County Is Spending Less To Offset Declining Revenues

By Linda Kor
   A review of Navajo County’s revenues and expenditures over the past five months shows that although revenues fell short of the amounts anticipated, county departments countered the shortfalls by maintaining conservative spending.
   According to information provided by the county finance department, General Fund revenues fell seven percent of last year’s revenues for a total of $12,228,190, which was 13 percent less than county officials budgeted. By adding in revenues from the Navajo County and Little Colorado River flood control districts, Public Works, the Health Services District and the Library District, the total revenues taken in by the county came to $20,017,870, four percent less than last year’s total revenues and five percent less than budgeted by the finance department.
   “We are short of our conservative budget estimates, but keep in mind that November’s figures have yet to be added into these totals,” stated Finance Director James Menlove.
   The biggest decrease in revenues came from licenses and permits, with planning and zoning bringing in about half the revenues anticipated with a total of $209,511, and other licenses and permits bringing in 93 percent less than anticipated with only $4,136.
   “There has been a huge decrease in development to this point,” stated Menlove, referring to the loss in relation to the current recession.
   Although revenues fell short, expenditures, excluding those for personnel, were not as high as anticipated, coming in 58 percent below the previous year and 47 percent below the budgeted amount for a total of $12,583,043.
   “The economy is not going to turn around anytime soon; it could take months or even years. We need to remain conservative so that we can remain fiscally responsible in the event of a shortfall,” Menlove advised the board.
   Another way the county is conserving funds is by waiting to fill personnel vacancies that have shown a decrease in activities, and dispersing those duties among existing employees. According to Menlove, if the demand to fill those vacancies becomes apparent, then they will be filled. The 2009 fiscal year to date vacancy savings comes to $554,549, with projected savings for the year estimated at $780,562.
   Supervisors Chairman J.R. DeSpain wanted to clarify how the county has been able to move forward on capital projects with a shortfall in revenues.
   “People may wonder how, with all the cutbacks, that the county is able to move ahead on capital projects. Proposition 400 has a plan for those funds and they can only be dedicated to those items,” DeSpain explained.
   Menlove agreed, noting, “These funds have constitutional limitations. The cash reserves are essentially what have been in place since Proposition 400 came about. It would end up costing the taxpayers a lot more later on than doing it now.”
   County Manager Jimmy Jayne added that the four capital projects funded by the bonds cannot be applied to organizational needs.
   “Outside of the bond projects, all other capital projects will be frozen,” he said.
   In other action Dec. 2, the board:
   * Approved an amendment to an agreement with the Arizona Department of Corrections to provide correctional officer certification training and extend the agreement an additional year through Feb. 28, 2010, and increase the cost per cadet from $850 to $870.
   * Approved naming an existing road in the Heber/Overgaard area Caprice Trail.
   * Approved a per capita grant from the Arizona Department of Health Services to provide $4,931 for local health work.
   * Approved a direct grant from the Arizona Department of Health Services to provide $35,407.69 for the provision of local health work, specifically to be expended for a public health nurse and/or sanitarian.
   * Approved a request to conduct a polling place election for the Town of Snowflake, with the primary election to be held on March 10 and the general election on May 19.
   * Approved a call for an election for White Mountain Lake Special Road District No. 2, to be held as a precinct based election on March 10.
   * Awarded a design build contract to Urban Edge Builders for a new health building and site/building improvements at the Ninth Place property in Show Low, with the first phase consisting of programming documentation and site master planning at a cost of $38,000.
   * Approved the expenditure of $19,000 from the county health district for the portion of the design build contract with Urban Edge Builders that would involve the construction of the new health building at the Ninth Place property in Show Low.
   * Authorized the adoption of the Central Navajo County Community Wildfire Protection Plan.
   * Approved a memorandum of agreement with the Department of Public Safety, the Apache County Sheriff’s Office and the Navajo County Sheriff’s Office for the establishment of a digital microwave link between the three agencies.
   * Authorized acceptance of a reimbursable grant from the Department of Homeland Security funded under the Citizen Corps Program in the amount of $7,120 to be used to obtain equipment and training for the three local Citizen Emergency Response Teams in the county. Any CERTS that form in the future may also receive part of these funds.
   * Authorized acceptance of reimbursable grants from the Arizona Emergency Response Commission, a division of the Arizona Division of Emergency Management, including a 2009 Hazardous Material Emergency Preparedness grant in the amount of $1,500 and a 2009 Emergency Response Fund grant in the amount of $2,600.
   * Authorized acceptance of reimbursable grants from the Arizona Department of Homeland Security (ADHS) under the 2008 Homeland Security Grant Program in the amount of $199,500, including Emergency Operations Center enhancement computers, $25,000; sheriff’s office night vision and thermal imaging, $26,500; sheriff’s office 911 workstation, $24,000; sheriff’s office substation enhancement, $14,000; emergency notification system, $85,000; and CERT equipment and training, $25,000.
   * Approved reimbursable grants from the ADHS, 2006 Homeland Security Grant Program in the amount of $17,325 to obtain equipment to enhance deputy safety and crime prevention at night.
   * Approved a lobbyist contract for county initiatives with Jim Norton of R&R Partners in the amount of $4,000 with the contract to expire June 30, 2009.
   * Approved the Hazardous Material Response Plan as an annex to the Navajo County Emergency Response Plan.
   * Approved a resolution establishing Hilltop Drive, Ox Bow Drive, Pioneer Lane, Happy Trail Lane, Frontier Lane, Lacie Lane and Hilltop Lane as county highways in the Hilltop Drive Improvement District, located in the Pinetop/Lakeside area.
   * Approved a resolution establishing a portion of Silver Lake Boulevard from Huggins Drive to Bourdon Ranch Road, located in the White Mountain Lakes area, as a county highway.
   * Approved a resolution of intention to perform improvements in the Hilltop Drive Improvement District, Mountain View Improvement District and North Whistle Stop Loop Improvement District, each located in the Pinetop/Lakeside area, and the notice of proposed improvements and direct distribution of the notice as required.
   * Accepted the resignation of Joyce Patterson from the Victory Heights Advisory Committee and appointed Bill Kenney to fill the vacancy.
   * Authorized the filing of a petition requesting the establishment of Mountain View Drive and West Settlers Lane as county highways, located in the Pinetop/Lakeside area, and set a public hearing on the matter at 9 a.m. on Tuesday, Dec. 16.
   * Authorized the filing of a petition requesting the establishment of roads in the North Whistle Stop Loop Improvement District as county highways, and set a public hearing on the matter at 9 a.m. on Dec. 16.
   * Approved a resolution amending an intergovernmental agreement with the Arizona Department of Transportation for reservation roadway maintenance funding to include $110,880 for fiscal year 2008.
   * Awarded a contract for the supply and delivery of cattle guards to Smith Pre-Cast Inc., doing business as U.S. Concrete, Precast Group and W.W. Cattle Guards, LLC.