The Montgomery County Commissioners voted last week to adopt a $420 million budget for 2019 with no tax increases for the second consecutive year.
The budget will increase the county’s general fund reserve to $88.5 million, 21.1 percent of the overall budget. The fund provides a safeguard against unanticipated expenditures or revenue shortfalls.
“Montgomery County is on sound financial footing, due to years of adhering to fiscal priorities, investing in long-term capital planning, repairing and improving our aging infrastructure, and maintaining an appropriate fund balance,” Dr. Val Arkoosh, chair of the Montgomery County Commissioners, said.
The county’s strong reserve fund is one reason it achieved a Aaa credit rating from Moody’s Investors Service, which means the county can borrow money at the lowest interest rates available.
The county eliminated risky swap transactions in recent years that left the county vulnerable to changing market conditions and also refinanced debt. Refinancing its debt will decrease the financial burden by $500,000 next year and by $11.1 million over 20 years.
The budget includes county dollars to leverage more than $500,000 in state and federal grant funding for behavioral health issues, including opioid addiction. The commissioners also voted to adopt a five-year capital improvement plan to improve county-owned roads and bridges. The plan advances the ongoing County Campus Redevelopment Plan.