Anticipating a drop in mineral values in the future, Freestone county commissioners cut spending by $1.9 million in a proposed budget filed Friday with the county clerk. A cut in the property tax rate also is planned.

Total expenses estimated by commissioners are $15.2 million, down from the fiscal year 2008-09 budget of $17.09 million.

Revenues are expected to remain the same, about $14 million.

"Considering the decrease in mineral activity, we are concerned about the drop in those valuations in the coming years," County Judge Linda Grant says. "This is what we've always worried about."

She says cutting the budget for fiscal year 2009-10 is a "proactive" step taken before revenues fall in the event of a decrease in mineral valuations.

Taxable values in Freestone county actually increased four percent from last year, to $5.37 billion, as certified last month by Freestone Central Appraisal District.

Freestone Central Appraisal District chief appraiser Bud Black told commissioners Monday morning that a drop in natural gas prices was offset this year because of new production that came on line.

The state comptroller adjusted the price of natural gas sold in 2008, the year on which 2009 values were figured, down to $4.85 per 1,000 cubic feet even though the average price in the state was $8.03 MCF.

"The reason it has not hurt Freestone county is because our item count has continued to rise. We still have some new production that is offsetting the lower price of gas," Black says.

The appraiser, though, expects mineral values to fall 10-20 percent when values are determined in 2010.

He points out that decline would have been seen this year if not for new production added to tax rolls.

The proposed budget filed last week is the third draft and likely will be amended some more before it is adopted.

A first draft included wish lists from office holders that have been whittled in the subsequent versions— for example, the general fund has been slashed $1.2 million from the first draft.

In comparing the second draft to the 2008-09 budget, general fund expenses have been reduced $1.1 million and road and bridge expenses have been cut $800,000.

To reel in expenses, and accounting for part of the difference between the first and second budget drafts, is a decision by commissioners to give no raises to county employees and officials this year. Part of the reasoning for not granting raises is an increase of $635 per employee in hospitalization insurance premiums.

The county judge points out that commissioners considered increasing the hospitalization insurance deductible amount to lower premiums, but decided to keep it at $250 annually.

Property tax rate is being proposed at 20.5 cents per $100 assessed property valuation, a cut from the 2008 rate of 21 cents.

The effective county tax rate, the levy required to generate the same amount of revenue as last year, is 20.65 cents and the rollback rate is 22.3 cents.

If the county has to dip into reserves some to fund the new budget, it has $10 million on hand from which to draw.

With few exceptions, cuts in the proposed budget are across the board.

General fund expenses by department are: county judge, $181,635; auditor, $167,494; treasurer, $137,708; tax assessor, $497,031; county court, $25,250; county clerk, $390,493; county attorney, $280,105; justice court jurors, $3,000; district court, $144,709; probation, $4,500;

District clerk, $240,304; indigent defense, $371,000; justice of the peace-1, $130,478; justice of the peace-2, $130,742; justice of the peace-3, $130,341; justice of the peace-4, $127,017; Highway Patrol, $58,486; state officials, $4,000; miscellaneous court-related, $308,600; constable-1, $66,221; constable-2, $65,225; constable-3, $65,666; constable-4, $65,616; sheriff, $1.8 million; care of prisoners, $652,000;

9-1-1, $43,491; extension service, $117,767; elections, $78,717; capital outlay, $400,000; health and welfare, $182,200; county services, $163,458; courthouse, $255,864; jail, $731,388; veterans service officer, $13,101; non departmental, $390,000; appraisal district, $127,864; ambulance service, $200,000; fire prevention, $390,500; and senior services, $300,000.

Road and bridge department expenses are: precinct 1, $1.48 million; precinct 2, $1.45 million; precinct 3, $1.53 million; and precinct 4, $1.33 million.

Additional funding requests made in a budget review Monday include $20,000 to restore the closed Presbyterian Church in Streetman, which was granted, construction and staffing of an animal control facility establishing an elections administrator serving all taxing entities in the county.