Market crunch hits county

A decline in the housing market is not only affecting homeowners trying to sell their homes, but also Yuba County’s financial status.

County officials estimated revenues from property tax values would increase by 11 percent for the 2007-08 fiscal year, but the housing market decline shows an increase of only 8 to 9 percent, a reduction of roughly $300,000. The projection has caused Yuba County officials to request an evaluation of building and impact fees.

“We are the fastest growing county. We should take another look at impact fees,” Supervisor Dan Logue said. “We established fees based on a market we’ll never see again. I don’t want the impact fees to get back to the consumers.”

The decline was discussed at Tuesday’s Board of Supervisors meeting. Assistant County Administrator Randy Margo said with the change in the market there is an adjustment needed, but nothing to worry about.

“Overall, we are in stable condition,” Margo said. “There are just a few things to be aware of.”

Supervisor Mary Jane Griego said creating an incentive to build businesses and compete with surrounding counties is something she’d support.

“I think we can come from the approach that we need to create some retail and industrial businesses,” Griego said. “I would be for creating incentives for a limited time.”

In addition to the housing slump, Margo mentioned sales tax revenues remain flat and the state’s deficit is affecting the county budget.

“The state is projecting a deficit of $8.5 million and that number could rise based on economic circumstances,” Margo said. “That could impact the county in a number of ways.”

Margo listed the introduction of a proposed universal health care system and child support services as being affected because those programs rely heavily on state and federal funding.

County Administrator Robert Bendorf pointed out that budget problems will not be fixed in one year.

“Your board has put aside dollars for economic uncertainties and that was very wise of you to do that,” he said. “This is a multiple-year problem. It’s not going to correct itself in one year. I think we should continue to fund our programs and provide as best a county service we can provide.”

Appeal-Democrat reporter Andrea Koskey can be reached at 749-4709 or at akoskey@appealdemocrat.com