The entrance to One Montgomery Plaza in Norristown, where many county offices are housed. Credit: Montgomery County Commissioners
Public hearings scheduled for Dec. 12, adoption vote slated for Dec. 19
The Montgomery County Commissioners got a first look at the proposed 2025 budget on Thursday as finance officials work to remedy a $15.8 million deficit. The budget plan includes a proposal to raise the property tax from 5.178 mills to 5.642 mills, a roughly 9 percent increase.
Chief Financial Officer Dean Dortone estimated around 40 percent of single-family homes with property values between $200,000 and $414,000 would pay $601 per year in county real estate taxes, which is an annual increase of $49. An “average single-family home” valued at around $520,100 would pay $79 more per year at $965, Dortone said.
While the vote to advertise the budget was unanimous, county commissioners shared their varying takes on the proposed financials for next year.
“We remain committed to deliver high-quality services to our constituents,” said Montgomery County Commissioners’ Chairwoman Jamila Winder, adding that “we do care about the rising costs for taxpayers. I’m empathetic to people who are struggling right now.”
Montgomery County Commissioners’ Vice Chairman Neil Makhija agreed.
“We’re doing more and more every year,” he said, adding “The things that we are paying for are really investments,” he said
Makhija emphasized the advancing efforts related to infrastructure and renewable energy. He also noted that the “state still has a multibillion-dollar surplus” and stressed, “we will continue to push for those funds to come back to our county.”
On the other hand, Montgomery County Commissioner Tom DiBello, a Republican, maintained “I don’t support tax increases,” and inquired about possibilities to lessen the burden on area residents.
He also tasked the county’s three deputy chief operating officers to conduct departmental evaluations to find cost-saving measures.
The county’s 2025 financial figures projected $610.9 million in expenditures and nearly $595.2 million in revenues. County commissioners unanimously authorized the advertisement of the proposed 2025 budget, which will be available for public review online and in-person until the budget adoption vote scheduled for next month, said Dortone.
Noting the increased expenditures, which were around $43.1 million, or 7.6 percent higher, than the 2024 budget, Dortone said that several areas contributed to the level of expense, including new personnel and debt service costs, as well as a $2 million “projected inter-fund transfer” to the county’s 911 fund. Personnel costs for 2025 were listed at roughly $291.2 million, according to budget figures, which anticipated around $36.7 million, or 14.5 percent, higher than the previous year.
Dortone attributed staffing, designating $30.1 million to the county pension plan and rising costs associated with employee health care as reasons for the increase. In his presentation, Dortone observed “inflationary cost pressures” and “higher demand for medical services coming out of the pandemic” that translated to having $4.8 million more in the 2025 proposed budget.
In addition, staffing, wage increases and further implementation of recommendations from the county’s compensation study contributed to higher personnel-based costs. County commissioners later authorized collective bargaining agreements with the Montgomery County Detective Bureau, the Montgomery County Public Defender’s Office Teamsters Union Local No. 115 and the Montgomery County District Attorney’s Office at Thursday’s meeting.
Capital improvement program
Additionally, the county projected around a $244.4 million budget for the 2025 capital projects fund. The largest expenditures, the Montgomery County Department of Assets and Infrastructure listed $79.4 million, the Planning Commission recorded around $67.4 million and the county campus plan allocated $58.2 million, according to budget figures. Breaking those figures down further, “construction supervision” accounted for roughly $160.2 million, followed by nearly $25 million in design engineering and nearly $21 million in hardware/software, according to budget figures.
On the revenue side, Dean said that capital fund bond proceeds made up $166.2 million, followed by around $36.5 million in federal grants and roughly $36.5 million in state grants.
Looking ahead, the five-year 2025-2029 Capital Improvement Program’s highest expenditures listed the county’s assets and infrastructure department with $308.3 million, nearly $290.1 million for the planning commission and nearly $242.1 million for the county campus plan.
Public hearings on the budget are scheduled to take place at 10:30 a.m. and 5:30 p.m. on Thursday, Dec. 12. County commissioners are expected to vote to adopt the budget at an upcoming meeting at 10 a.m. on Thursday, Dec. 19, on the eighth floor of One Montgomery Plaza, 425 Swede St. in Norristown. Visit montgomerycountypa.gov/finance for more information.
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