Robertson proposes budget with 6.75% county tax hike

Luzerne County Manager Randy Robertson is proposing a 6.75% real estate tax increase in his proposed 2023 budget, he said in his Tuesday night presentation to county council.

Council is free to make changes before the Dec. 15 budget adoption deadline, and a majority of council members have said they want to avoid or minimize any tax increase.

A 6.75% increase would generate nearly $8 million in new revenue and equate to $55 more annually for a property assessed at $132,776, which is the average assessed value in the county, Robertson said.

County taxes are currently 6.1696 mills, which requires a payment of $819.17 annually on a $132,776 property.

Robertson also is encouraging council to reinstate a $5 vehicle registration fee solely to cover replace and/or repair road and bridge department equipment and vehicles.

“The cost of machinery and equipment has increased by nearly $1 million, and new or replacement items are desperately in need,” he said.

Robertson, who started in the top management position June 13, said the proposed budget is the “capstone product” of the action plan he said he would be undertaking when he interviewed for the position.

“I believe the proposal is an accurate, balanced and clear representation of the opportunities and challenges facing Luzerne County,” he said.

While minimizing reliance on taxes is a goal of the administration, a professional manager must “‘mirror’ the realities we mutually confront,” he said.

“It is my obligation to convey the facts as I see them to you,” he said.

He noted the county’s annual audits by outside professional entities confirm there are “no excess or ‘slush accounts.’”

“The county largely uses unexecuted dollars from unfilled vacancies to pay for overtime to perform many of its missions and services,” he said.

Personnel costs for both union and management employees rose by $3 million — $779,000 for union increases, $913,000 for overtime and $941,000 for non-union increases, he said.

The proposed budget includes funding for a pay and positional analysis, a study of options for the county prison, increases in professional attorney salaries and a review of more critical needs for building and grounds deficiencies, he said.

“As an organization comprised of people serving people, this proposal is an investment in our most precious asset, ‘Team Luzerne,’” Robertson said. “Continued use of funds from vacant positions paying for overtime due to personnel shortages are a ‘band aid’ to a systemic, organizational challenge and is addressed in this proposal.”

Robertson noted the county’s health care and pension are attractive but don’t seem to be having much impact on recruitment. On any given day, the county has 150 to 200 vacant positions, he said.

The proposed budget eliminates close to 20 vacant positions in multiple departments, he said.

Among the new positions requested, according to the attached position budget: a building/grounds maintenance repair person at $25,181 annually, a building/grounds custodial worker at $24,104, a 911 deputy director at $67,500, an emergency management staff assistant at $30,000 and a coroner’s field investigator/lab assistant at $40,000. Additional part-time conflict counsel attorneys at $39,885 each also are requested, it shows.

Some other points made by Robertson:

• Inflation in the country grew by more than 17% since 2018, while county taxes only increased once during that period — 3.25% in 2020.

• The general fund operating budget’s contribution toward county court costs have increased by approximately $1 million due to a lower reserve fund in the courts budget.

• Operating costs have increased by more than $3 million, including $800,000 for repairs to county-owned roads and bridges and $335,000 for increases in the county prison system primarily attributed to “extraordinary food costs.”

• The county continues to make “exceptional progress” toward paying down debt but will be required to pay approximately $300,000 more for debt repayments, despite recent restructuring.

• A 2.5% increase for non-union employees is included in the proposal.

“They are largely the ones who helped provide during the COVID national nightmare and now in these extraordinary and competitive times,” he said of non-union workers.

• In a comparison to the county’s current millage of 6.1696, he pointed out the rates in other counties: Berks, 7.657; Dauphin, 6.876; Lackawanna, 6.01; and Erie, 5.96.

“So even with the proposed additional millage, Luzerne County would, at 6.586, still rank in the middle of comparable counties,” he said.

In conclusion, Robertson said the increase would amount to $5 more per month for the average property, saying it is about the price of a Big Mac.

“We believe this investment in repairing county roads and bridges, maintaining our existing facilities, attracting and retaining a trained, professional staff and replacing broken, antiquated or unsafe equipment is not only a desire but an expectation of the county,” he said.

The proposed increase would raise the general fund operating budget from a current $157.8 million to $165.28 million.

The administration will be posting the budget at luzernecounty.org.

Council feedback

Councilman Kevin Lescavage proposed using $3 million in discretionary federal American Rescue Plan funds to help avoid a tax increase if council does not identify enough cuts or new revenue. This portion of American Rescue funding is in the “lost revenue” category, which means it does not have to conform to approved categories like other allocations.

Robertson said he will defer to council but could not build a proposed budget based on one-time revenue.

“I think this year we can,” Lescavage said, pointing to the impact of inflation on property owners.

Councilman Tim McGinley cautioned against the use of one-time revenue, saying the practice has hurt the county in the past when the funding was no longer available.

“Be careful about using one-time money to cover a hole in the budget,” McGinley said.

Lescavage also asked his colleagues to consider using up to $55 million from a new casino gambling-funded infrastructure fund to address numerous road and bridge repairs and hold off on a proposal to use $51 million of the fund to replace the county-owned Nanticoke/West Nanticoke Bridge over the Susquehanna River.

Councilman Brian Thornton reiterated he won’t be supporting a tax increase, predicting a recession. He agreed with Lescavage that the county must find other revenue sources to eliminate a hike.

McGinley said there will be opportunities for council to weigh options at upcoming budget hearings.

Council Chairwoman Kendra Radle said she supports council Vice Chairman John Lombardo’s idea to use a portion of American Rescue funds to provide a stipend to low-income and/or elderly property owners. This could help offset the impact if council supports a small increase, Radle said, stressing she is not advocating the 6.75% hike.