Carbon County residents should expect to see a higher tax bill in 2025.

On Thursday, the county commissioners, in a 2-1 vote, approved a preliminary spending plan for next year, which calls for a 3-mill tax hike. That equates to approximately $140 more for a home with an assessed value of $46,000.

Commissioner Rocky Ahner cast the sole no vote, with Commissioner Wayne Nothstein questioning him on where he thinks more money could be made to offset the growing deficit.

Following Ahner’s no vote, Nothstein said that he wouldn’t vote “until Mr. Ahner explains to us what his plan is to make up the deficit and where he is going to cut the spending.

“You cannot keep voting no when we are running at a deficit of over $4 million without an increase,” Nothstein said. “The additional expenses that we are going through now was because we spent down the fund balance. We have next to nothing left.”

He also pointed out that the county already is paying $17,500 in preparation of needing to take out a $6 to $8 million tax anticipation loan to get through the first few months of 2025.

“We now have to pay interest on that $6 million dollars,” Nothstein said, adding that he wants a report in June about the cost and lost revenue from the loan interest.

“I don’t know how many times I have to express it. Our expenses go up as you see on the report today. Children and Youth agreements, I just want to know what is your plan or your alternate proposal.”

Ahner said he feels the county overspends.

“One of the things I think is the courthouse renovation project,” he said. “We have run out of capital project money and we still haven’t gotten all the bills in yet. That was projected to be finished in June of next year that we would have gotten some tax money in to pay for it.

“I’m not against a tax increase but I think this is entirely too much to balance the budget,” Ahner added, then asking Nothstein if he was voting no because he didn’t have a report on what Nothstein asked.

Fund balance

Nothstein said he would vote yes “because we have to. We don’t have a choice because of you (Ahner) and Mr. (Chris) Lukasevich spending down the fund balance. People need to know that that $6 million we might need to get us through is increasing every year. It took us how long to build up that fund balance.”

He said that the county needs to be build that balance back up because this loan will be a reoccurring expense, and the county will have to pay more because the credit rating for the county was lowered, meaning interest rates will be higher.

Commissioners’ chairman Michael Sofranko, who voted yes, explained the reasons for the millage increase.

“I see both sides of this table,” he said regarding his colleagues’ thoughts.

He noted that when the budget process began, Carbon County was looking at between 7.5 and 8 mill increases to balance the budget.

Bare bones budget

“There was a lot cut out of this budget,” Sofranko said, calling this budget bare in the fact that wish lists were cut to the point that the offices could run but didn’t get any new items.

He pointed out that the last time the county had a balanced budget was 2020, when the previous administration took office.

Since then, the budgets were being balanced using the fund balance.

“We can dispute it, ... but the reality is, in 2021, you walked into a balanced budget. 2022 you took $1.4 million from savings to make up a deficit. In 20223, you took $3.4 million to make up that deficit and in 2024, we were projected to take $5.3 million,” Sofranko said. The new board of commissioners reworked that budget earlier this year and brought that $5.3 million needed to $4.2 million. “Had we stayed on that rate ($5.3 million), we probably would have needed about $7 million to get into this year.”

Because of the small tax increase this year, the county now had about a $1.5 million carryover.

“So while as hard as it is, we have to correct the past, but what we have been able to do this year is hold the line,” Sofranko said. “If we kept on spending crazy and going like we were, and I’m not faulting that, we went through COVID and everything else, that $1.5 million balance would not be there. What we brought in, we were able to keep and offset some of those costs. That is huge because that shows that we did work together to get it down.”

Sofranko noted that $500,000 from the parking funds is being used and that money was generated by the county raising the weekend and holiday parking fee to $15 for the day. Another parking fee increase on weekends and holidays is anticipated for 2025.

“It is a place where the county can make up money for services that are being provided,” he said.

In addition, he highlighted the grants writer that is helping multiple departments find grants to apply for to help offset spending.

Increased expenses

Other big ticket items include raises for employees in 2025, health insurance going up by 11.5% and the state not reimbursing the county for reimbursable expenses in Children and Youth and Area Agency on Aging.

“I know everyone’s going to say, why did you give that raise,” Sofranko said. “Everybody in this county, including the county employees, deserve to be paid for their job. ... I refuse to balance the budget on the backs of those employees.”

Sofranko added that the reality is is this is a 3-mill tax increase and a tax anticipation note that will float the money for the first few months.

“I can’t call up and say to the senior citizens that you’re not getting your meal delivered because we decided not to pay. The county has to have a balance there that we can continue to lend that money when the state is lagging behind on it.”

He added that the goal is to pay the anticipation note and move forward to try and correct this matter.

“We may not agree on all of this. Some what more. Some want less. It’s how far you’re going to cut because sometimes if you cut too far then next year you’re never getting out of that hole.”

The commissioners then announced that the budget will be available for viewing in the county offices until Dec. 18. The board will then vote on final adoption during the Dec. 19 meeting.