Southern York County Life

County budget means higher property taxes

Funds needed for health care, prison

With the county facing escalating costs for health care, debt and prison expenses, many property owners will pay more tax to York County next year under the proposed budget unveiled yesterday.

Although the county will drop its property tax rate to compensate for the 2006 property reassessment, it nonetheless needs to generate $6.1 million, or 5.2 percent, more next year to cover expenses.

“I don’t like a tax increase,” said county Commissioner Doug Kilgore. “I think we’re where we have to be.”

Commissioners unanimously adopted a proposed $322 million budget yesterday, tentatively chopping the county’s tax rate from 4.51 mills to 3.83 mills in 2006.

Commissioners plan to adopt a final budget on Wednesday, Dec. 21.

Rate increases revenue: To keep property tax revenue the same as this year, the county would need to drop the tax rate to 3.65 mills to offset a 22.61 percent increase in the value of taxable property countywide from the reassessment, according to county numbers.

By setting the tax rate at 3.83 instead, the county is increasing real estate taxes by $4.4 million compared to this year. Meanwhile, new construction, such as new homes or additions to existing homes, will account for an additional $1.7 million in property tax income.

Based on the new tax rate, residents whose property increased in assessed value by more than 18 percent because of the reassessment will pay more tax to the county next year, according to the county. Those who saw their assessed value increase about 18 percent or less will pay less.

Primary factors driving the need for more tax revenue are increased health care and debt costs, and an
inability to get an approved raise from the federal government to pay for immigration detainees at the York County Prison, according to Chuck Noll, county administrator/chief clerk, the budget architect.

The county is budgeting $3.8 million to pay down interest and principal on debt, which is expected to reach $193 million by the end of next year. Included in that figure is $76 million in debt expected next year from county projects such as the new 911 center and system, for which the county plans on borrowing $51.5 million in 2006.

Prison costs up: The county is also facing $1 million in increased costs to run the prison and expects to pay $2.3 million, or 16 percent, more in 2006 to cover employee health care costs.

“Health care costs are just climbing countywide, statewide, nationwide,” Noll said. “We’re below the national average (an increase of 17 percent to 21 percent), but it’s still a huge number.”

County commissioners could have offset part of the tax increase by rolling over an anticipated $3 million surplus expected at the end of this year into next year’s budget, but instead they chose to keep the money in reserve.

Commissioners and Noll said the money can be used to avoid a budget shortfall because of unexpected costs such as unfunded requirements from the state or federal governments.

“We need to hold some reserves,” Noll said. “It’s the prudent fiscal thing to do."The proposed budget keeps the library tax at 0.1 mills, which will mean revenue to the library system will increase by about $400,000 next year because of the reassessment, Noll said.

Chronister said he thought the county should drop the library millage rate to compensate for the difference. Mitrick is in favor of keeping it at 0.1 mills, while Kilgore said he’s leaning that way but has reservations.

-- Reach Carl Lindquist at 505-5432 or clindquist@yorkdispatch.com.

Source: The York Dispatch (we obtain permission for external material)
by CARL LINDQUIST
Posted by Dan Baldwin on 12/01/2005 at 11:05 AM in News

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