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Mercer Co. commissioners increase property tax
For now, the county doesn’t expect to lay off county workers.
MERCER, Pa. — Mercer County commissioners unanimously authorized a 2-mill property tax increase as they approved the 2009 county budget.
The 2 mills will bring in $2 million annually and cost the average property owner $34 per year, officials said Thursday.
The increase brings total county property tax millage to 22.75 mills. Of that, 19.75 mills go to the general fund, 2.25 to a bond sinking fund, a one-half mill to the capital reserve fund, and one-quarter to an economic development capital reserve fund.
The preliminary budget, introduced in November, earmarked the 2 mills to be set aside so the county could raise enough money to meet its $6.2 million obligation if the financially troubled Woodland Place nursing facility is sold.
The commissioners, however, revised that distribution and will now use a half-mill of the 2-mill increase for county general fund operating revenues.
They said the general fund might need the additional money for several reasons.
They are uneasy about the possibility of state cuts that the county might have to make up with local funds. They also still have to finalize contracts with several unions that represent a large number of county employees.
Commissioner John Lechner said that “a certain amount” has been set aside for 2009 pay increases, and commissioners, right now, do not contemplate layoffs or cuts in benefits. He added, however, “We can only live with a certain level of costs.” The county has a $12 million annual payroll.
Another unknown is what effect the economic downturn will have on property tax revenues.
Commissioners again hinted that some sort of legal agreement between Woodland Place officials and the county on the nursing home is coming soon but would not be more specific.
The county would have to come up with $6.2 million to meet its obligation for the facility’s indebtedness if the financially troubled nursing home is sold.
The county is liable for the debt because a previous board of commissioners guaranteed an $8.8 million bond for updating the home, which was purchased from the county. Thus far, the county has had to make $2.6 million worth of the loan repayments because Woodland Place has only been able to pay $115,000 toward the debt.
The 2009 county general fund budget, which pays for the operation of county offices, projects that expenses will outstrip income. County Fiscal Director John Logan, however, reported that since the preliminary budget was revealed in November, county officeholders and department heads have agreed to cut $800,000 from their initial budget requests, about a fourth of that sum to be saved by not filling vacant positions.
This reduces the shortfall expected in 2009 to $1.4 million, a sum which will have to be paid from the $5 million the county has accumulated from surpluses in past years.
The budget figures approved show $26.9 million in general fund revenues and $28.4 million in expenses.
The overall county budget shows $63.5 million in revenue and $67 million in expenses. These figures include many federal and state funds that pass through the county, but which the county has little control over.