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Newtown in Bucks County raising taxes for first time in 16 years

Though many Bucks County towns, including Bristol, Langhorne, and Yardley Boroughs, are holding the line on property taxes for 2012, Newtown Borough is raising its tax rate by 50 percent.

Though many Bucks County towns, including Bristol, Langhorne, and Yardley Boroughs, are holding the line on property taxes for 2012, Newtown Borough is raising its tax rate by 50 percent.

The increase - Newtown's first in 16 years - amounts to an extra $126 for the owner of property assessed at the borough average of $42,000, raising the bill to $378. But the impact on the total property-tax bill, including about $5,300 in school and county levies, "is more like 2 to 3 percent," Councilman Gerard O'Malley said this week.

"Saying it's a 50 percent increase bothers me when we're talking about $120," Mayor Dennis O'Brien said. "For some people, it's a night out; not necessarily the retirees. We haven't had an increase in 16 years."

It was O'Brien's vote at last week's council meeting that broke a 3-3 tie, allowing adoption of next year's $2.37 million budget.

"Sometimes you have to do the adult thing," he said of the vote, which will increase the tax rate from six to nine mills, producing about $127,000.

"I asked for one mill last year," the mayor said. "If we had done $10 each of the last 16 years, we'd be golden now."

To avoid a tax increase this year, the borough used $200,000 from its reserves. Next year, it will use only $60,000 from the rainy-day fund.

"We took a balanced approach," said O'Malley, cochair of the budget committee. "We balanced the use of the reserve, increasing revenue through taxes, and responsible expense management."

The tax increase is needed, O'Malley said, to cover the rising costs of health-care insurance, salaries, and public works, including snow removal.

"We budgeted $80,000 for snow removal with our hands folded in prayer," O'Brien said, referring to this year's tab, which was $108,000 over budget.

"People expect a certain level of services - roads and police protection," O'Malley said. "I haven't heard any complaints about services."

Nor has he heard complaints about the tax increase from residents at the council meeting or around town, he said.

Council President Julia Woldorf, who voted against the budget, said the borough "may have needed a tax increase, but maybe not this one."

She questioned a 3.5 percent raise for the police chief and 2.5 percent raises for the secretary and treasurer, and long-standing arrangements for snow removal, road work, and landscaping.

"We have gotten good service . . . but we haven't requested alternate proposals [for public works contracts] since I've come on council," said Woldorf, whose four-year term ends Jan. 3 with the council's reorganization.

The police chief's raise matches negotiated salary increases for the four full-time officers. The raises for the two staffers amount to less than $1,000 each, O'Malley said. "If we lost them, hiring replacements would cost more than giving them token raises."

Woldorf, a Democrat who lost her reelection bid in November, said the council could reopen the budget at the reorganization meeting after newly elected Republicans Larry Auerweck and Robert King are sworn in. But they said this week they would support the budget as passed.

"It has been cut back as much as it possibly can be," King said.