Jefferson County Council members have approved a $157,567,805 budget for 2022, which is up by nearly $37 million from the current budget.
The new budget, which took effect Jan. 1, is more than last year’s $120.6 million, and the discretionary part – the general revenue budget, from which most of the county’s operations are funded – is also up, from $27,799,600 last year to $29,396,340, with both revenue and spending projected to be higher.
The budget’s bottom line is larger than usual since it includes $43.6 million in American Rescue Plan money, county officials said.
County Executive Dennis Gannon said the county is expected after the first of the year to roll out information about how businesses might qualify for a portion of that federal stimulus funding.
Gannon, who had to submit a proposed budget to the council by Nov. 1, said the new budget is a “conservative” one.
Gannon said he and his administration kept their budget projections conservative, mainly because of uncertainty with the ongoing COVID-19 pandemic but also because a bond issue eventually will be needed to help pay for the construction of a new courthouse and jail.
“We’re now in the second year of COVID, and there is still unpredictability in that respect,” he said. “Also, we want to make sure we keep the county in a stable economic position long term.”
The budget includes a 3 percent cost-of-living increase for county employees. Last year, employees received a 1.5 percent pay boost.
“We have to continue to be competitive when it comes to pay for our workers,” Gannon said.
He said this year’s budget doesn’t call for a lot of spending on big-ticket items.
“We’re focusing more on maintaining and repairing what we have,” he said.
The discretionary, or general revenue, budget is funded mostly by sales tax revenue.
Separate 1/2-cent sales taxes finance the county’s general revenue fund and provide much of the share of funding for law enforcement and for road and bridge improvements.
While Gannon noted that sales taxes have been better than expected this year (up 9.6 percent for the year through purchases made in late October), COVID continues to present too many variables to ramp up spending.
Gannon said he still anticipates the county will lose sales tax money to internet sales, which are not subject to local sales taxes. Also, collection from municipal court fines and fees are dropping.
EDC funding cut
The County Council ended up making just one change to Gannon’s original budget – transferring $10,000 from its $81,000 allotment to the Jefferson County Economic Development Corporation.
That $10,000 will be used to pay Jefferson County Planning and Zoning Commission members attendance stipends. Members will receive $40 per meeting and the chairman $50 a meeting. The board, which hears requests on land-use issues in unincorporated Jefferson County, usually meets twice a month except in November and December, when one monthly meeting is held.
Council member Brian Haskins (District 1, High Ridge) said he would like to see all members of the county’s appointed boards and commissions receive some compensation, but paying P and Z board members is a good start since the county charter already allows those board members to be paid, although they historically have not been.
Todd Tracy, executive director of the EDC, said he doesn’t know how the EDC will be able to absorb the loss of $10,000 from its $146,349 annual budget.
“We’re reaching out to other entities to help us out,” he said. “In the end, I guess we’ll tighten our belts even more than we already have.”
In an interview, Tracy said he is speaking with council chairman Phil Hendrickson (District 3, Arnold) about finding a compromise.
Tracy said the EDC, a nonprofit, independent operation, is primarily funded by the county and its municipalities.
“Each city is asked to contribute $1 for each resident, and the county is asked the same of residents in unincorporated areas, and they also allow us use of our building,” he said, noting that individual members also pay dues.
Councilwoman Renee Reuter (District 2, Imperial) proposed that the county restore the EDC’s $10,000 and take it from a line item in the county’s capital improvements fund to repave the EDC office’s parking lot, 5217 Hwy. B, in Hillsboro.
Gannon advised against the amendment because he said the items in the $775,000 capital improvements fund are prioritized and not everything on the list is funded every year, in part because some items cost more than anticipated and unexpected maintenance needs may push some items down the priority list.
Reuter’s proposal failed, and so did one from council member Charles Groeteke (District 4, Barnhart) who floated an idea to shift $10,000 from the capital improvement budget to supplement the amount the county pays toward the Jefferson County Extension Service.
Mike Minicky, the Extension Service’s governing council chair, told the County Council on Nov. 22 that that the service had requested $95,469 but instead was slated to receive $84,700, the same amount it had received in 2021.
“Our budgeted amount has not increased since 2012,” he said. “Costs have gone up since then. If we don’t have an increase, we will have to have a serious discussion about cutting services.”
In the council’s final 4-3 vote to approve the overall budget, Reuter, Groeteke and Haskins cast the dissenting votes.
Haskins said he voted no because there was no money included to tear down derelict properties.