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Getting ‘lean’: Garrett commissioners look to trim county’s budget

Angie Brant

Cumberland Times-News The Cumberland Times-News Wed Aug 31, 2011, 11:04 PM EDT

OAKLAND — Garrett County commissioners have approved a plan they believe will help offset a projected revenue shortfall and increase the efficiency and productivity of county government.

In the next month, the commissioners will appoint nine individuals to serve on an Efficiency Task Force. The task force will implement “lean” practices in the county government.

The lean concept is a systemic approach that identifies problems and establishes corrective actions to increase efficiency in an organization.

Lean practices have been implemented in five counties throughout Maryland.

According to Gregan Crawford, chairman, this concept has been successful in the private sector for many years. He believes the implementation of the concept in Garrett County governmental operations will offer a better return on taxpayers’ dollars.

“This was the next logical step. We have looked at and completed many cost-saving initiatives and we believe this can only help our efforts,” Crawford added.

Crawford and his colleagues, Commissioners Bob Gatto and James Raley, unanimously approved the proposal at their August meeting. The next step will be to appoint members of the county work force and community to the panel.

The current proposal calls for the panel to be comprised of nine members, with five individuals from county government and four appointments from the commissioners.

However, based on the initial response to this proposal, the board of commissioners is considering the creation of subcommittees to allow greater involvement from both employees and residents.

The county has already enjoyed the results of lean practices following the elimination of 25 positions through attrition.

Through attrition, the county has seen a savings of $1.5 million and has been able to restructure and reorganize many departments, eliminating many cases of duplication of services.

Garrett County Administrator Monty Pagenhardt said the county’s employees have risen to the challenge and “continue to provide quality public service with less personnel and financial resources.”

The commissioners agree that the dedication of the employees will be key to the implementation and success of this endeavor.

“We are looking for solutions from the bottom up, solutions from the employees who perform the jobs. They know what works and what doesn’t,” Crawford said.

Raley said the county has seen success in shared services with the Garrett County Board of Education and sees the potential for even greater savings as different options are considered.

“We need to operate government like people operate their household budgets in this tough economy, by cutting back and makings changes,” Raley said. “It can be as simple as turning off lights when you leave a room or turning off computers. We are looking at every option that can help save the county money.”

Several Garrett County businesses meet each month to discuss improving efficiency in the private sectors. As guests of these meetings, Gatto said the board of commissioners have begun to look at the process in a different light, gaining insight from what is working in the private sector and how to adapt those practices to serve county government.

“Lean is not just about working harder, it is about working smarter,” Gatto said. “We are seeing how those companies are working to be more productive and it is giving us a fresh perspective on how we can do things.”

Gatto has said it is easy to raise taxes, but he feels a more efficient government should be the first priority as the county looks to the future.

“We’re trying to plan for the worst, but are hoping for the best,” Crawford added. “Raising taxes is the last resort.”

The commissioners’ next scheduled public meeting is Sept. 13, beginning at 9 a.m. The commissioners’ plan is to have Efficiency Task Force members in place by Oct. 1. Commissioners would like to see the task force hold an organizational meeting before Oct. 21 and compile a list of recommendations by Jan. 31, 2012.

Contact Angie Brant at abrant @times-news.com

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Commissioners Hold Hearings To Prepare For Fiscal Year 2013


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Aug. 25, 2011

The Garrett County commissioners are already preparing for the Fiscal Year 2013 budget and beyond, though FY 2012 is less than 2 months old. They held five brief public hearings Tuesday afternoon on proposed increases for recordation, admissions and amusement, hotel rental, title/leasehold interest transfers, and overdue property taxes.

“I don’t want you to believe that it’s a done deal,” Commissioner Jim Raley said about raising taxes. “I want you to know that we’re here to listen.”

About 30 people attended the hearings, primarily members of the Garrett County Chamber of Commerce.

Commission chair Gregan Crawford stressed the hearings were mainly to garner information and to prepare for the future, especially the General Assembly session in January 2012. Three of the five taxes would require legislation in order for the commissioners to be able to increase them, if needed, in the future.

“2013 will probably be a far greater challenge to the county, budgetwise, than 2012 was,” Crawford said.

He indicated that the county may see a drop in property assessments, there may be a shift in teacher pension obligation from the state to the county, and there will be less state funding for education. He noted that the county’s capital projects and employee roster have already been greatly reduced.

“We’re trying to plan for the worst, but are hoping for the best,” Crawford said. “I don’t know whether we’re going to change any of the rates or not, but adjusting tax rates is never popular, especially in recessionary times. I’m still not convinced it’s the correct pathway at this point. Raising taxes should only be as the last resort.”

He added that it is hard to ask people to pay more taxes when the county needs to continue to look internally to see what it can do to raise revenue and trim expenses.

With that in mind, the commissioners will form an Efficiency Task Force to find ways to save money, yet maintain services.

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Commissioners To Form Task Force To Begin "Lean" Government Plan


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Aug. 25, 2011

The Garrett County commissioners voted unanimously Tuesday to form an Efficiency Task Force that will seek to implement the concept and practices of a “lean” county government.

During their public meeting on Tuesday, Chairman Gregan Crawford spoke about the pending revenue shortfall that Garrett County government is projecting for the next three- to five-year budget cycles.

County administrator Monty Pagenhardt presented a statistical and projected revenue/expenditure outline. He noted that the county’s budget has decreased from $100 million in recent years down to $73 million. In addition, the county’s employee roster has decreased by 20 percent.

Crawford then proposed that the Board of Garrett County Commissioners create the task force.

“Lean seeks continuous improvement within an organization and is facilitated by a systematic approach to identify problems and achieving efficient solutions that in turn create better outcomes for employees and the constituents that they serve,” Pagenhardt explained Wednesday in a press release.

Crawford proposed nominating a committee composed of nine members: five from county government and four appointed by the commissioners. He suggested that the committee by appointed and organized by Oct. 1, that its first meeting take place no later than Oct. 21, and that its initial recommendations be presented to the commissioners by Jan. 31, 2012.

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County Commissioner Meeting TODAY re: tax increases

Starting at 4:05 PM today at the county courthouse, the County Commissioners will be holding hearings on proposals to increase several real property related taxes in Garrett County. These include the Recordation Tax, the Transfer Tax, and the Rate of Interest for Overdue Property Taxes. Some of the proposed increases require legislation.

Also scheduled are hearings for rate increase in the Hotel Rental Tax and the Admissions and Amusement Tax.

The specific increases under consideration, if any, are not posted in the public notice. According to the commissioners’ office, the county will make a presentation on the projected needs and shortfalls in budget and revenue over the next few years and provide information on why the increases are being considered.

The information below as taken from the commissioners’ agenda.

4:05 PUBLIC HEARING: Department of Financial Services

Proposed Tax Rate Increase for Recordation Tax

4:10 PUBLIC HEARING: Department of Financial Services

Proposed Tax Rate Increase for Admissions and Amusement Tax

4:15 PUBLIC HEARING: Department of Financial Services

Proposed Legislation for Tax Rate Increase for Hotel Rental Tax

4:20 PUBLIC HEARING: Department of Financial Services

Proposed Legislation for Tax Rate Increase for County Transfer Tax

4:25 PUBLIC HEARING: Department of Financial Services

Proposed Legislation for Tax Rate Increase for Rate of Interest for Overdue Property Taxes

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GC Commissioners Announce Public Meeting Schedule

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Jul. 28, 2011

The Board of Garrett County Commissioners announced this morning it will continue to conduct public meetings on the first Tuesday of the month at 9 a.m. and the third Tuesday of each month at 4 p.m.

On the second, fourth, and, if applicable, fifth Tuesday, the board will be in the office to review and conduct informational sessions with the county administrator, county attorney, county government staff, component units, or other parties.

These work sessions are open sessions and will be scheduled to allow staff a time to present briefings to the board and to provide input to and receive guidance from the board.

Questions may addressed to Monty Pagenhardt, county administrator, at 301-334-8970.

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>L. Pagenhardt To Retain Position As Administrator

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Jun. 16, 2011

The Garrett County commissioners last week unanimously approved the reappointment of Lamont “Monty” Pagenhardt as county administrator for another four years. He has held the position for nearly 16 years.
“It’s been a pleasure to get to know him over the past six months,” said commission board chair Gregan Crawford about Pagenhardt. “He’s very capable, very able. He’s very well respected. Seems like whenever we go to Annapolis, Monty’s name always comes up, and they (state officials) know who we are. We appreciate your service.”

Pagenhardt expressed his appreciation to county staff members for their assistance and cooperation.

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>Commissioners Approve Budget, Keep Real Property Tax Rate at $.99

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Jun. 9, 2011

The Garrett County commissioners unanimously approved the county’s fiscal year 2012 budget and tax rates on Tuesday. Numerous county staff members attended the announcement and received copies of the new budget.

Excluding debt service and capital outlay, the FY ’12 budget is $70.4 million, which is $2.7 million more than the current year’s operating budget.

But, overall, there is $1.745 million more in debt service and $12.687 million more in capital outlay/projects in the FY ’11 budget than the newly approved one. FY ’12 begins on July 1.

Commission chair Gregan Crawford said the county faced many budget challenges and numerous drafts of the document were created and reviewed over the last four months before Tuesday’s version was approved.

“We have to continue to be vigilant in our efforts to the achieve the best return for the taxpayers’ money as possible,” Crawford said. “We look forward to working with the various departments and seeing how we can squeak out a little more money here and there and generate some more savings.”

In the early stages of the FY ’12 budget development, county departments were asked to submit “ideal” budgets, as if money would actually be available for their entire “wish lists.”

“This actually served many purposes,” said Commissioner Bob Gatto. “It allowed us to [evaluate] long-term and short-term needs and allowed us to develop some priorities in moving forward.”

He noted that the wish lists would have put the county in the red by $16 million, but county personnel and the public worked together to develop those priorities, which are reflected in the approved FY ’12 budget.

Commissioner Jim Raley noted that it was very obvious that the wish lists were not realistic without a significant property tax increase.

“I think most of us know that was something that we were not willing to do,” Raley said.

The commissioners unanimously approved keeping the county’s real property tax rate at $.99 per $100 of assessed value. Because of a tax differential agreement with the county, Mtn. Lake Park’s tax rate will be $.939, which is $.003 more than last year. The rates include special fire levies and the county landfill bond tax, Raley noted.

He said revenue in the FY ’12 budget mirror the current one, except for an additional $244,000 from the county’s assessable base and $1,130,500 in personal property/ordinary business revenue from Constellation’s wind turbines. The additional revenue, Raley noted, enabled the commissioners to maintain the Garrett County Scholarship Program and help the Board of Education offset funding cuts from state and other sources.

Education accounts for the largest portion, $30.6 million or 41.78 percent, of the county’s FY ’12 budget. The commissioner allocated nearly $24.9 million to the BOE, which is $1.7 million more than the FY ’11 allocation. Garrett College will receive about $4.3 million. The Ruth Enlow Library will get $982,700, and $450,000 is earmarked for the scholarship program.

“I know the Board of Ed. is going to have to look really, really hard in their budget for next year, especially with the imminent threat of teacher pensions, or some amount of teacher pensions being passed on to county government,” Raley said. “That could possibly be a $1 million the first year out.”

FY ’12 allocations in other areas are as follows: general government, $6.7 million; public safety, $9.1 million; public works, $16.9 million; community health, $1.4 million; parks, recreation, and culture, $55,000; public service, $170,842; economic development $1.5 million; economic opportunity, $2.7 million; miscellaneous, $1.3 million, which includes transfers to the county airport, tax rebates to municipalities, and a contingency fund of $300,000; and debt service, $33,399.

The commissioners also allocated $2.7 million for capital projects/outlay. The largest project appropriation is for the purchase of a Maryland Economic Development Corporation (MEDCO) building in the Southern Garrett Business & Technology Park for $1.15 million. The purchase will be funded with a $244,926 Appalachian Regional Commission grant, county matching funds in the same amount, and the balance of $660,148 will be financed by the that with a 30-year loan at 3 percent interest.

The building will be rented to businesses in an effort to boost economic development in the county. The debt service of $33,399 will be offset by utilizing the rental income from the facility.

The MEDCO building purchase agreement will also enable the county to proceed with development of the Keyser’s Ridge Industrial Park, with the GC Department of Economic Development actively pursuing new tenants, the commissioners note in their message at the beginning of the FY ’12 budget document.

Read full article here.

If you or someone you know is considering buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues! As member of the Garrett County Board of Realtors, I can assist you with ANY listed property, regardless of the listing broker.

877-563-5350 Questions about ANY listed property? I can help! Call me!
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>GC Commissioners Will Hold Public Mtgs. On Tuesdays

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May. 26, 2011

The Garrett County commissioners announced this week that beginning in July they will conduct public meetings on the first Tuesday of the month at 9 a.m. and the third Tuesday of each month at 4 p.m.
On the other Tuesdays, they will be in the office to review and conduct informational sessions with the county administrator, county attorney, government staff, component units, and other parties.

“These work sessions will be scheduled to allow staff a time to present briefings to the board and to provide input to and receive guidance from the board,” the commissioners noted in a press release.

Interested persons may contact the commissioners’ office to see what matters are scheduled for discussion on any dates. In addition, the agenda for all public meetings are posted on the Garrett County government web site at garrettcounty.org by noon on the Friday proceeding the public meeting. Public meeting minutes are posted on the same site.

Anyone having questions may contact the commissioners’ office at 301-334-8970.

If you or someone you know is considering buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues! As member of the Garrett County Board of Realtors, I can assist you with ANY listed property, regardless of the listing broker.

877-563-5350 Questions about ANY listed property? I can help! Call me!
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>Commissioners Earmark Another $700K For Board Of Education

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Apr. 28, 2011

After numerous budget review sessions, the Garrett County commissioners have agreed to appropriate an additional $700,000 to the Board of Education for Fiscal Year 2012, county administrator Monty Pagenhardt announced on Tuesday. These funds will be transferred from the county’s unrestricted/undesignated fund balance.
This newest earmark is in addition to the previously announced $1 million increase in FY ’12, compared to FY ’11. Pagenhardt noted that the $1.7 million proposed appropriation to the BOE would be the largest annual increase ever approved.

“The additional allocation of funds will assist the Board of Education with a projected residual shortfall of $1.365 million that has been determined,” he said.

The total proposed FY ’12 allocation to the BOE from the county is now $24,874,000. This is still below what the board had requested from the county – $28,687,825. Its FY ’11 BOE allocation was $23,174,000.

Pagenhardt said that although the BOE has not presented its comprehensive budget to the county, the commissioners project that the additional allocation – combined with cost savings from the board’s employee retirement incentive plan and supplementary public education funds secured in the 2011 Maryland General Assembly session – will reduce the BOE’s funding shortfall to $665,000.

He noted that county officials have worked to close its own $17 million funding shortfall, and reiterate to the BOE that all county departments have incurred budget cuts or have been flat funded in FY ’12. County capital projects have been repeatedly scrutinized and reprioritized, Pagenhardt said.

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If you or someone you know is considering buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues! As member of the Garrett County Board of Realtors, I can assist you with ANY listed property, regardless of the listing broker.

877-563-5350 Questions about ANY listed property? I can help! Call me!
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>Garrett commissioners add $700,000 to schools budget

>Board of Education asked to develop long-term plan
For the Cumberland Times-News
The Cumberland Times-News Tue Apr 26, 2011, 11:29 PM EDT

OAKLAND — After numerous budget review sessions, the Garrett County commissioners have added $700,000 to the $1 million already allocated for the Board of Education for fiscal 2012.

The funds will be transferred from the county’s unrestricted/undesignated fund balance and will assist the board with a projected residual shortfall of $1.365 million.

The county commissioners have asked the Board of Education to develop a long-term financial plan that will allow Garrett County public schools to operate proficiently despite the loss of funds from changes to the state funding principles and a declining student enrollment, according to County Administrator Monty Pagenhardt.

Pagenhardt said that the commissioners are willing to work with the board in developing the plan. The county has not been presented with a comprehensive budget from the board, according to Pagenhardt. But county staff projects that the additional allocation combined with cost savings from the board’s employee retirement incentive plan and supplementary public education funds secured during the Maryland General Assembly session will reduce the funding shortfall to $665,000.

The county commissioners along with the county administrator and Department of Financial Services have worked to close a $17 million dollar funding shortfall and all county departments have incurred budget cuts or have been flat-funded in fiscal 2012. Capital projects have been repeatedly scrutinized and reprioritized.

Under county policy, the funds that were transferred must be restored within two years. The county commissioners anticipate a similar amount in new revenue for fiscal 2013 from the Synergics wind project located on Backbone Mountain.

If you or someone you know is considering buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues! As member of the Garrett County Board of Realtors, I can assist you with ANY listed property, regardless of the listing broker.

877-563-5350 Questions about ANY listed property? I can help! Call me!
Visit the ‘I Love Deep Creek & Garrett County group’ on Facebook! News, events, photos, real estate, community, info, more! 1,750+ members & growing!