A $120.8 million tentative budget was approved by the Navajo County Board of Supervisors on Tuesday.
The budget includes a two-percent pay raise for county employees, an increase in property taxes and a shift of funds from special taxing districts to prop up the general fund.
Supervisors agreed that the salary increase should be included in the budget, but were divided over the property tax rate.
County Manager Jimmy Jayne noted that employees have not had a pay increase in several years, and increasing insurance and retirement costs mean that take home pay is lower now than it was in 2008, with many employees taking home as much as 14 percent less. He explained that the county is beginning to lose experienced and valuable employees to other agencies that offer higher pay rates.
Jayne also told the board that despite cost-saving efforts, the budget for the upcoming year will not be balanced without the corresponding property tax increase. He noted that for the average homeowner, the cost will be about $11 per year.
District III Supervisor Sylvia Allen said that she could not support the tax increase, and asked whether staff members could explore other options, such as relying on contingency funds. She explained that her concerns include harming struggling businesses, placing a burden on property owners who already face financial difficulties and the likelihood that the increase will continue in future years.
“This is a very serious thing we do when we ask people to pay more money,” she said. “It is very difficult for me to raise taxes on people that I know struggle.”
Jayne explained that staff members have explored all options, and that relying on contingency funds would not be financially responsible. According to Jayne, the county has survived the economic downturn by rolling over a contingency fund each year. The fund allows the county to pay bills while waiting for property tax revenues to replenish the coffers.
District IV Supervisor David Tenney told the board that he reluctantly agrees that increasing property taxes is the county’s only option given the circumstances.
“I struggled with the direction of this budget,” he said. “I do believe it is about as good as it can get given the situation.”
District I Supervisor Jonathon Nez concurred, noting, “There’s no other way around this.”
The board approved the tentative budget, with Allen casting the lone dissenting vote. The tentative budget cannot be increased, but may still be adjusted before the final budget is approved in August.
In other action June 24, the board:
* Approved a grant application to the Navajo Nation for a $110,627 grant to construct a county-wide firearms training range for law enforcement officers.
* Approved an intergovernmental agreement for a regional dispatch center that will include all fire districts in the county and the City of Holbrook, which does not have a fire district.
* Approved a special use permit for a recycling facility to be located in Sun Valley.
* Awarded a contract for newspaper printing and advertising to The Tribune-News of Holbrook.
The next regular board meeting is set for 9 a.m. on Tuesday, July 8, at the county complex in south Holbrook.
