Montgomery County Adopts 2024 Budget with 13% Tax Increase

Rachel Ravina | The Reporter•

Montgomery County Chief Financial Officer Dean Dortone addresses members of the Montgomery County Board of Commissioners on Dec. 14, 2023, ahead of a

Montgomery County officials concluded the year’s business by adopting a 2024 general fund budget on Thursday and implementing a roughly 13% real estate tax increase.

The county’s 2024 financials consisted of $568 million in revenue and $567.8 million in expenditures. The end result revealed a "moderate $200,000 surplus,” according to Chief Financial Officer Dean Dortone. The county’s unassigned fund balance was also listed at $119 million.

Montgomery County Commissioners’ Chairman Ken Lawrence Jr. and Vice Chairwoman Jamila Winder, both Democrats, voted in favor of the action. Republican Commissioner Joe Gale voted against the budget.

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

Budget proceedings began last month with a presentation from Dortone, followed by two public hearings. When comparing this budget to the previous one, Dortone noted in his presentation that county revenues were 10.9% higher, or $55.9 million, than that of 2023. The county’s 2024 expenditures were 7% higher, or $31.7 million higher, than in 2023.

Dortone attributed "new personnel costs and inflationary operating cost increases in most of the departments” to the higher expenses. The county employs more than 2,800 people.

The Montgomery County Salary Board unanimously approved a 4% wage increase for "qualified full-time and part-time employees” during Thursday’s meeting. Several groups of employees were not eligible to receive a wage increase, including elected officials, retiring employees, those in unions, and other employees "otherwise covered by a separate agreement,” the resolution states. Funds were allocated in the 2024 budget.

Addressing the impact of the proposed tax increase, which Dortone called a "revenue enhancement,” Thursday’s vote authorized an increase of the county millage rate from 4.237 mills to 4.778 mills. Dortone said the move would generate $33.4 million for the general fund.

Officials previously noted that 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.

Dortone stressed assistance is available to residents earning a fixed or low income, referencing the county’s Real Estate Tax Deferral Program and the Pennsylvania Department of Revenue’s Property Tax/Rent Rebate Program.

The county program permits the postponement of "payment of increased real estate taxes for 2024,” Dortone said. It’s available to homeowners "who are current with county tax bills” who are at least 65 years old with an annual income of $35,000 or less, excluding "50 percent of social security income,” as well as $15,000 or less for renters.

Deferred payments are collected "upon the sale of transfer of the property,” Dortone said.

The state program would offer a "maximum standard rebate up to $1,000 annually in January 2024” for qualified homeowners who are "current with county tax bills” at least 65 years old, widows and widowers at least 50 years old and disabled individuals at least 18 years old, according to Dortone. He added that "supplemental rebates” of up to "$1,500 annually in January 2024″ might also be available to applicants.

Homeowners and renters making $45,000 or less are eligible, but excluding "50% of Social Security income” for homeowners, according to Dortone.

Those looking for more information or are interested in applying can contact the state Revenue Department at 1-888-222-9190 or visit revenue.pa.gov/IncentivesCreditsPrograms/PropertyTax RentRebateProgram. More information on the county program can be found at montgomerycountypa.gov/finance.

Winder also spoke of some financial relief opportunities for county first responders. She highlighted a future program where volunteer firefighters and emergency medical services personnel would "receive a rebate of up to 100 percent of their Montgomery County real estate tax.”

"In Montgomery County, these volunteers risk their lives every time they go on a call for the safety of our community. So it’s only right we give back to them as well,” Winder said.

Citing low participation in the area’s volunteer departments, Winder added she hopes the program shows gratitude to the county’s service members and encourages others to volunteer.

"These positions play vital roles in ensuring the safety of our communities and we are grateful for all the work that they do,” she said.

The program is slated to take effect in 2024, according to Winder, who said more information would be provided at the Jan. 11, 2024, Montgomery County Board of Commissioners meeting.

County’s Capital, ‘Other Fund’ Budgets Approved

In other business, county commissioners authorized a more than $208.75 million capital budget for 2024. The 2-1 roll call vote showed Lawrence and Winder in favor of the action, while Gale opposed it.

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% at roughly $40.68 million. The entire plan, which encompasses projections from 2024 to 2028, amounts to roughly $759.09 million, according to budget documents.

Additionally, county commissioners authorized "other fund budgets” on Thursday. The 2-1 roll call vote, which showed Lawrence and Winder in favor of the action, while Gale was the sole opponent, permitted allocations for seven special revenue funds and one internal service fund.

The budgets totaled roughly $312.6 million in revenues and more than $320 million in expenses. The funds include the American Rescue Plan Act, Emergency Dispatch Services, Liquid Fuel Tax, Managed Care Solutions, Montgomery County Community College, Motor Vehicle Registration, Opioid Settlement, and Property and Liability Damage.

The next Montgomery County Board of Commissioners meeting is scheduled for 10 a.m. on Jan. 11, 2024, on the eighth floor of One Montgomery Plaza, 425 Swede St. in Norristown. Those interested in attending can also do so virtually. Visit montgomerycountypa.gov for more information.

This article appears courtesy of a content share agreement between North Penn Now and The Reporter. To read more stories like this, visit www.thereporteronline.com.