Commissioners say tax cut possible
As the Fayette County commissioners begin developing the 2007 general fund budget today, all three are keeping open the possibility that they can again give property owners a tax break. Commission Chairwoman Angela M. Zimmerlink, who successfully lobbied for and obtained a millage reduction last year, said her mindset would be that she would like to further reduce the millage rate.
“I will use the same philosophy and same budgeting tactic for 2007 that I did for 2006,” Zimmerlink said.
Last year, the commissioners adopted a $21.7 million budget that included a reduction in the millage rate of a little more than a quarter-mill. The 3.76448-millage rate was drop of .25062 mills, down from the 4.0151 rate. The reduction meant a tax savings of approximately $12.50 for the owner of a $50,000 home and a savings of about $25 for the owner of a $100,000 home.
“While that one-quarter mill decrease is better than no decrease, we may be able to again accomplish a millage decrease without negatively affecting the overall budget and still have money available for capital improvement projects,” Zimmerlink said.
Commissioner Vincent A. Vicites said he is keeping every option open, including the possibility of reducing the millage rate. “I will look at every option and I would certainly consider (reducing the millage),” Vicites said. “Right now the debt is depleted, the bond rating is excellent and the tax base is balanced.”
Vicites, who is serving his third term as commissioner, has helped craft nearly a dozen county budgets. “From a fiscal standpoint, this county is as solid as it’s ever been, but there is always room for improvement,” Vicites said. “It’s a constant monitoring process. You can do a budget, but then you have to stick to it.”
When asked Monday about the impending budget hearings, Commissioner Joseph A. Hardy III said he had “no idea” how the budget planning would go this week, but did not rule out the possibility of a millage decrease. “I’d be open for anything,” Hardy said.
According to figures provided by Vicites, as of the end of September, Fayette County spending was at 72 percent through 75 percent of the budget year.
“We are below our benchmark of 75 percent for three-quarters of the year and a lot of fixed costs have been paid for the entire year. We are holding steady, spending-wise,” Vicites said. He said every month he examines the budget and highlights areas of concern.
Vicites said the county has received 86.8 percent of projected income for the year as of Sept. 30. Of the total projected revenue of $23.15 million, the county has received $20.1 million, with only $1.87 million left to hit the full revenue projection.
Unlike previous years, out-of-county jail cell rental costs have been down. Vicites said the county has paid a small percentage of the $350,000 that was budgeted.
Vicites added that the county debt should be erased or nearly depleted by the end of the year. “It was a couple million dollars and it is way down,” he said.
In looking forward, Vicites said it is not known if the county will have to pay to implement a Voter Verified Paper Audit Trail (VVPAT) for the electronic voting machines. He said the county budgeted $500,000 for voting machines and only spent about $50,000.
“I think all three commissioners are concerned about the budget. We should focus on how to approach it, and since our system is improved we have a good check-and-balance system where we can detect if we go over any line items,” Vicites said.
Zimmerlink acknowledged money is available from the voting machine line item, but pointed out that the county has to pay for ongoing education related to the voting machines. She said the software and license agreements would continue for years to come, although the county already has a two-year license agreement on the eSlate voting machines purchased from Hart Intercivic.
She said if the county were mandated to implement a VVPAT, it would be because all counties of Pennsylvania would be required to undertake that additional cost. “State and federal governments issue mandates but don’t always fund them,” Zimmerlink said.
As the 2006 budget year is ending, Zimmerlink said her one concern is budget transfers that have occurred. “We shouldn’t have as many as we do,” she said. She said it could be a combination of unexpected costs in offices beyond anyone’s control or from offices going over budget.
Zimmerlink said in 2004 and 2005, the county had to pay bills carried over from the prior year and it caused problems for department heads. She said that has been improved by obtaining the most up-to-date numbers from the controller’s office and projecting for the remainder of the year.
“We have to keep in mind there are unexpected expenses, but we have taken steps to not use the current budget year money to pay past debt,” Zimmerlink said. “It caused problems with department heads and was unfair to them.”
She said the commissioners and county manager need to continue to improve the working relationship with department heads and row offices.
In planning the 2007 budget, Zimmerlink said one of her concerns is that state cuts have been made in human service agencies, such as Children and Youth Services. “When they do that, it falls on the responsibility of a local level,” Zimmerlink said.
Zimmerlink said plans are to approve a tentative budget at the monthly Nov. 30 meeting. The budget must be available for public inspection for 20 days and must be adopted before Dec. 31.
The three full days of budget meetings with various county departments are begin today at 8:30 a.m. with the Fayette County Prison first to share its wish list. Meetings will also be held throughout the day on Wednesday and Friday.