By Myrna Trauntvein
Times-News Correspondent
One recommendation of the independent auditing firm as
they presented the preliminary document was that the county
commission raise property taxes for the first time in more
than 15 years.
The county is going to get into financial trouble if the
tax collected is not raised soon.
That was the downside of the audit report, the upside was
that, thanks to the diligent work of two county elected
officials and the deputies who work for them, the cost of
the county's annual audit decreased more than $3,000 this
year.
"You are getting better and more efficient at what you
are doing," said Denton R. Alexander, representing Hawkins
Cloward & Simister, independent auditors responsible for
the audit. "You would expect the cost of the audit to go up
annually taking into consideration inflationary costs alone,
but that has not happened."
Alexander and Angie Anderson, also with the independent
auditing firm, were on hand at commission meeting to present
the preliminary audit report.
Audit figures, which were found to contain some
information which needed to be corrected by the auditing
firm, were not released to the public in this preliminary
audit report.
A final document will be prepared and will then be
available to the public.
Alexander gave credit for the cut in accounting costs to
Pat Ingram, county clerk/auditor, and to Jean Bowles, county
treasurer.
Those offices are doing more and more of the preparatory
work and leaving the actual audit, rather than the
preliminary paperwork, to the auditing firm staff.
As for the revenue problem, said Alexander, the county
commission is going to have to realize that they are going
to have to either raise taxes or decrease services for
county residents.
It would be difficult to cut services enough to get the
needed funds, said Anderson. Cutting an already slim budget
may not save enough to be worthwhile.
"In terms of purchasing power, residents are paying less
and less," said Alexander. Because of the costs of
inflation, the actual dollar paid is worth much less today
than it was 15 years ago.
Another blow to the county financial situation is the
money the county has consistently had to repay to businesses
which have centrally assessed property. The courts, he said,
have required payback to several of those who have sued for
reductions in the tax paid.
"Citizens have paid their property taxes, the money
collected has been budgeted and spent, and then the money
has been required to be paid back," said Anderson. "The
money is gone but the county has to come up with the funds
to pay back the centrally-assessed property which has won
the judgement."
The county, currently, is experiencing a cash flow
problem in the general fund which necessitates borrowing
from other funds earlier and earlier each year. While
raising taxes does not make friends for commissioners, it is
the responsible way to conduct business.
"We are paying more tax, true," said Joseph Bernini,
commissioner, "but that is not money that goes into county
coffers."
Other entities the county collects taxes for, he
said.
When a resident of the county receives a property tax
notices, the individual should take note of the breakdown of
where those monies actually are used.
"The county happens to collect for those entities," said
Alexander. "But how realistic is it to not raise taxes in 15
years?"
"We are going deeper and deeper in the hole," said Robert
Steele, commissioner. "I don't think we have a
choice&emdash;I think we are going to have to raise
taxes."
Another set of added financial statement requirements
have been added to auditing procedures bringing in 2003.
However, the county will need to begin collecting the new
data required in 2002.
The requirements have to do with infrastructure. For
example, said Alexander, the county will not only need to
know where county roads are located, as they do at present,
but will need to determine what the cost of those roads were
when they were built.
"A formula has been created to assist the county in
determining those costs," he said.
As for the landfill, said Alexander, one change in
funding needs to be made. The county is paid by Juab Rural
Development Agency for operating the landfill which is paid
by user fees.
"The county is responsible for the daily operation of the
landfill in accordance with all local, state, and federal
ordinances, statutes, rules, and regulations," said
Alexander. While the operating payment includes money for
equipment, the money is not enough to pay for equipment
depreciation.
"Deterioration of equipments is really an expense which
should be covered by JRDA," he said.
One new fund was created this past year, thanks to
Ingram. A special events fund was established which should
be of benefit to the county and provide a clear paper
trial.
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