Montgomery County adopts 2025 budget, real estate tax increase

Montgomery County Commissioners wrapped up the final board meeting of the year by adopting a $610.9 million budget for fiscal year 2025 and raising property tax rates.

The action authorizing the operating budget for the upcoming fiscal year included increasing the millage rate to 5.642 mills from the previous year’s 5.178 mills. The budget passed in a 2-1 vote, with Montgomery County Commissioners’ Chairwoman Jamila Winder and Vice Chairman Neil Makhija voting in favor, while Commissioner Tom DiBello was the sole dissenting voice.

“Going through a budgeting process is highly complex and … it’s really a complicated dance to really accomplish the things that we need to accomplish in delivering on our promises to the residents of Montgomery County,” Winder said on Thursday.

DiBello agreed, stressing that “it’s a very complex budget.” DiBello called for further evaluation in order to lessen the burden on area residents. Concerns over that burden were expressed by some residents ahead of the Thursday morning vote.

“As a taxpayer I have a heart for other people who are trying to make ends meet today,” said Ambler resident David Morgan.

Barb Furman, of New Hanover Township, agreed, stressing that “you’re spending our money.”

“We all have to tighten the belt, and oftentimes, it feels like … although you’re hearing us sometimes we don’t feel like you’re listening,” she said, adding that “it’s really easy to spend other people’s money but paying for it is a whole other aspect.”

Makhija countered, applauding Chief Financial Officer Dean Dortone’s cost-saving measures that amounted to roughly $4 million, through “budgetary debt service” and “operational reductions.”

“I appreciate you for finding those areas of savings, and I’m glad we’re able to invest in fixing roads and bridges … that county residents use on a daily basis,” Makhija said.

Makhija also identified “a number of critical investments” within the county finances ranging from infrastructure to trail projects.

“Parks and trails is another area where our residents see the results and appreciate resources that are available to a great number of people who utilize them, and of course, that’s alongside all of the everyday services we provide in the courts and public safety and human services,” he said. “Thank you for putting this together and coming up with a responsible budget.”

Winder acknowledged the difficulties facing residents when it comes to tax increases.

“This was hard, but we have promises to deliver on. We have commitments we’ve made to the community,” she said.

The county recorded $610.9 million in expenditures and nearly $595.2 million in revenues. Health and human services accounted for 36.7 percent of expenditures, followed by county administration and judicial at 18.1 percent and corrections at 13.6 percent.

Dortone previously acknowledged the increased expenditures, which were listed around $43.1 million, or 7.6 percent higher, than the 2024 budget. Dortone cited personnel, debt service costs and a $2 million “projected inter-fund transfer” to the county’s 911 fund as main factors.

The county’s 2025 personnel-related figures were listed at roughly $291.2 million, according to budget figures released in November, which anticipated around $36.7 million, or 14.5 percent, higher than the previous year.

Montgomery County’s 2025 personnel-related costs were listed at nearly $204.6 million for full time wages, $5.4 million for part time wages and nearly $81.2 million in employee benefits, according to budget figures. Montgomery County employed more than 2,800 people across 28 different departments as of 2023.

The staggering personnel costs, which included salary, benefits and pension, that took up a share of the upcoming budget’s deficit was a deciding factor in DiBello’s no-vote. DiBello said he wants to “really understand what we’re doing and how this money’s being spent.”

He previously tasked the county’s three deputy chief operating officers to conduct a “departmental analysis,” but told MediaNews Group on Thursday that they “never got to that point.”

“I’m trying to bring more of a business-oriented approach to how we’re doing things here,” he said.

The county’s main revenue drivers included real estate taxes at 54.1 percent, federal and state grants at 34.6 percent and departmental earnings at 11.3 percent, according to budget figures.

Implementing the 9 percent real estate tax increase will generate roughly $28.8 million in “new net real estate tax revenue to the general fund,” Dortone said last month.

He estimated around 40 percent of single-family homes with property values between $200,000 and $414,000 would pay $601 per year in county real estate taxes, which is an annual increase of $49. An “average single-family home” valued at around $520,100 would pay $79 more per year at $965, Dortone said.

Programs offering eligible residents on a fixed or low income assistance include the county’s Real Estate Tax Deferral Program and the Pennsylvania Department of Revenue’s Property Tax/Rent Rebate Program. Additionally, the Active Volunteer Real Estate Tax Rebate Ordinance offers some relief to qualified first responders. More information on the county program can be found at montgomerycountypa.gov/finance.

In addition to the budget, county commissioners unanimously voted to authorize seven special revenue funds and a $244.4 million capital fund for 2025.

“I just wanted to say I take my fiduciary responsibility very serious[ly],” Winder said. “There’s no luxury spending that’s happening here in Montgomery County. When you look at the details it’s really about making life better for the residents of Montgomery County.”

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