Lean budget on horizon

Denton County’s first look at the 2012-13 budget — with only 32 percent of the 2011-12 budget in the books — came with lots of yellow flags Tuesday, most signaling that economic woes continue.

County Budget Officer Donna Stewart told commissioners during their regular meeting Tuesday morning that the county faces a $4.6 million gap in 2012-13, which represents about 2 percent of the county’s current $198.4 million budget.

The office is again projecting a decrease in the county’s property tax base, although Stewart said officials do not yet have preliminary figures from the appraisal district.

“New home values have decreased significantly,” Stewart said.

County Judge Mary Horn told commissioners to expect the same drop from valuations of natural gas wells and equipment.

“Mineral valuations will be down again this year,” Horn said.

In addition, the county has seen an increase in service demands from residents needing help with basic needs.

Indigent health care will cost the county about $700,000 this year. The county will budget $700,000 again next year, Stewart said, adding that the cost of the program is difficult to project.

“It’s kind of a roller coaster,” Stewart said.

Indigent care is funded exclusively by county taxes, reimbursing clients for expenses they have already incurred. The program doesn’t deliver health services directly.

The cost of court-appointed attorneys has also increased significantly in the district courts this year, signaling a possible increase in funding next year, Stewart said. Spending on court-appointed attorneys has outpaced the budget in the district courts, with one court having spent 68 percent of the year’s total and another at 92 percent.

The county is about one-third into the current fiscal year.

Stewart told the Commissioners Court that department heads have been advised to prepare budgets without employee raises or any increases in operating costs.

The county is anticipating about a 6 percent increase in health insurance premiums next year, even though current expenses are going to plan, Stewart said.

They also must plan for a tax rate that includes another $2.2 million in bond debt repayment planned for 2012-13.

Horn said it was her preference that the county adopt the effective rate for 2013, but acknowledged it was too soon to tell what would be needed.

“It’s another tough year,” she said.

The commissioners agreed to a budget schedule that includes workshops on three consecutive Tuesdays, including July 24, July 31 and Aug. 7.

That puts the county on schedule to adopt a final budget for 2012-13 on Sept. 4, Stewart said.

PEGGY HEINKEL-WOLFE can be reached at 940-566-6881. Her e-mail address is pheinkel-wolfe@dentonrc.com .