Cumberland County might need a 22% property tax increase for ...

Cumberland County might need a 22.5 percent property tax increase to get through 2013, county commissioners were told Monday during a budget presentation given by Chief Clerk Dennis Marion and Finance Director Dana Best.

A 22.5 percent hike would increase the property tax bill by $75.61 for a home assessed at $180,700, the current median in Cumberland County. That homeowner would pay $419.30 compared with $343.69 now.

County staff also put on the table the possibility of a 30 percent increase for 2013 -- a difference of $103.11 for that same homeowner -- which would likely mean that another increase in 2014 would be avoided.

The 22.5 percent is not a recommendation as it's still too early in the budget process for that. But it is an indication of where the county is financially, and the picture has gotten worse in recent months, said Commissioner Jim Hertzler.

Hertzler said the county earlier this year had projected that the county fund balance - basically its savings account - would finish 2013 at $8 million. That's down to $6.4 million, Hertzler said today.

"I said that since the start of this year we are spending more money than we are taking in, because of the budget that was passed for 2012. It appears that the situation has gotten more challenging since then," Hertzler said.

Hertzler said projected revenues for 2013 are going to be lower because of property assessment reductions won by homeowners and businesses. On the spending side, Hertzler said providing health insurance for county employees will be higher than expected, and he also cited the cost of pension obligations to retirees. State budget cuts are also having an impact.

He said the county is burdened with higher fixed costs, such as debt payments to cover ongoing renovations to the county prison, and construction of the new Public Safety Building.

Commissioner Gary Eichelberger said county officials admitted during the meeting that the county had "overestimated" revenue projections for this year. Marion could not be reached for comment.

The 22.5 percent increase assumes things stay as they are, in other words, no spending reductions. The commissioners over the next several weeks will be meeting with department heads to see if further reductions are possible.

However, Eichelberger had already pronounced as "dead on arrival" a 19 percent tax increase trial balloon that county officials had floated earlier this year. County officials seem to be heading in the wrong direction, he said.

"My bewilderment is that if 19 percent was unacceptable, how is it that 22.5 and 30 is the new starting point?" Eichelberger said.

He said he doesn't think there are two votes on the three-member board to support a 22.5 percent increase. Nor is the county economy strong enough to absorb such an increase at this time, Eichelberger said.

Source: http://www.pennlive.com/midstate/index.ssf/2012/10/cumberland_county_might_need_a.html

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