Anaconda's county budget finally seeing turnaround

By Erin Nicholes - 09/12/2008

ANACONDA — The county has regained financial stability, and can afford to add some new workers and services, the county's top official said.

"The general fund is healthy, it's weathered the last year well," Anaconda-Deer Lodge County Chief Executive Rebecca Guay told the county commission this week.

About $1.21 million remained in the general fund at the end of June, compared with $1.13 million last year. Both years were vast improvements over a $40,000 deficit in 2005.

For 2008-2009, Guay is proposing a total budget of $15.8 million. The general fund budget would increase from $2.64 million in 2007-2008 to $3.18 million this year.

"Most of the funds are fairly comparable to last year," Guay said.

Personnel costs account for some of the increase.

Guay is recommending a 4 percent raise for all non-union general fund employees. In addition, she's recommending new positions: a half-time job in the clerk of court's office, and full-time police officer, 911 dispatcher, road shop operator and road shop mechanic.

The budget would also allow for new equipment, including a police car, hardware for the Parks and Recreation Department and removal of a courthouse boiler. Improvement projects are planned as well, including upgrades to Anaconda's historic streetlight system, repairs to the Washoe Park Pool and others.

"I'm really happy the county can afford to provide these services to the public," Guay said.

Other increased expenses include an expected rise in liability insurance costs from $158,000 last year to $290,000 this year, and a $40,000 premium increase because of a lawsuit over the Copper Chute superslide.

"We're anticipating there could be a large deductible payment we'll have to shoulder in the coming year," Guay said.

While the overall budget is stable, a snag remains in the care of prisoners' fund.

"This is our problem child," Guay said.

That fund was $266,844 in the hole at the end of June, and 2008-2009 expenditures are projected to exceed revenues by $282,730. The deficit was caused primarily by a $255,000 shortfall in expected revenues from the state Department of Corrections.

When the jail was built, the county was banking on DOC contracts to house 18 to 20 prisoners a day for income.

"We haven't been getting anywhere near that," Guay said.

The number of DOC prisoners has increased recently, but not enough to cover the shortfall.

"I'm projecting we'll get somewhere in the neighborhood of $180,000 this year" for state prisoners, she said. "We looked at making cuts, but there's no way to staff that jail with less than six detention officers." The commission could either float general fund mills to the care of prisoners' fund, or take a wait-and-see approach this year and transfer money from the general fund as needed while observing DOC contracts.

If the current trend continues, taxpayers may eventually be asked for more money down the road to fund the jail, she said.

"It's something that needs to be watched very closely ... and if the trend doesn't change we're going to have to have some very serious discussions with the community," Guay said.

Other funds, however, are healthier this year than last.

The cemetery fund, for which voters approved an additional 17 mills in June, is stable and planning several projects, such as water-system improvements and upgrades to veterans cemeteries.

The fire and ambulance funds are healthy, too, Guay said.

After an early look at the budget, some audience members commended the county for strides toward financial health since a budget crisis a few years ago.

"If we don't have a healthy county government, if we're not fiscally responsible, our town isn't healthy either," said Carl Nyman, of Anaconda Project Facilitators. "It's great seeing this turnaround." The budget will be the subject of commission review and public hearings before a vote in coming weeks.

Reporter Erin Nicholes may be reached at erin.nicholes@lee.net.