Scott County EDA to consider supervisors' request for $740,000

GATE CITY — A request for $740,000 in Scott County Economic Development funds to balance the county's fiscal year 2027 budget will bring the authority back for a special called meeting next week.The decision is the latest step in the county Board of Supervisors' attempt to balance what now stands as an approximately $1 million revenue shortfall in next year's budget.The $740,000 — proceeds from the EDA's sale of the former Pioneer Center building in Duffield to VFP Inc. — had been raised as one source to balance the shortfall along with a 2-cent hike in the county's real estate property tax rate and shifting the county's $264,000 capital projects fund to the general fund.County Supervisors Chair Chris Maness relayed his board's straw poll decision to ask for the money from EDA board at its Tuesday meeting."If you could help us out with that, we would really appreciate it," said Maness, "and it would put our budget pretty close to zero. We're getting to a really good budget this year.""I know it helps this year, but what about next year," EDA Board Chair Roger Fraysier asked Maness, who said a tax hike appears "imminent.""This is like having a yard sale to pay a mortgage," said Maness. "It's not a great idea and it definitely won't work more than once. We either have to have more income or cut expenses."Maness listed other budget-cutting measures at previous supervisors' budget workshops in May, including multiple cuts to county departments' budget requests for the next budget year and discussions with the school system to share county services.Maness, County Administrator Josh Wilson and Assistant Administrator Bill Dingus told EDA members about other factors affecting the county budget planning. Rising fuel costs will impact the county solid waste operations, Dingus said.Looking at other revenue sources such as the merchants capital tax would "mess with businesses," Maness added."We've looked at this several different ways," said Maness, "and I wish we could have done more last year to get our deficit down. That would have made a real difference this year.""Everyone on this board has the county's best interests at heart," Fraysier said during his board's discussion of the supervisors' request. "I understand you're in a pinch trying to balance the budget.""I appreciate Mr. Maness, the way he asked," Fraysier said, "but I don't appreciate what I read in the paper, the bullying or the intimidation tactics."Fraysier referred to Supervisor Eddie Skeen's suggestion to cut the EDA's entire budget if they will not release the $740,000 to the county."I would say that there was one member of the board that said that," Maness said. "I don't think that's the sentiment of the entire board."Fraysier said he hoped the EDA and supervisors would be able to work together "and have each other's back and work in the same direction."EDA members Craig Bird and Larry Culbertson both said they are looking at both the county budget needs and the EDA's need to use the $740,000 for economic development."I think the Board of Supervisors could trust us to spend it wisely," Culbertson said, adding that the funds could be used for property purchases to help with the Riverside housing development project near Weber City."If we do the $740,000 this year, what's going to happen next year?" asked Culbertson. "The shortfall in the budget will continue to get worse unless they raise taxes or cut services. One of the two things has to happen for this county to survive.""Our politicians go out and tell everybody they're going to cut taxes," Culbertson said, "but once they get in and see what it takes to run the county, they find out quick that they can't cut taxes. It doesn't work that way."Culbertson said he wanted to see some kind of compromise, with EDA control of some of the money."What do you do next year?" said Craig Bird. "Part of me knows the county needs it, but there's some good things we can do."Fraysier said the entire board needed to decide on the $740,000 disposition. With member Eric Lane on vacation and John Strutner absent for medical reasons Tuesday, Fraysier and the other board members agreed to set a special called meeting by Tuesday, June 2 for a vote. That would give the Board of Supervisors information to decide by June 3 to set the draft county budget.After the meeting, Fraysier and EDA Executive Director John Kilgore each said the $740,000 forms a pool for the EDA to get matching development grants. In most years since 2019, Kilgore said, the authority has been able to get grants at a rate ranging from two to six times the authority's operating budget. That budget has ranged from $318,000 to $372,000 across the past seven fiscal years.The date and time of the EDA meeting will be announced.