County commissioners are proposing an 18% tax increase. Here's what it means for residents.

With rising costs and deficits on the horizon for next year, Lebanon County Commissioners pass a $123.9 million preliminary 2022 budget with a 18% tax increase. 

Officials are looking at a 0.6 mill increase, setting the millage rate at 3.8925 mills for 2022. The last tax increase occurred in 2016, when commissioners raised the millage rate to 3.2925 mills. 

County Administrator Jamie Wolgemuth said the county has had a deficit for the last three years, reaching $6.5 million in anticipation of 2022. The county has been using cash on hand to balance the budget.

"We've reached a point inevitably where either we're going to need more revenue or cuts are going to be drastically made in order to balance a budget," he said. 

Wolgemuth added that general fund expenses are increasing by 6.63% to more than $54 million in 2022. 

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The average assessed value of homes throughout Lebanon County is $168,950, according to officials. Most homeowners with that value would see their taxes increased by $101.37. 

Big ticket items in the 2022 budget include capitol projects like the construction of the new Department of Emergency Services 911 center, which is estimated to raise the debt service by $1.4 million. 

"The budget at $123 million is a steep increase over last year's $86 million," Wolgemuth said. "That, however, is almost entirely a one-time anomaly year because of construction of the DES building...but, of course once those funds are complete and those funds are spent and passed through the budget, then we would go back to what I would consider a more normal number or not with that spike of capital."   

The center is designed to be the primary 911 operations center, with the current building set to be a backup. The new center will also provide training spaces for all emergency services, and serve as a base for county government officials and staff should something happen to the municipal building at a total cost of $40.9 million for the project.

Another big item causing the deficit is the county's contract with PrimeCare Medical. In 2019, the county entered into a contract with the Harrisburg-based company to provide full medical service to the Lebanon County Correctional Facility at a cost of $3 million a year.

Commissioner William Ames said no one takes any pride or pleasure in raising taxes. But the proposed budget meets public safety demands while also providing for and showing appreciation to county employees. 

"People have known that we had to make this change with the emergency services," he said. "I feel very comfortable in voting for this and doing the best job that we can as responsible county commissioners for the county."

Employee health insurance premiums for the county are increasing by 9.2% for 2022. Wolegmuth said that is a $1.1 million increase for the county. 

Lebanon County government is facing a labor shortage among many departments, including the county prison and Renova Center. There are 700 positions in the county government, and more than 100 vacancies currently exist mostly at the county prison. 

Recruitment and retention of employees are at an all-time low, according to Wolgemuth. Commissioners have initiated some measures to attract new applicants, and a study was done in 2021 to compare the county salaries to counties of a similar size. 

"We are having a very difficult time hiring," Wolgemuth said. "We are, in some instances, not getting applicants in some of the positions, and departments are thin. That's something that needs to be addressed. 

Commissioner Chairman Robert Phillips said the major focus of the budget deals with providing safety for residents.

"When anyone calls an ambulance, police or fire, they want the best response available, and that's what this is intended to provide," he said. "So for all our citizens, this is a good investment for the future and at this point it's unavoidable."

Commissioners will finalize the 2022 budget at a special meeting on Dec 23. 

Matthew Toth is a reporter for the Lebanon Daily News. Reach him at mtoth@ldnews.com or on Twitter at @DAMattToth.