Am eight million dollar overall loss of residential ratables and a small increase in the tax rate has the projected 2013 Chester Borough budget increasing by .98 percent over 2012. For the average homeowner, it would mean a $39 increase.
The 2013 budget is proposed to set the tax rate at 85.7 cents per $100 of assessed valuation. That is up from the 81.4 that passed in 2012 and the 78.8 from 2011.
However, the home values in Chester Borough fell from the average of $465,066.31 to $447,343.32.
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Comparing apples to apples, this year's average tax would be roughly $3,832, which would be up from the 2012 number of $3793.
That number doesn't include school and county taxes, which are established separately.
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At Tuesday's Chester Borough Council meeting the budget introduction presentation laid out the anticipated surplus for the budget is $696,000, which is up from $672,022.23 in 2012.
"Surplus is important because you don't want to have fluctuations [with the tax rate]," said Heidi Wohlleb, whose company, Nisivocchia, is the auditor for the budget. "Maybe your increases are too low for a couple of years or based on the economy and tax appeals."
Wohlleb said fluctuations like that could impact bond rating and might force drastic measures like cutting employees.
"Maintaining that, replenishing that, you don't want to use too much more than you think you can replenish every year," Wohlleb said. "I think the level of surplus that Chester has is a very good level; it's healthy."
Wohlleb said that the economic downturn hit every community hard and that Chester was no exception.
"In general, I think you have a very healthy surplus. There are other communities that would love to have your surplus," Wohlleb said.
There will be a public hearing and adoption of the budget held in one month at the April 16 meeting.
*Editor's note: A previous version of this story did a straight calculation of the tax rate and incorrectly identified the increase at roughly $190. We apologize to our math teachers.
