East Cocalico residents face tax increase

In belt-tightening moves to make up a $331,000 deficit, supervisors repeated their list of reasons why this occurred and what will happen in the future during their three-hour Nov. 1 meeting. The bottom line has taxpayers paying more.

The 6.5 percent property tax increase is an improvement over the seven percent or more first suggested at budget meetings.

“We haven’t determined what the increase means as far as an increase in millage rate,” said Township manager Scott Russell. “Whatever the homeowner paid last year, they will pay 6.5 percent more this coming year.”

“We’re holding tax collector interviews beginning Nov. 5. The position is open due to the retirement of long-serving, highly regarded tax collector, Joan Fischer, who will finish collecting all 2018 taxes. The new tax collector will address the millage issue,” said Russell.

Current millage rate is 1.646 and the property tax collected by the township equals $1,617,800. A person with a $100,000 home now pays $164.60 property tax. A 6.5 percent increase adds over $10 to the amount due.

A new fee supervisors propose adding is an MS4 fee. It will assist with the federally mandated stormwater management improvements. No set amount for this fee was discussed. If the township is awarded MS4 grant money, that will lessen the amount needed.

In other municipalities using this type of assessment, it’s been called by names such as MS4 tax.

The difference is that a tax is not paid by tax exempt organizations such as churches. East Cocalico’s fee will apply to all property owners.

Russell explained the premise that since all property owners contribute to the stormwater management problem, all will contribute to help improve the situation.

How will the stormwater management fee be assessed? Supervisors felt the fairest way would be to use assessed value of property.

One personnel addition to the proposed 2019 budget is a part-time person to assist with MS4 regulations. “There is an unimaginable amount of paperwork necessary with this program,” said Russell.

Russell recapped reasons for the financial shortfall in the proposed $5.885,505 million dollar budget including: 1) Seven tax increases since 2,000 averaging 1.69 percent while the average inflation rate was 2.14 percent; 2) Loss of Adamstown and West Cocalico from contracting police coverage from East Cocalico Township Police; 3) Large amounts of money necessary to address stormwater management projects and 4) Little growth rate, especially with businesses.

Like employers everywhere, East Cocalico is experiencing high increases in health coverage. Supervisors, who all take their legal entitlement of full health coverage plus life insurance with a $50,000 death benefit, will make some changes which could result in as much as 50 percent savings to their current total cost of over $100,000 to taxpayers.

If a supervisor is eligible for Medicare, he will sign up for it. The township will pick up the supplemental insurance contract. Two of the three supervisors are Medicare eligible.

Supervisor Romao Carrasco said several times there’ll be a high health insurance deductible, although no figures were given.

Cutting two employees will also trim costs — one employee from the municipal business office and another from the road crew. Russell said all personnel affected have been notified.

One bright spot in the budget numbers was that changing to Progressive Energy in late summer provided an immediate cost reduction of approximately $1,500 monthly in the light bill.

The proposed 2019 budget will be adopted at supervisors Dec. 20 meeting.

Alice Hummer is a correspondent for The Ephrata Review.