The property taxes levied by Pennington County appear headed for a roughly 3 percent increase next year as the county commission on Tuesday continued its tinkering with the 2010 budget.

The county must approve a final budget by the end of September, but it looks like its 2010 general fund budget will end up at about $48.4 million, a roughly 5 percent increase over this year's figure.

Under the 2010 provisional budget, the property tax levy for all property owners in the county next year would be $4.89 per $1,000 of assessed valuation, about 17 cents higher than this year's $4.72. That means the owner of a house assessed at $100,000 would pay $489 for the county's portion of property taxes next year. Property taxes to fund schools and local government are added to that amount.

Some county taxpayers pay more for such items as the county fire fund, library and road districts. Under the current figures, the highest county tax levy for anyone in the county would total $6.40 per $1,000 of valuation.

All these figures are subject to change when the county approves its final budget and gets other revenue totals, including the state assessment for utilities, according to county officials.

The commission at Tuesday's special budget meeting tentatively approved spending increases for county roads, to move the auditor's office to make room for another courtroom, and to unfreeze salaries of all elected officials, department heads and deputies, as well as wage scale reclassifications for all county employees.

The latter action reversed a vote the commissioners took on Aug. 4.

The commissioners affirmed their support of a July 7 vote giving county employees a 1 percent cost of living raise and allowing for pay increases based on merit. The county employs about 640 people.

Commissioner Ethan Schmidt cited news of an improving economy, adding, "The COLA spreads across all employees."

The 1 percent cost of living increase will cost the county $337,795. Merit pay increases are projected to cost up to $502,000.

The commissioners also approved spending another $400,000 for county road maintenance in 2010, adding that to an already budgeted increase of $406,000.

Commissioner Jim Kjerstad said the increase is needed to help offset a projected cumulative loss of about $800,000 in county unorganized road tax revenue due to annexations by cities and by loss of property tax revenue due to tax increment financing districts granted by cities.

Kjerstad said the losses might be less depending on how much of the maintenance costs cities agree to share on roads on city/county boundaries.

The budget increase could be used only for maintenance, commissioners said. Commissioners said the increase could come from the county's cash reserves.

Schmidt opposed the move, saying he'd rather look at highway budget increases on their merits.

The overall general fund, as it stands now, will increase by about $3.6 million.

Categories with major increases include:

• Road and bridge. $806,625 increase, to $8.5 million. Auditor Julie Pearson said at least part of the increase is due to equipment purchases.
• Jail. $718,334 increase, to $8.12 million. Sheriff Don Holloway said most of the increase is to pay for additional staff when the remainder of the third floor of the jail addition opens next year. The fourth floor is already occupied by prisoners. The second floor, although finished, is not occupied. Holloway said the jail population averages about 500 inmates, roughly 200 more than 10 years ago.
• Health Care Trust. $635,044 increase, to $3.9 million. Pearson said the county, which is self-insured, is projecting an increase in health care premiums because of a spike in claims this year.
• Elections. $223,674 increase, to $485,095. Those costs always go up in years when general elections are held, Pearson said.

The commission also voted to include $150,000 in next year's budget to move a county department to a building it is purchasing on St. Joseph Street.

The commission also discussed developing a pay schedule for elected officials (sheriff, state's attorney, auditor, treasurer, and register of deeds).

Commissioners voted to seek study proposals from private firms that could compare salaries and duties of officials in other counties.

Contact Steve Miller at 394-8415 or steve.miller@rapidcityjournal.com.