Cutting the equivalent of 10.5 employees and holding the line on departmental spending has allowed Flathead County to come through the worst of the recession with a fiscal 2010 budget that includes a comfortable cash reserve.

A budget message delivered Wednesday by County Administrative Officer Mike Pence revealed a beginning balance of $35.2 million, with total revenues projected at $70.2 million. Total expenditures are expected to be $72.8 million, leaving an ending balance of $32.6 million come June 30, 2010.

The county commissioners approved the budget following a public hearing Wednesday morning.

"The county has a good cash balance situation presently because of our efforts over the past four and a half years," Pence told the commissioners.

The county's cash reserve will be roughly $12.2 million, a 25 percent level, at the end of the fiscal year. Cash reserves of up to 33 percent are allowed by law.

Spending on capital improvements will be up this year, at $5.12 million, compared to just over $5 million last year. The new 911 center accounts for $1.3 million of the allotted capital improvements.

Personnel costs for the county's 509 full-time employees plus seasonal and temporary workers is the biggest part of the budget, but staff reductions allowed the county to save about $400,000 in this year's budget. Some positions have been permanently eliminated, but others may be restored as the economy improves.

"This effort to hold [back] on filling full-time equivalent positions is a big factor in being able to hold the line on expenditures," Pence said.

The county gave a 1.9 percent cost-of-living adjustment, which is half of the actual 3.8 percent adjustment calculated by the Consumer Price Index, Pence said. The Montana Association of Counties sends out cost-of-living figures in January based on the Montana economy, he explained, adding that the 3.8 percent figure was calculated using calendar year 2008.

THE STATE reappraisal increased the total market value of property in Flathead County from $7 billion to $7.7 billion with the certification of the new revaluation numbers by the state Department of Revenue. The new taxable value was certified at $224 million, up 8 percent from the last reappraisal cycle.

The county tax level is 135.75 mills this year, down from 145.96 mills last year. The mill rate is the tax per dollar of assessed property value; one mill is one-tenth of a cent.

The value of a countywide mill now is $215,926, compared to $207,471 last year.

"The proposed mill levy allows the county to pay for the cost-of-living increases for personnel expenditures and business overhead that continues to include the high price of gas, oil products and utilities," Pence said.

The general-obligation bond levy for the 911 center under construction is included for the first time in this year's budget, at 1.92 mills.

The approved tax levy to a property owner with a home valued at $150,000 equates to a $42 decrease for the county's portion of the property tax bill. That compares to a $34 increase last year.

But the revaluation of property makes it difficult to provide a good reading on what the impact to individual taxpayers is, Pence said.

"Since we have frozen the total tax dollars to be levied, some of our taxpayers will see decreases and others will see increases in the county portion of their tax bill due to the way the revaluation calculations were reached on a case-by-case basis by the Department of Revenue," Pence said.

Commissioner Joe Brenneman, who did not favor the cost-of-living raise given the local economic climate, said he believes the county needs to continue to find ways to trim the budget.

"The work isn't over," Brenneman said. "We need to continue to ask ourselves, 'just because we did something last year do we need to do it this next year?' including 'does this service even need to be done and how can it be done better?'"

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com