TodayCumberland County tax bill may go up 5 percent in ‘09
Average Cumberland County homeowner would see an $18 increase.
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Article RatingCumberland County commissioners managed to avoid a property tax increase this year, but 2009 looks like it’s going to be a different story.
After listening to a presentation from the financial analysis committee Friday, the board directed staff to build a 5 percent increase into next year’s projected $65.1 million budget, which is scheduled to go on public display Nov. 13.
The tax increase would add $18 to the tax bill on the average assessed home value in the county, which is $158,034, according to Dana Best, director of finance. At the median home value of $174,960, the increase would be $20 if property taxes go up 5 percent. Median home value means half of homes are valued at more and half at less.
A summary of the committee’s report shows a 7 percent break-even point between the county’s general fund revenue and expenses — about $3 million more in expenses being driven primarily by 911 and children and youth subsidies, as well as a $1 million increase to the county’s retirement contribution.
The 5 percent tax increase would be combined with 1 percent from reserve spending and 1 percent from “gain sharing,” or expense reductions, to meet the bottom line. Otherwise, the county would have to draw about 6 percent from reserve funds.
“We can’t afford to do nothing. Every year of delay has a compounded effect,” said Dennis Marion, county chief clerk, who called the proposal “appropriate,” given the economic circumstances.
Balance would drop
Without an increase next year, the county would see its projected $17.5 million year-end fund balance fall to about $14.7 million by the end of 2009. With it, the fund balance should hold at about $16.7 million.
If the county held the line on taxes for another year, residents would likely see an even larger increase in the coming years to keep the fund balance around $11 million, or about 45 average days of operating expense. That is capital the county relies on during the first quarter of the year when little tax revenue comes in, Marion explained.
The current fund balance is very “significant,” Commissioner Barb Cross said, considering rising benefit costs and capital impacts the county expects between 2010-12 with phase two of the prison expansion and hiring of additional prison personnel slated.
Potential impact
It’s important to continually refine and improve county operations without compromising services, Marion said, which the commissioners have done.
Commissioners Rick Rovegno and Gary Eichelberger noted that they are trying to set the example to reduce county expenses, showing a 13.8 percent decrease in budgets for 2009 between administrative services and the commissioner’s office.
Equal halves
“It’s prudent to proceed with a plan for 5 percent,” Eichelberger said.
He added in an e-mail response: “Even as we move to protect our gains in the face of rising costs, I believe we will retain our position as one of the lowest tax rate and lowest cost-of-government counties in the midstate, which ultimately protects our taxpayers, while meeting essential public service needs without major disruptions.”
The current tax rate is 2.465 mils, of which 0.18 is the library tax.
Commissioner Barb Cross said she would support no more than a 5 percent tax increase.
Rovegno agreed with his fellow board members in the direction of the budget.
