This morning, the Catoosa County Board of Commissioners is expected to adopt a millage rate and operating budget for the fiscal year that begins Oct. 1.
The proposed budget calls for a property tax rate that is unchanged.
"Neither schools nor county propose any millage increase," the county's chief financial officer, Carl Henson, said during a public hearing last Wednesday night.
The county will have an operating budget of about $25.5 million and a total budget - one that includes special revenue, enterprise and special optional sales tax revenue and expenditures that total about $38 million overall.
Citizens at the first two public hearings regarding the upcoming budget have asked why, if the county is required to operate with a balanced budget, there is a projected deficit of about $495,000 for the coming year.
Commission Chairman Keith Greene explained that the current budget year, FY11, projected a deficit that would have been covered by using money from the county's reserve fund.
"If needed, we will draw from reserves," Greene said of the coming year. "Last year we projected a $300,000 deficit but never drew on reserves. We also had more than $500,000 in tornado related expenses that were not budgeted."
Instead of tapping reserves, the county's expenditures - including those for tornado clean-up - were offset by increased revenue and the county actually added to its reserve fund rather than taking money from it.
"When I joined the commission 9 years ago we were about $9.5 million in debt and had no reserve," Commissioner Bobby Winters said.
Henson said the county now has about $11 million of reserves, essentially a taxpayer-funded savings account.
"The county is fortunate to have a reserve," Commissioner DeWayne Hill said. "Without it, we would have to raise the millage rate."
Sheriff Phil Summers said his department, like others, has "a lean budget" and that his office's line item budget has been unchanged for about a decade. The only exceptions are increased expenditures for food and medicine as the jail's population has more than doubled during that time.
"Last year, the rainy day (reserve) fund was used as a guarantee," he said. "We've been fiscally responsible this year and came in under budget by about $295,000."
The county commission will convene at 9 a.m. this morning for final discussion - and probable adoption - of the proposed budget and millage rate.