MANSFIELD — Richland County, if it were a business, would end 2022 with about a $6.7 million profit.
That carryover will be used to pay down debt, cover capital expenses and add to the county’s “rainy-day” fund, according to commissioners.
“We’re doing exactly what we believe the taxpayers demand us to do,” Commissioner Tony Vero said.
“Have a balanced budget, have some in your bank account, pay off your debt and invest in capital so the buildings and the face of your county doesn’t fall into a state of disrepair.”
Before the three-member board began the work of trimming about $2 million from 2023 budget requests, Vero said Monday it appeared the county will finish 2022 with about $43.1 million in general fund revenue and $36.4 million in expenses.
The single biggest driver of county revenue is sales tax, which may total around 24.8 million in 2022. Richland County has a 7-percent sales tax, which said commissioners is in the lowest 35 percent in the state.
“I am saying that’s a conservative estimate, because you don’t know how December expenses will shake out, but I think we will probably come in at least $6.7 million to the good, and probably a little better,” Vero said.
Commissioners may set aside $1.3 to $1.4 million to pay on debts, add $1.8 to $2 million to the “rainy-day” fund and earmark the remainder for capital projects.
Coming into 2022, the county had a carryover of $8.1 million with another $2.8 million in a “rainy-day” fund and a capital expense fund of about $5.8 million.
The county has also has $11.6 million remaining in American Rescue Plan Act funds.
None of the carryover or reserves will impact the 2023 budget planning. In 2017, commissioners approved a resolution that requires the county to balance the budget annually, i.e. appropriate no more in expense than is expected in revenue.
As of Monday, that meant commissioners, along with county Auditor Pat Dropsey, were projecting 2023 revenue of about $42 million and requests from elected officials and department heads of almost $44 million in spending requests.
Despite the fact the revenue projection for next year is less than 2022, Vero said its’s “legitimate and realistic.”
“We are always going to err on the side of caution,” he said. “We are not sand-bagging.”
Dropsey quickly agreed.
“The best way I can answer that question is I don’t work for the federal or state governments,” he said.
“I try to be as realistic as possible so that once again, if I come back here and I was wrong, I’m gonna be able to tell you that I was too low, not too high, because it’s a lot easier to to fix that situation than if I was too high and you have to start cutting people the last month or so,” Dropsey said.
