(1/2019) As 2018 comes to an end and 2019 begins we present two encompassing financial positives. Adams County will end 2018 with expenditures below budget and 2018 revenue well above expenditures. We expect a similar pattern for 2019. Our 2019 budget projects that revenues will exceed expenses by approximately $700,000. This will allow us to operate through 2019 with NO real estate property tax increase.

As 2019 unfolds Adams County should see at least modest benefits from an improved economy. We have seen a respectable increase in housing construction and a modest up-tick in commercial construction during 2018. The net result as we enter 2019 will be a modest increase in our tax base for 2019. As always our local economy depends upon a balance between housing and compatible commercial growth.

The budget we have adopted for 2019 reflects a mindfulness of the marginal increase in tax revenues. All our departments and the budget/finance office relied on an in-depth analysis and short term financial forecasting more than ever before. In the end the budget being presented has a closer margin between projected revenues and projected expenditures than past budgets. This offers us a more precise forecast tool for monitoring our cash flow positions. Having too much cash on hand is a lost opportunity for capturing additional interest revenue. Having too little cash at year’s end, neglects the potential for emergency operational needs. While we are cutting this budget closer than in previous years, we are still maintaining a healthy reserve.

Adams County government will see a dramatic decrease in its 2019 rental expenses. This was made possible by ending leases and repurposing the Herff Jones building into our new Human Services Building (HSB). The new HSB has provided us benefits beyond fiscal. The list of benefits is numerous, but it can be accurately summarized as efficiencies of operation, greatly enhanced services, better customer service, opportunity for future growth and good fiscal management. At the recent dedication of the HSB, President Judge Michael George confirmed these benefits by praising the results he has seen.

The county is anticipating two new opportunities for additional revenue in 2019. One of the sources of revenue will be from the sale of the Gettysburg, Middle Street property that now serves as Magistrate Harvey’s office. Magistrate Harvey will be relocating to a new courtroom within the Human Services Building January 2. Once the building is vacated, the plan is to sell the property through a public auction. The proposed schedule is to have the auction in the spring of 2019.

We are in the beginning stages of an initiative to reduce prison expenses. The goal is aggressive hiring to maintain a full staff, thus minimizing overtime. In another revenue initiative, the county has a very good potential of receiving an increased reimbursement rate for the housing and transportation of U.S. Marshall Prisoners. Based upon a professional analysis, the current cost of housing federal prisoners was shown to be greater than our reimbursement. Thus, we have made application to the U.S. Marshall Service for a reimbursement rate increase. We have good reason to believe a rate increase will be granted. Our conservative budgeting practice does not include this potential revenue in the 2019 budget.

Should we receive these potential revenues they will help offset the deficit funding received from the state for our 911 services. Our 911 operation receives a major portion of its funding through service fees assessed to communication devices by their carriers. Adams County receives approximately $2 million from these fees, which is $1.2 million short of our annual cost of operation. The current legislation that enables the collection of this fee has a sunset date of mid-2019. Continuing legislation is needed to keep this funding stream alive. We must remind our legislators of the importance of renewing this piece of legislation. It appears the legislation will be renewed, but there does not appear to be an attempt to acquire additional funding, which is needed for ever increasing operational expenses. I have been engaged with our legislative offices to advocate not only for passage, but for additional funding.

In the past seven years this Board has successfully engaged in a number of major initiatives. The initiatives include several department re-organizations, a much needed 911 digital radio system, the Adams County Human Services Building and the Adams County Law Enforcement Firearms Training Range. We are now ready to engage in another significant initiative that will provide both human service and fiscal benefit. The renovation and conversion of the Mercy House into a Substance Abuse Recovery Center is becoming a reality. Adams County is not immune or removed from the opioid crisis. This project will not only provide a treatment center in Adams County, but will also result in a vacant county-owned building being renovated and re-purposed, mostly through grant funding. Additionally, the county will receive rental income from the organization administering the program.

In summation 2019 looks to be a year of cautious optimism. While the economy is not improving as well as we had hoped, it is moving in the right direction. We are continuing to innovate county services and add services where prudent, while keeping a watchful eye on our expenses. Our hope is that in the coming months we will move beyond cautious optimism. I would like to close with best wishes for a healthy and prosperous New Year.