Commissioners approve $32.7 million budget
Roberto M. Esquivel|Herald-Standard
Outgoing commissioners Vince Zapotosky (left) and Al Ambrosini sign off on a $32.7 million spending plan that does not include a tax increase for property owners. Commissioner Angela M. Zimmerlink cast the lone no vote to the action.
Roberto M. Esquivel|Herald-Standard
Sam Lynch, county financial consultant, was hired last month by commissioners Ambrosini and Zapotosky to aid the county in preparing the 2016 budget.
A majority of Fayette County commissioners signed off on a $32.7 million spending plan which does not include a tax increase for property owners.
While expenditures exceeded revenues by $372,500, officials agreed to tap the county fund balance to equalize the figures.
The real estate millage rate will remain at 4.51448 with 4.18448 mills of the generated income designated to the general fund, and the remaining 0.33 mills earmarked to defray debt service.
Commissioners Al Ambrosini and Vince Zapotosky supported the budget with Commissioner Angela M. Zimmerlink casting the lone no vote to the action.
The officials unanimously supported action to secure a $7 million taxable tax and revenue anticipation note (TRAN) to cover first quarter expenses.
First National Bank offered the lowest interest rate for the short-term loan at 1.54 percent.
In a related matter, Ambrosini and Zapotosky ratified the hiring of the Pittsburgh law firm of Dinsmore and Shohl LLP, to act as bond counsel for the TRAN.
Zimmerlink voted against the matter.
She did not respond to a request to offer comment on why she did not support the budget.
Incoming Commissioners Vince Vicites and Dave Lohr, along with Zimmerlink, will be permitted to re-open the spending plan when they take office in January.
According to county financial consultant Sam Lynch, the path to adopting the budget was not an easy one to navigate.
Lynch, a senior consultant with Susquehanna Group Advisors Inc. of Harrisburg, was re-hired last month by Ambrosini and Zapotosky to aid the county in preparing the budget. Prior to his September 2014 dismissal by Zimmerlink and Zapotosky, Lynch had served in the capacity for 12 years.
He was also hired to provide assistance as the county sought the TRAN.
While preparing the figures, Lynch said he learned the county had yet to turn over the 2014 audit statement to its outside auditors.
It raised concern, he said, because it was due in September to Moody’s – a credit rating agency – to determine the county’s creditworthiness.
The firm annually reviews the county financial information and assesses its credit rating.
“The county is responsible for gathering the information for its external auditor, but it wasn’t getting done,” said Lynch. “When I was relieved of my duties, it was still the responsibility of the controller’s office to get this done.”
While an outside firm was hired to tally the figures, it was unable to transfer the information to the outside auditing company to complete the analysis by the Sept. 30 deadline.
“I came to learn it wasn’t done in October or November either,” said Lynch, adding that he was advised by the outside auditor that the county controller’s office was notified by Moody’s of the expiration of the deadline and the pending consequences.
Leaving the matter unresolved could result in the county’s credit rating being downgraded and its outstanding $20 million debt due immediately to the creditors, he said.
Ambrosini said a decline in the credit rating would financially devastate the county.
“It would put the county in severe financial jeopardy,” he said.
As Lynch proceeded with securing a TRAN in early December, the local financial institutions also needed the 2014 audit statement.
“I worked for five straight days to get it done, and had (county Chief Clerk) Amy Revak send it out to the banks,” said Lynch. “I had no idea what (the financial condition of) 2014 looked like until I was done.”
At Ambrosini’s and Zapotosky’s request and in cooperation with Revak, Lynch sent the unaudited 2014 figures to Moody’s and shared the findings with the county’s auditing firm.
After some discussion with Moody’s personnel, Lynch said the deadline for the audited figures was extended to Jan. 31. The new date will allow the local firms to complete their respective work.
“My figures will be adequate until the official audit is done,” he said. “They were able to see that the county had a small surplus, enabling the county to maintain the current credit rating.”
Ambrosini speculated that the turnover in the controller’s office has resulted in the “lack of functionality.”
“It has been in disarray since the departure of Sean Lally,” he said.
Lally resigned in May 2014 to take a position with the borough of Monroeville. Then-Deputy Controller Jeanine Wrona took over. She retired in September.
Sydney Bush is the current acting controller.
Democrat Scott Abraham, who won the controller position in November, was sworn in as chief deputy controller shortly afterward to become familiar with the operation of the office.
Ambrosini said that he is grateful to Lynch for agreeing to return, tackling the budget and resolving an issue that he was not initially tasked to undertake when hired.
“I am very thankful that he accepted our offer to return,” said Ambrosini. “His financial expertise and commitment to Fayette County saved us from having our credit-rating downgraded, and gave us a balanced budget for 2016. He is to be commended for his work.”