Supervisors also will hold a separate public hearing on a proposed real estate tax rate increase at their regular monthly meeting June 26 at 7 p.m.

The proposed budget for the fiscal year beginning July 1 and ending June 30, 2009, totals $26,650,727. It is $813,972 higher than the current budget.

Projected revenue of $26,746,133 includes $16,694,236 in general property taxes and other local funds, $5,521,418 from school operating and cafeteria sources, and $4,529,479 from state and federal governments. There is also a $557,436 fund balance from the current budget.

The anticipated fund balance at the end of the 2009 fiscal year is $651,842.

Decreases/increases

In year-to-year comparisons, spending will be down in three categories:

• General government, down from $1,382,744 to $1,174,629, a savings of $208,116;

• Recreation, down from $161,750 to $160,345, saving $1,405; and

• School cafeteria, down from $786,365 to $686,905, saving $99,460.

Increases in spending are noted in all other categories:

• Courts, from $631,318 to 652,871, up $21,553;

• Public safety, from $3,192,633 to $3,526,656, up $334,023;

• Public works, from $1,109,583 to $1,139,924, up $30,341; and

• Health and welfare, from $2,451,408 to $2,700,274, up $248,866.  

The school operating budget increased from $15,162,262 to $15,494,208, up $331,946. Non-public school education from $5,576 to $5,700, up $124; community development from $380,397 to $389,812, up $9,415; non-departmental from $42,425 to $49,925, up $7,500; and debt service went from $501,636 to $669,478 up $167,482.

Taxes

Based on new real estate assessments, the current tax rate of 53 cents per $100 of assessed value could be adjusted down to a revenue neutral rate of 36 cents in order to produce the same revenue. However, county officials are proposing an increase of 6 cents for 2009 that will bring the property tax rate to 42 cents.

The new rate is expected to generate about $1,800,000 in additional income which will be used mostly to cover increases in the school budget, including a loss of $1,200,000 from the state composite index adjustment.

The personal property tax rate for motor vehicles is proposed at $2.04 per $100 of assessed value and the rate for other personal property along with machinery and tools is proposed at $1.52 per $100.

A copy of the complete proposed budget is available for inspection during regular office hours in the county administration office at 8311 Mary Ball Road in Lancaster. It is also available online at the county’s website, www.lancova.com.