Tax increase possible in Chadds Ford
Chadds Ford Township supervisors took no action on next year’s budget, but there was a discussion on the possibility of raising one of the millage rates. The matter is expected to be discussed further during the next meeting planned for 7 p.m. on Thursday, Dec. 17.
Township Manager Maryann Furlong said Delaware County’s reassessment is what is driving the concern.
“Because of the assessment, the thought of raising real estate tax revenue has to be capped at no more than 10 percent of the actual amount collected. We’re projecting general fund revenues to be collected at about $260,000 this year…If we were to go to a 10 percent increase, it would be about $26,000.”
Furlong continued, saying that Chadds Ford’s millage rates are the lowest in the county so, “even a 10 percent increase would bring in very limited finds.”
She lamented on the need to increase the funds in the capital improvement fund because that’s the fund with the least amount of money, less than $200,000. More money is needed, she said, because Painters Folly will need some work, as well as Turner’s Mill, the municipal building.
Any tax increase, even up to the 10 percent cap, would be just for the general fund, Furlong said. “Not for taxes across the board, just general fund millage. That probably would be no more than an increase of $15 per parcel.”
She said the average township tax bill is about $250, so a 10 percent increase would bring in an additional $25. But Furlong stressed that she isn’t talking about an across-the-board increase, only an increase in the general fund rate, which is currently 0.495 mils. A 10 percent increase on that, she said, would be about $15.
But there is a concern, and some reluctance, on raising taxes even that much because of the county reassessment, which more than doubled the assessed value for some properties.
Supervisors’ Vice Chairman Samantha Reiner said the township is also strapped for cash because there was little to no real estate transfer taxes coming in because of COVID, and that a tax increase might be necessary.
“In order to keep the [municipal] building running, the operations and administration going for our residents, you need to fuel it and we have to fuel it with tax dollars. There really isn’t any other source of revenue,” Reiner said.
She added that while the township has received grant money for many projects, they cost the taxpayers, too, because those funds are matching funds, and the township has to kick in its portion.
“[Grants] will cost residents money on the match. But we need revenue, and we don’t have any other revenue streams. It’s a tough thing. It’s a very ugly thing to have to say, but I don’t see any other way around it. Nobody’s building right now. There’s no revenue.”
Furlong added that the township has already lost revenue from cuts in the liquid fuels taxes and other county sources. “We need to plan for the worst,” she said.
There would be no action on the increase without public comment and a vote on the budget. That vote may or may not happen at the Dec. 17 meeting. Chairman Frank Murphy said the budget just needs to be passed before midnight on Dec. 31.
About Rich Schwartzman
Rich Schwartzman has been reporting on events in the greater Chadds Ford area since September 2001 when he became the founding editor of The Chadds Ford Post. In April 2009 he became managing editor of ChaddsFordLive. He is also an award-winning photographer.
Tax increase possible in Chadds Ford Read More »
