Financial operations might result in county tax hike
Expansion of Rolling Hills landfill moves forward
As the Delaware County Solid Waste Authority moves forward with creating more capacity at its Berks County landfill, at least one county official questioned the authority’s finances, expressing a concern they could result in a double-digit county tax increase.
At last month’s workshop meeting, Delaware County Councilwoman Christine Reuther, who also serves as an ex-officio Solid Waste Authority board member, told the board that, should financials continue their current path, the county would be looking at a potential 19% tax increase.
County officials explained that worst-case scenario preparedness is part of their forward-looking thinking in financial planning. The county’s budget goes from January through December, so it’s still relatively early in the year.
“The comment was made as part of a larger conversation, and while some needed context was missing, it does reflect a standard planning and budget management process: We always plan for the worst outcome and work toward the best,” a statement released by county spokeswoman Adrienne Marofsky said. “This council has always been taxpayer advocates, so whenever there is a request for more county money, which was what was being discussed at the time, it’s always framed in terms of competing priorities and potential shortfalls.
“That said,” it continued, “like nearly every municipal government in the commonwealth, the county’s expenses are rising, in large part due to things like personnel costs, inflation, and insurance. That plus the fact that the county is just ¼ of the way through the budget year and we don’t know what the state budget will be and we don’t know that expected tax revenues will actually be generated always requires us to act cautiously. There may well be a need for additional revenues, but it’s too early to know, much less with any specificity.”
Brooks Stayer, chief financial officer of the county Solid Waste Authority, said the issue arose while the authority board was discussing a 20-year-old outstanding debt that is the responsibility of both the county and the authority.
“Christine mentioned that the county was looking at a funding gap and said she couldn’t speak for Delco but there might not be much of an appetite to forgive a loan at this time,” Stayer said. “The board agreed to table the debt discussion until we can do more research on the debt and see what the county’s 2025 budget looks like.”
The authority has been moving towards expanding capacity at the Rolling Hills landfill for years. The landfill, owned by Delaware County and located in Berks County, has been nearing capacity. Jim Warner, former interim CEO of the Solid Waste Authority, had said that expansion, would allow for an additional 10 to 20 years of capacity.
Apparently, according to the current CEO, it’s lower than that.
“We are proceeding with the Phase 2 expansion project as planned, and all is on track to construct six to eight years of capacity,” Stayer said, adding that bids were received with board review and approval anticipated at the April 17 meeting.
Next year, the contract with the Covanta waste-tosteam facility also expires, although it is eligible for two one-year extensions.