Officials OK 2021 budget with tax hike
Five percent real estate tax increase included, amounts to $29 annually for average homeowner; Gale opposes
NORRISTOWN » Over the objection of one of its members, the Montgomery County Board of Commissioners approved a 2021 county budget with a tax increase.
The budget and corresponding property tax increase passed Thursday morning in a 2-1 vote, with Republican Commissioner Joe Gale casting the dissenting vote.
“This budget is comprised of higher levels of spending, higher levels of borrowing and higher levels or taxes,” Gale said. “As a common-sense fiscal conservative, I support lower levels of spending, lower levels of borrowing and lower levels of taxes.”
The two Democrats on the board — Valerie Arkoosh and Ken Lawrence Jr. — voted to pass the nearly $462 million spending plan with a 5-percent property tax increase.
“This budget is being proposed during a time of significant financial uncertainty facing Montgomery County and many of our residents,” Arkoosh said. “As we continue to battle the COVID-19 pandemic the county’s finances remain impacted and future financial assistance is uncertain.”
The budget included roughly $455 million in revenues and approximately $461.6 million in expenditures, according to Montgomery County’s Chief Financial Officer Dean Dortone.
According to the budget breakdown, several big-ticket items were showcased as part of the revenue makeup including 49 percent in real estate taxes taxes, 38 percent in federal and state grants and 13 percent in departmental earnings.
This year’s budget showcases the larger portions of the expenditure breakdown as 40.4 percent in health and human services, 17.5 percent going to judicial and 15.4 percent to corrections,
“This proposed budget represents months of planning to help us identify cost savings and important programs and services to prioritize with our strained resources.” — Montgomery County Commissioners’ Chairwoman Val Arkoosh
“This budget is comprised of higher levels of spending, higher levels of borrowing and higher levels or taxes. As a common sense fiscal conservative, I support lower levels of spending, lower levels of borrowing and lower levels of taxes.” — Montgomery County Commissioner Joe Gale
according to the budget presentation.
The revenues are 8.4 percent higher than the 2020 budget, and the expenditures are 7.7 higher than the budget for the previous fiscal year, according to a county spokesperson.
It also has a $17,827,899 expenditure line item for a “public health emergency,” according to a Nov. 19 presentation.
County officials first presented the proposed budget during a Montgomery County Board of Commissioners meeting in November, and held two public hearings earlier this month.
“This proposed budget represents months of planning to help us identify cost savings and important programs and services to prioritize with our strained resources,” Arkoosh
said.
Lawrence agreed, adding that funds from the budget would assist in several ongoing infrastructure projects including the Moyer Bridge and Ridge Pike improvements.
“This proposed budget continues investment in the core functions of county government including our commitment to the pension fund and fixing our county’s aging infrastructure,” Lawrence said.
The commissioners introduced a scenario to balance the budget that involved taking $6.7 million from the fund balance and having a 5 percent real estate tax increase from the county’s property tax portion.
The board last raised real estate taxes in 2017, according to Arkoosh, who added that the increase equates to $29 more per year for the average homeowner.
Proceeds from the increase are expected to amount to $10.5 million of real estate tax revenue, keeping the fund balance at $88.9 million, which represents 19.6 percent of the 2021 budget’s “projected revenue,” according to Arkoosh.
Gale blasted the notion of including the tax increase as the ongoing COVID-19 created a difficult financial climate for many to navigate.
“The last thing we should be hitting them with are higher taxes especially during times of economic uncertainty,” he said.
However, the trio of elected officials did unanimously pass a resolution for the real estate tax deferral program, which aimed to assist eligible property owners during these difficult times.
It would apply to homeowners 65 years of age or older who have an “annual household income of $35,000 or less, including 50 percent of social security income,” according to a county spokesperson.
“All taxes deferred under this program are secured by a real estate tax lien, annually and deferred for collection until the property is sold, the owners are no longer the sole residents, or the property is transferred through will or intestacy,” a county spokesperson said earlier this month.
The $165.6 million capital improvement program for the 2021 fiscal year was also approved in a 2-1 vote with Gale opposing. He’s been vocally critical of costs associated with projects included in the plan.
Within the capital improvement plan, some big-ticket items included $51,025,812, or 30.8 percent, accounted for the county campus plan, $57,925,646, or 35 percent, for the county’s assets and infrastructure department and $35,863,640, or 21.7 percent for the Montgomery County Planning Commission, according to the budget presentation.
“Despite this year’s challenges Montgomery County remains on sound financial footing,” Arkoosh said. “We continue to adhere to our fiscal priorities, invest in long term capital planning, improve our aging infrastructure, and work to maintain an appropriate fund balance.”