Harney County officials keep proposed administrative hire in draft as budget pressures mount

Harney County officials convened a special budget session on March 30 to review the proposed fiscal‑year budget and consider how to absorb rising costs while funding ongoing projects and county operations. The presiding judge opened the meeting and staff walked the committee through key pressures, including higher health insurance estimates, an uncertain PERS contribution, a large delinquent tax account and several fund deficits.

The county’s draft shows a projected beginning general‑fund balance near $815,000, down from slightly above $900,000 last year and just over $1 million two years earlier. The presiding official said the figure is “liable to be refined” as March closes and cautioned the committee that a roughly $200,000 delinquent account could worsen the shortfall. Committee members discussed standard approaches—padding expenditure lines, trimming transfers into reserve accounts or reducing contingency—to protect the beginning balance.

Insurance and retirement costs are a major driver of the increase in projected expenditures. Staff reported a not‑to‑exceed estimate of about a 14% increase on medical coverage (vision included), roughly 2% on dental and variable changes across other liability lines. A county insurance review meeting was scheduled for later in the week to firm up those figures.

Staff also flagged the fair fund, which is currently over budget by more than $100,000; the budget officer scheduled an afternoon meeting with the fair manager to identify cuts. The county reallocated portions of liability and vehicle insurance to the operating funds that hold equipment to create clearer fiscal transparency, a choice that commissioners debated because it can shift immediate costs onto smaller funds that historically relied on general‑fund transfers.

A proposed $120,000 wolf/depredation grant appeared in the draft as requested revenues; staff said the number reflects the requested amount and that there is little expectation of receiving the full sum. Separately, staff noted about $50,000 in lottery‑fund carryover with $5,000 already earmarked for an opportunity‑zone application.

The committee discussed staffing needs, focusing on a proposed full‑time administrative/financial clerk or administrative assistant budgeted with benefits totaling roughly $50,000. Proponents argued the position would cross‑train on payroll, accounts payable and safety oversight and provide succession planning for key retirements; opponents cautioned the county’s tight fiscal position. After debate, the presiding official said the position would remain in the draft budget for now and roll over if unfilled.

Members reviewed the county’s capital priorities. Jail construction—partly funded by a $3 million OJD allocation intended for court‑related components such as attorney‑client rooms and a secure elevator—must meet the grant’s expenditure deadline, and staff said that portion of the work must be expended by Dec. 31. Overall construction completion was estimated at roughly 12 months for general construction, with some court‑related pieces prioritized. Staff said contractors expect to be able to continue most local jail operations during construction but reminded the committee there is a paid bed‑contract contingency with Grant County if the county must transfer adults in custody.

Economic development loan funds were also discussed. Staff described two small local revolving‑loan funds (roughly $44,000 in one and about $86,000 combined when consolidated) and suggested contracting an outside administrator—KA or a regional development corporation—to manage lending; county members also discussed pursuing additional state revolving‑loan capital to expand lending capacity.

Key procedural dates were set: the proposed budget will be presented to the budget committee on April 14 and posted online shortly thereafter; the budget‑committee review sessions were scheduled for April 29–30 (with May 1 as a backup) and the governing body’s adoption is scheduled for June 25. Staff said they will continue to refine numbers and notify committee members of material changes between committee approval and final adoption.

The court adjourned after the review. The budget officer asked members to email any major oversights discovered in the interim so they can be corrected prior to formal adoption.