West Chester property owners could see a tax hike

With the pandemic raging in Chester County, with the jobless rate at historic highs, West Chester property owners could see a tax increase next year, though not as large as initially proposed.

Staff will present a proposed $18.9 million, 2021 borough budget, with a property tax increase of 6 percent, and a sewer fee rate increase, at next week’s meeting.

Council is required to vote on a balanced budget by December 31, but could approve a new budget as early as next week. The budget is not set in stone and could change before a final vote by council.

The first budget draft presented by staffers reflected a 32 percent property tax increase.

Borough Manager Mike Perrone said during a phone interview earlier this week that the tax rate had been “whittled down” thanks to hard work by the finance committee, borough council, staff and department heads.

Borough Council President Michael Galey was also proud of all the work.

“It’s a demonstration of how hard everyone in the process has worked and put together a balanced budget without overwhelming the residents,” Galey said.

The millage rate is projected to rise from 6.96 to 7.4 mills. The average homeowner, with a home assessed at $136,360 would pay $1,009 for 2021, as compared to $949 for this year. That is an annual increase of $60 per year for the average homeowner.

A mill is a tax levy of one tenth of one percent of assessed property value.

Sewer fee collections were down almost a million dollars. With West Chester University closed to most students, and businesses operating remotely, usage decreased.

“We took a pretty big hit on sewer revenue,” Perrone said.

The base rate, or current sewer fee, is $26 per month for the first 2,000 gallons. Projections call for a jump to $30.11 per month, or $4.11 more per month, and an increase of $49.30 per year.

The rate for each thousand gallons over the base rate might increase from $6.90 to $7.99 per month.

Finance Director Barbara Lionti talked about major cuts to the proposed 2021 budget.

Four police officers retired and salaries of the replacements will not match the pay of the retiring veterans, for a savings of $240,000. Plans to buy two new police cars, at a cost of $150,000, were cancelled. Four part time dispatchers will not be hired for an annual savings of $35,360.

Through negotiations, original projections called for a 10 percent increase of health insurance costs. That increase was cut to 3.5 percent through negotiations with the health care provider.

The purchase of parking kiosks was eliminated for a savings of $600,000.