Allegheny County Executive Dan Onorato said funding mass transit with new drink and car rental taxes stabilized the county's finances and allowed him to present another budget with no property tax increase.

"We stand alone as the only county that has not raised property taxes for eight consecutive years now," he said yesterday in presenting his 2009 budget to County Council.

The $762.7 million operating budget proposal includes a reduction in the 10 percent drink tax, which Mr. Onorato implemented in January with a $2-a-day tax on car rentals to fund the county's $30 million subsidy of the Port Authority.

Mr. Onorato, who wants to cut the drink levy to 7 percent effective Jan. 1, expects to collect $26.5 million from the lower drink tax and $5.8 million from the car tax, which would not change.

"This reduction makes good on my commitment to tailor the tax to the amount needed to fund transit operations," Mr. Onorato said, adding that "drink tax and rental car fee collections above the $32 million budgeted for 2008 will be used for debt service related to roads and bridges in my 2009 budget."

Mr. Onorato said the county is on solid financial ground, as evidenced by its improved bond rating from two Wall Street firms in May.

"The positive ratings from Standard & Poor's and Moody's are further proof of the success we have had over the last five years in increasing efficiency, cutting costs, reducing debt and growing our fund balance, all of which have been accomplished without raising property taxes," he said.

Mr. Onorato said his administration will continue to monitor property assessment appeals and may launch another round of county-backed appeals to ensure that municipalities and school districts adhere to the 2002 base-year assessment system he implemented.

In the next few months, the Pennsylvania Supreme Court is expected to rule on the constitutionality of the base-year assessment plan, which sets assessments based on the value of property in 2002, including new construction.

Mr. Onorato has budgeted $63.4 million for 89 infrastructure and capital improvement projects around the county. That will see the county use $37.2 million in new bond proceeds and $26.2 million in other financing.

Key among the projects is a plan to dredge North Park Lake and restore it to its original depth.

The budget represents a 4.8 percent increase over the $727.5 million spending plan for this year.

Excluding three nondiscretionary items, the increase is less than 1 percent, Mr. Onorato said. The three nondiscretionary increases are $7 million from the state for health and human services programs; $7 million in increased debt service; and $1 million in utility costs.

County Council, which has already started its deliberations, will vote on the budget on Dec. 2.