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Westmoreland County Adopts 2003 Budget: $286.6
Million Budget Holds Line on Taxes, Improves County Infrastructure
Posted 12-30-2002
The Westmoreland County Board of Commissioners today adopted the county's 2003
operating and capital budget. The $286.6 million budget maintains the existing property
tax rate, includes a $34 million bond issue for three important capital projects, and
preserves more than $8.3 million in the county's fund balance for future use.
The budget passed 2-1 at this morning's
commissioners' public meeting after 20 days of public review.
"Westmoreland County is not unlike the
federal and state government in experiencing very difficult budget times. The cost of
doing business is continuing to increase, while revenues remain essentially
stagnant," Chairman Tom Balya said. "But throughout the past month, we have been
able to trim more than $4 million from the proposed budget and tap additional sources of
income to respond to these challenges. We've been able to limit the growth of county
government, while holding the line on taxes and maintaining the high level of services the
county provides."
"Working with our budget office we've
been able to implement a responsible spending plan that meets the taxpayers' needs from a
financial standpoint, while still delivering necessary social and emergency services in
the highly professional and effective manner they have become accustomed to," Vice
Chairman Tom Ceraso added.
Highlights of the budget cuts implemented
by Commissioners Balya and Ceraso during the public review period include:
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Cutting $1.6 million in proposed capital
expenses.
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Reducing General Fund transfers to Domestic
Relations, Westmoreland County Community College, and 911 by $855,507.
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Abolishing five full-time positions that
were vacant, for a savings of $100,570.
"We will be implementing a hiring
freeze in 2003 for all non-essential positions that become vacant throughout the
year," Balya said. "And even though our overtime costs dropped by 17 percent
this past year, we will continue to keep a close eye on overtime to find any additional
savings."
In addition to cutting $4,073,037 in
General Fund Expenses, the budget uses portions of the designated fund balance to offset
specific expenses in 2003, including Post Closure Trust money to finance the Westmoreland
Conservation District and funds from the Westmoreland County Community College asset sale
to supplement debt service payments in 2003.
Budget cuts and other cost-savings measures
will allow the county to maintain more than $8.36 million in the fund balance -- the
county's "savings account" -- for future use. This amount is up from $1.5
million in the proposed budget.
"It is prudent that we maintain
necessary reserves in the event that the economic outlook of the county and, for that
matter, the state, does not improve in the future," Balya said.
The county's property tax rate will remain
at 16.99 mills; the same amount as increased to in 2001. Only $58.9 million-- or about 20
percent -- of the county's $286.6 million budget is funded through property taxes. The
balance is funded through state and federal programs.
County tax revenues in 2003 are expected to
rise only $75,521 -- or less than one percent -- from 2002. This increase in revenue is in
stark contrast to the rising cost of healthcare and insurance coupled with increases in
existing contracted vendor obligations and labor union wages. For example, the cost of
healthcare alone for county employees rose by more than $800,000, despite moving certain
employees to more cost-efficient coverage. Also, because state and federal reimbursements
are not keeping pace with the number of children to be adopted or placed, the county's
contribution to the Children's Bureau in 2003 must increase by $870,000.
Overall, administrative expenses for the
county increased by only 1.5 percent.
"This budget is responsible and
forward-thinking," Ceraso said. "The $34 million bond issue will fund three
major projects that are important to the county's future -- the 800-MHz emergency radio
system, a new juvenile justice center, and energy-savings capital improvements through the
Guaranteed Energy Savings Act."
Other 2003 budget highlights include the
purchase of the Loyalhanna Gorge in Ligonier, Derry, and Unity Townships and the
construction of the Five-Star Trail from Hunker to Scottdale. The cost to the county for
both of these projects is only $4,500, with the remainder offset by grant revenue.
As required by state law, the county budget
has been on display and open for public comment for at least 20 days. The Board of
Commissioners approved the proposed budget on December 5.
The 2003 adopted budget is available
on-line through the Westmoreland County home page at www.co.westmoreland.pa.us. |
