County may not need cash reserves to balance 2019 budget deficit

Dec. 13--Crawford County doesn't appear to need $446,000 in cash reserves to balance its 2019 budget, but reducing the proposed 3.1-mill increase in county real estate taxes remains another matter.

Following Wednesday's meeting of county commissioners, county officials said they've been able to trim $446,000 from the proposed budget. Wednesday's meeting attracted about 40 members of the public with several, again, speaking out against a tax increase.

The proposed 2019 total county budget is $73.2 million with $33.7 million of it the general fund, covering general operating expenses for the county. To balance the general fund, a transfer of about $446,000 from cash reserves plus a 3.1-mill hike in county real estate taxes -- a jump of more than 16 percent -- was needed, according to the finance department.

Since the budget put forth in late November, Commissioner Chris Soff has been working with Brian Connolly, the county's chief financial officer, going through the budget almost line by line.

"It's cutting $500 to $1,000 at a time," Soff said. "The electric and (natural) gas costs have been adjusted because they were not in line with what we experienced the last three years."

Soff said about $65,000 has been cut from the $1 million the county gives in financial support to various nonprofit groups in the county plus there have been cuts in some supplies and conferences.

"We're continuing and I expect it to be more than $446,000," Soff said of how much will been taken out of the proposed 2019 budget, small chunks at a time.

The county is looking at other ways to trim some costs within the new budget.

Tax increase: By the numbers

Real estate taxes are based on the assessed value of a property -- the value placed on the property by a public tax assessor for purposes of taxation. It differs from the fair market value of a home.

Fair market value is the price a buyer is willing to pay for a property on the open market and often is a multiple of the assessed value for tax purposes.

Crawford County's proposed 2019 budget would have a 3.1-mill increase in county real estate taxes. If approved as proposed, it would be an increase of more than 16 percent, as the county's real estate tax millage would go from 19.1 to 22.2 mills.

It means a property with an assessed value of $25,000 would have county property taxes go from $477.50 a year to $555 a year -- an increase of $77.50.

The proposed 3.1-mill increase splits 2.35 mills for general operating expenses; 0.65 mills toward a loan payment on the new county judicial center; and 0.10 mills toward the county library tax, which is a pass through to the county's library system, according to Brian Connolly, the county's chief financial officer.

Commissioners have agreed not to have the scheduled 2 percent pay increase for 2019 and are in the midst of contract negotiations with various unions, including asking for concessions on health care, said Francis Weiderspahn Jr., chairman of commissioners.

Commissioners have discussed wage freezes for 2019 with other elected county officials as well as the offices of non-represented employees.

"Each elected official, it's up to them individually to email HR (human resources) and let them know if they want to do the freeze or not -- the three of us are for 2019," Weiderspahn said.

County elected officials are set to get a 2 percent increase in salary for 2019, a rate of increase set in November 2014 by the previous board of commissioners.

Under Pennsylvania law, salaries of elected officials must be set for the full four-year term prior to election. County elected officials salaries currently are set through 2023 for the offices of commissioner, sheriff, prothonotary, recorder of deeds/register of wills, coroner, treasurer, clerk of courts/orphan's court and auditors.

The current board of commissioners approved 1.5 percent yearly increases for elected county officials for 2020 through 2023 in January 2017.

The three county commissioners have agreed to forego a planned 2 percent, or $1,453.23, salary increase for 2019 and keep their pay at the 2018 rate of $72,661.54, Weiderspahn said.

During Wednesday's county salary board meeting that followed the commissioners meeting, Coroner Scott Schell told commissioners that he and his office's three employees -- who are not unionized -- have agreed to keep their wages at 2018 levels. Schell's salary would remain at $65,010.43 in 2018, instead of increasing by 2 percent or $1,300.21 to $66,310.64 in 2019.

There are other options commissioners may consider as well.

Weiderspahn said the county is looking at implementing a timber harvesting plan for the county forest near Titusville to generate revenue on a continuing basis. Weiderspahn said he wasn't in favor of dipping into county investment funds to balance the budget.

Commissioner John Amato remains against a tax increase, but it may be inevitable.

"It doesn't mean I approve of it, but I bear the responsibility for it," Amato said. "Does it mean I want to? No. In the course of the next year we better take a good hard look at it so this doesn't happen again and again."

Amato said he could support dipping into the county's investment funds to balance the budget, but it, too, has a price. Approximately $6.5 million is available in the county's investment funds.

"Ultimately, unless you fix what the problems really are, you'll keeping dipping into it and it won't be there forever," Amato said.

Whether the county can whittle down the proposed 3.1-mill real estate tax hike and by how much, if at all, hasn't been determined.

"I think so -- to what extent yet, I don't know," Soff said.

Commissioners' final meeting of the month has been pushed from Dec. 26 to Dec. 27 due to county offices being closed on Dec. 26 because of Christmas. The county expects to approve the 2019 budget on Dec. 27.

Keith Gushard can be reached at 724-6370 or by email at [email protected].

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