Fremont County finance committee flags possible multimillion-dollar shortfall, urges departmental plans

The Fremont County finance committee gave commissioners an updated revenue outlook that, depending on pending state legislation and mineral production, could lower county assessed value materially and force multi‑million-dollar budget adjustments.

At the finance update, staff and committee members described three assessed-value scenarios and said the county’s assessed value — $851 million in the current year — could fall to between about $600 million and $650 million under one set of proposed property-tax relief changes and recent mineral-production shutdowns. Committee members ran example calculations showing that moving the statewide assessment ratio from 9.5% to 8.3% and other bill amendments could reduce local property tax revenue on the order of hundreds of thousands to millions of dollars; one summary figure presented estimated a roughly $740,000 change on a 12-mill calculation from a 9.5% to 8.3% assessment ratio using last year’s values.

Treasurer and budget staff reviewed revenue lines: federal Payment in Lieu of Taxes (PILT) (noted as roughly $3 million when received), severance taxes, sales and use taxes, and restricted road funds (gasoline/special fuel taxes and severance that go into the county road construction fund). Staff said the county’s road funds and a road balancing fund (reported around $1 million) are currently in a stable position, but Secure Rural Schools (SRS) Title I funding is uncertain and was recorded as $0 in the committee estimate pending congressional action.

Committee members said the county’s cash reserves were approximately $7 million (including a mineral-stabilization fund that had been set aside in prior years) but warned that projected revenue drops could quickly deplete available reserves. The finance staff estimated the county could face a roughly $7 million shortfall relative to earlier budget baselines if several tax-relief measures pass as drafted.

Commissioners discussed options to close a large shortfall including cutting non‑statutory spending (library, fair, museums), reducing capital and revolving-fund expenditures, delaying equipment purchases and deferring hiring for currently vacant positions. Staff reported roughly $1.3 million in estimated salary-and-benefit costs across known vacancies in several departments (sheriff’s office, road department, library, clerk’s office); the report noted not all departments had submitted vacancy details.

Commissioners emphasized they do not want to make across‑the‑board employee pay cuts if possible and that any reductions should come from non‑statutory programs first. They asked that department heads prepare plans showing how services would be reduced if specific budget scenarios materialize. Finance committee members said they would present recommended budget guidance and asked the full board to attend a scheduled department-head meeting so elected officials and department budget staff can participate.

The committee also flagged several legislative items that could change county revenue flows, including bills that would change assessment ratios, long-term homeowner exemptions, caps on personal property, and possible state-level changes to collections and distribution of sales tax. Committee members said the final session outcome (expected after March 6) will determine the scenarios they model and that the county will need follow-up decisions by the board soon after those legislative actions are finalized.