Journal Editorial Board rapidcityjournal.com | Posted: Friday, September 10, 2010 6:00 am
How often do beleaguered taxpayers hear that their taxes are being cut?
Very rarely, and even more rarely when times are tough for government, which tends to dig even deeper into the pocket books of taxpayers struggling with their own tough times.
That's why it comes as good news that the Pennington County Commission this week approved a budget for 2011 that will bring a tiny bit of relief to property owners, who should see their county consolidated taxes drop by more than $5.50 per $100,000 in valuation.
Sure, it's not much, but any tax cut is a welcome cut, especially at a time when increases in public budgets tend to be the norm, despite reductions in tax revenue.
The $70,897,331 county budget reflects a miniscule increase of less than two tenths of one percent over last year's budget. But that accomplishment wasn't strictly by choice.
The state allows counties to raise property tax revenue up to 3 percent, or the consumer price index, whichever is less. And this year, for the first time, the consumer price index had a growth rate of zero.
The only other county source of additional income comes from new construction, with the rate of growth in assessed valuation tied to the rate of new construction. Last year, that was a measly 1.85 percent in Pennington County.
Those two constraints forced the county to hold the line on collective property tax levies to an increase of no more than $580,603.
But the commission did better than that, earning a nod from taxpayers for producing a balanced budget well within the tight parameters.
They could have handed out more generous raises by making deeper cuts in services. They chose not to do that.
Instead, county employees won't be getting any cost of living increases in the coming year, though some merit raises will be doled out with funds generated by budget cuts. County department heads have been ordered to freeze or reduce operating costs.
The budget includes a 20 percent cash reserve to cover costs between property tax payments, lending more stability to government operations.
It's never easy to put together a multi-million dollar budget. It's harder still when the economy is weak. County commissioners did a commendable job in adverse times.
How often do beleaguered taxpayers hear that their taxes are being cut?
Very rarely, and even more rarely when times are tough for government, which tends to dig even deeper into the pocket books of taxpayers struggling with their own tough times.
That's why it comes as good news that the Pennington County Commission this week approved a budget for 2011 that will bring a tiny bit of relief to property owners, who should see their county consolidated taxes drop by more than $5.50 per $100,000 in valuation.
Sure, it's not much, but any tax cut is a welcome cut, especially at a time when increases in public budgets tend to be the norm, despite reductions in tax revenue.
The $70,897,331 county budget reflects a miniscule increase of less than two tenths of one percent over last year's budget. But that accomplishment wasn't strictly by choice.
The state allows counties to raise property tax revenue up to 3 percent, or the consumer price index, whichever is less. And this year, for the first time, the consumer price index had a growth rate of zero.
The only other county source of additional income comes from new construction, with the rate of growth in assessed valuation tied to the rate of new construction. Last year, that was a measly 1.85 percent in Pennington County.
Those two constraints forced the county to hold the line on collective property tax levies to an increase of no more than $580,603.
But the commission did better than that, earning a nod from taxpayers for producing a balanced budget well within the tight parameters.
They could have handed out more generous raises by making deeper cuts in services. They chose not to do that.
Instead, county employees won't be getting any cost of living increases in the coming year, though some merit raises will be doled out with funds generated by budget cuts. County department heads have been ordered to freeze or reduce operating costs.
The budget includes a 20 percent cash reserve to cover costs between property tax payments, lending more stability to government operations.
It's never easy to put together a multi-million dollar budget. It's harder still when the economy is weak. County commissioners did a commendable job in adverse times.