Democrat Controlled West Chester adopts 20 percent tax hike

By JENNIFER MILLER, Staff Writer

WEST CHESTER — Borough Council on Tuesday formally agreed to increase property taxes 20 percent in 2011 and to switch health care providers for borough employees.

At a Dec. 15 meeting, council approved a 2011 budget. And in a 5-2 vote, council agreed to eliminate its original proposal for a 7 percent tax increase, parking fee changes and a "pay as you go" trash bag system in exchange for a 20 percent property tax increase and various parking alterations.

To make the new tax rate official for 2011, council had to hold a special meeting by Dec. 31 to approve a tax rate ordinance. Council approved the new rate with a 5-1 vote, with Councilwoman Susan Bayne opposed and Councilman Jim Jones absent.

Following the Dec. 15 meeting, Bayne said many residents had told her they were concerned about the tax increase.

"They are really upset with this," Bayne said. "They do feel like it's a hardship."

The approved tax increase would move the real estate tax rate from

5.8 to 6.96 mills.

A mill is $1 of tax paid for each $1,000 of a property's assessed value, so the tax hike equates to an additional $130, or a total of $828, a year for the average single-family residence with an assessed value of $119,000.

The tax increase is part of officials' efforts to fill in a $1.5 million hole in an $18.1 million budget.

Councilman John Manion proposed the 20 percent tax increase at the Dec. 15 meeting after residents spoke out against proposed $2 and $4 trash bag fees. Manion said Tuesday the 20 percent tax increase was the borough's "only viable option."

Some on council also said the property tax increase would be comparable to the proposed trash fees. Councilman Tom Paxson said the tax increase is extreme, but necessary.

"I agree, it's ridiculous, but it's the only option we have," Paxson said.

Councilwoman Cassandra Jones said she has received significant criticism from residents over the tax increase, even by members of her church. She said someone recently described those on council as "devils." Despite the criticism, she said council has no other choice. She pointed out that council members are subject to the same taxes and fees.

"We're all residents too, so it affects everyone," she said.

After approving the tax increase, council agreed with a 6-0 vote to switch health care providers for all union and non-union employees beginning Feb. 1. Council made the decision after the West Chester Police Department union urged council not to do so.

Borough Manager Ernie McNeely said switching from Amerihealth to United Healthcare will not affect any benefits employees are already receiving, but will prevent the borough from paying "shock claims," which significantly impacted the budget this year. The unpredicted claims could cost the borough $4,000 to $300,000 in any given month, McNeely said.

But the change in carriers could mean an employee's current primary physician may not be covered by the new provider.

Union President Det. Andrew McFarland accused council and administrators of failing to properly convey the possible benefit changes to the union in a timely manor before the vote. Specifically, McFarland criticized officials for waiting until November to have the union weigh in on the proposed changes.

"You guys have had financial problems all year," McFarland said. "This is not the way to treat your employees."

McFarland said the union, on previous occasions, has agreed to make changes to the current contract at the request of officials. He questioned why officials are once again going to the police department to save money.

"Now, when things are tight, you want to take from them?" McFarland said as he pointed to the roughly 25 officers present.

McFarland also asked council to consider extending the police union contract by a year or two years. Councilwoman Holly Brown said later in the meeting she suspected the union wants the extension to avoid significant benefit cuts during tough economic times.

"They don't want to face that at contract negotiations, I would guess," she said.

McFarland and other members of the police department left the room before council finished the discussion and voted on the matter.

The police union has a contract with the borough that outlines benefits and salaries. The measure council approved will go against what the contract states; therefore, the union could fight the decision by filing a grievance and the matter could potentially go into arbitration.

McNeely said arbitration could cost the borough $4,000 to $6,000.

Manion said he preferred the cost of arbitration versus possible "shock claims."

"It's pennies for dollars," he said.

To contact staff writer Jennifer Miller, send an e-mail to jenmiller@dailylocal.com.