Budget calls for 7.4 pct. tax hike

Increase would fund new capital reserve fund

LOWER POTTSGROVE » Township commissioners have unanimously approved a tentative $6.4 million 2018 budget that would raise taxes by 7.4 percent if adopted next month without change.

The proposed budget’s $6,3267,371 in spending represents a 2.4 percent increase in spending over the 2017 amount of $6,175,765.

But the tax increase can be attributed to one single item, the commissioners’ desire to create a capital reserve fund,

a saving account for major projects, said Township Manager Ed Wagner.

The .25 millage increase is dedicated entirely to that fund, he said.

It will raise $149,000 toward that fund.

According to Montgomery County’s list of all millage rates, Lower Pottsgrove’s rate is currently 3.368 mills. So a .25 millage increase for the capital reserve tax brings the total to 3.618 mills, or an increase of 7.42 percent.

Wagner said there has been no major project in the past year that has brought this need to the front of the commissioners’ table. “We’re just trying to be prudent and plan ahead,” he said.

For the average property owner, whose assessment is $125,000, the new tax means an increase of $31.25 on the 2018 property tax bill.

The commissioners voted unanimously to advertise the budget and make it available to the public for a minimum of 30 days.

Final adoption does not take place until December.