HOLLIDAYSBURG — Blair County’s latest audit shows the county to be in its best financial position in many years, Commissioner Bruce Erb said Tuesday.

He offered the assessment after Cory Johnson and Derek Schroeder of the Harrisburg-based Zelenkofske Axelrod LLC accounting firm presented results of the county’s 2022 audit during a commissioners meeting.

The accounting firm, which handled the county’s annual audit for the first time, identified 2022’s end-of-year fund balance of $16.4 million — with $15.2 million classified as unassigned, making it available for any designated use.

Those numbers were higher than comparable ones reported a year ago, when the county’s 2021 audit identified an improved end-of-year fund balance of $15.78 million — with $14.22 million classified as unassigned.

Johnson told commissioners that the $15.2 million fund balance amounts to about 29% of the county’s annual general fund expenditures.

“That’s a real solid ratio,” Johnson said. “You’re in a good financial position with your general fund.”

One of the reasons for building a healthy balance, Erb said after the commissioners meeting, is that it puts the county in a better position to secure a better bond rating and lower interest rates when borrowing.

“With the millions of dollars for a possible project we could have in the future, that translates into millions of dollars in interest savings,” Erb said.

County leaders have talked about building a new county prison to replace the aged facility, but to date, they’ve made no decision.

The draft version of the 2022 audit reviewed Tuesday identified repairs to a crumbling county prison as one of the factors affecting the future financial outlook.

Commissioner Laura Burke and County Administrator/Chief Clerk Nicole Hemminger also identified other benefits of having a healthy fund balance.

It has allowed the county for at least three years to avoid a tax anticipation note and its related interest costs, Burke said.

Hemminger said it also means the county has money to pay bills when the state’s budget passes late and payments are delayed.

The audit reviewed Tuesday also showed the county’s 2022’s governmental spending came in at $88.41 million, a marked increase from its 2021’s spending of $81.36 million. Contributing factors were reported by program, with increases assigned to capital expenses including county bridge projects, prison operations, health insurance, salaries, housing rehabilitation, emergency rental assistance and adult welfare.

Commissioner Amy Webster said the county has been spending more money on bridge repairs and replacements.

“It’s lasting,” Webster said. “Once you invest in it, the improvements are there.”

The audit also showed the county’s real estate taxes generated $35.19 million in 2022, about $195,202 more than in 2021. In both years and for 2023, the county’s real estate tax levy has remained at 4.097 mills.

Auditors also reviewed and identified the county’s underfunded pension plan as having a liability of

$65.5 million, up slightly from the $63.75 million liability identified in the 2021 audit. The audit also showed a $6 million drop in pension assets, but Johnson said that reflected market conditions and not the condition of the pension.

“All in all, you’re in good shape,” Johnson said. “We work with counties whose pensions are 30 to 40 percent funded. You’re in a much better position than that.”

Erb said Johnson must have been speaking of counties outside Pennsylvania because while Blair County’s pension funding level has improved, the county’s plan still ranks last. In 2017, Blair County’s plan had a 35% funding level — and ranked last — among county pension plans managed by Marquette Associates.

Controller A.C. Stickel, who assisted the auditors in collecting and accessing data, said he thought they did a fabulous job. He praised their familiarity with accessing the Munis accounting system the county uses.

“I thought they were very thorough and that they provided a fresh set of eyes on our records.”

While the county relied for years on Young, Oakes, Brown & Co. to complete the audit, commissioners voted in November to advertise the job. At that time, Erb said the decision reflected a recognized wise practice of periodically using a different auditor. Commissioners subsequently hired Zelenkofske Axelrod at $82,500 for the first year of a three-year contract.

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