Montgomery County, PA

NORRISTOWN — The Montgomery County Commissioners introduced a $435.4 million budget for 2005 Tuesday that includes a small tax increase to cover payment of voter-approved debt for open space preservation.

The owner of a home assessed at $164,051, the county average, would pay $474.10 for the county portion of their real estate taxes next year, an increase of $8.20.

The county tax rate would go up 0.05 mills from 2.84 mills to 2.89 mills. A mill equals $1 per $1,000 of assessed value.

The proposed tax increase is expected to generate $2.6 million in new revenues and the budget includes $2.7 million in new debt payments on $60 million the County borrowed earlier this year. This borrowing was to finance the first phase of the 10-year $150 million Green Fields/Green Towns program that voters approved by an overwhelming 78 percent margin.

A list of open space spending already approved by the Commissioners is attached.

The preliminary budget increases spending by $28.8 million (7 percent) from $406.6 million to $435.4 million.

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Major increases in expenditures include an additional $2.1 million contribution to the employees’ pension fund over last year’s budgeted figure of $1 million. The County must, under state law, budget certain contributions for its pension fund when its actuary determines it may be necessary.

The County ultimately did not have to make the $1 million payment to pension fund this year because market conditions improved to the point where it was unnecessary. It is believed the County may not have to make payment to the pension fund again next year. In light of that, the Commissioners decided to take the additional $2.1 million in potential expense from the budget’s unappropriated balance to spare taxpayers from carrying that burden.

Other major increases in expenditures include $5.9 million in salary hikes that will average out to 4.18 percent for the County’s 3,157 employees.

The budget is up $1.3 million for employee health insurance, an increase of 4.4 percent. The Commissioners were able to keep that cost increase low compared to the marketplace by negotiating a new benefits package for employees.

Employees will continue to have Independence Blue Cross coverages without payroll deductions, but with some minor co-pay increases. Those increased co-payments will be more than offset, however, by a new flexible spending account program that will allow employees to use pre-tax dollars for most medical and dependent care expenses.

The County contribution to the Montgomery County Community College is up $800,000 over 2004 and up $106,000 to the Montco-Norristown Public Library. The County’s contribution to mass transportation is also up $430,000.

The revenues various county departments gather through fees and billings are expected to increase by $6.5 million (15.3 percent) from $42.4 million to $48.9 million.

Grants the county receives from the state and federal governments to deliver human services are expected to increase by $9.9 million (5.8 percent), from $170.2 million to $180.1 million.

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The Commissioners also introduced a $22.6 million Capital Fund budget for 2005 that has $4.2 million for computer equipment, $4.75 million for the Community Revitalization program and $3 million for a new Emergency Operations Center.

A public hearing on the budget is scheduled for 3 p.m. on Tuesday, December 7^th, in the Commissioners Board Room on the 5^th floor of the Montgomery County Court House. Final Budget adoption is scheduled for 9:30 a.m. on Wednesday, December 22^nd.