Easttown Property Taxes to Jump 1.53% in 2012

The Easttown Board of Supervisors unanimously voted to raise resident property taxes by 1.53 percent in 2012. The Monday night vote by the Board gives a green light to the lowest rate increase in the township since at least 2008.

Assistant Township Manager Mike Brown, who will replace retiring Township Manager Gene Williams in January, presented the board with two tax increase scenarios to consider.

The board could choose not to raise resident real estate taxes in 2012. Without the increase, the general fund's unassigned fund balance—the township money that is not tied to any particular use—would be roughly $88,000, Brown said.

If the board chose to raise the general fund tax rate by 5 percent, it would reflect a 3.1 percent tax rate increase overall for residents. The increase would bring the unassigned fund balance in the general fund up to $235,000—a difference of $156,615.

"It's really the end of the year—the beginning of the year.  We're okay," Brown said. "There's cash now to run the place, but with the $88,000, I'm concerned about where we'll be [financially] exactly a year from now."

Recognizing the burden put on taxpayers, Supervisor Marc Heppe suggested raising the general fund tax rate to 2.5 percent, for a 1.53 percent overall increase and $78,000 in additional tax revenue for the township.

"I think looking at the long term financial state of the township… we'd probably be kidding ourselves if we didn't look at some kind of increase," Heppe said.

Retiring Board Chairman Ed Strogen agreed. "We've been significantly higher than the Consumer Price Index over the last 10 years, so it would be nice to have a modest increase this year," he said.

Other supervisors preferred the security of a 5 percent increase in the uncertain economic climate.

"I'd prefer to be safe and make sure we have enough to cover an ... increase—I'd probably take Option B," Vice Chairman Richard Frazier said.

Supervisor James Oram said he agreed with Frazier because of the uncertainty of the year ahead.

Supervisor Christopher Polites, however, also liked the idea of a 2.5 percent tax increase.

"Although I'm committed to filling that reserve fund, we have to think of the citizens footing the bill first," Polites said.

Ultimately, the board unanimously voted to approve the 2.5 percent increase in real estate taxes paid to the general fund, reflecting a 1.53 percent overall real estate tax increase for residents.

This is the lowest tax increase in at least four years, according to Strogen. Residents saw a 4 percent increase in 2011, following a 12.1 percent increase in 2010, 3.7 in 2009, and 4.9 in 2008.