Oil, gas prices drop county valuation
By KALEY CONNER
kconner@dailynews.net
The numbers are in, and Ellis County's total valuation is down nearly $30 million from last year, largely due to a decrease in oil and gas prices.
In 2008, oil and gas value reached more than $95 million, with this year's number shrinking to less than $62 million.
Already, the price of oil seems to be back on the increase, which could be good news for next year's budget, Ellis County Appraiser Dean Denning said.
"We've had yo-yo effects with this in the past. It's been up and down before," Denning said. "Right now, we're down. It's just a matter of whether it comes up enough for next year to be an up year."
In contrast, the county's real estate market remains solid and even saw a slight increase from last year, with values rising by about $4 million.
While the growth was there, Denning noted the increase is not as sharp as it has been in years past.
"There were more properties that stayed real close to where they were this year than we've had in the past," Denning said.
County Clerk Alberta Klaus was working to certify the valuations Monday, and the information will be sent to cities and school boards today or Wednesday.
Overall, the value of Ellis County cities -- Hays, Ellis, Victoria and Schoenchen -- remained strong.
All four communities saw a boost in valuation.
Hays' valuation rose nearly $4 million, totaling about $164 million. Tax exemptions and other factors, however, will be figured into the amount, Klaus said.
The county government already has a few ideas to help trim spending and adjust to the reduced funding. County department heads have been asked to keep budget requests static, and a hiring freeze has been implemented on new positions.
Another likely reduction will be the space needs fund. The county has tucked away hundreds of thousands over the past several years to offset costs associated with renovations or a possible move.
Klaus said she already is planning to eliminate the $400,000 line item, which totals more than one mill. One mill is set at $323,560 for the next fiscal year.
The commission is waiting for the audited report and likely will begin discussing the 2010 budget in late July. Chairman Perry Henman said the board will be looking for more ways to cut spending.
Henman said the result could be delays in purchasing new equipment and public works projects.
"We haven't really got to the hard part yet," he said. "We're going to have to find some ways to trim, that's for sure."
Ellis County July 2009 Value Abstract:
Real estate -- $224,535,709
Utilities -- $18,884,398
Personal -- $18,469,265
Oil and gas -- $61,670,817
Total -- $323,560,189
Ellis County July 2008 Value Abstract:
Real estate -- $219,159,980
Utilities -- $20,144,801
Personal -- $18,595,906
Oil and gas -- $95,191,932
Total -- $353,092,619