No tax increase in 2018 budget
$403M spending plan is a 4.1% increase over 2017
NORRISTOWN » The Montgomery County Commissioners were presented with the proposed 2018 budget and five-year capital improvement program at their Nov. 16 meeting.
The presentation marked the first significant step in the budget process before public hearings scheduled for Nov. 30 and final adoption of the budget and capital spending scheduled for Dec. 14. Both documents are posted on the county’s website, www.montocpa.org.
The 2018 proposed budget recommends no real estate tax increase, which will remain unchanged from 2017 at 3.459 mills for the county’s general operating fund and .390 mills for Montgomery County Community College dedicated funding, and it includes $3.8 million revenue surplus. Under the tax rate, the owner of a single family home with a market value of $315,000 will pay
$588 in real estate taxes toward general fund services in 2018.
Expenses in the 2018 budget are projected at $403 million, an increase of $16 million, or 4.1 percent, over the current year, with $8.7 million of the increase allotted to contractual and noncontractual wage increases. Revenues are expected to increase over the 2017 budget by $13.8 million or 3.5 percent with a projected ending fund balance of $67.3 million.
The budget reflects an overall surplus of $7.6 million in 2017, which is $1.6
million higher than projected.
The 2018 budget includes various departmental user fees including prothonotary fees, parking fees, excluding employee parking, and parks boat storage fees.
The 2018 general fund revenue is projected at $407 million, which represents a $13.7 million or 3.5 percent increase over 2017 and comprises 50.5 percent real estate taxes, 35 percent federal and state grants, 13.7 percent departmental earnings, and other revenue of 0.8 percent.
The projected expenses break down to 44.2 percent in personnel costs, 40 percent in controllable expenses — which consist of contracted services,
911 subsidy, materials, supplies, equipment and outside agency expenditures — and 11.2 percent in debt service, with other expenses totaling 4.6 percent.
Expenses assume full staffing levels with approximately 20 new hires in various departments and include $2.8 million in negative appropriations, a $200,000 decrease from 2017.
Concerns regarding the general fund include the uncertainty of federal and state budgets and the possibility of reduced grant revenues. The stability of the housing market is also key, as the fund relies on revenue from real estate taxes and benefits from general economic development and growth.
The capital improvement plan, which funds longterm transportation and infrastructure improvements, including network expansion, open space preservation and county campus redevelopment, is set at $103 for 2018 with projected funding of $627 million from 2018 to 2022.
In other business Thursday, county CFO Dean Dortone announced that a $90,000 compensation study by Evergreen Solutions to evaluate wage increase compatibility with comparable county governments is nearing completion and recommendations will are expected soon.
Commissioners’ notes
The commissioners approved authorization for a lease agreement between District Court 38-1-09 and the King of Prussia Volunteer Fire Company, 170 Allendale Road, and passed a resolution to draft a letter to the Pennsylvania Gaming Control Board to prohibit video gaming terminals within the county. Both measures passed unanimously.
The commissioners also authorized the initiation of a $19.5 million contract with Allen P. Myers LP of Worcester for Phase 3 of the Lafayette Street extension project and awarded a contract amendment of $107,000 to Loftus Construction Inc. of Cinnaminson, N.J., for the reconstruction of County Bridge No. 244, Rittenhouse Road over Skippack Creek in Towamencin Township.
Commissioner Ken Lawrence, who presides over the board of elections, acknowledged the 175,898 Montgomery County residents who voted in the Nov. 7 election, congratulated the 1,300 officials who won, and gave special thanks to the 1,300 poll workers and voter services for making the election possible.
Lawrence, who recently participated in the “food stamp challenge” said it was very difficult to eat on $4.75 a day. He called the challenge an “eye opening experience” and said he would advocate for an increase in food assistance along with greater access to healthy food.