The leaders of the Van Buren County Budget Committee say a property tax increase is necessary to balance the county’s budget.
Committee Chairman William Maxwell said the County Commission has put off fixing its financial issues until now. He said the proposed 45-cent tax increase will help balance the county’s budget.
“We have come to a point where we can no longer operate,” Maxwell said. “We have chewed away at our fund balance, which is basically our access revenue. Year-to-year we have chewed away at that fund balance. We’ve kicked the ball down the road until we no longer have anywhere to go but raise revenues.”
Committee Vice Chairman Henry Seamons said that as a landowner himself, he does not want to see a property tax increase. However, he said he believes it is necessary to improve the financial health of Van Buren County.
“This is a necessary thing,” Seamons said. “We’ve made cuts to the budget, but those cuts are not enough. Just as the Comptrollers have said, we needed to raise revenue. In Van Buren County, really the only way we can raise revenues is through property tax.”
An area that has seen a large increase in expenditures in the last two years is in the Sheriff’s Department. When the county opened a new jail in 2018, expenditures in correctional officers and food service increased. Maxwell said the jail has cost the county over $200,000 in the last year, none of which was in the budget. He said due to state law, the county cannot pull money from the Sheriff’s Office to help off-set the expenditures without the Sheriff’s approval.
“We built the new facility and had to expand employees to accommodate that in the corrections and jail area,” Maxwell said. “We have failed to raise revenue to do that over a period of time.”
Although he has been on the Commission for 6 years, Maxwell said last year’s 38-cent increase was the first of his tenure. He said raising property taxes by smaller amounts more often may be a way the county can stay ahead of expenses.
“Since I’ve been on the Commission, last year and this year is the first time we’ve had a tax increase,” Maxwell said. “Over time, as things increase, we should look at that in smaller increments and do those increases more often if they are justified and needed rather than waiting until we have no other choice but have a large increase.”
Even with the 45-cent increase to property tax, Seamons said that will just barely bring the budget into balance. He said he feels as if the County Commission will support the decision of the committee.
“We don’t have a lot of wiggle room with this budget,” Seamons said. “Meaning the 45-cents is about the break-even point for us. I feel that it will pass. Like I said, I’m a property owner. I come from a family of farmers, and you have a lot of property if your a farmer. This is not something I take lightly. Nobody wants property taxes, but like I said, it’s a necessity.”
The full Van Buren County Commission will meet August 10 to consider the 2020-2021 budget, including a 45-cent property tax increase and a $40 Wheel Tax.