
Allegheny County Executive Dan Onorato contends that long-term financial stability in county finances will start with the $773.5 million budget proposal for 2010, which he presented to County Council yesterday.
The proposal, which reflects a $10.8 million or 1.41 percent increase in spending over the 2009 budget, starts with the premise that no new property taxes will be levied on county residents this year.
"This is my seventh budget in a row with no new property taxes," said Mr. Onorato, adding that his budget also proposes to end the practice of balancing county finances with one-time revenue sources next year.
What is more, Mr. Onorato said he has no plans to pay for a new property reassessment in his budget, even though a court could order him to implement one this year.
"I have a proven track record of maintaining property taxes and that's why I have consistently fought to block a new property reassessment. Right now, we have no contingency plan for a property reassessment that could cost $30 million," he said.
Allegheny County Common Pleas Judge R. Stanton Wettick Jr. is set to hear arguments Oct. 19 about implementing a timeline for a reassessment.
The proposed capital budget of $92.6 million provides $41.4 million for bridge construction, maintenance, repair and design, including $19.7 million to complete the rehabilitation of the Rankin Bridge. It also includes $9.6 million for the rehabilitation of Jack's Run Bridge No. 1, which connects Bellevue and Pittsburgh.
Mr. Onorato also is proposing $1 million for construction of a new bridge over active railroad tracks in McKeesport to connect Lysle Boulevard and Industry Road.
The county parks system would receive $10.5 million in capital and maintenance projects for the 12,000-acre system. That includes $4.8 million to remove sediment from North Park Lake and restore its ecosystem, as well as $1.5 million to renovate the South Park wave pool.
In a practice that has become routine, Mr. Onorato is relying on a one-time revenue source to balance the budget -- the impending receipt of $30 million from the state in reimbursements for capital improvement projects.
Last year, the county enacted drink and car rental taxes to pay its $30 million subsidy to Port Authority. In 2008, it used nearly $20 million in reimbursements for construction at Pittsburgh International Airport and in 2007 sold off property tax liens for $14 million.
The state reimbursement for capital improvements, which is normally injected into ongoing projects, Mr. Onorato said, will be used to balance the budget instead, possibly for the last time. In 2011, Mr. Onorato said he plans to balance his budget with $30 million from new and consistent revenue sources.
They include: $7 million in reduced debt service payments going forward: $5 million in county host fees from the Rivers Casino on the North Side; $3 million from projected revenue from the sale of Marcellus shale rights; $4 million from contributions by nonprofits to county finances; and annual utility savings of $1 million.
"We have held the line on staff since we reduced our payroll by 500 employees in 2004," said Mr. Onorato, adding that he anticipates no new layoffs or buyouts in county employees, outside the county attrition rate.
In addition, Mr. Onorato told County Council that he anticipates the county will receive about $3.5 million in reimbursements from the federal government for G-20 summit costs.
