Montgomery County Commissioners update shows balanced budget

NORRISTOWN — Montgomery County projects a surplus of more than a half million dollars for its operating budget in 2013, Chief Financial Officer Uri Monson told county commissioners Thursday during a third quarter budget presentation.

“I am pleased to tell that we project to have an annual operating surplus for the year of $540,000,” Monson said. “This would be the first year of balanced operations since 2007.”

Expenditures for 2013 are expected to end $4.5 million below budgeted levels due to the sales of the Parkhouse building and the Human Services Center, Monson said. Cuts in the budget were also made by consolidating departments.

The projected 2013 ending fund balance is $41.2 million, which, according to Monson, is higher than expected and at the recommended 10 percent reserve level. According to the report, a preliminary analyisis of the Parkhouse and Human Services Center Transactions shows the county can expect to realize $23.5 million in net assests before the end of 2013.

Monson explained that when the county first looked at selling Parkhouse and the Human Services Center, the county was not looking to cut expenditures.

“The driving force was not to bring our expenditure budget down,” he said “It was whether or not it met the goals of government. It is a positive by-product that it brings our budget down, but I don’t want to leave the impression that our goal was to reduce our operating budget.”

The surplus also means the county will not have to borrow money for the beginning of 2014.

“We have sufficient reserves for emergencies. It also means we will not need to do any shortterm borrowing for 2014. We will be able to self-fund until tax revenues come in April,” Monson said.

However, tax revenues are expected to be $1.5 million below budgeted levels for 2013.

“Essentially we underestimated the number of people who would participate in the 2 percent early-payment discount. It is nearly 100 percent of people participating in that now,” Monson said.

In the 2013 budget, the county estimated $184.5 million in tax revenues, and its current projection is $183 million.

Monson noted there is expected to be $800,000 in revenue coming in from increased activity at the recorder of deeds.

“That is usually a good harbinger of positive economic activity in the county,” he said.