Commissioners adopt $29.8 million spending plan for 2015
Fayette County commissioners took less than 20 minutes to adopt a 2015 budget on Monday, and approve a $6 million tax revenue anticipation note (TRAN) to cover first quarter expenditures.
In 2-1 vote, a $29.8 million budget was accepted, but the two commissioners approving the action did not sign the copy presented to them by Chief Clerk Amy Revak following the special meeting.
Commission Chairman Vince Zapotosky said that he intended to sign the document after Revak formatted the paperwork.
“The figures are correct,” he said later in the day. “In its present form it is very lengthy and it can be reduced.”
The spending plan maintains the real estate tax millage rate at 0.00451 in 2015. For example, a property owner with a home assessed at $50,000, will again pay $225 in real estate taxes while the owner of a home assessed at $200,000 will pay $902.
According to the figures, the county expects to garner $20.7 million in tax revenue; $2.5 million in intergovernmental revenue and about $3.8 million in service charges along with other income to meet the 2015 budgetary expenditures.
Zapotosky and Zimmerlink said the county will tap a $2 million fund budget that resulted from excess 2013 revenues to pay the $829,423 debt service. An additional $300,000 from the excess revenue was used to balance the budget.
Earlier, the tentative budget showed a $2.6 million deficit.
Zimmerlink said that a combination of reducing expenses and savings in next year’s health care costs, allowed for the balancing of the budget.
While a 3 percent salary increase for non-union employees was included in the tentative plan, it was reduced to a 2.5 percent wage hike in the adopted budget.
The spending plan also cut funding for various part time positions to equalize revenue and expenditure figures, said Zimmerlink.
The budget additionally includes an annual required contribution (ARC) payment to the county pension fund.
“It has been budgeted and will be paid,” said Zimmerlink, adding that it has been several years since a payment has been made to the fund by the county.
Zapotosky said that he is pleased with the spending plan as it does not include any “possible” income, only revenue that can be reasonably anticipated by the county.
“This is the truest budget I’ve ever seen,” he said, adding that the budget will allow for certain capital expenditures, including the replacement of the telephone system in the courthouse and needed roof repairs to the building.
Commissioner Al Ambrosini, who cast the lone no vote for the spending plan, said his dissent was due to the dismissal of Samuel Lynch, Susquehanna Group Advisors Inc. senior consultant.
The Harrisburg firm has aided the county in its budget preparation for many years. The county cut its ties with the company in October over alleged over billing by Susquehanna.
“A budget process is a year long process and (Lynch) watched over that process,” he said.
“Everything (Lynch) did was in the best interest of the county.
“Changing accounting firms in October is not prudent. (McClure and Wolfe) informed us that they could not guarantee the accuracy of their results for two years.
“It was a poor decision and if the accounting firm can’t guarantee their results, how can I be confident with the budget figures?”
The Uniontown firm was hired to aid with the budget process.
Zapotosky, meanwhile, said that Ambrosini should have participated in the budget process.
“(The process) is more than just listening to department heads telling us what we need,” he said. “It’s ledgers and paper and taking time to go through the numbers.”
In a related matter, the commissioners unanimously agreed to secure a $6 million tax revenue anticipation note from First Commonwealth Bank to meet its financial obligations before real estate tax revenues are received.
Mark Lundquist, of Susquehanna Financial Advisors, Mechanicsburg, said that five bids from regional banks were received with First Commonwealth offering the lowest fixed interest rate of 1.255 percent.