By Libby Cluett
CNHI
MINERAL WELLS — PALO PINTO – The economy is partly to blame for a “grim reaper” report, intended to inform Palo Pinto County Commissioners on the 2010 fiscal year projections and potential impact on the budget.
“It’s not rosey,” County Auditor Sharon Allen told commissioners Friday. “Several members asked me to put together figures.”
Crunching numbers at this juncture – five months into the fiscal year – Allen said she estimates a $625,000 projected revenue shortfall, much of which appears to be directly and indirectly related to the economy.
She spelled out the county’s projected shortfalls, which include:
• $250,000 in sales tax revenue because sales tax is averaging 30 below anticipated budget.
• $150,000 in contract inmate revenue because the county is getting no federal prisoners.
• $200,000 in fees, fines and the like, since “people just aren’t paying,” according to County Clerk Bobbie Smith. Not only are people not paying justices of the peace fees, but Smith said her office does not see the land people – associated with oil and gas companies – anymore.
• $25,000 in interest income, which has been down.
In addition to potential revenue shortfalls, Allen said the county’s group health insurance is projected to be over budget by $50,000-$75,000.
“Too many spouses of employees have lost their jobs and are getting on our insurance, and getting their kids on our insurance,” said Allen. “It’s never been like this.”
Instead of the usual two to three employees adding spouses in a year, she cited 11 employees had spouses and/or children added to the group health insurance this fiscal year.
In other business, commissioner approved advertising for a request for proposal for delinquent tax attorney services, despite comments from Tax Collector/Assessor Linda Tuggle.
Tuggle cited several benefits with the current delinquent tax attorney, Albert M. Walker Jr. She said he charges a 15 percent attorney’s fee instead of 20 percent, which most attorneys charge. The attorney’s fee is put on the tax bill for the delinquent individual.
“That adds 5 percent, which will be an additional hardship on people already struggling to pay taxes,” she said.
Walker also provide the tax office with a full-time employee who takes care of issues related to delinquent taxes and payment agreements for people responding to delinquent letters Walker sends out. She said this takes the workload off her.
“If you want to save yourself some time and energy, continue with Mr. Walker and you can be sure delinquent tax collections are in good hands,” Tuggle told commissioners.
Precinct 1 Commissioner Beth Ray said she would like Tuggle to check with Walker to see if the county is under any obligation for the employee, which she said was doing county work and not getting paid by the county.
Commissioners said they would like to go ahead and advertise to see what’s out there, but said they are not obligated to make a decision to change attorneys.
Commissioners on Friday also approved:
• Paying election overtime expenses and mileage. County Clerk Bobbie Smith said the approval was to pay “Rynda and her people and [county clerk employees]” as well as early voting clerks.
• An interlocal agreement with Santo ISD and Palo Pinto ISD for road material on parking areas and grounds.
• A request to replat the Split Rail Ranch subdivision, lots 3 and 4.
• Applying for a permit and paying fees for over-axle/over-gross-weight vehicles in Precinct 2.
• An EOG Resources “division order” for an oil and gas lease on county property. The one acre, county-owned Crawford Cemetary sits on a 197-acre pool, Smiddy explained of the “Myrtle A Unit 3H” well. He added that the order sets up the way EOG Resources makes payments.
Staff writer Libby Cluett can be reached at (940) 325-4465, ext. 3422, or lcluett@mineralwellsindex.com.
