Hall County commissioners set levy baseline, approve veteran fund transfer and Sept. 10 ARPA submission deadline

Hall County’s Board of Commissioners spent most of its Aug. 1 budget workshop on revenue assumptions, operating cuts and capital priorities as the county prepares a levy and tentative budget for the fiscal year.

Kayla, the county budget lead, told commissioners the county will use a conservative assessed valuation of $7.2 billion — about 3.3% higher than last year — as the baseline for levy planning. That assumption, she said, produces a current property tax request of about $28.84 million that includes an estimated $3.744 million courthouse bond levy; the board was warned those figures could shift before the public hearing deadline in mid‑September.

Kayla told the board the county’s allowable growth and lid calculations leave a shortfall of about $129,221 in authority and recommended an initial target of $800,000–$1 million in operating cuts to preserve unused budget authority and maintain healthy cash reserves. She also flagged several known increases that contribute to pressure on the budget, including a $36,448 projected increase for the public defender and an estimated $71,556.75 for transit changes.

Department heads reviewed individual budgets. Elena reported staffing at 100% in her licensing office but noted rising supply costs and occasional service delays after a state plate shortage. Rob, representing road/weed operations, reviewed spraying assessment revenue assumptions (roughly $39,000–$40,000) and urged the board to consider capital needs such as a pickup truck; commissioners discussed whether to finance some purchases using ARPA dollars or inheritance reserves.

Veterans services reported that recent state changes (LB 1300) expanded eligibility; the veterans officer asked to replenish the county veterans aid cash balance by $258.34 to retain a $20,000 reserve. Commissioner motioned to transfer $258.34; the clerk recorded seven yes votes and the motion carried.

Facilities and contracts: Commissioners directed staff to explore terminating a Honeywell boiler/chiller maintenance contract (budgeted roughly $41,200) in favor of a local firm, Rasmussen, whose annual proposal is about $11,883. The facilities director committed to return with a report and estimated exit costs for the Honeywell agreement.

Information technology: IT staff warned of multi‑year recurring costs tied to new systems — hosted telephony, WatchGuard body‑camera maintenance and server licensing after a Broadcom acquisition — and recommended increasing IT reserves. Commissioners acknowledged a roughly $300,000–$400,000 run rate increase in recurring IT spending and asked staff to prioritize equipment‑reserve planning.

ARPA and capital priorities: Staff reviewed remaining ARPA balances and reminded the board that unobligated ARPA funds must be committed under federal timelines. Commissioners voted unanimously to require departments to submit final ARPA project requests with contracts or bids by Sept. 10 so the board can decide which items to obligate before deadlines. The board discussed several candidate uses — road equipment, courthouse expansion work and corrections needs — and asked staff to present updated proposals.

Road equipment and reserves: Commissioners reviewed a multi‑year plan to set aside funds for heavy equipment. The board agreed to pursue buying a motor grader at a state‑bid price near $349,729 and directed staff to move $300,000 into the motor‑grader line in the draft budget while documenting the reserve adjustments.

Tribal funds and museum support: Using tribal grant proceeds (LATCF), the board approved a $75,000 transfer to the Stern Museum’s budget request for the Pawnee Lodge project; the motion passed 7–0.

Rural transit startup: Commissioners discussed fronting operating costs for a new rural transit service while awaiting state and federal reimbursements, which are expected to lag multiple months. Staff proposed conservatively budgeting revenue at 75% of projected reimbursements and suggested an internal short‑term transfer or inheritance reserve to cover initial cash‑flow gaps; the board asked staff to bring precise options back.

What’s next: Staff will update the draft budget to reflect the votes and directions taken here, return with exit costs to finalize the Honeywell decision, and present updated capital and ARPA allocation proposals earlier in September. The board also set the deadline for department ARPA submissions at Sept. 10, after which the commissioners expect to prioritize remaining obligations and potential transfers.