Westmoreland controller calls for bigger county tax increase

Westmoreland County Controller Jeffrey Balzer on Tuesday called on commissioners to approve an additional property tax increase to ensure there is enough money to pay the bills through the end of the year.

Balzer made his plea for higher taxes as he and Commissioner Gina Cerilli traded barbs during a contentious commissioners meeting to review items slated for approval this week.

“I am no fan of taxes. Unfortunately, they are a necessary evil. In this particular case, I am compelled to place my duty as county controller above any partisan political argument,” Balzer said as he pitched a proposal for commissioners to approve an additional unspecified tax hike at their Thursday meeting.

Balzer said his job is to serve as the county’s financial watchdog and acknowledged he has no vote on the budget nor the property tax rate set by commissioners.

The county’s $341 million budget was approved in December by the previous board of commissioners and included a 2.4% property tax increase expected to raise nearly $2 million in additional revenue in 2020. The budget was balanced through that half-mill tax hike along with the transfer of about $5.5 million from a surplus account.

For more than a decade, county budgets have been balanced through the surplus fund, which is estimated to have less than $300,000 remaining heading into 2021. Balzer told commissioners the budget isn’t financially sound and proposed they adopt a larger tax increase to beef up revenues.

Balzer said inaction by the commissioners would be “negligent.”

Commissioners rejected Balzer’s proposal.

“I am only going to raise taxes for the expenses we need next year. We are not going to raise taxes to fund a surplus we can sit on for years,” said Cerilli. She voted in favor of the tax increase that was adopted in December.

A back and forth between Balzer and Cerilli turned personal, with both talking over the other and exchanging accusations about the their knowledge of government operations.

Cerilli conceded the surplus did not meet an informal policy that suggests the county have enough money in its reserves to pay for two months of expenses, a figure that equals about $20 million, according to finance director Meghan McCandless.

Cerilli said confidential discussions with commissioners and finance staff identified potential sources of revenues that might bolster the reserves. She pointed to a potential settlement of a lawsuit filed against drug makers and distributors accused of promoting an ongoing epidemic of opioid-related drug overdoses, but declined to identify other possible sources of revenue.

“There are things in the works that might be possible that mean we won’t have to raise taxes next year,” Cerilli said.

Commissioners Sean Kertes and Doug Chew, who took office in January, also said they won’t vote for an additional tax increase this year and cited logistical and policy concerns. There isn’t enough time left to re-open the 2020 budget before a state mandated Feb. 15 deadline, and tax bills for the new year are being printed and mailed out, they said.

“We have to take this seriously,” Kertes said, and proposed that all three commissioners devise plans to deal with the depleted surplus.

Chew said he was exploring options that did not include a tax increase.

“There are two ways to skin this cat,” Chew said, suggesting savings could come through reduced expenses or increased revenues.