Agenda 06-17-2025; 8-a - Minutes

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23 1 Travis Myren said that federal reductions are unknown at this time and are not included in 2 the budget. 3 Commissioner McKee asked for clarification on how they could stay revenue neutral if 4 they were to lose $5 million sales tax. 5 Travis Myren said that the rate increase only applies to $9 million of the $17 million 6 increase. He said there is 2.5% of natural growth included in the revenue neutral and that is $8 7 million. 8 Commissioner McKee asked if that covers the $17 million. He said he is trying to get to 9 where they land on the pennies per hundred rate. He said it has to be more than 2.9 because 10 they cannot cover the $5 million shortfall with that. 11 Travis Myren said they are not budgeting for a shortfall of$5 million and it is $765,000. He 12 said that is the amount they are anticipating. He said they will make up the deficit but will not grow 13 above what is budgeting. 14 Chair Bedford said that the Chief Financial Officer gives quarterly updates on sales tax 15 revenue, and they have monthly amendments in case of need. 16 Commissioner McKee said that his concern is they can only raise the tax rate one time 17 per year. 18 Chair Bedford said that if needed they can look at hiring freezes and further reductions in 19 travel among other items for cuts or even use fund balance. 20 Commissioner McKee said that fund balance is not a fix for reoccurring expenses. 21 Chair Bedford agreed and said that is why it would have to be addressed in the next 22 budget. 23 Commissioner Fowler asked if they know the effect of tariffs. 24 Travis Myren said they would not know until July. 25 Chair Bedford asked if staff is looking into plans to prepare. 26 Travis Myren said there are some positions that would go away, but should they set a tax 27 rate, and a federal reduction occurs post that rate setting, then they would have to make a 28 reduction in the budget to pay for that. 29 Commissioner McKee said he would like to make decisions ahead of time rather than wait 30 until after the fact. 31 Commissioner Fowler said that would mean either raising taxes or cutting positions now. 32 Commissioner McKee said he is concerned about the cumulative effect of tax rate 33 increases on residents. He said he would like plan earlier to make cuts. He expressed concerns 34 about residents that cannot pay them. 35 Commissioner Portie-Ascott said the budget process can be overwhelming and that the 36 amendment process can feel like it will not be enough to reduce the effect of tax rate increases. 37 She wondered if it is possible to make an impact. 38 Chair Bedford indicated that it is possible through the amendment process. 39 Vice-Chair Hamilton said that the amendment process can get the Board where they would 40 like to go. She said she is always looking for where they can be efficient and make cuts, but she 41 also considers the impact of the cuts on the community. She said the Board will have to be 42 prepared to meet after federal cuts are made to evaluate their impacts. She said the Board should 43 follow the process that is in place. 44 Commissioner Fowler expressed appreciation to the County Manager for his efforts in 45 minimizing tax rate increases. She said reducing the tax rate increase for county operations 46 would mean finding $3 million, and $1.5 million of the increase is for the Sheriff's Office. She said 47 that would mean penalizing departments that did not contribute to the increase. 48 Commissioner McKee said that there have been instances of where the county has 49 reduced expenditures, including to the schools. He said he would be making suggestions of where 50 to cut the budget.