Calaveras County’s budget is nearly finalized and the costs remain high.

The Board of Supervisors held its final budget hearing at Tuesday’s meeting, which is the last step before its anticipated approval Sept. 24.

The budget is balanced, but the county’s financial situation remains dire, with the gap between revenue and expenses being filled using $3.4 million in one-time funds from the Teeter Fund.

“If I ran my restaurant like this, we’d be out of business long ago,” said District 1 Supervisor Cliff Edson, who owns a diner in San Andreas.

The Teeter Fund is traditionally used to finance one-time expenses like technology purchases and software upgrades, but this year’s budget used $3.256 million for ongoing expenses that means those costs must be included in future budgets. And if the board continues with the trend of Teeter use, the fund (containing $5.1 million after this year’s expenditure) will be depleted by the fiscal year 2016-2017.

“We have two years now where the board has added expenses that are beyond our revenue,” said Lori Norton, the county administrative officer who was hired in May and cautioned the board on the use of Teeter during preliminary budget deliberations. “I feel very strongly that we get back to a place where we’re using ongoing revenue sources for ongoing expenses.”

Overall, this year’s final budget projects a total increase in general fund spending of nearly 15 percent from the previous fiscal year’s actual expenditures. That translates to an increase of $5 million.

“We’re going to have to be looking at some spending reductions in the coming years,” said Norton, who also wants the board to look at ways to increase county revenue.

One bright spot amid the gloomy financial outlook is an additional $513,000 in carryover money from the 2012-2013 fiscal year budget.

The unexpected money is likely to go into the county’s contingency fund that had seen its projected balance drop to $854,000 – well below the recommended level. By adding the additional carryover, the fund should rise to $1.37 million, which is 3.5 percent of the general fund appropriations and in line with recommended levels.

The board nearly saw some of that money go out the window, however, when Calaveras County Sheriff Gary Kuntz approached the board and made a last-minute plea to share the costs of three patrol cars that are scheduled to be leased by his department.

“It would be nice if (you) would pay one half and we’d pay the other half,” Kuntz told the board. “As my grandma always said, ‘It never hurts to ask.’”

District 2 Supervisor Chris Wright supported the idea and looked to the carryover money intended for contingency to find the $37,500 necessary to help the sheriff’s cause.

Wright was joined in the supportive vote by District 5 Supervisor Darren Spellman, but the other three supervisors voted against the motion.

Thus, the contingency fund is likely to receive the full $513,000 when the board votes on the final budget Sept. 24, and the rest of the budget will also be approved.

“Recognizing the dire straits we’re in, I personally don’t like using one-time funds, but I find it necessary to turn this ship around and get it going in the right direction,” concluded District 4 Supervisor Debbie Ponte.