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Luzerne County residents got some good news Tuesday: the county’s annual audit will be completed on time, and a rough draft of the document shows that the county took in $7.5 million more than it spent in 2015, knocking down the county’s running deficit to less than $10 million.
County Manager C. David Pedri had provided the council an advance copy of a rough draft of the audit, and he confirmed via speakerphone during a work session Tuesday that the audit did indeed show a $7.5 million surplus for 2015.
County Budget/Finance Division Head Brian Swetz confirmed that the largest sources of unbudgeted revenue were one-time sources — about $3.9 million in savings came from refinancing bonds last year, and $2.1 million in revenue came from the sale of the former county-owned Valley Crest nursing home and Springbrook building properties.
Another $2.2 million in savings was realized through various departments reducing their spending, and council had put another $300,000 into reserve accounts, he said.
Chairwoman Linda McClosky Houck noted that Robert Lawton was county manager when the savings were realized. She said that after he “took a lot of heat” from some council members during his approximately four-year term, Lawton deserved credit for decisions over a several-year period that led to the surplus.
She also read a passage from the draft discussion and analysis that stated: “It’s the first budget versus actual general fund surplus since 2011” and that “Luzerne County has increased the tax rate and right-sized the tax force in the past few years, finally paying dividends in 2015.”
The 2014 audit, which was finalized three months past the June 30 deadline set in the county charter, showed that the county government’s deficit increased from $12.5 million to $16.9 million that year. The 2015 surplus means the overall deficit should have been reduced to about $9.4 million.
Pedri said the surplus and deficit reduction is one of several steps the county must take to get a credit rating upgrade. Standard & Poor’s in November lowered the county’s credit rating two notches from investment grade to a speculative BB+, citing the county’s “political gridlock,” insufficient financial monitoring and lack of a reserve cushion.
During public comment, resident Brian Shiner credited Pedri and the county staff for assuring this year’s audit was completed on time. “It just shows that with the right person at the helm, the job can be done.”
Swetz said representatives from the auditing firm Baker Tilly were unavailable to attend Tuesday’s council meeting and work session, but they would make a budget presentation for the council on July 12.
In other business, the council voted 6-5 against putting a question on the November ballot asking voters if the county should switch from using elected tax collectors to in-house tax collection for county taxes, which supporters say could save the county substantial funds.
A council majority had voted to stop using elected collectors for county real estate taxes in 2013, but a new majority reversed that decision in 2014 before in-house collection by the county treasurer’s office took effect.
While some council members advocated to let voters decide on the contentious issue, others disagreed. Councilman Edward Brominski said the council would be second-guessing itself by putting the question on the ballot. He said voters who disagreed with county council’s decision had the option of voting out members who supported it.
While McClosky Houck, Rick Williams, Harry Haas, Eugene Kelleher and Eileen Sorokas supported putting the question on the ballot, Brominski, Kathy Dobash, Tim McGinley, Robert Schnee, Stephen A. Urban and Jane Walsh Waitkus voted against it.
Council also voted form a Blighted Property Review Committee to publicly identify vacant blighted properties and seek corrective action.
