Mojave County officials said the county could face an economic crisis with a $4 million budget deficit next year. Regulators are trying to overcome the effects of rising inflation and are now considering next week’s budget.
At the May 3 meeting of the Mojave County Board of Supervisors, finance officials attributed the deficit to rising inflation nationwide this month. And if Mojave County doesn’t find new ways to generate income, the deficit could rise as high as $12 million by fiscal 2025, according to County Financial Services Commissioner Luke Mounian.
“Inflation is having a lasting and far-reaching impact on the county’s operations,” Mounian said this week. “Across all spending types, we have seen an average 20% increase since July 2019. In some spending categories, prices have risen nearly 40%.”
Now officials are planning to meet the increased costs under the 2024 budget bill of $580.34 million (about $19.5 million more than last July’s budget). County residents could also face property tax hikes next year as the county faces future financial difficulties.
“The budget includes recommendations to increase the General Fund reserve as a means of providing flexibility and coping with inflationary effects next year.”
Although the new budget does not increase the tax rate, property tax revenue is expected to increase by 3.05% under the new budget due to rising property values. A major property tax levy of $42.6 million is recommended for fiscal year 24, compared with $40.3 million last year. And secondary property taxes for Mojave County residents are also expected to increase.
Taxes on TV Improvement Districts will increase by more than $70,000 to $1.37 million next year. Fire district assistance tax levies increase from $2.3 million to $2.42 million. Meanwhile, the Library District’s tax bill will increase by $650,000 for a total of $6.18 million. A $653,000 increase in county flood control districts would result in $10.8 million in taxes.
The new budget does not foresee any increase in tax rates. The county’s main property tax rate, which was cut from 1.824% to 1.7547% last July, will remain unchanged in this year’s new budget proposal. The rates for the county’s fire district assistance tax, secondary property tax that assists library districts, flood control districts, and television maintenance districts will also remain unchanged.
About $38.7 million of that budget will go to the county’s General Fund to ensure future financial stability, according to the budget.
Meanwhile, the county expects $37.75 million in shared state sales taxes next year and $1.96 million in additional revenue from building permits. Locally, the Mojave County Records Department is expected to be the county’s largest source of revenue, with an estimated revenue of $1.50 for the county next year. Fines and forfeitures through the Mojave County Court of Justice are expected to bring in an additional $1.22 million next year. And with dozens of other sources of income listed in next year’s budget bill, the county could see him earn $72.34 million in direct (non-property) income. tax revenue.
Additional revenue expected to enter Mojave County indirectly through operations under the jurisdiction of the Arizona Department of Transportation, as well as subsidies and patient services revenue, adding an additional $203 million to the county’s coffers this year. there’s a possibility that.
By canceling at least one of the county’s planned capital improvement projects, Mounian said, the county may be able to maintain a flat tax rate and soften the blow to county taxpayers. But the proposed course of action and the final budget are still months away.
The Mojave County Board of Supervisors will discuss the proposed budget at its next board meeting in Kingman on Tuesday, recommend possible changes, and schedule a hearing in July to approve the budget. is planned to be set.
