NORRISTOWN >> Montgomery County ended 2014 with a surplus of over $1 million, marking second year in a row with a surplus.
Uri Monson, the county’s chief financial officer, announced the surplus during Friday’s commissioners’ meeting while presenting the report for the fourth financial quarter of 2014 to the commissioners.
“I am pleased to report that the county ended 2014 with an annual operating surplus of $1.15 million,” Monson said. “This is the second consecutive year with a surplus following five years of deficits.”
Early quarterly reports projected the county ending 2014 with a deficit. The reports stated holding on to the Parkhouse geriatric facility for two months in 2014 played a large part in those earlier predicted deficits. The county, in 2013, had anticipated on selling the facility by Dec. 31, 2013. Parkhouse was finally sold in March 2014.
The projected deficits were also due to the amount of snow in 2014 the county had to combat and additional costs which were not anticipated. $2 million that had to be used to make up for emergency communications costs also led to the projected deficit.
Monson credited the end of the year surplus a reduction in healthcare spending, a reduction in expenses from the strict scrutiny hiring standard, an unexpected increase in the previous year’s tax collections and an increase in grant revenues.
That surplus will go into the county’s reserve fund.
He also reported the county ended 2014 with a fund balance of $40.1 million which is equal to 10.53 percent of the county’s revenues. Monson explained that rating agencies recommend that a fund balance equal to 10 percent of all revenues.
“This is the first time we’ve ended the year above the recommended reserve levels since 2010,” Monson said.
Commissioner Bruce L. Castor Jr. said the county is continuing the fix the problems created by the previous administration.
“The situation in which we found ourselves when we took office was so dire there was no Republican or Democrat way to dig out of the hole we were in; we were sinking,” Castor said.
Commissioners’ Chairman Josh Shapiro echoed Castor’s comments.
“This appears to be evidence that our fiscal program is working and our commitment to reform and responsible budgeting is working,” Shapiro said. “And that having an honest and transparent budget actually works.”
