Taxes have gone up in Wyomissing after borough council voted to approve a 1.2-mill increase for the municipal tax rate.
The increase brings the borough’s rate to 6.65 mills from 5.4 mills, a hike of about 18%, or $125 for a property valued at $100,000.
In an eleventh-hour decision Dec. 29 before the end-of-the-year deadline, council voted 6-1 to approve the increase after officials initially rejected an earlier proposal for a 22% increase.
“That (22%) got knocked down with some savings to insurance costs,” Mayor Fred Levering said.
Ron Stanko was the sole vote against the 18% hike.
Levering said the borough has contracts negotiated with unions for police, fire and public works that include incremental increases.
“About 68% of our budget is tied to three organized labor unions,” Levering said. “I can tell you right now that 68% of our budget is going to go up by (about) 3% next year as well. So we have to deal with that.”
He said the borough has not raised taxes for several years, instead opting to cover the increases using reserve funds.
“Arguably, looking back, it would have been better to have small increases (every year),” Levering said. “But the effect is basically the same.”
The increase also covers cost increases for materials and supplies related to infrastructure maintenance and operations, like the cost of gas for police and public works vehicles.
Levering said some of the increased attendance at recent budget meetings had to do with misreporting on social media that led some residents to think that a 22% increase would apply to their entire real estate tax bill.
He noted the borough’s real estate tax bill is broken down into three charges: from the county, the Wyomissing School District and the borough.
“Thirteen percent of the total tax bill ends up being the borough tax bill,” Levering said. “So the 22% increase would only have been applied to that 13%.”
Levering noted that large commercial projects, such as a proposal to demolish and redevelop the Berkshire Mall property, could significantly increase the borough’s tax revenue in the future.
“I believe that (the borough is) on very firm footing for the future,” Levering said. “But we have had a shortfall and have made up for it by dipping into our reserves. That can’t go on forever. But I think with the upcoming redevelopment of the mall, we are going to have a very enviable financial position.”
He said in the future, a better course might be small, incremental increases annually, along with better communication from the borough as to why taxes are increasing and what the increase actually amounts to.