Neshoba County ended the fiscal year 2008 with a deficit of nearly $200,000, mostly because of higher fuel and energy costs, officials said.
While the county's general fund, as a whole, stayed pretty much within budget over the year, County Administrator Benjie Coats told the Board of Supervisors on Tuesday that the Road Department was over budget by about $400,000 when the fiscal year ended.
He quickly noted, however, that more than $140,000 of that amount, which earlier funded materials for an ongoing State Aid road project, would be reimbursed by the state in the new fiscal year.
Coats said the county was fortunate that some funds, such as appraisal maintenance, juvenile detention, landfill construction and interest and sinking, ended the year with a surplus.
"We are fortunate to be in a position where we had money available to make the necessary loans within the county's financial structure in order to cover the shortfall," he said.
Rising fuel and items related to the petroleum industry were cited as the major reason for the overall deficit, with the sanitation department alone ending the year about $100,000 over budget.
"The fuel cost in the road department was $200,000 over budget," Coats said.
What's more, Coats said the county also saw about a $72,000 shortfall in revenue for the road department during fiscal year 2008, including $40,000 less than budgeted in gasoline tax in addition to a shortage in road and bridge tax and tax on motor vehicles.
"Folks just aren't buying the big new vehicles like they were," he said.
The road and sanitation departments rely heavily on fuel and items related to the petroleum industry, the county administrator said, citing such examples as culverts and other raw materials which have to be hauled in to do road work.
He pointed out that supervisors had expected fuel costs in the road department to be about $20,000 higher, but noted that conservative measures taken by the board paid off in the end.
Fuel and utility costs caused concern earlier this year within the county's general fund which includes the budgets for such departments as the sheriff's office, the county library, youth, circuit and chancery courts, among others.
Utilities for the courthouse, Justice Court complex and old jail facility were $22,000 over budget. The sheriff's department had a $23,000 overrun which was attributed to fuel costs, Coats said.
The county paid $34,000 more for feeding inmates in the county jail during FY 08, due to a higher census. Youth court was also over budget by almost $15,000 because of an increased caseload.
"Cost containments in other areas of the general fund helped keep you straight there," Coats told supervisors.
"I think you did a good job under the circumstances that you were dealt after this budget was developed last August. Nobody had any idea about the rising utility and fuel costs."
