By Tammy Gray Navajo County officials expect to end the current fiscal year on June 30 with a $498,000 surplus, if revenues and expenditures continue on their current trajectory. As of the end of January, state shared sales tax revenues are up by eight percent and county tax revenues are up by seven percent compared to last year. Nearly all other sources of revenue are coming in at or slightly above projected amounts. Even with the additional revenue, the county still expects to receive and spend $3.6 million less than the $35.9 million budgeted for the general fund. This is due to the fact that the budget contains several placeholders for events that may or may not take place. For example, grant funding the county could potentially receive during the fiscal year is included in the budget since it is impossible to predict whether certain grants will be awarded to the county. If those grants are not included in the budget, but are later awarded, the money could not be appropriately budgeted and spent. “We budget to plan and prepare for what could happen, both good and bad,” Finance Director James Menlove said. Accounting Manager Paige Peterson explained that the county only makes expenditures based on actual revenues, not on the amount budgeted, so that expenditures do not exceed revenues. Menlove noted that the budget includes numerous vacant employee positions that are not likely to be filled during the remainder of the fiscal year. “We’re still living with a lot of vacant positions, but we continue to budget for them so that if revenues improve we can fill them,” he said. “They’re budgeted, but they’re not filled because we don’t have the revenues.” According to a Jan. 26 financial report, the county will spend about $3 million less than budgeted on salaries and employee-related expenses in the current fiscal year. A total of $23.5 million is set aside in the budget for such expenses, but only $20.5 million is expected to be spent. The operating budget follows a similar trend, with approximately $10.3 million to be spent out of the $11.4 million budgeted. On the revenue side, the county planned for up to $35.9 million in revenues, but expects to actually receive about $32.3 million. The difference does not leave the budget short, however, since every possible revenue source, even those that were highly uncertain, was included. Setting aside unpredictable sources of revenue, such as grants, and including only those the county truly anticipated receiving, such as sales and property taxes, revenues are on track to slightly exceed expected amounts, leaving the county with a $498,000 surplus, as long as anticipated payment in lieu of taxes (PILT) funding is received. The U.S. Congress did not include PILT funding in the recently approved omnibus spending bill, but it has been included in a farm bill that was passed by the House on Jan. 29. It is expected to make it through the Senate and to the President with PILT funding intact. That funding is only approved for this year, however, and next year the uncertainty will begin again. Property tax revenues, including real and personal property, as well as interest and penalties, were budgeted at $7.2 million and are expected to come in at 100 percent. Licensee and permit revenues were budgeted at $519,798, but are expected to total $529,871 by the end of the fiscal year. State shared sales tax revenues were budgeted at $10.3 million and are expected to total $10.6 million if current trends continue, while county sales tax revenues were budgeted at $6.2 million and are expected to total $6.4 million. The anticipated PILT funding included in the budget was $983,382, however, the county now expects to receive $1.37 million. Miscellaneous intergovernmental revenues budgeted at approximately $1 million are expected to come in at that amount. Revenues from fines and fees, such as court fees and asset forfeitures, were budgeted at $1.7 million, but are expected to actually total $1.8 million. Total general fund revenues currently stand at $17.5 million at just over halfway through the fiscal year. The county expects to take in a total of $32.3 million and spend $31.8 million. Menlove noted that the county keeps a reserve of approximately $4 million each fiscal year, which is the minimum necessary to ensure that the county has enough cash on hand to meet expenses during periods of low revenue, such as the months between property tax collections. He noted that in the slowest months the reserve sometimes dips as low as $500,000, which is considered a small reserve amount for an organization that has millions of dollars in bills each month.