For the 11th consecutive year, no real estate tax increase is proposed in Centre County’s budget.
County commissioners on Tuesday voted to adopt the proposed 2021 budget and authorize a 20-day public review period. Adoption of the final budget is scheduled for the board’s Dec. 29 meeting.
With no tax increase, the county’s millage rate will remain unchanged at 7.84 mills.
‘I think the most important major highlight is that for the 11th consecutive year there is no increase in taxes while we are able to continue providing quality programs, services and supports to the citizens of our county,’ County Administrator Margaret Gray said. ‘No doubt this year has been a challenging one due to the pandemic. We have experienced some fluctuations in revenues and made adjustments to our revenues accordingly, not only for this past year but as we consider those revenues and expenditures for 2021 as well.’
The total proposed budget is $81.7 million, including an $80.8 million operating budget and $900,000 capital budget.
Revenues for the general, special and other funds are $78.6 million, a decrease of 1.4% from the 2020 budget.
Tom Martin, director of financial management, said areas projected to be impacted by the COVID-19 pandemic include the real estate tax collection rate, hotel tax revenues, reduced revenue for county services, lower interest earning rates and grant revenue.
Assessed property value is expected to grow 1.04%, a 1% decrease from 2020, but generally in line with growth rates over the past decade.
‘That growth helps to allow us to not have to have any increase in property taxes, so it’s an important thing,’ Martin said.
The county’s money market interest earnings are projected to be $75,900, a steep decrease from the nearly $300,000 in 2020 and the lowest in at least 10 years.
Federal and state grants and payments in lieu of taxes make up the largest portion of the general and special funds budget at about $34 million, or 43%. Real estate taxes total about 34%, with $23.1 million going to the general fund and $4.1 million to debt service. Departmental earnings for services comprise 17% of the budget at $12.9 million and internal charges for services 6 percent at $4.5 million.
Expenditures decrease overall by 1.7% percent from the 2020 budget.
Employee salaries are funded at their current levels and benefits remain the same with no increase in employee contributions. Total salary and benefits costs for the county are about $36.6 million, a 2.5% decrease from the 2020 budget.
The budget includes continued funding from PEMA to complete the Emergency Communications interconnectivity project, Martin said.
Human Services at $29.65 million and Corrections at $13.73 million comprise more than half of general funds expenditures, with administration and judicial making up about 13 percent each.
The budget maintains general fund reserves of $7.5 million, or 10.87%, which is within the range recommended by the Government Finance Officers’ Association, Martin said.
Capital fund projects include completion of courthouse renovations, facility upgrades and repairs, camera upgrades for county buildings, and top coat for the Willowbank Building parking lot.
‘We approach every budget, but I think this one in particular, with the idea that throughout the year in 2021 we may need to make adjustments,’ Board of Commissioners Chair Michael Pipe said. ‘We may need to make strategic moves in certain areas to make sure our budget crosses the finish line in a judicious way at the end of the year. … County services are so crucial [not only] during a pandemic but any time. So this is an excellent way that we can communicate to our citizens the promise and trust that we have in them and they have in us regarding the services we will continue to provide and have been providing.’
Commissioner Mark Higgins said ‘there are very few counties in the state,’ that can claim 11 consecutive years without a tax increase.
Commissioner Steve Dershem noted that level funding for counties in the state budget ‘allows us to operate pretty effectively without making cuts that even a couple of months ago we thought might be imminent.’
He believes services will continue at the levels needed and expected by county residents.
‘As we move forward hopefully we don’t see any surprises, but… we will adapt and overcome whatever obstacles we have through the budget for 2021,’ Dershem said.
