Clarion County commissioners gave county residents something to be thankful about Wednesday as they rolled out their proposed 2022 budget with a tax decrease of half a mill.
Commissioner Ted Tharan said the tax cut isn’t in the general real estate tax but in the 1.5 mill debt service tax that has been reduced to one mill.
“The debt was inherited by this board of commissioners,” said Tharan. “Prior boards had financed the purchase of the administration building and the Human Services building. They refinanced when they put the new roof on the courthouse. This board has paid for everything we purchased,” Tharan added.
“This is a fiscally sound budget,” said Commissioner Ed Heasley. “We want to thank the elected officials and department heads for helping us keep costs in line.”
“The last tax increase we had in Clarion County was in 2012,” said Tharan. “We have rebuilt and improved the county and that doesn’t just happen.”
Tharan said the county’s debt service tax had actually generated more income than the debt payment. He said the monthly payment on the debt is $38,800 and the annual payment is $465,611.
Tharan said the tax revenue was $564,459 in 2017 and the surplus has been growing since the debt was refinanced in 2017.
County budget director Rose Logue said the money raised by the one mill would be about $74,876 short of the annual payment, but that money would be taken from the reserve. The balance of the principal is $3,718,424 at the end of the current year.
“We should be in good shape to be able to make up the difference for nine years,” said Tharan.
The balanced preliminary budget calls for expenditures of $22,997,347 and includes dedicated grant money totaling $8,257,341. The grants include the American Rescue Plan and grants for several transportation projects.
The revenue fell short of balancing the budget. Logue said the county has a surplus this year and will use budget reserves to balance the 2022 spending plan.
“We have used about 61 percent of the 2021 budget and at this time of year we should be at 75 percent,” she said.
Logue said the county saw increases in health insurance, utility costs, comprehensive insurance and contractual labor costs.
“The federal government says we should be growing at 3.5 percent,” he said. “That isn’t happening around here.”
The total real estate tax will be 21.5 mills in 2022.
The budget will be on the county’s webpage for review until final adoption, which is scheduled at the panel’s Dec. 28 meeting.
Lending program approved
In other business Wednesday, the commissioners unanimously approved the county’s municipal lending program.
Tharan said the county will loan up to $10,000 to a municipality for projects if the municipality has been rejected by other lending sources.
Tharan cited an example of the West Freedom Water Authority needing some equipment immediately but not having funds.
“They applied to us and we approved their request,” said Tharan.
The money for the fund is taken from the county’s Marcellus Shale revenue. The Marcellus money can also be used for bridges, roads and legacy projects.
The commissioners approved a county employees vacation payout plan. The plan will allow employees to roll over five vacation days to the next year.
The county will pay up to 75 percent of the employee’s pay for up to 10 unused vacation days.
Commissioners also approved a contract with Deets Mechanical for materials and installation of a new air conditioning unit at the Human Resources building. The cost is $24,985.
Commissioners will next meet Dec. 14.