Montgomery County, PA

 

NORRISTOWN — The Montgomery County Commissioners introduced a budget for 2008 Monday that would reduce real estate taxes by $24.20 for the average homeowner, the second such tax reduction in the past two years.

 

The $483.8 million spending plan would drop the county tax rate 0.145 mills, from 2.84 to 2.695 mills, a 5.1 percent reduction.

 

The owner of a home assessed at $166,917, the county average, would pay $449.84 for the county portion of their real estate taxes next year, a $24.20 reduction compared to this year and a $32.55 reduction since 2006.

 

“This is the final budget for this administration and its one we can be proud of as we leave the County in superb financial strength for the next administration,” Commissioners Chairman Thomas Jay Ellis said.

 

“The budget is a win-win for taxpayers as it confers the second tax cut in as many years,” he said. “Taxes are actually lower than when we took office while we have increased spending on public safety, the cornerstone of our administration.”

 

One major area of savings the Commissioners were able to find was in fringe benefits for employees. While shopping benefits coverage to 25 different providers, the County was able to realize a savings of $1.8 million by switching to SUNRx for prescription coverage and a switch in life insurance providers will bring $172,000 in savings. The County’s other benefits costs were held to virtually no increase.

 

The budget is funded in part through a $33.4 million fund balance appropriation. That is a $22.5 million increase over the previous year. The fund balance is essentially an emergency reserve fund that, through careful monitoring of spending and cost cutting, the Commissioners have grown to $90.2 million. That is more than what fiscal managers recommend the County have on hand in the event of an unexpected crisis and surpasses what Moody’s, a financial rating service, requires the County have to protect its recently confirmed Aaa bond rating.
“We feel money is best held by our residents and not government,” Ellis said. Nonetheless, we believe this is a conservative budget that will enable the County to continue its fiscal strength into the future.”
The Commissioners also introduced a $56.3 million Capital Fund budget for 2008 that included $23.4 million for an addition to the County Correctional Facility, $12.1 million for renovations to the Court House and other County facilities and $5.5 million for bridge replacements and highway improvements.

 

The Commissioners are planning to spend $44.5 million on open space preservation in 2008 as well. That is part of the $150 million 10-year open space program that voters approved by an overwhelming 78 percent in 2003.