Blair to levy tiny tax increase

Fraction of a mill hike averages about $3.22 more per year for homeowners

HOLLIDAYSBURG -- Blair County's 2021 budget proposal includes a fraction of a mill increase in real estate taxes to cover debt payments and to reinstate a recreational tax levy.

Real estate taxes to support the 2021 general fund budget, meanwhile, are slated to remain at current levels because commissioners are relying on $2.41 million from cash reserves to cover expenses in a $57.48 million budget.

Based on the 0.023 mill increase to cover debt and recreational expenses, county real estate tax bills for 2021 should be close to the same amounts that property owners paid in 2020.

The 0.023 mill increase calculates to $3.22 more in real estate taxes on an average residential property assessment of $140,000.

Based on the total proposed millage of 4.097 mills -- which includes the 0.023 mill increase -- the owner of a $140,000 property will pay $573.58.

The current tax bill on a $140,000 property is $570.36, based on this levy of 4.074 mills.

The tentative budget that commissioners introduced Friday remains subject to review and change through Dec. 15, the adoption date. A summary is posted on the county's website, at www.blairco.org, and more details can be requested through the commissioners office.

Commissioners Chairman Bruce Erb, during Friday's meeting, offered no reservations on using $2.41 million from cash reserves to balance the general fund portion of the 2021 budget.

A year ago, commissioners voted in favor of using $1.9 million from cash reserves, but as of Friday's budget session, only about half that amount has been spent, based on reports provided by Finance Director Jennifer Sleppy.

By combining audit figures and estimated expenses for 2020, Sleppy calculated that at the end of 2020, the county should have about $6.9 million in its unassigned cash reserve, a term used to describe money that isn't identified for any specific expense.

"That's the healthiest our general fund budget has been since I've been here," said Erb who is completing his fifth year as a commissioner.

The county's unassigned cash reserve was at a low point in 2016, at $1.1 million, and has since climbed, Sleppy said.

The reserve was at a high point in 2014, at $8.5 million, she said, reflecting proceeds from the sale of Valley View Home, the county's nursing facility, to a private operator.

Sleppy's report also indicated that while commissioners balanced the 2020 budget by depending on $1.9 million in cash reserves, only about half that amount was spent.

Commissioner Laura Burke, who attended budget sessions last year after her election as a commissioner, said she was satisfied with development of the 2021 budget and the departmental budgets she worked on.

Burke said she was satisfied with the proposed budget, its minimal budget and the use of cash to avoid a real estate tax increase.

"There's no way we wanted to address the budget deficit by putting that burden on the taxpayers, not this year," Burke said. "We really wanted to stay away from that, and I'm glad we did."

Commissioner Amy Webster proposed during budget workshops that the county avoid restoring the recreational tax of 0.012 mills to replace hotel tax revenue lost because of the ongoing coronavirus pandemic. Erb and Burke disagreed with the small tax that will be allocated toward the support of Fort Roberdeau.

Sleppy's 2021 budget summary shows salaries, the county's biggest expense, increasing from a budgeted $16.54 million in 2020 to $16.96 million in 2021. Salary increases were included to reflect union negotiated rates or 2 percent for non-union employees. A contingency fund in the 2020 budget, set aside to address salary study recommendations and not yet tapped for that reason, is a part of the 2021 budget, Sleppy previously advised commissioners.

Commissioners also settled this year on contributing $4.75 million, an increase of $250,000 toward the underfunded pension fund. The latest report to the county retirement board indicated that so far this year, the fund has issued checks totaling $6.22 million while taking in $4.57 million.

Mirror Staff Writer Kay Stephens is at 814-946-7456.

By the numbers

Blair County real estate tax millage

2020 Proposed 2021

General Fund 3.676 3.676

Debt Service 0.377 0.388

Libraries 0.021 0.021

Recreation 0.000 0.012

Total 4.074 4.097