Montgomery County’s 2024 Budget and Capital Improvement Plan by the Numbers

Rachel Ravina | The Reporter•

The entrance to One Montgomery Plaza in Norristown, where many county offices are housed.

Montgomery County officials will soon vote to adopt a 2024 budget, which would impose a roughly 13 percent property tax increase on area residents.

Proposed figures show $568 million in revenue and $567.8 million in expenditures, according to Chief Financial Officer Dean Dortone, noting in a presentation last month that the "2024 proposed budget includes a moderate $200,000 surplus.”

The county’s largest revenue drivers come from real estate taxes at 51.6 percent, federal and state grants at 37.3 percent and departmental earnings at 11.1 percent, according to budget documents. On the expenditure side, the Health and Human Services accounts for 38.6 percent of expenses, with judicial and county administration follow with 18.6 percent and 15.2 percent, respectively.

"I think one of the big pressure points for us has been just like other entities, whether it’s private or public sector, has been in our workforce,” Dortone told MediaNews Group earlier this month. "We’ve had high levels of vacancies in recent years that we’re trying to get under control.”

The county employs more than 2,800 people. While Dortone said vacant positions were eliminated in corrections, domestic relations and juvenile departments to save money, county officials were still "projecting $25.7 million of new personnel costs,” a figure that’s approximately 11.2 percent higher than in 2023.

There was also $27.4 million of "annual funding for the county pension plan” indicated in the upcoming budget.

"One of the things that we had to do, and others have done to our peer counties is we completed a compensation study, and that was done and implemented in October,” Dortone said. "So the new costs for that are now in the (20)24 budget for the first time.”

"So that’s part of it. We have higher pension plan, funding that’s needed, higher health care costs,” Dortone said, citing "inflation” and need for medical services” when referring to the $1.9 million increase in health care costs reflected in the budget from the previous year.

Looking ahead, a $1.7 million line item was related to election planning for the upcoming presidential election.

Proceedings began with a presentation from Dortone in November as preliminary numbers showed $535 million in revenues, he said, and a need to close a $33 million spending gap.

The proposed real estate tax increase, introduced last month, would raise the county’s millage rate from 4.237 mills to 4.778 mills, which finance officials said would generate $33.4 million for the general fund.

Addressing the impact of the proposed tax increase, officials note homeowners with an average single family home’s market value between $200,000 and $414,000 would see an increase of $62 per year at $540 and those with an average single family home’s market valued at $481,300 would pay $94 more per year at $818.

A county spokesperson previously stated that residents earning a fixed or low income may be eligible to enroll in a tax abatement program to minimize financial impacts.

The budget also proposes a $2 million drawdown of the county’s existing fund balance for new debt service expenses.

Two public hearings took place last month, with participation from a handful of area residents, most of whom were vocally opposed to the tax increase.

The county’s top elected officials split on budget negotiations. Montgomery County Commissioners’ Chairman Ken Lawrence Jr. and Vice Chairwoman Jamila Winder have expressed favor, citing need for funding a variety of programs.”This budget is a reflection of Montgomery County’s core values: investments in great people, effective infrastructure and quality services,” Lawrence said in a statement."This proposal balances financial efficiency with the needs of our constituents. It allows us to provide the necessary services and programs to those who live, work, invest and visit Montgomery County without compromising our fiscal responsibility to taxpayers.”

Commissioner Joe Gale was the sole opponent, and has long been a vocal critic of spending and continuous tax increases that he maintained have negatively impacted constituent finances, as they balance other property taxes levied from school boards and municipalities with everyday bills.

"You have income taxes, you have tolls, you have fees,” Gale said. "On top of that you have inflation. It’s a struggle for many. So I believe government has an obligation to as much as possible decrease spending, decrease borrowing and ideally decrease taxes.”

In addition, the county’s more than $208.75 million capital improvement plan for 2024 will also be up for a vote. The entire plan, which encompasses projections from 2024 to 2028, amounts to roughly $759.09 million, according to budget documents.

Allocation numbers for 2024 show the Montgomery County Department of Assets and Infrastructure takes up 33.5 percent at approximately $69.85 million, the Montgomery County Planning Commission with 30.3 percent at about $2.26 million and the county’s campus plan with 19.5 percent at roughly $40.68 million.

Projects concerning the county’s assets and infrastructure department include the renovation of a county facility in Norristown, located at 18 W. Airy St. at roughly $10.7 million, mechanical replacements at One Montgomery Plaza for $5 million, $4 million for the Montgomery County-Norristown Public Library, and about $1.62 million for the "Norristown Prison,” also known as the Montgomery County/Airy Street Prison at 35 E. Airy St.

While the Montgomery County Justice Center project takes up a majority of the county campus plan allocation at approximately $40.18 million, One Montgomery Plaza developments had a $500,000 line item for "interior renovation.”

Additionally, the Ridge Pike Improvement Project dominated funding for the county planning commission, with multimillion dollar propositions. The cross county trail development in Erdenheim followed with more than $4.63 million and nearly $3 million for the trail junction center renovation.

The 2024 budget will be up for a vote at the Montgomery County Board of Commissioners meeting at 10 a.m. on Thursday on the eighth floor of One Montgomery Plaza, 425 Swede St.

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