HAMILTON — With a projected $1 million shortfall in the county sales tax and a $300,000 deferred payment to the 800 megahertz communications system, the county will have a $2.1 million payment for 2011.
Butler County’s 2011 budget is projected to be $78.2 million, but departments have submitted $84.9 million of requests.
“We weren’t able to pay as much in 2010 and deferred some of the payment for 2011,” Butler County Administrator Bruce Jewett said. “Now they have to make up that deferred payment in addition to making the regular payments.”
An impassioned discussion happened about the 800 megahertz county communications system during the regular commission meeting in between county budget hearings.
Commissioner Don Dixon said there needs to be a countywide meeting on the 800 megahertz system, and said the communities with a dispatch center need to assume some of the costs — even though the county agreed to pay for the system start up and annual maintenance.
“We can’t pay the $2 million,” said Dixon during a County Commission meeting. Commissioner Greg Jolivette said it’s an easy fix: have each community that uses the system assume some of the costs.
“Then watch holy hell break out,” he said.
Jolivette said in hindsight, the commission should have told each of the communities they needed to pay into the system.
“Each community is in the same condition as we are in, if not worse,” Jolivette said. “It’s going to be a tough sell.”
The county is on the hook for $1.2 million to Motorola for the communications system which took effect in 2009. There was also a $400,000 carryover.
But Assistant Butler County Administrator Pete Landrum said there was an apparent $300,000 payment deferred for 2011. He said it was believed they renegotiated the contract and that money owed for 2010 was eliminated.
For 2011, the county owes $2.1 million to Motorola.
In 2007 a temporary half-percent county sales tax was enacted and it generated $36 million to pay for the communications system. A permanent quarter percent tax was approved in 2008 to pay for the maintenance.
Income from the sales tax in 2010 is down $1 million from 2009 to $14 million. It’s projected to be $14 million in 2011.
Jewett added that the county’s investment income “is not what it used to be.”