New commissioners begin budget review
The new Fayette County administration began its review Monday of the 2016 budget approved in December by its predecessors.
According to the county code, the incoming commissioners — Vincent Vicites, Dave Lohr and Angela M. Zimmerlink — have the authority to re-open the $32.7 million financial plan that was adopted by former Commissioners Al Ambrosini and Vince Zapotosky before the end of 2015.
During the morning meeting, the commissioners and county Controller Scott Abraham brought forth several issues, with much of the discussion tied to the projected collection rate of real estate taxes for the upcoming year.
In the 2016 budget, the rate was listed at 92 percent, up from 91 percent in the prior year.
“We’ve never been at 92 percent,” said Vicites.
Abraham indicated that in mid-December the collection rate was at 89 percent, but added it could increase if property owners waited to turn over the real estate payments after the rate was determined.
However, Vicites concluded that while additional money may be turned over by tax collectors, it would be unlikely it would increase it to the 91 percent level.
“It might be a modest increase, but it will not be (at the projected 2016 level),” he said. “(A lesser collection rate) changes the whole dynamic.”
Revenue for the county is generated from several sources with real estate taxes being the primary income.
According to the 2016 budget, $21,232,396 in real estate tax is expected to be generated based on the county assessed valuation.
In 2015, the estimated collection amount was $19,186,266 at the 91 percent level.
County Chief Assessor Bill Lukach said Monday that the amount collected as of mid-December is $18,986,275.
“Our year-end settlement date for the tax collectors is Jan. 20,” he said.
In 2013, the county collected 90 percent, or $18,783,004 in real estate tax revenues, and in 2014, collected at a 91 percent level that generated $19,251,639. The budget set the benchmarks at 91.5 percent in 2013 and 87.5 percent in 2014.
The three commissioners indicated they would be reluctant to push it to the 92 percent collection rate when historically the amount has hovered closer to 90 percent.
“The revenue side has to be really conservative,” said Vicites. “It is going to take a lot of examination to make sure it is realistic.”
Should the projected collection rate be decreased to the 90-percent level, it will reduce the revenue income by about $2.2 million. The reduction will also require the same amount to be cut from the expenditure side of the budget.
“That is going to tough,” said Lohr, noting that salary increases are in place, along with other contracts.
In other related matters, the board agreed to have each department director meet with the panel to discuss both revenue and expenditures for its operation.
Zimmerlink said that she wants to ensure that the receipt of grant money indicated by the department for certain expenditures is forthcoming and will not become a financial burden to the county budget later in the year.
“We allocated matching money and want to make sure that if a grant is part of the (revenue side) of the budget we know what the amount is,” she said.
The commissioners and controller also discussed the need to have a detailed budget for the Act 13 Marcellus shale fund.
Abraham indicated that it was unclear what Act 13 monies was allocated to budgetary items.
The panel additionally discussed other discrepancies found in the budget document, including an apparent $60,000 mistake in the warden’s salary figure and items listed as revenue but not expended.
“We have it coming in, but not going out,” said Zimmerlink.
The commissioners and controller agreed it would be beneficial to have Samuel Lynch, senior consultant with Susquehanna Group Advisors Inc. of Harrisburg, return and review the budget figures.
Lynch consulted with the county during the preparation of the budget.
The commissioners will meet daily to review the 2016 spending plan. An amended budget is to be presented on Jan.29 and adopted Feb. 12.