Berks County property taxes are set to increase for the first time in six years.
The 9% hike was included in the $651.8 million 2024 budget approved unanimously by the county commissioners Thursday.
The budget sets a property tax rate of 8.345 mills, meaning the owner of a property assessed at $100,000 will pay about $835. That represents an increase of about $69 over last year.
It was the first time the county has raised its rate since 2018, when an increase was implemented to help cover recurring operating expenses.
Budget chief Robert Patrizio Jr. said this time around there are two big issues plaguing county finances and making a tax increase necessary: operational challenges caused by significant inflation that has occurred over the last two years and structural challenges caused by the tax base growing at a slower rate than personnel costs.
The proposed budget is actually about $15 million smaller than the nearly $667 million 2023 plan. However, Patrizio said a tax increase is needed to help cover a $13.2 million operating budget deficit.
During a meeting in November in which the budget was presented, Patrizio highlighted a few of the other factors that impact the budget:
• Personnel costs have grown by $9 million over the last year, while at the same time the county has faced the same worker shortage that businesses across the county have experienced. That shortage has forced the county to increase wages to keep and attract workers.
• The investment of $7.8 million in the IMAGINE Berks strategic economic development plan.
• An increase of $1.5 million in inmate health services at the county jail.
• The creation of a South Campus in Mohnton.
• The closure in January of the Berks County Residential Center by the federal government, which had provided about $1 million in annual revenue to the county.
• The addition of new staff members and purchase of new equipment in the election services department to handle the introduction of mail ballots.
• The addition of three new positions to help bolster the county’s cybersecurity efforts.
The budget will maintain existing services. Those include $5.8 million for the county park system; $3.9 million for the library system; $3.25 million for Reading Area Community College; and $1.4 million for the Council on Chemical Abuse.
An unpleasant decision
Commissioner Michael Rivera said that while no one likes tax increases, he believes implementing incremental hikes like the one in the budget is more responsible than kicking the can down the road and eventually having to have a massive surge.
“The reality is that the cost of everything has gone up,” he said. “We have maintained our expenses and we have not incurred new debt. But when you look at how inflation has gone up about 25% over the last six years, then you see what we are dealing with.”
Rivera shared that since the budget was first proposed last month residents have suggested the board use reserves to balance the budget rather than raise taxes. He said that would not be a financially responsible decision in this case because the increased expenses are associated with ongoing operational costs which would potentially lead to a higher tax hike in the future.
Commissioners Chairman Christian Leinbach said he believes the tax increase is unfortunate but necessary. He pointed out that since he first took office in 2008 the rate of inflation has increased by a little over 45% and the county has raised taxes by just under 20% during that same time.
“That, to me, is very responsible,” he said. “I know some people say spend everything you got and then have a tax increase. Well, that was what happened in this county for many, many years.”
Leinbach said that between 1995 to 2005 the county raised taxes three times: by 39% all at once, by 19% all at once and 34% all at once. He said that amounted to an increase of 92% over 10 years. But the inflation rate during that time was only 28%.
“That’s a bad deal for taxpayers,” he said. “We need to keep our spending well under the inflation rate. Taxpayers have a lot of other pressures.”
Commissioner Lucine Sihelnik commended the team in the budget office for crafting a spending plan and providing information that is easy for the general public to understand what taxpayer money funds.
“This has been a very smooth and very efficient process,” she said.
Source: Berkshire mont
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