(10/2019) Volumes
could be written about all the inter-related
actions within county government. It ranges
from Elections and Voter Registration to
Prisons, from Finance to Emergency Services,
and Maintenance to Tax Services, and more.
Among all those activities are the efforts to
control or reduce expenses. Since we are in
the process of developing the budget for 2020,
the topic of expenses is very relevant this
time of the year. But, you may ask, why do you
start so early to put together next year’s
budget? (We actually begin the end of July).
The main reasons are: 1.) we have more to do
than budgets, 2.) so that it is carefully done
and accurate, and 3.) to complete it according
to a mandatory process with milestone dates
such as its tentative adoption date.
Getting to the final
product requires properly analyzing each line
item in each department based upon history and
projected expenses and/or needs. One of our
budget functions is to examine how and where
we can reduce expenses. It can be as simple as
changing a supplier or as involved as working
through a long-term process to reduce
insurance premiums.
There are situations
where we will never have the opportunity to
impact the coming year’s premium costs unless
we take action nearly a year in advance. As I
saw our worker’s compensation insurance
multiplier trending higher and higher I said,
"This trend needs to be reversed". To address
this, I took advantage of our carrier’s risk
management advisory team services. Near the
end of 2018 I had them make a visit to our
county operations and discuss with us what
opportunities exist to reverse the upward
trend.
As a result of the
meeting, coordinated efforts to reduce
accidents and injuries we instituted. For
example greater awareness and preparedness for
icy conditions were followed along with
greater attention changing temperatures. We
also analyzed floor care and cleaning
materials as they related to slip hazards
during inclement weather. These measures along
with other practices will have a positive
impact on the 2020 expense budget. How do I
know this detail in advance? I am a member of
the CCAP Worker’s Compensation Board of
Directors and at our recent annual meeting the
actuaries presented us with the new
multipliers for 2019. The good news is that
Adams County’s multiplier decreased by more
than 10% and the base premium decreased by 6%.
These decreases
represent thousands of dollars of savings.
That sounds good, but what we gained in
savings will be lost through the county’s new
rain tax assessment (MS-4) from the Borough of
Gettysburg. I felt good when I left CCAP
headquarters (Harrisburg), but when I arrived
in Gettysburg I saw Broadway Street being
demolished for the MS-4 program. That visual
reminded me of the MS-4 assessment Adams
County Government will have to pay for its
Gettysburg Borough impervious surfaces.
Following that
depressing outcome, there came a positive
reminder. That reminder was, the Human
Services Building is outside the Borough of
Gettysburg; no borough MS-4 fee there. We are
thankful for the opportunity to avoid the fee.
If we had listen to the naysayers, we would
have stayed in the Borough with higher
expenses.
Some residents of
Adams County do not have the opportunity to
avoid the fee. This is reminiscent of an
elderly woman that PA St. Rep. Dan Moul spoke
to about her MS-4 assessment. She told Dan she
will have to decide between paying the MS-4
fee or purchasing her medication. How about
the elderly that are struggling to pay their
real estate taxes and then get hit with the
MS-4 fee? In reality, this "rain tax" will be
added to the county’s budgeted expenses and in
turn property owners will actually be paying
tax on a tax. Sounds like double taxation.
Worse yet, we are dealing with a program that
has been perpetuated on a model and not on
empirical data.
To counter this new
financial burden, I have a proposal similar to
nutrient credits that was endorsed by DEP.
Essentially credits are given for action taken
elsewhere as remediation for runoff effects on
the assessed property. My proposal would do
just that. The County of Adams would use
agricultural easements it owns through the
agricultural preservation program as runoff
abatement traded for runoff on the County of
Adams’s borough impervious surfaces. The above
easements along with best management practices
have improved the watersheds in and
surrounding the Borough of Gettysburg.
Taxpayer moneys have made these improvements
possible. I want to see our taxpayers receive
the benefit of what they contributed to for
years rather than paying additional taxes.
Besides, it is very difficult to accept
taxation for something that has no empirical
basis. Representative Moul and I will be
meeting at a later date to discuss the issue
further.
To end with something
positive, I would like to mention two things
that speak to the financial strength of Adams
County Government as stated in the
Comprehensive Analytical Financial Report (CAFR).
They are the General Fund Balance and the
County Net Position. The minimum standard for
General Fund Balance is that it would be
sufficient to cover two months of expenses
without any revenues coming to the county.
Adams County’s general fund exceeds that
standard by two and a half months of funds.
The analytical report
also presents a long-term trend of the
county’s continually improving Net Position.
This position represents the value of the
county assets less liabilities. This net has
shown a healthy growth since the present
commissioners took office in January of 2012.
I am sure the improving economy was a factor,
but cooperation, dedication, and leadership at
all levels in adhering to fiscal
responsibility was the overriding factor.
Through diligence and dedication, the
Controller’s Office Staff, for the second year
in a row, produced a Comprehensive Analytical
Financial Report (CAFR). The CAFR is
recognized as a Gold Star Level product
detailing the county’s financial position.
Combining this with the work of our Finance
Department, we have a great team monitoring
our financial activity. I am thankful to be a
part of these inter-workings of good county
governance. Commissioner Jim Martin.
Read other articles from Adams County Commissioners