County Scrambling to Balance 2017 Expenses While Communities Stay Committed to No Tax Raises

by Jonathan Weaver

All Armstrong County municipalities have or will submit a preliminary plan of their financial plan for 2017 this month before final votes in December.

Armstrong County

The largest use of taxpayer dollars up for vote before the end of the year, though, will be at the county level – decided by the Armstrong County Board of Commissioners.

Though, commissioners still have some work left to do before they vote on the final budget in December.

As Assistant Director of Administration Jennifer Long explained earlier this month, the county General Fund is projected to receive less revenue than in 2016 (specifically in departments such as tourism, financial management and corrections, even with departments such as human resources, planning and domestic relations projected to receive more revenue) and expenses will rise by about $500,000.

But, it could’ve been much more of a deficit, Long said.

“We started this budget process back in August and met with every single department, elected official or department head, and we went down through their wants and needs and where they see their department going,” Long said. “And, we met with elected officials a couple of weeks ago and at that time, we were at a $1.5 million deficit.

We went back to the drawing board and came up with a balanced budget. , and most of those areas we were able to make those cuts and adjustments – some areas we weren’t,” Long continued. “We’re going to go back and look at it line-by-line, some of the areas you can control directly.

It will impact everybody under the umbrella of county employment”

Despite the deficit, commissioners are committed to not raise taxes to balance the budget.
The budget also allows for a six-percent rise in health insurance costs

There were no salary increases allocated for at-will employees, nor was there any money set aside for capital expenditures. At-will employees also did not get a pay raise in 2016.

Former County Commissioner Rich Fink pointed out several employees within the county departments are to receive wage increases by way of union membership.

“It’s wrong to do that to people who don’t belong to a union. You’re sending a message to the at-will people,” Fink said. “There are many at-will employees in this county that deserve a hell-of-a-lot more than what they’re getting – you need to take that into consideration.”

Commissioner Fabian said the decrease in revenues wiped out money allocated for those wage increases.

“We’d love to give every single employee raised year-after-year. That’s just not possible at this time,” Fabian said. “If we have the money, we’ll give it.”

“We can only give what we have, and if we have nothing to give, at the end of the day it is what it is,” Commissioner Jason Renshaw added. “We have to work more with less and live within our means.”

The final County budget will be presented December 15.

East Franklin Township

East Franklin Township is projected to receive more revenue than expected in 2016, meaning supervisors will be able to balance the budget with money to spare.

Township Supervisors Barry Peters, Dan Goldinger and David Stewart discussed the projected-$1.23 million funding plan for next year with Township Secretary Debra Cornman and a handful of residents – a budget that is projected to earn $6,000 more than even expected in 2016 to keep real estate taxes at six mills.

“We’re in the good by $13,786 unless anyone wants to change any line item,” Cornman said.

The extra revenue in 2016 and expected next year will allow supervisors to continue paying an overall $10,500 deficit that could be realized from sewage treatment plant operations, a contractual salary increase in the police department, and increased building loan payments.

The current loan schedule allows the township to pay off the new township building/police station along Cherry Orchard Avenue– which was opened by January 2014 but final items not completed until August 2014 – on an expedited timeline rather than in more than 20 years, Cornman explained.

The township should begin with more than $330,000 in reserves and received more in tax revenue that expected this year – both in current and prior bills and via delinquent homeowners.

Between property taxes and income/service taxes, taxes made up slightly more than $1 million worth of the township’s revenue in 2016 and also will in 2017.
East Franklin also earned more than expected after selling a 2007 Peterbilt truck to Sugarcreek Township, earning more in Act 13 Marcellus Shale Impact Fees and by hosting two Trash Weeks – one each in the Spring and in the Fall – rather than only one.

Cornman did not predict wage increases for herself and Assistant Secretary Carla Scholl since those wages are not determined until after the New Year.

Cornman and Scholl did receive at least a $1 raise per hour in 2015, as well as did part-time Police Officer Robert Gahagan, Roadmaster Ron Lithgow, and part-time work crew members Norman Bennett and Dean Hepler.

Expenses for line-items such as professional engineering services, meetings and conferences and miscellaneous office supplies were also budgeted for even though those funds have not been spent this year. Some of those line-items were necessary in 2015.

No more budget workshops are scheduled before township supervisors vote to advertise the tentative budget at their November 22.

Ford City Borough

Ford City Borough’s 2017 funding plan predicts a nearly-15 percent loss in total income – trimming the budget overall to $6.9 million.

Specifically, the funding plan – which will be advertised and available in the Borough office for the next few weeks –includes increases in projected tax revenue and grants, but more than $1 million less in public utility revenue after Council members elected to change inter- and intrafund transfer accounts following an audit.

Council President Carol Fenyes explained.

“Technically, these collections are pass-through amounts to the Sewage Authority, in the case of sewage receipts, and the General Fund, in the case of garbage and landfill collections – not income to the Public Utility Fund,” Fenyes said.

Finance Committee members also had to realize other hardships, but are not projecting a tax increase. Property owners would still be expected to pay 17.4 mills in taxes.

Fenyes explained Finance Committee members asked Borough Accountant Virginia Finnegan to assume several things when they began work in mid-September, including around-the-clock police protection, Borough employees’ projected raises and at least a 20 percent increase in healthcare premiums.

“And that the Council would not raise taxes,” Fenyes concluded. “With those assumptions in place, the Finance Committee faced a budget that fell short by $178,000 in the General Fund.”

A preliminary review of the budget includes less salary for a part-time Borough Manager (recommended to be Police Chief Michael Greenlee) and other salaries, but benefits from less funding needed for the new water treatment plant and retirement benefits.

Both Councilmen Tyson Klukan and Marc Mantini had reservations about Chief Greenlee’s employment for six months as Borough Manager – even though Mantini agreed “only on an interim period.”

More discussion on the budget is projected to occur during the Council special meeting November 28.

Kittanning Borough

An increase in revenue will offset rising hospitalization expenses in 2017, leaving Kittanning Borough poised for a balanced budget.

Borough Council voted 5-1 to tentatively adopt their 2017 budget – a nearly-$2.6 million spending plan that does not assume increased tax or garbage rates, Finance Chairman Wilbur Stitt said.

“No tax increase – that’s the main thing,” Stitt said. “(Former Council President and current Councilman) Gerald Shuster (would call this) a ‘bare-bones budget.’
“No extras – there’s no money left for anything.”

Council President Kim Fox said there are some changes compared to last year’s budget, though – which Stitt said included a more-than $45,000 increase in police officers, garbage and street workers’ hospitalization costs.

Stitt said Borough Council is actively negotiating with those entities to select healthcare plans, but is not aware of an agreement.

Overall wage decreases and fund transfers helped to offset the rise in healthcare expenses.

First Ward Councilwoman Betsy Wilt asked to delay the vote until after a work session to review revenues and expenses, but Councilmen Ange Turco and Shuster motioned and seconded the agenda item.

“I haven’t even had a chance to look at it,” Wilt said. “I do think that we should sometimes come together and discuss things.”

Wilt expressed that she felt un-invited to a committee session to discuss the budget last week – which Stitt apologized for.

The tentative budget was approved 5-1, with Councilman David Croyle opposed and Councilmen Chris Schiano and Andrew Peters absent.

Council members also voted and approved to advertise the 2017 budget ordinance and review possible tax anticipation loan offers – both also approved 5-1.

The largest expense for the Borough next year will continue to be related to the Borough police department, with a reported-roughly $850,000 budgeted toward overall police protection.
The budget will be available for public inspection until the next Borough Council meeting in December.

Manor Township

With $1.4 million available to Manor Township supervisors in 2017, township supervisors do not plan to raise taxes next year.

After a pair of special meetings to review the six fund budgets and calculate a tentative budget, taxes are projected to remain at six mills.

Taxes haven’t been raised in more than a dozen years.

The tentative budget was approved by Supervisor Vice-Chair Bob Southworth and Supervisor Don Palmer. Chair Paul Rearick was absent.

It was Supervisor Palmer’s first budget process with Manor Township.

“I think this budget process went very well. We moved a lot of things around to clear money from some areas and move it into more-priority areas. It worked out very well, and we’re happy to report that we’re not going to have to raise taxes,” Palmer said. “The very last thing I’d ever want to consider is raising taxes.”

A single mill of township taxes will go toward the volunteer fire department as usual.

Last year, according to a document submitted by Fire Department First Lieutenant and Treasurer John Breski, the fire department received about $46,500. A majority of that (more than $13,700) went toward miscellaneous truck expenses, and more than $9,000 each went toward the fire hall along Byron Street and the new engine.

Officials expect to pay about $963,000 in expenses across the general fund budget in 2017.

More money is expected to be paid this year for, among other things, more police coverage and Senate Engineering projects. The police department budget makes up about $150,000.

Officers are expected to patrol the municipality up to 500 hours per month in 2017 – up from the 397 hours scheduled for November.
“Our schedule next year with that extra 100 hours will completely change. The (officers) will be out nights more, weekends more – it’s going to vary,” Sergeant Terry Bish said a few months ago after a budget workshop.

“The township’s moving forward in a lot of different ways. I’m very happy to see that,” Palmer added.

Each supervisor also wrote a five-year plan.

North Buffalo Township

During the past few years since a tax increase, North Buffalo Township has slowly built up its revenue and will realize its largest financial budget since at least the beginning of the 21st century.

Following two budget workshops, North Buffalo Township Supervisors David Wolfe, Clark Whiteman and Paul Kirkwood approved to advertise a $1.2 million budget until mid-December.

The current tax rate is 5.15 mills, and supervisors do not anticipate raising that anytime soon.

Supervisors will carry over a nearly-$91,000 surplus to begin 2017 with, and hope to use that money to purchase a new security system, windows at the township building, road and maintenance equipment and a salt shed.

“We operated this year with fewer people,” Wolfe said. “Before we filled those positions, we were still doing our work. With this budget, we have budgeted for the amount of personnel that we’ll need and hopefully we’ll be able to fill a police (vacancy), and there’s still room left if we need to add somebody.”

Wolfe was enthusiastic that township property taxpayers may even receive a tax break by 2019.

“We’re going to keep watching this and hopefully that will come full circle,” Wolfe said.

Supervisors thanked Township Secretary Pam Bowser and Tax Collector Lisa Bauer – who also was heralded for recovering nearly all of the delinquent taxes.

No Comments

No comments yet.

RSS feed for comments on this post.

Leave a comment

You must be logged in to post a comment.