ST. CLAIR COUNTY — Despite hard economic times, St. Clair County is holding its own.

“Overall, our revenue is about even with last year,” commission Chairman Stan Batemon said.

Batemon said the county’s largest tax revenues come from sales tax and ad valorem tax.

“Our sales tax is down, but our ad valorem tax is up,” he said. “Between the two, our tax revenue is basically the same as last year.”

Batemon said the county has no plans to lay off employees or freeze or cut salaries.

“Instead of laying off employees, as some other counties are doing, we plan to offer a 3 percent raise and pick up the increase in the employees health insurance plans,” he said.

Batemon said the county is going to have to be cautious about hiring new employees and creating positions for new employees.

“We also have to be very careful in our capital improvement projects and equipment purchases,” he said.

Batemon said fiscal year 2009-2010 is “our very careful year.”

“We are not sure what the budget will hold for next year,” he said. “We think we are OK this year, but we don’t know about next year.”

Batemon said ad valorem tax is the county’s biggest revenue source at the moment, but ad valorem tax is collected one year in arrears.

“Our ad valorem tax is based on the value of property and sales of property,” he said. “Our property sales have gone down, but the property values are holding their own. Hopefully the stimulus money will help more people build homes.”

Batemon said the stimulus money has not done much of anything on a county level.

“The stimulus package is ‘iffy’ on the local level,” he said. “The word is that the stimulus will kick in next year and help, but it’s an unknown.”

Batemon said St. Clair County is in better shape than some other counties because of the population growth the county has experienced in the past several years.

“The St. Clair County Commission has put aside money for times like this,” he said.

Batemon said the week after Sept. 11, 2001, the county placed $3 million aside for an emergency fund.

“We have continued to add to that balance ever since,” he said.

Batemon said the county currently has about $12 million in liquid fund balance.

“The $12 million is roughly half of the general fund budget,” he said.

He said the county also has loaned municipalities funds for economic development projects.

“The city of Moody borrowed a little more than $2.5 million to purchase property that will create a commercial development site,” he said. “They will pay that money back once the property is sold and developed.”

Batemon said Moody also borrowed $1.5 million to bring in Red Diamond Inc., and is currently paying back that loan.

“We also partnered with Ashville, Steele and Pell City to help them purchase property to create industrial parks,” he said.

Batemon said the money loaned to municipalities is in addition to the $12 million in liquid assets.

“The county has some debt, but we borrowed while the rates were low,” he said. “We are not afraid of our current debt.”

Batemon said the county is blessed to be in good financial condition compared to many other counties.

“Many other counties inherited major management problems,” he said. “We have been blessed with a better managed government for at least 30 years.”

Batemon said other counties have also had to deal with corruption, in addition to ineffective government.

“For instance, this county made the move 35 years ago to move the county road system from an old-fashioned district road commissioner system to a unit system of management, managed by a professional county engineer,” he said. “The engineer makes decisions on what roads to repair based on condition and use, which has helped St. Clair County become the only county in Alabama to have no dirt county roads. All the county roads are paved.”

Batemon said that goal was accomplished because a professional engineer manages the roads, not politicians.

“Another example is the form of government the county uses,” he said. “In Jefferson County, each commissioner is responsible for a separate form of government such as public works, economic development, health care, etc. That creates a battle when the commissioners fight for money for their own areas.”

Batemon said St. Clair County commissioners sit like a board of directors over a bank, and make decisions based on sound business practices instead of fighting over funds for one particular project.

“In some counties, commissioners are road commissioners, and they don’t worry about other areas such as health care,” he said. “They worry about small areas and not the big picture. They work toward individuals goals, not collective goals.”

Batemon said St. Clair County commissioners are elected countywide, which helps the commissioners see the overall picture of what is best for the county.

“Running countywide allows them to help everyone, instead of just the people right in front of them,” he said.

Batemon said overall he is “cautiously optimistic” that the county will come through the economic downturn in the nation in good shape.

“We can probably survive another two years without any significant change in services even if there is no change in the economy and it remains bad,” he said. “Although it is sad not to accumulate revenue like we did two years ago, we are glad we aren’t losing money and having to lay off employees.”