DANVILLE — Residents peppered the Montour County Commissioners with questions about ways to reduce a 24 percent real estate tax increase in the 2010 budget.
As of Tuesday night’s meeting, the commissioners have been able to shave about $93,000, reducing a proposed tax increase to 21 percent.
A 24 percent increase on a $100,000 assessment would result in a property owner paying $354, an increase of $54. Officials hadn’t calculated the tax on a 21 percent increase Tuesday night. The $786,190 deficit has been pared to $692,000. The county currently collects $3.2 million from real estate taxes.
The commissioners pledged to continue to look for ways to cut expenses and asked residents to continue to call or e-mail them with suggestions.
Commissioners Chairman Trevor Finn said elected officials, department heads and union officials are working to reduce the deficit.
Despite cutbacks, the county is facing a deficit because the state owes 65 percent of the district attorney’s salary for 2008 and 2009, health insurance costs will go up 32 percent per county employee, the annual retirement contribution will increase 57.5 percent, and utility costs will increase 30 percent, Finn said.
The county may purchase gas and electricity through a co-op to save money. Health insurance next year is expected to cost the county $915,867.
“The money the state owes us and the increase in health insurance and the retirement contribution is the entire deficit right there,” Finn said.
Commissioner Jerry Ward said a bill passed by the state Legislature doesn’t cover the 2008 DA’s salary share owed to the county. The state owes the county $208,000. The county is suing the state for the money.
The $93,000 in cuts include materials, supplies and postage in the commissioners office, eliminating the work study position, the state eliminating $41,406 for the West Nile virus program, the entire recreation budget of $10,000, the entire budget of $29,000 for the Danville-Riverside Airport, $7,000 for the law library and $1,900 for a law librarian. Recreation will be funded by a tax paid by visitors to hotels.
Saying some people have proposed laying off county employees, Gerst said, “Your government lives on a shoestring. If we lay people off, our offices will be closed.”
Finn said the commissioners are continuing to look at health insurance carriers. Under union contracts, if the insurance increases more than 25 percent, employees contribute more, which would amount to $14,000 for a year. He said the county joined a self-insured state county cooperative that at the time was substantially cheaper than the previous carrier, which was Geisinger Health Plan.
Gerst said county costs are up due to “usage, age and gender.” A single employee will pay $55 a month, up from $40, and a family plan will be $105 monthly, compared with $80 previously. Some county employees make $13,000 a year, Gerst said.
Chief Assessor Kathleen Shuler said two of her employees make less than $18,000 annually. She didn’t know where she could cut further.
With the pension plan, the county contracts with a firm to handle the investments.
“When the economy tanks, the taxpayer has to pick it up by law,” Finn said.
Resident Pat Donato questioned the commissioners about dues and conferences. Finn said the commissioners don’t attend conferences, and if they attend a conference in the coming year, they will pay for it themselves. The county is mandated by the state to pay for dues and conferences for elected office holders, Finn said.
Resident Greg Hein said the Danville Area School District has increased taxes, and Danville borough is proposing a tax increase. “This is the worst economy since the Great Depression and it’s hurting people who don’t have jobs anymore,” he said.
Donato proposed the county treasurer collect taxes instead of tax collectors in municipalities. “I think that would take an act by the Legislature to do,” Finn said.
A letter from attorney Ollie Wagner suggested the formula used to compute retirement benefits be revised. Finn said they would ask the county solicitor to look into it.
Finn asked anyone with suggestions to e-mail him at tfinn@montourco.org. He will share the comments with the other commissioners.
The commissioners changed their December meetings so they have more time to work on the budget. They will adopt a tentative budget Dec. 8 and adopt the final budget Dec. 29.
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Craig Urey / For The Daily Item
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