Despite pandemic, county finances in good shape

NORRISTOWN » It appears that Montgomery County’s finances are in good shape as shown in the initial 2019 comprehensive annual financial report.

Chief Financial Officer Dean Dortone addressed the Montgomery County Commissioners and fellow staff members during a virtual meeting on Thursday to provide a progress report on the county budget.

Dortone said in his presentation that there’s $3.5 million in revenue more than expenditures, which is “$1.9 million higher than projected in November 2019.”

Revenues are about $1.5 million higher and

expenditures are $2 million lower as compared to the 2019 budget, according to figures from Dortone’s financial presentation.

“These things don’t happen easily or by accident,” said Montgomery County Commissioners’ Chairwoman Valerie Arkoosh. “This good outcome of our 2019 budget is the direct result of a great budget process on the front end, and then constant continuous oversight and management to that budget throughout the entire year.”

The audit “is in progress” and the “current financial results are preliminary,” Dortone said in his presentation. The budget report should be issued by June 30 and “staff will provide final review of [the] CAFR at [the] July 9 Board of Commissioners meeting.”

The county had $421.6

million in revenues and $418.1 million in expenses in 2019, according to Dortone.

The revenue figures were 49.6 percent in real estate taxes, 36.6 percent in grants, 12.3 percent in developmental earnings, and 1.5 percent in other revenue, according to Dortone.

Real estate assessments have increased over the past two years. Dortone picked two instances showing positive growth.

There was a .64 percent increase in December 2019 as compared to .48 percent for the previous December. Dortone said in his presentation that it was “better than expected.”

In April, the county real estate assessment had a .36 percent increase as compared to .26 percent in April 2019, according to county figures. Dortone added in his presentation that it was a “positive yearto-date trend.”

Montgomery County Commissioners Vice Chairman

Ken Lawrence, Jr. inquired about the state of the real estate market during the COVID-19 pandemic, and asked “how quickly [the] real estate market [could] pick up?”

Dortone said his department is planning to “monitor [it] as the weeks go on” and will examine information courtesy of Berkshire Hathaway to “see regionally, not just for Montgomery County, but what is happening … in the market.”

As for the expenses, they included 40.3 percent of controllable expenses, which covers several factors including materials, provider services and a 911 subsidy, according to county figures. The remaining

expenditures were allocated from 11.1 percent of debt services, 43.7 percent of personnel costs and 4.9 percent of other expenses.

Looking to the financial future, Dortone said that the COVID-19 pandemic will play a factor in the ever-changing nationwide economic landscape.

“Near-term economic conditions will negatively impact governmental revenues in 2020 and 2021,” Dortone said in his presentation.

Arkoosh praised Dortone’s efforts on the audit, as well as fellow staff members and row offices.

“I’m so grateful for your work – now more than ever as we do have a somewhat

uncertain year ahead of us,” Arkoosh said. “It is extremely gratifying and reassuring for the individuals who live here in Montgomery County to know that their county government is in solid shape and because our fund balance is in a good position to weather whatever is going to come down at us over these next several months.”

Finance officials are combing through the 2020 budget in “preparation for the 2021 budget process,” which is expected to begin in June, Dortone said.

Dortone added that he expected meetings could start in “mid-July through August,” but the “final budget schedule [will be] dependent

on Governor Wolf’s future directions, and county reopening plans.”

The proposed 2021 and 2021-2025 capital improvement plan is expected to be released and presented during the Nov. 19 Montgomery County Board of Commissioners meeting, according to Dortone.

A public hearing is expected to be scheduled later this year so that the public can voice their opinions on the financial documents. Following that meeting, the budget is expected to be adopted during a November or December Montgomery County Board of Commissioners meeting.