In the face of declining revenue streams, county administrators, department heads and employees have wrestled 2009’s projected big budget deficits into submission.

Delta County must by law have a balanced budget each year.

Excess spending over available revenues is covered by spending from cash held in reserve.

Cuts have been made in the county General Fund and Road and Bridge Fund that decreased spending from savings this year. The projected $1.24 million General Fund shortfall has been trimmed to an estimated $302,142, and the Road and Bridge Fund’s excess spending over revenues, first estimated at $1.16 million, will end the year closer to $334,925.

But, for 2010, the county’s budget story will be more of the same as administrators again face looming shortfalls in the two biggest budget funds. Department budget requests in the General Fund have come in at $1.16 million over projected revenues. Road and Bridge spending estimates are at $920,358 over anticipated revenues.

The administration’s budget proposal to the Board of County Commissioners has trimmed those numbers some. Nevertheless, the BoCC is looking now at trying to stanch the flow of cash from its reserves and to spread the losses evenly over the next five years.

County administrator Susan Hansen said that the BoCC “is focused on keeping county expenses within income.” But if projections of a seven percent decline in General Fund revenues holds true for 2010, the county will still need to cut $239,262 from General Fund spending just to hold reserves drawdown to $706,037.

The county is expecting a five percent drop in sales tax revenue this year, and hopes are they will decline only another three percent in 2010.

Three big hits the General Fund revenues are expected to take next year are a 40 percent drop in mineral severance tax and minerals leasing payments, and a drastic drop from interest earned on cash reserves. The three line item revenue sources together will decline from $848,445 this year to $352,222 next year.

The situation in another major county budget fund, Road and Bridge, is similar, though the numbers are smaller.

One major plus for the financial picture as it enters the second straight year of revenue shortfalls is the fact that Delta County is “debt free.” The county’s only debt, say administrators, is an $8,001 obligation for a fairgrounds tractor that will be paid off this year.

The county has ample reserves; almost $2.6 million estimated in the General Fund at the end of this year. There is enough to carry it through at least a temporary loss of revenue from Bowie Resources — the county’s largest property tax account that has not paid some $1.5 million in taxes owing this year.

County government isn’t the only taxing entity likely to feel a pinch from Bowie’s current financial problems. Half of Bowie’s property tax bill, about $722,000 of the outstanding amount, are for Delta County Joint School District. County government comes in second with a $472,000 share of the overdue amount.

Other local taxing districts that Bowie pays into are Delta County Memorial Hospital District; Paonia Mosquito Control District; North Fork Pool, Park and Recreation District; North Fork Water Conservancy District; Delta County Public Library District; Delta County Fire District #2; Paonia Cemetery District; and the Colorado River Water Conservation District.

County treasurer Jim Ventrello gave an update on the Bowie account during a Nov. 12 budget meeting. The company is trying to renegotiate or refinance a large note held by G.E. Capital. In the event G.E. decides to foreclose on the note, Ventrello said, it is likely they would pay off the local taxes in order to protect the assets secured by the note. He said that it could easily be a year or more before the county sees its tax money under that scenario.

County attorney Brad Kolman asked about the possibility of bankruptcy clearing some of the company’s tax liability. Ventrello replied that local tax entities usually get some preferential treatment in bankruptcy distributions, but added it is no guarantee that all the county’s tax bill would be paid in that event.

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