Special district mills and budget process explained

During the August 6 Hot Springs County Commissioners board meeting, County Assessor Daniel Webber presented a request for the approval of the 2024 Mill Levies according to state statute. During this, they discussed and clarified the process special districts used to request the mills as there have been noted public concerns in the budget for the commissioners to “tighten the belts” and watch for overspending.

Additionally, Vice Chairman Phil Scheel brought up a state statute where the law says county commissioners “shall approve” the mill levy requests. 

Assessor Webber explained, “I think that the whole process has kind of changed from when it was originally conceived. The way the process was supposed to happen was that all of these entities have their own boards. They approve a budget that goes through a process through the clerk’s office. It has to be publicly advertised for a certain amount of time. After that, once they’ve gone through that process, then their mill levy request would be approved by you guys and given to me to apply to the tax roll. But in reality, what happens is they give their request for mills to me, and their budgets to the clerk’s office, and they go through the approval process. And then I bring the mills to you to approve. So, they all have their own, either elected or appointed boards, and they have all adopted their own budgets. So, at this point, as long as they’ve gone through the current process with the Clerk’s office to approve their budgets, it’s more of a formality of you requesting it instead of you telling me what it is and to apply it to the tax roll.”

Vice Chairman Scheel replied to Webber and said it was a “Good explanation.” He added, “In the climate of today’s…especially pertinent to the election cycle, is the fact that the county has to do a better job controlling special districts and how much mills and the taxes that they take because of certain individuals or groups of individuals who are on fixed incomes, who cannot afford the increased tax. To that end would it be appropriate, Daniel, that you would suggest that the people that are upset with how much money special districts are taking, but that’s not really a discussion to have with the commissioners, but it’s a discussion to have with those appointed boards or elected boards?”

Webber replied, “Absolutely. Those boards, they are required to have their own hearings, their own budget hearings [in public]...And that’s where if you feel that for whatever reason they’re not operating correctly with their budget, that is the time to address that. And like I said, I’m pretty sure, I think those are all elected boards as well. I think the only ones that are appointed are the ones that are under your purview and part of your 12 mills. On that first page, that breakdown like the fair board, museum, and library boards, I think you appoint those, but those fall under your budget. I think all of the actual special districts that levy their own mills are elected boards.

Vice Chair Scheel added, “Those are public meetings, and they’re advertised in the newspaper when the budget hearings are held. The concerned constituents want to know how the hospital or the fire district is taking all three mills and what they’re doing with that money. The appropriate place for that constituent would be to go to those meetings that raise questions during their budget?”

Assessor Webber replied, “Right.”

Vice Chair Scheel said, “And that happens about the same time the county budget is due in June or July.”

Each of the special districts has to submit their budgets to the County Clerk’s Office and must follow their deadlines per the Department of Audit.

Also, the commissioners discussed the matter of what the county statutorily must provide and other budget areas. Vice Chair Scheel added, “I just want to make it real clear. The county spends money on any statutorily obligated and the other things that are not statutorily obligated, like a museum, like an airport, are things that in the past the county residents have supported the county spending money on. It’s not specifically based on the percentage of the mill?”

Assessor Webber replied, “Correct. The mill levy part. That’s just my job to break down and apportion that money.”

The commissioners then voted and passed the approval for the 2024 Mill Levies.