Wayne County eyeing tax increase in 2022

WAYNE COUNTY--Taxpayers are likely to see a 4.8 percent increase in their county taxes next year, according to the Preliminary 2022 Wayne County Budget, approved Thursday, December 9 by a 2-1 vote.

"This was an extremely difficult year to manage finances with the continued, unexpected operational changes that happened constantly because of the COVID pandemic," said Wayne County Chief Financial Officer Vicky Botjer. "We continue to follow the CDC guidelines for exposure on quarantine for our staff and at times that can cause a strain on the operation in our offices and the delivery of services. But I want to commend all of our employees that continue to step up and cover and make sure that we continue to operate."

This proposed budget will remain available for public review online and in the Wayne County Courthouse (925 Court Street, Honesdale) until December 30 when the final budget will be approved. Residents and taxpayers have the next three weeks to observe the budget if they so wish, ask questions, and make their thoughts and opinions known on the County's financial outlook.

Until the final budget is passed on December 30 there is still room for it to change. All figures presented below may change when the final budget is adopted.

The preliminary 2022 budget is balanced at just under $37.5 million ($37,484,235), almost $2 million higher than the current 2021 budget.

Real estate millage is proposed to increase by 0.24 mills, from 4.99 to 5.25. This represents an increase of $24 for every $100,000 of a property's assessed value.

"To only increase taxes at a rate that's lower than the consumer price index indicates that the county's fiscal management policies have been successful," Commissioner Jocelyn Cramer stated via press release.

Real estate taxes derive over 70 percent of the County's annual revenue ($26.46 million), forming the bulk of the funding from which it pays for the services and day-to-day operations. Intergovernmental funding--that is, funding from the state or federal governments--accounts for only 22 percent ($8.27 million) of the County's revenue.

"Wayne County has seen upticks in need for emergency housing, drug and alcohol services, children and youth services and behavioral health services," states a press release issued along side the proposed budget. "On top of this, rising wages, utility, gas health care, vehicle and materials costs have contributed to this proposed tax increase. Cyber security and information technology-related upgrades also factored in to increased expenditures but they're necessary improvements and investments."

Botjer explained these technological advances include new systems in departments such as the register of wills/recorder of deeds and the prothonotary to allow those offices to operate in a greater online capacity during the pandemic.

"We did pay for those initial upfront costs with CARES dollars in 2020, but we do now have the annual maintenance of those things going on," she said. The CARES money to which the CFO alluded is federal money supplied through The Coronavirus Aid, Relief, and Economy Security (CARES) Act. In total the program supplied $2.2 trillion to aid agencies across the country in acquiring the means to provide business and services while social distancing.

"We also had cyber security and additional firewall expansions," Botjer continued.

"Again, with COVID, with tele-work, with our additional online systems, we needed to make sure that we were still keeping that County data safe. Again, a few of those investments were made from CARES dollars, but we do have the continuing cost of those items."

Botjer further explained the County raised some of the salaries and wages it offers "...to assure that the County can continue to provide the necessary services to our citizens and visitors while being competitive in this current job market."

Some costs are offset by grant funding or by energy savings resulting from recent overhauls of several county buildings, she noted, but inflation continues to be an issue heading into 2022.

Said Commissioner Joseph Adams in a press release, "The supply-chain crisis and skyrocketing inflation have created a very difficult economic environment."

Botjer explained the County is drafting a fund balance policy which would allow it to more evenly manage its cashflow while maintaining a strong bond rating necessary for borrowing funds at good rates. "This will helps us to respond better to unanticipated financial needs," she explained, "And while it will not eliminate the need for property tax increases in the future, I think that it will help to reduce and large fluctuations. And the effective management of this I think will provide incredible stability and growth."

The budget at a glance

Wayne County's largest proposed expenditure is to fund the Human Services departments. This accounts for just under $10.3 million (27.46 percent) spent on things such as the Drug and Alcohol Commission (DAC), Children and Youth Services (CYS), the Area Agency on Aging (AAA), Behavioral Health and other departments critical to aiding the public directly. Many of these departments have corresponding state mandates which counties are required to follow. While the state supplies some funding for some of these services, the amount of funding has been flat for years while costs continue to increase.

"The goal every year is to balance mandated services with flat funding from the state," stated Commissioner Chair Brian Smith in a release issued alongside the preliminary budget.

This year, that's coupled with also trying to compete with the private sector for employees and ever-rising salaries and health care costs. I believe this budget takes everything into consideration and balances needed increases and spending while also makin cuts where possible."

Spending in the Human Services Department is proposed to increase by over $383,000 in total. Funding to mental health programs, the DAC, and the AAA would all drop slightly while spending in CYS is proposed to increase by over half a million dollars. The CYS budget alone would come to almost $8 million, nearly 80 percent of the entire Human Services budget. Spending in military affairs is also proposed to increase in 2022, more than doubling from $34,420 in 2021 to $73,683.35 in 2022.

In addition to Human Services, other prominent portions of Wayne County's budget are proposed to go towards General Government Administration ($8.85 million, 23.62 percent), Public Safety ($7.92 million, 21.13 percent), and General Government Judicial ($5.53 million, 14.75 percent).

General Government Administration involves all the expenditures necessary to keep the county running from day-to-day. This includes departments such as the elections office, the commissioners office, tax offices, recorder of deeds, and planning, as well as the mail office, human resources and other business offices.

Public safety includes funding for the correctional facility, emergency management, probation and other related offices.

General Government Judicial includes all matters relating to the court of common pleas, magisterial district courts, prothonotary, sheriff, coroner, etc.

Interestingly, while Public Safety continues to demand a fair portion of the County budget, it's proposed 2022 allocation is over $350,000 lower than it was in 2021.

Spending in both government administration and the government judicial is proposed to increase in 2022 by around $1.37 million and $343,000 respectively.

To review the proposed budget in its entirety, visit the Wayne County Courthouse (925 Court Street, Honesdale) or go online at www.waynecountypa.gov.

A divided vote

The proposed budget passed by a 2-1 vote with Commissioner Adams opposing the document.

When asked to comment further, he explained his disagreement lay with the proposed tax increase.

"The feasibility study for the prison is complete and being summarized and will be released next week sometime," he said. "And the need for the tax increase, had we done something differently, is something that would not have been needed."

As earlier reported, Wayne County engaged in a study to discern the feasibility of merging its prison operations with Pike County as a cost savings endeavor. After discussion with law enforcement officials--and a fair amount of public outcry--the County opted not to merge the operations and keep its correctional facility open. As Adams noted above, the Commissioners expect to release the full report on this study next week.

"Everybody knew that there was going to be a savings there," Adams continued, "But others have surmised that it's worth staying in operation that we're currently staying with and incurring those costs, so that's something that we can agree to disagree on."

"We [the Commissioners] have a working relationship that's respectful," said Adams, "And we have a need to be able to move forward, so this is one item out of thousands that we can agree to disagree."

Commissioners Smith and Cramer voted to approve the preliminary budget, both noting they felt the County arrived at a responsible budget for 2022.

"I think it's a very responsible budget that we're putting up to post for people to look at," said Smith, noting there is still some speculation of what state funding will look like as the Commonwealth struggles with its own revenue issues. "I hope people do take a look at it. I feel that it is responsible to have a 0.24 mills increase."

Commissioner Cramer stated, "It's been extremely difficult. And I know it has been ongoing for a while and as COVID continues, so many things that we relied on and have been stagnant in the past, are fluctuating. And...everything has changed: energy costs, occupancy costs, materials costs, not even knowing if you can get what you need. It's been really challenging. So, all in all, I think Herculean task of getting this all together--of getting us all together--and coming up with a budget that I think is responsible. I do appreciate it all."

All three commissioners, regardless of their vote, commended Botjer and the county department heads for their work in arriving at the budget presented during a difficult year rife with complications and transitions throughout the county.

This article originally appeared on Tri-County Independent: Taxpayers are likely to see a 4.8 percent increase in their county taxes next year, according to the Preliminary 2022 Wayne County Budget.