“Since the last county meeting, the county’s Department of Financial Services has received a number of inquiries,” Financial Services Commissioner Luke Mounian said Monday. “The budget we have submitted is balanced for the 24th fiscal year. Our hope is a long-term solution that does not increase tax revenues, but we will have a large deficit next year.”

With the county currently facing a potential crisis in fiscal year 25, the Mojave County Supervisory Board may hold future work sessions to discuss possible solutions to that crisis over the next few months. I have.

Supervisor looking for a solution

There are no easy answers to future crises this week, and Monday’s meeting didn’t offer a single widely accepted solution proposal among board members.

Rising inflation across the country was the main cause of this year’s $4 million deficit, which is expected to reach $18.5 million next summer, Mouniang said in a May statement. That inflation has reportedly increased spending across the county by an average of 20% since July 2019, with some spending categories increasing by as much as 40%.

Earlier this month, Mounian proposed introducing a quarter-cent sales tax to fully fund law enforcement efforts in Mojave County as a possible solution to future deficits. Public safety and law enforcement spending accounts for about 36 percent of the county General Fund’s annual spending, with more than $44.5 million budgeted to the Mojave County Sheriff’s Office this year alone. A sales tax on certain goods in Mojave County would reduce the burden on taxpayers while meeting the county’s budgetary needs over the next five years, Mounian said.

A potential quarter-cent sales tax could also allow regulators to cut property taxes from the current rate of 1.7547% to below 1.55%, Mounian said. It could include a “circuit breaker” clause to prevent future oversight board hikes in property taxes, the people said. A quarter-cent sales tax still applies.

No matter what, you will be forced to make difficult choices

But this solution may not be feasible, as introducing a new quarter-cent sales tax for the first time since 2019 would require a unanimous vote by all five members of the county board.

“Everyone who lives here spends a large portion of their money within the county, and a large portion of that money is subject to the sales tax … I hope future boards will keep tax controls in check. I don’t have high hopes if I can.I’ve been a politician for over 20 years and I don’t trust other politicians very much.”

Budget cuts may be the only solution to the county’s projected $18.5 million deficit, Gould said.

“One-time cuts will not get us out of this situation,” Gould said on Monday. “Continued cuts need to be made so that the Sheriff’s Department can be adequately funded. But continuing to raise taxes is unacceptable. It will take more money out of people’s pockets. They don’t have any more money because they already pay inflated prices for everything. “

But cutting additional budget spending may not be a viable solution, according to Mojave County Commissioner Travis Lingenfelter.

tax one’s property and bear the consequences

About 85.6 percent of the county’s General Fund spending goes toward services it must provide to residents under Arizona law, Lingenfelter said. Less than 12% of General Fund spending is considered discretionary, much of which relies on subsidies in addition to property taxes.

We may not be able to cut $18.5 million worth of county general funds. And just raising property taxes isn’t enough.

“The current budget for FY24 will maintain the current property tax rate and delay the installation of the morgue until FY25,” Mouniang said. “As a result, fiscal years 2025, 2026 and 2027 will be in the red.”

Another possible solution would be the Mojave County Animal Shelter, the prison re-entry program, the ongoing renovation of Kingman’s Mojave Superior Court, and Kingman’s new Mojave County Legal Center, all of the county’s capital. It may be to cancel the improvement project. Together, these projects are worth more than $30 million.

“This takes the county back decades, when we couldn’t afford to build the buildings we needed to do the county’s business,” Lingenfelter said. “Another option would be for five regulators to vote in favor of a tax increase, increasing the tax rate on citizens and the property tax to 2.32255%…but all I can say is that I voted for it. I’m not going to throw.”

Canceling all the county’s capital improvement projects and raising property taxes might be enough to make up for the looming $18.5 million deficit, but it’s far from an ideal option, Lingenfelter said.

“This will get you out of the red, but it will put you back,” says Lingenfelter. “…I don’t think there’s anything worth $18.5 million that can be cut without completely shutting down the capital improvement program. I do not think.”

Bullhead City resident Mojave County Superintendent Hildy Angius said at a meeting Monday that he would compromise on the possibility of a sales tax.

“I spoke to[Bullhead Mayor Steve D’Amico]about this,” Angius said. “We’ve talked about the renter population in Mojave County. I think they’re using a lot of the sheriff’s resources and our roads. That was it.”

Mr. Angius said he doesn’t support raising property taxes. But he remains in favor of organizing a systematic planning meeting to discuss possible solutions to the budget deficit expected next year.

“We should have workshops to present ideas,” Angius said. “We can’t push property owners to keep doing this, so we have to package and do what we plan to cut. If that happens, we have to impose a sales tax. A series of tax cuts. I think it’s reprehensible to raise property taxes without taking action, or at least trying to figure out exactly where we are and where we’re going.”

However, it was not yet clear as of Monday when such a work session would take place.

The Mojave County Board of Supervisors voted 4-1 to approve this year’s interim budget, with Gould voting against. The board is now holding public hearings and will likely pass the final budget for FY2024 on July 17.