Chesco plans tax increase in 2013 budget

Chester County is planning to increase property taxes for the first time in three years to cover shortfalls caused by a shrinking tax base and decreased interest returns.

Taxes would rise by about $33 for a property of median value in 2013, said Terence Farrell, commissioners chairman. The millage in the 2013 budget would increase from 3.965 mills to 4.163, according to the county finance office. The median assessed value in the county is $165,760.

The rise will help cover a planned overhaul of the county's emergency services radio system that is facing a $5.75 million funding gap.

County departments are being asked to cut 3 percent across the board, Farrell said. The county's parks and libraries funds will see contributions decrease this year, by about $168,000 for parks and $377,000 for libraries.

"Everybody's been asked to tighten their budget. We're not closing the libraries and we're not closing the parks," Farrell said.

Farrell said the county does not want to raise taxes - and is proud that it did not for the last three years - but said the county would have had to cut services if it maintained the current rate.

The county's required pension contribution has increased by about $1.5 million this year, and interest income has shrunk from $11.7 million in 2002 to an estimated $208,700 in 2013.

"When I came to office in 2008, we examined where the fat was and cut the fat. Then we cut the muscle, and now we're cutting into the bone," Farrell said. "We have to come back to the citizens and ask for this modest tax increase."

By law, the county must pass a balanced budget by the end of the year. The commissioners will hold a budget hearing on Dec. 4 and have a work session on Dec. 11 before voting on a final budget Dec. 13.