For the fifth straight year, Schuylkill County taxpayers will likely be spared a tax increase in 2023, thanks to federal pandemic and rainy day funds.

County commissioners on Wednesday adopted a $220,317,787 preliminary budget that keeps the tax rate at 15.98 mills.

That includes 15.38 mills for the general fund and 0.60 mill for debt service.

That means the owner of a property assessed for taxes at $80,000 would continue to pay $1,278.40 a year.

The per capital tax remains at $5.

Commissioners expect to adopt a final budget on Dec. 21.

The preliminary budget is available in the chief clerk’s office, and will be on the county website by next week.

How it works

The total operating budget is $220,317,787. That includes the general fund, along with five human service agencies, about 20 other special revenue funds, a capital project fund, an internal service fund, and a debt service fund, said Finance Director Paul E. Buber.

Early in the budget preparations, there was a $13,140,073 shortfall in the operating budget.

The financial team worked that down by $2,939,940. But that still left a $10,200,133 gap.

To balance the budget, the county will transfer up to $5.6 million from the American Rescue Plan Act funding, and then $4,600,133 from the unassigned fund balance.

The general fund is what primarily pays for county operations.

The 2023 general fund budget calls for $73,943,254 in expenditures and $69,343,121 in revenue.

Costs

Included in the general fund budget is a 3% raise for county employees, excluding elected and per diem employees. That will cost $630,000.

The county’s contribution to the pension fund will be 78.3 percent, or $1,076,276.

The county has an outside actuary who determines what has to be contributed from the general fund to the pension fund to keep it solvent.

The 2023 amount is unusually high, Buber said, because of a combination of events.

First, the market portfolio has underperformed this year. Second, the county’s cost of living increase to retirees in 2018 also strained the pension fund, he said.

The COLA, granted in January 2018, costs $134,000 a year for 10 years. Of the increased pension contribution, $134,000 is attributed to the COLA, and it will continue to be paid through 2028, Buber said.

There is no cost-of-living increase in the 2023 budget.

Also, the cost of health care for county employees rose by 12 percent, or $1,600,000.

Prison operations received a 9 percent increase, or $796,000.

The county’s 911 operations received an increase of $167,075, mostly because of staffing costs. The increase brings the allocation to $3,425,478.

Funding for the Agricultural Extension stayed at $210,060.

The total operating budget includes $1,760,919 for debt service, which is balanced by projected revenue.

Also balanced are the capital project account, which calls for expenses of $8,368,500; the capital reserve fund account, which calls for expenditures of $1,162,500; the internal service fund-workers compensation, which calls for expenditures of up to $381,200.

It took work

The three commissioners praised the work of the financial team, consisting of Buber, financial analyst Christopher Kerns, and county Administrator Gary R. Bender.

Commissioners Chairman Barron L. Hetherington said the job was especially tough this year because of the dent the pandemic put in revenue coupled with rising costs.

Commissioner Gary J. Hess said it’s been a “Difficult time over past two years” and thanked the team as well as department heads and row officers for their work in curbing costs.

He also said the unassigned fund account is still at good levels even with drawing from it to make ends meet. The county may need that fund in case of emergencies so it won’t have to borrow money.

Halcovage recalled county American Rescue Plan Act consultant Mark Morgan telling commissioners that most counties are using the federal funds to offset tax increases.

Some counties have given the money away and now face tax increases, he said.

Halcovage also called for state lawmakers to move forward on property tax reform.

He said people wouldn’t have to worry about the county’s looming property tax reassessment if property taxes are reduced.

Buber said his team would continue to track spending and find ways to cut costs.