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