Majority of Haverford Commissioners Approve Tax Increase

Seven out of nine commissioners voted to approve the 2012 budget during the Board of Commissioners meeting on Monday night.

, Sixth Ward Commissioner Larry Holmes presented the proposed $35,866,723 budget for 2012, saying that the township might see an 8.3 percent tax increase.

But because of additional funding from the state, that tax increase has been lowered to a 5.2 tax increase, Holmes told the board Monday night.

“Mr. President, there is one principle change in the budget between the preliminary and the final, there is a Pennsylvania act, Act 205, which provides for the state to provide municipalities grant money that relates to pensions. We have been used to an annual grant from the state approximately a million dollars and this year we actually received a $1,625,000,” Holmes said.

“… it is the recommendation of our township manager and our township finance director that the money be used to reduce the amount of tax increase we expected to have to do in our real estate taxes and do that in place of the income smoothing that had been contemplated but not adopted at the last meeting. As a result, that additional ($625,000) in funds would enable us to reduced the projected increase in our real estate taxes which had been (8.3 percent) down to 5.2 percent,” Holmes continued.

Because of the additional funding, the current 6.359 mills will only increase to 6.689 mills, Holmes said. The 2012 budget will be $35,866,723. 

Except for Seventh Ward Commissioner James McGarrity and 8th Ward Commissioner Chris Connelll, the rest of the commissioners approved the following:

• Tax Levy: Fixing the tax rate for the year 2012 at 6.689 mills.

• Budget Appropriations: “Appropriating funds established to be required for the specific purpose of financing the municipal government for the year 2012 including all tax fees, service charges and other revenue sources provided within all funds.”

All of the commissioners voted in favor for the following:

• Sewer Rental Charge: Annual sewer rate in the amount of $4.50 per 1,000 gallons of water consumed.
  

• Trash Fee: Establishing the annual trash fee at $175 (a $3 increase from last year).

McGarrity and Connell did not vote in favor of the 2012 budget and the Haverford-Havertown Patch did not have a chance to speak to them about their vote because they left as soon as the meeting was adjourned.

Holmes told Patch once the meeting was over that just like everything, from buying a car or going to the movies, government will not get cheaper. 

“Government is not going to get cheaper. It’s never going to happen,” he said about the tax increase.  

He said that this is the first year the township has not done smoothing, which Township Manager Larry Gentile explained at the last meeting as, “paying more than just the minimum amount. Historically we have always done that. The township has never paid the full amount.”

“We never should have done it,” Holmes said of smoothing. “It’s very easy to make a decision today that looks like we saved money in two years but the reality is we are dumping a debt on somebody in five to 10 years.”

The commissioners approved the 2011 budget with .