Bedford Co. Commissioners Propose Budget

The Bedford County Board of Commissioners began the budget process for Fiscal/Calendar Year 2022 in late September/early October. The process provided a public forum for all department heads to present budget requests to the board of commissioners. Subsequently the finance department was directed to prepare a preliminary draft budget that reflected departmental expenditures consistent with 2021 FY funding levels as well as separately itemizing new budget and capital requests. In mid-October the finance department provided preliminary budget data with all projected revenues and expenditures that included any department budget line items that may exceed 2021 FY budgeted expenditures.

In late October each commissioner individually reviewed the preliminary budget information with the finance department and prioritized their individual budgetary priorities. Between Nov. 1, 2021, through Nov. 19, 2021, the finance department personnel met and communicated with individual commissioners to verify any necessary budget increases required in the 2022 proposed budget and present finalized 2022 draft/proposed budget. On Nov. 22, the commissioners individually reviewed the proposed budget and approved that it be prepared for public display on Nov. 24, 2021. The board of commissioners will act on the proposed 2022 budget during its regularly scheduled meeting on Dec. 14, 2021.

The specific 2021 budget line items/department budgets that are projected to significantly over-expend are the Bedford County Correctional Facility, the Accounting Department, Sheriff’s Office, Maintenance Department, Human Resources Department, and Coroner’s budget. All of the 2021 budgets that are projected to be significantly over-expended for the 2021 FY have been severely impacted by the costs to mitigate the impact of the COVID-19 pandemic. Unfortunately, the pandemic will continue to impact county finances in 2022.

In response, the county is in the process of re-structuring department operations and functions that in some cases will require costly equipment and software upgrades. Other factors that impacted the county in 2021 and will continue to require increased fiscal resources in 2022 include excessive turnover of personnel, especially those employees serving in public safety positions and inflation.

The 2022 budget was prepared to ensure that it provides the resources to meet the safety and security needs of county government. It has been far more challenging to do so than in the past. The commissioners have yet to receive final guidance on the approved uses of ARPA funds and our tax base continues to be stagnant. One cause of reduced revenue was due to several significant tax appeals approved as a result of the pandemic. The original shortfall between necessary expenditures and projected revenues was $3.8 million dollars. In order to keep a real estate tax as low as possible, the board of commissioners individually recommended budget cuts from department head budget requests.

Additionally, the finance department recommended that commissioners implement the following strategies:

1. Use $1,250,000 of the 2021 projected fund balance

2. Project the use of $750,000 of ARPA funds to offset COVID-19 mitigation expenditures

3. Increase real estate by 4.7 percent which will provide an additional $580,000.00 needed to balance the 2022 budget.

Major but not all expenditure increases contained in the 2022 budget are listed below:

BCCF Budget: $372,732

Coroner’s Budget: $98,325

Sheriff’s Office: $105,967

Debt Service: $427,777

The revenues and use of existing fund balance for the 2022 FY are projected to be $23,422,106 and expenditures are projected to be $23,422,106. The county does not project the need for a tax anticipation note for the 2022 FY. Refer to the information below that reflects how much a 4.7 percent county tax increase will impact the taxes on a property with assessed values ranging from $1,000 up to $300,000. For example, a property with an assessed value of $100,000 would have an increase of $17.50/year or $1.46/month.

Taxpayer Anticipated Costs Based Upon Assessed Property Value

• $1,000 equals an annual increase of $0.17 or $0.015 monthly

• $5,000 equals an annual increase of $0.87 or $0.07 monthly

• $10,000 equals an annual increase of $1.75k or $0.15 monthly

• $25,000 equals an annual increase of $4.37 or $.36 monthly

• $50,000 equals an annual increase of $8.75 or $.73 monthly

• $100,000 equals an annual increase of $17.50 or $1.46 monthly

• $200,000 equals an annual increase of $35.00 or $2.92 monthly

• $250,000 equals an annual increase of $43.75 or $3.65 monthly

• $300,000 equals an annual increase of $52.50 or $4.38 monthly

For questions, please call (814) 623-4807 or visit http://www.bedfordcountypa.org