Fayette trims property tax rate
Fayette County taxpayers received an early Christmas present Thursday when the Fayette County commissioners adopted a 2007 general fund budget with a property tax decrease. For the second consecutive year, the commissioners unanimously approved a budget with a tax decrease of one-quarter mill, for a total decrease of one-half mill in two years. The millage rate will drop to 3.51 mills from 3.76 mills for 2007. Voting for the budget were Chairwoman Angela M. Zimmerlink and Commissioners Vincent A. Vicites and Joseph A. Hardy III.
According to Fayette County Chief Assessor James A. Hercik, the millage decrease will be about $12.50 for the owner of a home assessed at $50,000 and about $25 for the owner of a home assessed at $100,000.
The budget includes revenue of $21,043,030 and expenses of $21,559,826. However, Zimmerlink said there is a projected fund balance of $628,565.
Having a fund balance for 2007 will mark the first time in years that has occurred. Two years ago, the commissioners raised taxes by 60 percent by adopting a budget with a 1.5-mill tax increase. In an explanation sheet attached to the budget, Zimmerlink explained the need to increase the millage two years ago was a result of a “negative prior-year fund balance, under funding of departments, union contracts/grievances, salary increases and other normal increases which showed the county needed to make adjustments.” After making the adjustments, the commissioners were able to make the first millage decrease last year.
After voting on the budget Thursday, Vicites referenced the millage decrease, adding that he thinks the commissioners did it in a “fiscally responsible manner.” Although the county was able to drop the millage rate, Vicites said there were a lot of costs that increased, many of which did so as a result of a reduction in state and federal funding for social service agencies.
Citing examples of increases in the budget, Vicites said the county 911 budget increased $100,000 over 2006; the Children and Youth Services budget increased $50,000 and the funding to the Connellsville Airport increased $60,000.
Vicites said the deficit has been erased, and for 2006, the county did not go over budget, having only spent 98 percent of what was budgeted. With the elimination of the deficit in 2006, the commissioners were a year ahead of schedule.
“The tax rate is the lowest in nine counties in southwestern Pennsylvania,” Vicites said. He added that Fayette County ranks 55th out of the 67 counties in the state in the tax rate.
Zimmerlink, who first advocated a millage decrease prior to the adoption of one last year, said the county’s past practice of making inner department loans would cease. “For 2007, that practice won’t occur and that is a good thing,” she said.
In a summary sheet, Zimmerlink outlines the changes, including a drop in the county earmark to implementing the Help America Vote Act to $50,000 from $250,000 as well as an allocation of $232,500 to match grant requests. That is an increase of $75,000.
Zimmerlink said the budget also includes a salary increase for public officials and employees of between 3 and 3.5 percent. Zimmerlink added that once again, she would not accept the salary increase.
With the shift from cash to accrual accounting, Zimmerlink said more accurate figures are being received and everyone has better projections. Although she said the commissioners probably could have decreased the millage rate more than one-quarter mill, her philosophy is that the commissioners should only take from the taxpayers the funds needed to run county government.
Hardy did not offer any comment about the budget.