Newport
The new budget represents an increase of $1.19 million from the current year’s spending plan and will require an additional $217,000, or 1.61 percent increase, in the amount to be raised by taxes, according to county officials.
A motion to take the tax increase from Sullivan County’s fund balance and reduce the tax impact to zero for its 15 communities was defeated, 7-4.
Rep. France Gauthier, R-Claremont, then proposed an amendment to reduce a $1 million expenditure for design work that is part of efforts to renovate the Stearns and Sanders building at the county complex in Unity down to $500,000.
Speaking in support of the cut was Rep. Skip Rollins, R-Newport, who predicted estimates would come in near that $1 million cap.
“If we throw a million out there, they will want a million,” Rollins said “To me, it is extremely high.”
But other delegation members said the County Commission and county manager have worked hard and spent considerable time examining the costs of the estimated $24 million project. The $1 million figure is reasonable, they argued.
“It is not that at all out of line,” said Rep. Virginia Irwin, D-Newport, adding that the money is being “parked” until bids come in and it is not a “hard and fast contract.”
Rep. Ray Gagnon, D-Claremont, who is not seeking re-election this November, said Gauthier had not attended meetings on the issue, and the motion was an “eleventh hour second guess and is inappropriate.”
The motion to reduce the $1 million expense failed, 8-3, and was followed by approval of the budget. Gauthier, Rollins and Rep. Steve Smith, R-Charlestown, who made the motion to use more money from fund balance to eliminate the tax increase, voted against the budget.
Rep. Sue Gottling, D-Sunapee, a member of the delegation’s Executive Finance Committee, presented the budget at Tuesday’s meeting, highlighting areas of increase including $600,000 in new capital spending in addition to the $1 million for the renovation design, which will come from fund balance.
Gottling also noted that taxpayer support for the nursing home, which is referred to as Sullivan County Health Care, is decreasing $116,000 to $842,000.
The $600,000 in capital projects will include cell lock replacement at the jail, expansion/renovation of the Sheriff’s Office and transfer to capital reserves.
Overall, the budget uses $2.6 million in fund balance, of which $1.5 million will reduce the tax rate increase.
County Manager Derek Ferland estimated the fund balance at the end of the upcoming fiscal year will be between $4 million and $4.5 million, and about $5.6 million at the end of the current fiscal year.
Rep. Jim Grenier, R-Lempster, who is not running for re-election in November, cautioned against relying on fund balance each year to offset spending and tax increase.
“The fact is the fund balance is going to run out,” Grenier said.
The fund balance has been as high as $6.9 million in 2014; about six years after the county had a $3.8 million deficit in the account.
The county has a policy of keeping at least $2.5 million in fund balance.
Patrick O’Grady can be reached at pogclmt@gmail.com.
