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Cambria County taxpayers will face a 1-mill increase in 2008 to begin paying off the $10 million Cambria 911 updates and the new wireless communications project, the commissioners said Wednesday.

A 1-mill hike would mean a $12 increase in the yearly tax bill on the average residential property, they said.

The 2008 budget, which goes on public display today, shows a spending increase of 3.89 percent. It totals $154.28 million, up about $5.5 million.

A major financial challenge for 2008 will be Laurel Crest, the county’s nursing home. It is showing a $2.2 million deficit this year – reduced to $1.1 million by drawing on reserve funds – and a projected loss of $2.7 million if patients and revenues do not increase, commissioners said.

A special meeting is slated Dec. 28 for adoption of the budget and taxes.

President Commissioner P.J. Stevens described the budget as the “bare minimum” necessary to operate in the new year.

Stevens said the commissioners made every effort to reduce costs and increase revenues where possible, but inflationary pressures were felt in fuel, utilities and wages.

The tax increase will bring Cambria’s total tax levy to 23.25 mills – 17.5 for general operations, 4 for debt service, 0.75 for community college, 0.5 for the county library system and 0.5 for parks/playgrounds.

The property tax is expected to bring in $27 million, funding just less than 18 percent of the county’s budget, chief clerk Mike Gelles said. The rest of the budget will be paid through state and federal reimbursements and other sources.

This will be the third time the present board has raised taxes.

In April – when the $10 million loan was approved for the wireless telecommunications project/911 updates – the commissioners said it wouldn’t cause a tax increase.

But inflation made a hold on taxes unrealistic, they said. Eventually, profits from the new venture and reductions in the county’s communications costs are expected to pay the tab.

The county will make its first loan payment of $918,000 in 2008, Gelles said.

Commissioner Bill Harris said the network, which will be made available to private providers, is an investment in the county’s future.

The commissioners listed three bright spots in the 2008 budget:

n A reduction in county contributions to the retirement fund. Three years ago, the cost was $1.4 million. For 2008, it’s projected at $400,000.

n The health-care committee was able to negotiate a minimal increase of 5 percent on insurance premiums. That’s still an increase of $600,000.

n Higher revenues at the prison for housing out-of-county inmates. The county is anticipating $2.5 million in 2008; in 2007, they were $1.6 million.

http://www.tribune-democrat.com/local/local_story_339220924.html

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