays to play there to fix the ball fields up a little nicer.
Posted by bobthathead (anonymous) on November 21, 2008 at 10:28 a.m. (Suggest removal)
I hope the commissioners are reading this stuff. As one of you said. trim the fat.! $100,000..plus person, that’s not In her office most of the time, Why is this happening? I’m sure there is someone out there that would be better at that job and do it for much less the money,, like 1/3 of the money she’s making.. Our Engineer, loss thousands of Bridge building dollars for not getting to job done on time. This is not good!! The Arena ! Big mistake!!!! But now we got to live with it, So get a promoter to look at what we can do with it ... NOT a NO BODY that's making way to much money to do nothing.. Or give it to the state… GOOD RIDDANCE!!!
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