Final public hearing on $83 million in county budget cuts at 5:01 p.m.

INDIAN RIVER COUNTY – The county is expected to seal the deal Wednesday with the Final Public Hearing on a $302 million budget for the 2009-2010 fiscal year.

The First Public Hearing on Sept. 9 some fireworks over a discussion of proposed 14 percent cuts to the County Attorney’s budget and a controversial decision to lay off one of the four attoneys from the legal staff as of Oct. 1, but tonight’s meeting is expected to be uneventful.

In order to achieve orders from the Board of County Commissioners to cut taxes without impacting services, officials have cut the budget nearly 22 percent from last year’s figures which will mean the elimination of 39 government jobs. The cuts were necessary because property tax revenues will fall by nearly $9.7 million in the coming year and state cost-sharing revenues have also plummetted due to the economic recession. Upon releasing the budget, County Administrator Joe Baird said these cuts, combined with budget reduction measures already implemented over the past two years, are the deepest he’s seen in his 28-year career with the County.

“We had it pretty hard in 1991, but it wasn’t as long,” Baird said. “This is worse and lasting longer.”

The total recommended County budget is $302,602,415, which would result in a millage rate for he general fund of 3.0892, a decrease from the 2009-2010 rollback millage rate of 3.0689. On top of that, residents pay separate millage rates to the Municipal Services Taxing Unit fund, the Emergency Services District, the Land Acquisition Bond and the Land Acquisition 2004. The aggregate millage rate will be 5.1436, which is a 10.49 reduction from the rollback rate.

The owner of a home in the unincorporated County valued at $200,000 with a $50,000 homestead exemption would pay $1.28 less in taxes next year than in 2008-2009. That person’s property taxes to the County would be $941.65 under the proposed rate, which does not include taxes imposed by the School District of Indian River County, other municipalities or special taxing districts.

Baird and Office of Management and Budget Director Jason Brown said just about every County department is sharing the load of the cuts.

The 39 positions to disappear after October 1 are on top of 89 positions cut at the start of fiscal year 2008-2009 and eight positions cut mid-year. Of the 39 full-time jobs being lost, 29 of those will be by attrition (not filling a position someone is vacating) and 12 will cause layoffs of current full-time employees, including one of the four attorneys in the legal staff. The road and bridge department will lose six positions by elimination of vacancies, while the building, engineering and planning departments will lose a total of nine positions due to the reduction of development, permitting and construction. Facilities management will lose two staffers. The parks and recreation departments will be reduced by a total of nine positions. Utilities bears the biggest burden with 10 positions being lost and a reorganization. Other departments will see eight fewer jobs due to miscellaneous reductions.

“We had to make a lot of hard decisions this year, it’s not a budget that is easy or popular,” Baird said.

Despite the jobs being lost, Brown said quite a few have been saved due to cost-cutting measures, including minor changes in employee health benefits. Medical copays will be going up by $10 per visit, which will save the County $500,000 in health premiums. The employee share of premiums will not change. A compromise agreement reached with the Teamsters Local 769 also saved about a dozen jobs when union employees agreed to give up their merit raises in the coming year. The County continues to be on a more than two-year hiring freeze and employees will not be receiving cost of living increases.

Sizeable cuts are proposed in the areas of services to children, the health department and mental health services, which Baird said were especially painful to make, as the demand for services is growing due to the economy.

“The County ad valorem taxes are only part of what people see on their tax bills,” Baird said. “We’re the second largest part of the tax bill, the school board is the largest.”

The meeting will take place at 5:01 p.m. in the Commission Chambers in Building A of the County Administration Complex.

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