Lawrence workers to get 3% pay hike as county plans to dip into reserves

Sep. 25—MOULTON — The Lawrence County Commission plans 3% cost-of-living raises for employees and no increase in their insurance premiums, but it will have to pull more than $400,000 from reserves to balance the fiscal 2023 general fund budget.

Employees also will receive another $2,000 in bonuses from federal COVID relief money, which is separate from the general fund budget, after commissioners approved the allocation Friday.

Officials said most county departments won't add services but expenses were budgeted higher for fiscal 2023 because of rising supply and energy costs.

The general fund budget approved Friday projects $7.13 million in revenue and $7.55 million in expenditures. County Administrator Heather Dyar-Rose, said the commission will dip into its reserve to cover the $421,522 difference.

The fiscal 2022 budget included $6.63 million in expenditures. Dyar-Rose said revenue and expenses are both higher than budgeted for fiscal 2022, which ends Friday.

She warned that the county can't sustain propping up the general fund for more than a couple of years before exhausting its reserve.

The 2023 budget passed 3-0 with District 3 Commissioner Kyle Pankey and District 5 Commissioner Sonia Hargrove absent.

Dyar-Rose said the 3% pay increase will cost the general fund about $90,000 for its estimated 177 county employees. The commission is absorbing an $88,000 insurance premium cost instead of passing it onto the employees covered by the program.

The sheriff/jail budgets included three additional workers. Sheriff Max Sanders said the extra money allows him to hire two more deputies and a jailer.

"This will allow us to have three patrol officers at night," he said. "That will help with our coverage."

The commission did not approve his request for two additional vehicles for the new patrol officers.

"Department heads knew they would have to stick with their budgets," Dyar-Rose said. "The sheriff's department has done a great job staying in its budget. If fuel costs come down some, we might look at a new vehicle."

Officials budgeted a 48% increase in spending for jail inmate health care. The fiscal 2022 budget included $264,000 for medical and dental services for inmates. Through Aug. 29, that cost was $313,562. The county is budgeting $390,000 for the medical/dental services in fiscal 2023.

Revenue in the approved budget includes a projected $750,000 from the Simplified Sellers Use Tax from online sales. Through Aug. 29, the county has collected $680,217 in online sales tax for this fiscal year. In 2021, the SSUT revenue was $110,000, according to county budget records.

District 2 Commissioner Norman Pool said he was glad the employees are getting a cost-of-living raise.

"Well, 3% is better than nothing. Many years around here, it has been nothing. I'm glad we can do that this year," he said. "I didn't want to (level fund services) but we have no choice. Inflation got us."

District 4 Commissioner Bobby Burch agreed, saying, "Revenues are up, but expenditures are up. We can't level fund at the same price we did last year, but it's a rainy day. I'm glad we have some money to work with."

Dyar-Rose said the landfill host fund and the road and bridge fund helped cover the deficit.

Two major projects were not included in the budget because of the unknown overall costs, commissioners said.

The renovation of the old courthouse on the downtown square in Moulton is a work in progress. At a meeting earlier this month, project officials said the total cost could reach $10 million to $12 million. The commissioners haven't agreed on a final concept yet and it appears the project will be a pay-as-you-go item with amendments made to the fiscal budget.

The demolition of the old jail and courthouse annex along Main Street on the east side of the square could cost the county about $500,000, Dyar-Rose said.

Among the appropriations, the Lawrence County Extension Office requested $39,000 and received $24,000. The Safe Place domestic violence program received $1,000.

— mike.wetzel@decaturdaily.com or 256-340-2442. Twitter @DD_Wetzel.