Commissioners adopt 2017 budget that maintains tax rate
Fayette County commissioners put their stamp of approval on the 2017 budget that includes a modest cost-of-living increase for the county non-union workers and the addition of staff to overburdened offices.
In unanimous action Thursday, Commissioners Vincent Vicites, Dave Lohr and Angela M. Zimmerlink authorized the spending of about $33.5 million next year that includes a 2 percent salary hike for workers and no tax increase for its residents.
“I think it is a solid budget,” said Vicites following the meeting. “We worked very hard on it.
“We looked at every line item; the request, historical spending and what we spent this year to come up with the amounts.”
As the officials were preparing to present the spending plan last month, it was learned that a loan principal payment would have to be made beginning in 2017, creating a “12th hour” deficit, said Sam Lynch, Susquehanna Accounting and Consulting Solutions Inc. senior consultant.
“(The budget) was balanced until I was told there would be this principal payment due on the $10 million loan that had been taken out two years ago,” he said.
The additional cost caused a $1.4 million shortfall between revenues and expenditures. To eliminate the deficit, Lynch said about $6 million of the loan would be returned and the remaining payments extended to trim the annual expense.
Lynch said the budget also allows for the hiring of one full-time staff person for the clerk of courts and one department head that will oversee the new storm water management and solid waste office.
“The court system is handing down a lot of mandates that have to be handled by the clerk of courts office,” he said. “(Director Janice Snyder) has come in every year and asked for additional help, and this year the money was available to do that.”
Vicites said the creation of a solid waste department will allow for a more robust recycling program and oversight of new mandates being issued regarding municipal storm water management.
The estimated $35,000 position has yet to be filled.
Vicites said state allocations and municipal fees will defray the salary cost to the county.
A part time position was also added to the court system to ease its workload.
The pay increase for non-union workers, meanwhile, will cost the county about $60,000, said Vicites.
“I think it is justifiable,” he said
According to the figures, the county will collect about $25 million in real estate taxes, $4.1 million in service charges and $2.6 million in intergovernmental revenue, along with other sources for a total amount of $33.475 million.
Public safety remains the leading expenditure for the county at $10.8 million with general government and the judiciary each costing about $8 million.
The budget maintains the 2016 millage rate of 5.514.
“I think it is a solid budget, but a budget is only as good as the daily monitoring of it, making sure you stay within the blueprint,” said Vicites. “If we stay within the blueprint we should be in better fiscal shape next year..”
In a related matter, commissioners agreed to secure a $7 million Tax Revenue Anticipation Note (TRAN) from First National Bank and ratified the selection of the law firm of Dinsmore and Shohl of Pittsburgh as bond counsel for the tax anticipation note.