<< Back 6/5/02 Macon OKs 1-cent tax cut in 2002-2003 budget By Beth Seay Macon County commissioners adopted a $45.4 million budget June 3 that cuts the tax rate by 1 cent to 44 cents per $100 of valuation. The tax cut was possible because of the county’s “sound fiscal condition,” said county manager Sam Greenwood. Last fiscal year the property tax rate in Macon County was raised 2 cents to offset withheld funds and to pay an additional $350,000 in mandated Medicaid costs, according to Greenwood. The reasoning was that one cent of that increase would be returned if last year’s state reimbursements were returned to the counties. The money was returned in October. If the state withholds all reimbursements in the coming fiscal year it will total $640,000. The budget anticipates no major cutbacks and should not reduce Macon’s 480-strong county workforce. The elimination of the engineering department — which will be contracted out — is in the budget. Greenwood said the county adopted a policy of “living with our current operating budget” and froze all allocations (like to schools, library, etc.) at the the 2001-2002 level. Greenwood said cuts may have to be made in the coming months the state budget picture becomes clearer. The budget includes a 2-percent cost of living raise for employees. Costs for health insurance for employees is expected to rise 17 percent, and property and liability insurance for the county is up nearly $100,000. In solid waste, the tipping fee will be reduced from $55 to $51/ton due to the contract with Jackson county allowing revamping of the fee system. Greenwood estimated that $180,000 in additional property taxes will be raised by doing away with a 2-percent discount for early payment. “Combining that with other savings and the growth in our tax base enabled us to lower taxes,” Greenwood said. Estimated tax collections total $15,920,509. In his letter presenting the budget to the board, Greenwood said: “As there is no real means of estimating the full impact of state problems and how the local government regulators will be burdened, the only realistic course of action is to repeat what the county did last year as budget deadlines neared, and that is to assume the worst, prepare for it, and then adjust through the upcoming fiscal year as the state finds its new fiscal legs.” Harold Corbin, chairman of the Board of Commissioners, said he felt the budget process had gone very well this year. “We’re holding the line on spending and we’ve told all the department heads to tighten their belts. We’re lowering the tax rate, and continuing to offer all county services.” He said he was pleased that of the approximately 25 people at the public hearing on the proposed budget there were only two speakers, and neither of them had negative comments about the budget.