Commission unveils plan to rebuild county savings

By ROGER AMSDEN, LACONIA DAILY SUN

LACONIA — Belknap County commissioners told local lawmakers Friday night that their plan for rebuilding the depleted fund balance calls for refraining from use of that money in next year’s budget and using no more than $500,000 per year until the fund balance reaches the $3.5 million-$5 million level, which is seen as necessary for the county.

The plan projects 2 percent annual increases in the fund from both excess revenue and operational savings which will be retained by the county. It calls for using no more to offset taxes than what was added the previous year.

Commissioner  Glen Waring (R-Gilmanton) outlined the plan which projects that the current $600,000 fund balance will increase to $2.1-$2.3 million by 2020.

In recent years, surpluses have been used to reduce the county tax rate, but the rate is projected to increase by more than 33 percent next year, due in large part to the $2.2 million withdrawn last year, depleting the fund balance.

The proposed $29,055,233 budget is up by 4.7 percent over this year but the amount to be raised by taxes is up by more than $4.3 million, from $12.9 million to $17.3 million.

Commission Chairman Dave DeVoy (R-Sanbornton) told the delegation the county has the smallest staff and the lowest tax rate of any county in the state.

“Taxes increased in 2007, and since then have continued to fall, fall, fall. This is unsustainable. I’m out of tricks. I ran for county commissioner, not magician,” DeVoy said.

He said most of the increased spending is due to items previously approved by the delegation, including the operation and staffing the new Community Corrections Center for a full year, which will cost $450,000 more than last year.

Contractual obligations to county employees accounts for an additional $700,000 in the budget and a full year of contributions to the state retirement system will increase by $94,000, the result of a rate hike.

The county’s borrowing costs are expected to increase by $144,000, as the county will need to borrow up to $17 million in order for operations until 2018 taxes are received.

“We’re going to need to borrow more to get through the year. We don’t get money until December,” said DeVoy.

Members of the public spoke at the end of the hearing and County Delegation Chairman Herb Vadney (R-Meredith) said he would allow limited public input at future meetings during which the delegation discusses the budget.