Taxes won’t increase for Mercer residents

The county fiscal director expects the county to break even this year.

By MARY GRZEBIENIAK

VINDICATOR CORRESPONDENT

MERCER, Pa. — The projected 2008 Mercer County general fund budget shows a 3.3 increase in costs and a $1.2 million shortfall that will be made up from surplus funds from previous years.

This means that for the third consecutive year, there will be no increase in real estate taxes for county residents.

Between 2001 and 2005, county taxes rose from 10.25 to 20.75 mills. One mill of tax brings in $1,036,400.

County Fiscal Director John Logan said when commissioners met Thursday that the shortfall may not be as high as he is projecting. He said that he has deliberately estimated expenditures high and revenues low as a protective strategy.

His strategy evidently worked this year because Logan said that an anticipated $895,000 shortfall for 2007 has largely evaporated, making it likely the county will break even this year.

Commissioners approved the $26.6 million preliminary 2008 general fund budget, which shows an $844,723 increase in anticipated expenses over 2007’s projection.

The general fund is the one used to operate county government offices.

While nearly $70 million total funds will pass through the county next year, most of the sum is federal and state money designated for special purposes such as bridges or Community Development Block Grants.

One area driving increased general fund costs, Logan said, is the county’s share for Children and Youth Services. These are mandated services for abused, neglected and dependent children.

Logan said the county is expecting a possible $600,000 increase in client service costs but a $200,000 reduction in state revenue next year.

The county is appropriating an additional $200,000 to CYS, but final figures will not be in until the state passes its budget next summer. Costs for juvenile probation are also expected to increase by $350,000, the result of local judges taking a harder line on gang violence, officials said.

Logan said that despite the anticipated shortfall, the county is in excellent financial shape as attested to by the fact that it has an “A” bond rating. This rating will allow commissioners next month to save Shenango Valley residents $7 million by guaranteeing bonds for the $35 million new sewage treatment plant, he said.

The preliminary budget will be available for public inspection in the commissioners’ chief clerk’s office on the first floor of the Mercer County Courthouse until final budget adoption Dec. 27.

Current county millage is 20.75 mills distributed as follows: general fund, 17.75 mills; 2001 Bond Sinking Fund, 2.25 mills; Capital Reserve Fund, .50 mills; and Economic Development Capital Reserve Fund, .25 mills.

In the quarterly meeting of the Mercer County Employees’ Retirement System, which followed the commissioners’ meeting, county Controller Thomas Amundsen reported the employees’ pension fund is doing well.

He said that because of a good return on investments, the county will have to contribute only $500,000 to the fund in 2008, which is $100,000 less than this year. Actual returns on pension fund investments are 7.31 percent, which is better than the 6.26 percent required by law, he added.