No tax hike in proposed budget for West Chester

WEST CHESTER » Borough council has tidings of great joy for borough residents. The proposed budget does not include a tax hike.

Borough council will vote at Wednesday’s meeting on the $50.8 million preliminary spending plan, which holds the line on taxes.

If approved, the property tax millage rate would stay the same at 6.96 mils. A mill is a levy of one tenth of 1 percent of assessed property tax value.

Borough Council President Diane LeBold was pleased to note that the borough has not raised property tax rates for eight years.

“We’re running the borough very efficiently and we’re keeping tabs on our costs versus our revenues – protecting our taxpayers interests while still providing a full array of services,” LeBold

said. “I credit the various department heads for taking care of business properly.”

Real estate tax revenue is estimated to increase by 3.5 percent due to increased property valuation and a collection increase. Earned income tax revenue is projected to rise by that amount owing to an increasing

wage base.

No new employee hires are included in the proposed final budget.

Medical insurance premiums will rise less than 1 percent and workers compensation might spike 21 percent. A final worker’s comp increase will not be known until late December.

Finance Committee Chair and Borough Councilman Bernie Flynn said staff met with each of six department heads. Departments

were limited to spend the same amount as with the current 2017 budget.

“(Residents) are getting all the services that they had last year and are paying the same tax because of better department management,” Flynn said. “We were able to keep all of the departments in line – living within budget and spending appropriately, to stay within guidelines.”

Borough Manager Michael Cotter resigned suddenly in mid-October and Michael Perrone was chosen by council to fill the position.

Typically, preparation of a budget is a time consuming and often a year-long process, which is typically led by the township or borough manager.

Cotter used a priority-based budgeting system.

Within a short period of time after Cotter resigned, the 2018 budget was changed to reflect a more commonly used line-item budget process.

Jeff DaSilva, finance director, worked on both budgets.

“It took quite a while to understand completely,” DaSilva said about the Cotter system. “It’s not the perfect methodology, but it does have a lot of pluses.”

Flynn said the Cotter system is a “good idea” but difficult to implement. Priority based budgeting uses goals and expectations, while a line-item budget individually lists revenues and expenses.

“Departments clash – they don’t work well with each other,” Flynn said about priority based budgeting.

Flynn prefers line-item budgeting.

“You don’t spend more than you have,” Flynn said. “The borough lives within a budget.”

Flynn noted that the budget contains both core items, or day to day expenses, and non-core expenditures, which “improve the quality of life.”

The largest core item expense of $7 million is budgeted for the administrative department and renovation of borough hall. While the borough has already borrowed much of the projected cost through a bond issue, Flynn said that the borough might be able to trim the expenditure to $4.5 million. Bids will be opened later this week and a clearer cost estimate will then come into focus.

The single non-core item

listed on the Building and Housing budget is purchase of a Ford Escape for $30,000. The parking department is also budgeted to purchase two vehicles and perform repairs at the Chestnut Street Garage for $300,000, and spend $110,000 for work to the New Street Garage.

Police are budgeted to receive a mobile license plate reader, body cameras, at $74,000, and three new vehicles.

Public Works has requested purchase of five vehicles, including a Peterbilt Refuse truck to replace a 2005 Mack refuse truck, at a cost of $235,000

A new walking/jogging trail will likely be constructed at Hoopes Field and Horace Pippin Park is budgeted for a new $15,000 pavilion.