GREENFIELD — While many communities are struggling with the financial impacts of the pandemic, Hancock County officials say they are relatively secure as the county’s budget process begins.
At the Hancock County Council’s July budget meeting, proceedings indicated one of the smoother budget processes in recent years, council president Bill Bolander said. Many department budgets were approved as submitted, and a number of departments submitted budget requests that were identical to their requests for 2020.
Like everywhere else, Hancock County will see a decrease in tax income as the pandemic has impacted sources of revenue like food and beverage taxes, court-related costs and interest on investments. Some of those sources of revenue are expected to rebound in 2021, while others may continue falling over the next few years.
“Fortunately, because of the reserves we have, we’re not in as bad a position as if we hadn’t saved,” Bolander said.
Though most departmental budgets have received initial approval from the council, the budget process will continue. A public hearing inviting comment on the budget proposals will be held at the Hancock County Council’s meeting on Aug. 12. The final budget will be submitted in September.
Greg Guerrettaz, the county’s financial adviser, said Hancock County will be able to weather this difficult period because its budgets have been cautious and conservative in the past. County budgets have taken the approach of planning across three years, rather than just one, he said.
“We’ve got adequate reserves, and we’re being cautious,” Guerrettaz said.
The county conducts a financial sustainability assessment each year through Guerrettaz’s firm, Financial Solutions Group. He said that has contributed to financial health; so has the county’s policy of discussing the budget in monthly meetings, rather than once per year as many governments do.
Hancock County received the highest possible credit rating, AAA, from Fitch Ratings in 2019. The rating, meaning the agency ranked Hancock County as very likely to repay its debts, allowed the county to obtain a low-interest rate on bond financing for the construction of its new jail.
“(The county government) is managing it as if they’re a triple-A community,” Guerrettaz said.
Because of the way taxes are assessed, Guerrettaz said, the biggest impact of the economic downturn will likely be felt in 2022 rather than 2021. Even in that scenario, though, the county would not plan to make major cuts.
“The last thing we’re looking at is cutting services,” Guerrettaz said.
County departments will not see major cuts in 2021, but they also will not receive budget increases. County employees also will not receive raises, though there are a few exceptions. Employees of the probation department will receive a raise that is mandated by state law, and the sheriff’s department and highway department have been approved to raise pay in pursuit of attracting new employees.
There will also be no new positions added to the county books in the next year. Some projects that county officials discussed, such as a new location for the county fairgrounds, will have to be put on hold.
Bolander said county employees have responded well to the news that they will not receive raises.
“We’re loyal to the employees, and as a result, they’re loyal to us,” he said.
Council member Jeannine Gray agreed that the budgeting process is going well.
“All the department heads and elected officials were really in tune with the council,” she said.
How well the county budget is able to hold up over the next few years will likely depend on how well COVID-19 is controlled and how quickly the economy can recover.
“We’ll try to keep the belt tight, but we don’t want to strangle things from happening,” Bolander said.