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Higher taxes possible for Southern Columbia Area homeowners
Published: November 18, 2009
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share thisCATAWISSA RR - If the Southern Columbia Area School District's $20 million building project continues and the board approves a tax hike each year for three years, the third year may be a difficult one for homeowners.
According to business Manager Dan Rodgers, the third year of the tax hike will coincide with a jump in what the district must contribute to the Public School Employees Retirement System (PSERS). The increase, said Rodgers, is a result of the collapsing stock market and retiring baby boomers cashing in on benefits.
The district is required by the state to pay 4.78 percent into PSERS, but has 7 percent budgeted. Although nothing is set in stone, Rodgers has heard the PSERS requirement could increase to 20 percent, or as much as 30 percent, a worst-case scenario.
If that was the case, district homeowners living in Northumberland County could be taxed between 5.38 mills more, resulting in an extra $175 on their bills, or 9.41 mills more, resulting in an extra $306. A house valued at $150,000 would face increase between $175 and $306.
In Columbia County, the millage would range between an additional 3.5 and 6.12, resulting in an increase of $142 to $248 on a house valued at $150,000.
Homeowners could feel an addition crunch if the district moves forward with its building project. To pay back the loan proposed to fund the project, the district would increase the millage rate once a year for three years.
Northumberland County homeowners would see an increase of 1.31 mills each year, resulting in 3.93 mills total. Homeowners would pay an extra $42 a year with each increase for a home valued at $150,000.
Columbia County homeowners would see an increase of .86 mills each year, resulting in 2.58 mills total. Homeowners would pay an extra $35 a year with each increase for a home valued at $150,000.
The third year of the millage increase, combined with a PSERS increase of 20 percent, homeowners in Northumberland County would see an extra 9.31 mills from what they're paying now. Those in Columbia County would pay an extra 6.08 mills.
If the PSERS increase is 30 percent, the numbers jump an extra 13.34 and 8.7 mills in Northumberland and Columbia counties, respectively.
Nothumberland County homeowners currently pay 43.08 mills, which would increase to 56.42 mills in a worst-case scenario. In Columbia County, homeowners currently pay 28.03 mills, which would increase to 36.78 mills.
The three-year tax hike may be implemented in the 2010-11 budget and the PSERS increase would occur in the 2012-13 budget.
The numbers are constantly changing, said Rodgers, and the projections are nothing more than an educated guess.
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