Posted: 30 Aug 2010 09:14 PM PDT

Reading residents better get set for a property tax hike and a water use surcharge.

Those were the least hated of four options for raising an extra $1.75 million that the city's Act 47 recovery plan requires after talks between city and Reading Area Water Authority officials Monday.

The third option is a 10 percent water rate hike that the water board rejects.

The last is sale of the water system to the authority.

Agreement on the sale will take longer to reach than a late-September deadline the city needs to determine what's included in its 2011 budget.

The only sure thing, said Eric Jenkins, chairman of the Act 47 plan implementation panel, is that the recovery plan mandates $250,000 by November, and another $1.5 million in 2011. The only options are how to reach those numbers.

The city wants to use a combination of the options.

The city currently levies a property tax of 11.945 mills.

Carl E. Geffken, Reading's interim managing director, said the first option is to raise that by 1 mill, for an extra $1.75 million a year. But that would be paid only by the 68 percent of properties that are taxable.

The second option is a temporary water rate surcharge of $1.25 per thousand gallons for city customers only.

It also would bring in about $1.7 million, and it would be paid by all properties, including those owned by nonprofit groups, from churches to social agencies to schools and other government bodies, which own 32 percent of city land.

But authority members objected to the third option, a 10 percent water rate hike for all customers.

"Asking for a 10 percent rate increase and then turn it directly over to you there's no benefit to the water authority or its customers," authority Chairman Raymond Schuenemann III said.

He said the old system urgently needs tens of millions of dollars in maintenance, and that raising rates to solve the city's budget problems would invite court challenges.

Board member Thomas Brogan said the city is trying to repeat the same problem it has with the sewer plant, creaming off the profit for use on city operations, rather than maintaining the plant.

Several City Council members said the surcharge was the best of the ideas.

"I see a surcharge as a fairer distribution of the pain," Councilwoman Donna Reed said.

Some also recommended a combination of a smaller surcharge and a smaller property tax hike to reach the targets.

But Council President Vaughn D. Spencer worried that the city is inviting a court challenge if it levies a city-only surcharge, because rates have to be uniform.

More talks are planned.

Contact Don Spatz: 610-371-5027 or dspatz@readingeagle.com.

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Property Tax Increase Will Likely Hit Henrietta

Posted: 30 Aug 2010 08:46 PM PDT

Homeowners in one Texoma city could be forking over more money, all in property taxes.

The City of Henrietta is proposing the tax increase to offset expenses for city projects. That very topic was the center of a town hall meeting tonight.

The money will be used as payment for a 3.2 million dollar loan and will also go towards law enforcement.

As far the loan goes it was taken out in February to pay for a few water projects. The payment is due next year, and they don't have the money for it, that's why they're proposing a 17.5 percent property tax increase.

Although the numbers don't seem too high. Homeowners will see it come out of their wallet.

"Right now it's 57.496 cents and we're looking at 75 cents," said City Manager of Henrietta, Jeff Jenkins. "That'll be about an additional $14.50 a month on a 100,000 home."

And an additional $175 a year. Those numbers should be lower too, considering Henrietta's average home is worth about $67,000. So most residents will pay a little more than $100.

City Manager Jeff Jenkins says the money is highly needed to pay back a loan that will be used for water projects, like upgrading their water tank.

"It's a 500,000 gallon indoor storage tank that is basically collapsing and cracked," said Jenkins.

So they plan on replacing the tank with two new ones, and the city's raw water line connecting the Little Wichita River to Lake Henrietta.

If passed this will be the first tax increase the city has made in four years and officials are stressing the improvements have to be done.

"I think because of our budget and the way it's laid out it probably will happen."

So Henrietta homeowners can plan on opening up their pocket books come January.

A second hearing will be held to discuss the tax rate. That meeting will be held on September 13 at 6pm inside Henrietta city hall.

The city also says no capital improvements will be made, even though they do need them and no city employees will see a raise. They just do not have enough money.

Property tax increase not surprising

Posted: 31 Aug 2010 10:26 AM PDT

It really should surprise no one that property taxes in New Jersey are still going up — an average of 3.3 percent this year statewide. More in some towns, less in others.

"Wait a minute," some may yell in unison from Wildwood to Whippany. "Chris Christie says he's trying to cut property taxes."

Yes, he does. But let's review the current state of affairs.

The governor's first task upon assuming office in January was to put together a budget for the fiscal year that began July 1. In doing so, he had to cut an estimated $11 billion in projected growth in programs and other initiatives that would have occurred automatically if nothing was done. That meant he had to cut how much state government spends. Among other things, the governor cut aid to school districts and municipalities by about $1.2 billion combined.

That reduced what the state spends, but it made things difficult for local school districts and towns, many of which responded with employee layoffs and program cuts. But in most cases property tax increases were still needed, primarily to
pay for generous raises granted — perhaps wrongly — to public unions a few years ago.

O.K. But what about the 2 percent cap?

That cap on the annual increase in property taxes does not take effect until next year. But some school districts and towns are preparing for it now by prudently reviewing expenses. Needless to say, all should do so.

But what is more critical is for the Legislature to pass the reforms the governor has proposed to help local government live within the 2 percent cap. This is what Christie calls his "tool-kit."

Some of these 33 reforms are major — like allowing arbitrators to consider impact of union contract awards on property taxes, which is not required now, and capping the amount of sick leave and vacation pay employees can receive upon
retirement. That would stop the spectre we have seen recently in Morris County — veteran police officers and other employees getting $300,000 payouts when they leave. Other reforms — like moving fire elections to November — are relatively
minor. However, all are important and bound together, they will help local government check the continuing increase in property taxes.

The Legislature should have met to consider these reforms over the summer. It did not. Now that September is just about here, it should do so as soon as possible.

Property Tax

Tuesday, August 31, 2010

“Property tax hike, higher water fees ahead for city?” plus 2 more

“Property tax hike, higher water fees ahead for city?” plus 2 more

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