San Juan County officials got a bit of good news as they prepare for another round of budget cuts for the year ahead.

According to Auditor Milene Henley, the county is on course to meet projected revenue and spending targets contained in the $13.5 million general fund by the end of the year. That’s based on a second-quarter financial review presented to the County Council by Henley on Aug. 10.

Financial data from the second-quarter tracks spending and revenue collections over the first six months of the year. In addition, Henley noted that through July the county had collected 1.2 percent more in sales-tax revenue than it had by the same time a year ago.

Still, Henley cautioned there’s not much margin for error. And she noted that some of the improvement in sales-tax receipts can be attributed to fee increases which went into effect this year, such as those charged for land-use and building permits. She added that consumer spending is difficult to predict and that the next three months — while tourist season is in swing — will be “critical” in determining whether the county hits its projected $2.8 million sales-tax target by the end of the year.

Meanwhile, the various funds and departments that rely on the general fund to cover the bulk of their daily expenses — 24 in all — have been asked to submit budget proposals that include a 5-10 percent reduction in spending in preparation for putting together a 2011 budget. The general fund, also known as Current Expense, accounts for roughly 27 percent of the overall $49.4 million 2010 county budget.

While spending and revenue is on track in the general fund, several funds and departments that depend on local real estate sales for revenue, like the Land Bank, are grappling with a prolonged decline.

Administrator Pete Rose said the Land Bank has already amended its 2010 financial plan to offset a shortfall in the amount of revenue the agency expected to collect through its 1 percent tax on local real estate sales, and is also trying to retain enough ammunition to stay one year ahead of its debt payments, which, he noted, totaled $2.1 million a year ago.

“If this thing doesn’t turn around in the next year or two they’re probably going to take more drastic measures,” Rose said.

Henley added that the Land Bank will likely be forced to tap its funding reserves sometime this year to cover debt payments.

The Land Bank isn’t alone in grappling with the fallout from a drop in local real estate sales. The county’s capital improvement fund, which pays for repairs, maintenance, debt service and the purchase of buildings and real estate, also relies heavily on a 1/4 of 1 percent tax on real estate sales.

In 2009, that 1/4 of 1 percent real-estate excise tax contributed $342,651 into the capital improvement account, a significant drop from the $803,667 it generated in 2007. Rose said the county will need to borrow from other funds or pay interest-bearing warrants to keep that fund afloat through the remainder of the year.

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The Fair is no longer a stand-alone department within the ranks of San Juan County.

In a unanimous decision, the County Council on Aug. 10 put its seal of approval on an ordinance in which the operations and assets of the county Fair will be absorbed by the Parks Department. The much-anticipated move will consolidate the two agencies into one department managed by a single director and is expected to streamline administrative overhead.

The fairgrounds will continued to supervised by an “Events and Fair Manager,” a post currently held by former Fair Manager Rev Shannon. Long-time Parks Director Dona Wuthnow will assume leadership of the consolidated agency, known as the Parks, Recreation and Fair Department, and will have management authority over the events and fair manager.

Administrator Pete Rose expects the benefits of consolidation will take place mostly behind the scenes, and that islanders will notice few, if any, changes on the ground. The duties of the citizen advisory group that has long overseen activities at the county fairgrounds will remain virtually unchanged, as will those of the advisory group that oversees the Parks department.

“We thought it important to keep the integrity of both boards,” Rose said. “The concept behind this is in reducing the number of budget silos and to take advantage of some synergies between the departments.”

In 2009, Parks operated with 7.4 full-time employees, a team of seasonal workers and with a budget totaling $716,418 in expenses. The Fair had two full-time employees, a battalion of seasonal help, and a budget of $352,593.

Combining the Fair and Parks is just the latest consolidation move by the county. The Community Development and Planning Department formed seven years ago through the merger of the former permit center and long-range planning division.

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This just in from the department of Every Little Bit Helps.

In a unanimous decision, the San Juan County Council on Aug. 10 approved changes in the way employees are reimbursed for travel and meals while on county-related business.

Prepared by Auditor Milene Henley, the changes to the county’s travel and meal policy mean that employees will no longer be reimbursed on a “per diem” basis, but rather for “actual” expenses that can be verified by receipts.

While collecting receipts may require more paperwork out of those who are traveling, Henley said the main objective of policy change is to “simplify and save”. She added that the changes had been reviewed by the administrator, prosecuting attorney, department managers and union representatives prior to being presented to the County Council for approval.

“I think you got a policy that everyone can live with, even if not all are happy about every part,” she said.

Henley said the county may save as much as $18,000 a year with those policy changes in place.