Flathead County budget staff were credited last week for finding a way to fund seven additional employees, provide most county workers a 2.5 percent cost-of-living raise along with longevity and step increases, and leave a healthy cash reserve all the while holding the line on property taxes.

The county commissioners unanimously approved the fiscal year 2013 budget on Aug. 30. The impact of the $75.2 million budget on county taxpayers is expected to be a 0.9 percent decrease, or a savings of about $30 on a $200,000 home.

County administrator Mike Pence credited the work of finance director Sandy Carlson, along with Amy Dexter and Wendy Marquardt, in meeting the commissioners’ budget guidelines. But they were helped by an increase in the county’s total market value from $8.77 billion to $9.32 billion.

As a result of the increased valuation, the county was able to lower the number of levied mills by 1.38 to 149.16. The final budget projects about $11.7 million in cash reserves, or about 25 percent.

“The county has a good cash balance situation presently because of our ongoing efforts over the past seven and a half years,” Pence told the commissioners. “Our largest source of revenue comes from property taxes that are collected two months out of the year, so we need adequate balances for our operations. It continues to be a challenge to maintain healthy balances with ongoing slow growth.”

The number of full-time county employees will increase from 515 to 522, but some of the funding for those additional workers already existed in the budget for contracted services and will come from federal money, Pence explained.

One additional worker at the clerk of district court’s office will help with the additional load brought on by a fourth district court judge. A new half-time worker at the planning office will help with code enforcement and permit tracking, and a new half-time worker at the recorder’s office is covered by state funds.

Funding for a new full-time worker at the fairgrounds and a new half-time worker at the animal shelter are offset by contracted services, and additional full-time and half employment at Eagle Transit will be covered by federal money. Additional workers also will be funded for the library, detention center, sheriff’s office and posse.

The budget also includes $3.2 million for the capital improvement program, including $635,766 for culture and recreation, $323,085 for general government, $30,000 for public health, $656,780 for public safety, $982,700 for public works and $645,430 for solid waste.

“We appreciate the efforts of our finance department and members of the management team in the creation of a new five-year capital improvement program,” Pence said. “As with the prior five-year plan, we will use this tool consistently since it provides the mechanism to fund our capital needs.”

Of special interest is a general-fund line item providing $990,000 as additional payment toward the North Shore Ranch lawsuit. All told, the county will pay $3.2 million in the cash settlement. The developers successfully sued the county after the commissioners voted 2-1 against plans for a 286-lot subdivision next to the Flathead Waterfowl Production Area north of Flathead Lake.