Northampton Supervisors get first look at $50 million budget

The Northampton County Board of Supervisors got their first look at a proposed $50.5 million budget for the next fiscal year at Tuesday night’s meeting. The proposed budget is up from last year’s $47.6 million spending plan, a 6.2 percent increase.

County Administrator Matt Spuck said the budget is a balanced spending plan shaped by lower available revenue, rising fixed costs and a focus on employee retention, public safety and core services.

The budget process began with a significant revenue shortfall. He said the county lost two one-time revenue sources from the prior year and is also expecting lower interest earnings because of falling rates and reduced returns on idle cash. Together, those factors reduced expected revenue by about $1.4 million.

At the same time, the county is facing more than $1 million in added school-related costs because of changes in the local composite index, which determines the local share of school funding. Spuck said that left the county roughly $2.4 million behind before accounting for any new priorities.

Among the priorities included in the budget are a competitive wage increase for employees, the county’s decision to absorb a 20.5 percent increase in medical insurance premiums, a one-time $147,000 contribution for the Oyster resiliency project, and increased support for volunteer fire departments.

Spuck said the County is proposing to raise the county’s per-station contribution to volunteer fire companies by $25,000 each, for a total increase of $125,000. He also recommended increasing the volunteer firefighter property tax incentive from $125 to $1,250.

The budget also includes $102,000 for the continued service contract on Flock camera systems used by the Sheriff’s Office. Sheriff David Doughty said the cameras have proven useful in investigations and public safety efforts.

In addition, the proposal would reduce the tax rate on farm equipment and heavy equipment by another 10 cents down to 89 to provide some relief to farmers and others working in the county’s agricultural sector.

Finance Director John Chandler said the proposed real estate tax rate would be adjusted to 69.95 cents per $100 of assessed value, down from the current 70.5 cents. He noted that because this is a reassessment year, the change should be described as a tax rate adjustment rather than a tax reduction. The Board approved sending that rate to public hearing at its May 26 meeting later in the meeting.

Chandler said the budget uses $667,000 in fund balance to help close the gap while avoiding a larger tax increase. He said the county’s fund balance currently stands at $11.47 million, or 19.33 percent of expenditures, though a portion of that is already committed to school construction needs.

School funding remains one of the largest cost drivers in the proposal. John said the schools requested an additional $1.635 million in county support, but the county’s recommended budget trims that request by roughly $335,000, leaving a proposed increase of about $1.3 million.

Other cost drivers include $850,000 in personnel-related increases, $416,000 in added capital investments and significant health insurance costs. John said the county is trying to shield employees, especially lower-paid workers, from bearing the added cost of insurance.

The proposal also includes three new positions: a heavy equipment operator in solid waste, one additional EMS employee and a part-time Extension position.

Capital requests in the budget include sheriff’s vehicles, EMS equipment, solid waste machinery, community center improvements and funding for fire department capital needs.

The Board of Supervisors is expected to continue discussions on the proposal as the budget process moves forward.