County budget could include water rate hikes, higher health costs for some workers

July 03--It's too early to say whether Butte-Silver Bow homeowners and businesses could face a general tax increase in the new fiscal year, but they will pay slightly more for operating costs of the water park set to open next spring.

And under a preliminary budget blueprint, employees in Butte-Silver Bow's self-insured health plan would see premiums jump an average of $170 a month. The county would kick in $30 a month to help offset that, but it still leaves an average increase of $140.

A projected 13.5-percent increase in premiums follows a 10.6 percent hike last year that cost county workers in the plan an extra $80 per month on average. The county steered $30 per month toward those costs last year, too.

The budget plan for the new fiscal year, which began July 1 and runs through June 30, 2018, is only preliminary and could be changed numerous times before commissioners approve it. They will likely enact a final budget sometime in August, with spending retroactive to July 1.

There are still several uncertainties, including pending information from the state that will paint a much clearer picture of revenues from property taxes and whether a general increase in them is needed.

And although county officials have proposed a 45-percent increase in water rates over three years, alternative scenarios are being crafted for commissioners to consider in the coming weeks.

Commissioner Dan Foley, chairman of the council's Finance and Budget Committee, encouraged fellow members last week to review the plan and suggest any additions or subtractions soon.

"Amendments can be made up to the very end but we don't want to wait too long," he said after Budget Director Danette Gleason and Chief Executive Dave Palmer presented the plan.

The preliminary plan totals $124 million -- the amount of money from all revenue sources that could be spent over the next 12 months. That is down from $146 million in the fiscal year that just ended.

The drop is mostly tied to completion of a new water treatment plant and major upgrades at the metro sewer plant. Both projects exceeded $30 million and most construction costs are now off the books.

Homeowners and businesses began seeing higher property-tax bills last November because of a $7.5 million bond issue voters approved in June 2016 for the new pool and lazy river. They also approved up to $350,000 per year in operating and maintenance costs for the waterpark.

Those operating costs will kick in as soon as April next year as crews test and prepare to open the pool in late May. Under the budget plan, that would add about $240,000 to property tax rolls.

All county employees would receive 1.5-percent pay raise under the plan, but again, those in the self-funded health plan would see increases in monthly premiums. Costs for those in union health plans vary, but those workers also get $30 more per month from the county.

Combined costs for pay raises and the $30 stipend for health care would be about $782,000.

Personnel costs would account for 62-percent of expenses funded by taxes. Of individual projects, major expenses include $6.3 million for pool construction, $4.5 million for the Uptown parking garage being built and $346,000 in continued sidewalk work.

Officials also have penciled in about $251,000 for road improvements from a local share of the gasoline-tax increase state lawmakers approved last session. The county match would be about $12,000.

Up to $300,000 is set aside to repair steps leading to the south entrance of the Butte-Silver Bow Courthouse and renovate the giant wooden doors.

Palmer also wants to raise $1.4 million in new money for road and street improvements by scrapping four-maintenance districts that cover much of urban Butte and replacing them with an annual flat fee of $85 to $90 charged to all property owners in the county.

That is not part of the budget and as it stands now, would be presented separately to commissioners for their consideration.

A few new employee positions are being proposed, including a new superintendent to oversee construction projects done by county workers. It would carry a $72,000 annual salary plus $33,000 in benefits.

Several department chiefs attended last week's briefing on the plan and Commissioner Jim Fisher urged them to trim their spending requests by at least 1 percent in the coming days.

Fisher said a majority of taxpayers in Butte-Silver Bow County are on fixed incomes.

"We hear from those people," he said. "We hear from the people who aren't doing so well. We still have to try to hold the line a little.

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