Northampton County's 2014 proposed no-tax-increase budget will use $19 million from the budget's rainy day fund to balance the $330 million spending plan.

Released to Northampton County Council and the public for review, County Executive John Stoffa's eighth and final budget "presents a reasonable spending plan while considering the growing needs of county government," according to the executive's budget message.

The proposed 2014 real estate tax millage rate remains at 10.8 mills. For a homeowner with a property assessed at $50,000, this means an annual tax of $540. There are approximately 117,700 taxable properties on the tax rolls.

Stoffa credits his acting director of fiscal affairs Doran Hamann and all county employees for watching their costs.

"We're conservative about how we spend money, but it bothers me that we are eating the seed corn," Stoffa said referring to the county's general fund.

While Stoffa would have raised taxes two years ago, he said he knew the current council would never have approved a tax hike.

With more than two months of operating expenses in the general fund's estimated $33 million budget after balancing the budget, Stoffa said the decreasing fund balance doesn't paint a rosy picture for a new county executive and new council to work with for future budgets.

Beyond 2014, the county will need to fund reconstruction and rehabilitation costs relating to 15 bridges, potential construction of a regional forensic morgue, a possible stray animal facility and maintenance of county facilities.

At an Oct. 4 press conference, Stoffa said his most difficult budget decision was refusing to hire any additional employees. In 2013, there were about 1,800 government staffers employed in human services, public works, court system and corrections, and general government.

Looking at the bright side, Stoffa said overall his tenure as executive has a lengthy list of things that were fixed or finished. From building an archives facility and a new human services facility to preserving 12,000 acres of open space and opening the Wayne Grube Memorial Park, the county is better positioned to meet the community's needs.

With operating costs increasing and capital improvements like repairing the county's bridges needing funding, Hamann said that the county's slow growing tax base and the overall economy has had a negative impact on the county's income sources. Real estate taxes are the county's primary revenue source. These taxes represent 26.5 percent of the 2014 proposed budget. In spite of filing fees for assessment appeals, the county has lost millions of dollars in assessment appeals, said Hamann. For 2014, there is an expected increase of $459,000 or 0.5 percent in real estate taxes. Tax revenue is expected to total $87.4 million.

Gracedale, the county-owned nursing home in Nazareth, continues to be a financial drain on the county's budget. For 2013, Gracedale's budget has exceeded the county contribution for the first six months of the year. While an improved census of 632 residents is one reason for the facility's increased costs, the state and federal reimbursement rates are not keeping up. For 2014, the county contribution is expected to be about $5.4 million.

Stoffa's decision to try to privatize Gracedale made him unpopular with county taxpayers. Looking at the county's increasing costs and declining revenues, he thinks the $35 million raised from a private sale would have protected the county from the need to raise taxes for three to four years.

"It always needs more money; there is always something going wrong," Stoffa said of the aging facility.

Budget hearings by funding category are planned to allow council and the public to review and discuss the spending plan. The 2014 proposed budget is available on the county's website at www.northamptoncounty.org.

Council's next regular meeting will be 6:30 p.m., Oct. 17. Council meets on the third floor of Northampton County Courthouse, 669 Washington St., Easton.