BOULDER - Jefferson County's draft budget for 2008-2009 lists some ambitious new endeavors - a Montana City water and sewer study, the purchase of the historic Wagner house, and hiring a new part-time county attorney.

The preliminary $12.9 million budget goes to a public hearing Sept. 9 at 2 p.m. at the Jefferson County Courthouse. The final public hearing is Sept. 16.

Other major budget items include a 3.2 cost of living increase for staff and elected officials, upgrades to county Internet service, and funding of two mitigation projects.

There are no major cuts to services or employees, said Commission Chairman Ken Weber.

The county tax burden for property owners should remain comparable to last year, except for mill levy increases approved by the voters in June, said Clerk and Recorder Bonnie Ramey.

The county's mill value climbed this year to $26,223 compared to $21,712 last year, up 20.7 percent.

This reflects the county's boost in taxable valuation from new home construction and rising proceeds from hard rock mining, Ramey said.

The draft budget is very close to the $12.7 million the commission approved last September.

This amount was amended during the year to $14.1 million, due to loans and grants and establishing three new road improvement and maintenance districts - South Hills, Saddle Mountain and Big Dipper, said Ramey.

A major ticket item in the draft budget is a $62,000 Montana City sewer and water preliminary study.

Should area residents later vote to set up a sewer and water district, it would reimburse the county for the study's cost.

Also in the draft budget is an INTER-CAP loan of $214,519 from the state. Of this, $169,000 repays the general fund for the purchase of the historic Wagner house in November 2007.

And $45,519 goes toward electrical work, technology upgrades and furniture for the building, which will house the commission's office.

County Attorney Mathew Johnson is requesting a part-time attorney to assist with civil litigation on road issues. The county is facing six road lawsuits this year and three more may be pending.

The county is upgrading its Internet service at a cost of $26,403. This includes a monthly $550 connection fee for the entire county campus.

The county will also be completing a $250,000 mitigation project to Bernice Road, repairing damage to stream and wetlands, that occurred several years ago when the Anaconda Job Corps did work in the county, said Weber.

The county has been ordered by the EPA to fix the problem.

A second mitigation project will cost the county $52,000 to install a water-storage tank and hydrant in Ridge View Estates for fire protection. The commission agreed to the project to settle a dispute with the Montana City Volunteer Fire Department.

Other budget expenditures include a 4 percent rise in health insurance costs and projected jumps in gas prices - with some departments budgeting up to a 40 percent increase.

In other tax matters, citizens will vote Nov. 4 whether to approve a four-year, 15-mill public safety levy that would raise $393,497 for the sheriff's department.

The levy would allow the sheriff to hire an additional deputy and purchase new equipment that the county commission hasn't been able to fund, said Commission Chairman Ken Weber.

"His needs are outstripping our ability to help him," Weber said.

The county is relying on voters to approve the public safety levy, he said.

And the county continues to rely on two pots of federal funds - Payment in Lieu of Taxes and Secure Rural Schools funding. Both funds are yet to be authorized this year by Congress.

The county has only budgeted the amounts received so far, said Ramey.

The county receives approximately $650,000 annually in PILT, which compensates it for not receiving taxes from federal land within the county.

And it typically receives $225,000 annually in Secure Rural Schools funds to compensate the county for lost revenues because of declining timber sales.

The commission also intends to tap into some funding it hasn't used before - $204,038 in a metal mines entitlement fund.

The fund can be used at the commissioners' discretion, said Ramey.

Cash reserves for departments vary from 6.3 percent to 33.3 percent and are at the same levels as last year, said Ramey.

Although the commission prefers reserves remain between 25 and 33 percent, they have dipped below this amount the past three to four years, said Weber.

The county uses reserve funds to pay bills from July 1, the beginning of the fiscal year, until November when property taxes come in.

Reporter Marga Lincoln: 447-4074 or marga.lincoln@helenair.com

On the Web

Click here to view the Jefferson County draft budget.