Two Centre Region municipalities will have a real estate tax increase in 2023
The majority of municipalities in the Centre Region will not see a tax increase in the new year.
All of the municipalities have adopted their budgets for 2023. Homeowners in the State College Borough and Harris Township will see a tax increase and those in Halfmoon will see a tax decrease.
In the Harris Township budget, township manager Amy Farkas wrote to the board of supervisors that the financial outlook as they move into the new year is “more stormy than it has been in years past,” noting inflation and supply chain issues have increased the costs of things.
The State College borough will see a tax increase this year after not having increased taxes during the past two years. The council opted not to raise taxes during the COVID-19 pandemic due to its economic impacts. But the borough said without an increase in 2023, the budget would operate at an even deeper deficit.
Here’s a look at the 2023 budgets for the Centre County government and all Centre Region municipalities.
Centre County
The Centre County government’s 2023 budget was approved and adopted during the board of commissioners meeting Dec. 27. The total budget amount is $106,869,156, which includes the capital budget of $142,431.
For the 13th consecutive year, the county’s general millage rate will remain the same; general millage is 6.65 mills and debt millage is 1.19 mills.
The board conducted a salary and compensation study in 2022 and the budget reflects increases in salary levels for county employees, which totals to an 8.7% increase over the 2022 budget.
State College Borough
The State College Borough council unanimously approved the 2023 budget with a property tax increase for the first time in two years.
The 2023 budget’s total expenditures are $80,570,898. The municipal property tax rate will increase to 19.88 mills, which is 1.623 mills more compared to last year.
According to the borough, that means a typical $300,000 (market value) home would see an increase in 2023 of about $104.26; a $500,000 home would see a $173.77 increase, and a $700,000 home would see a $243.28 increase.
Those with homestead exclusions would see a reduced increase. A $300,000 (market value) home would see an increase in 2023 of about $63.69; a $500,000 home a $133.19 increase, and a $700,000 home a $202.70 increase.
College Township
College Township’s 2023 budget does not include a tax increase, though some millage funds changed, according to township budget documents. The general fund millage decreased by 0.15 mills, the fire protection fund increased by 0.10 mills and the library fund increased by 0.05 mills. The total millage remains 6.10 mills.
The budget shows $9.7 million in total revenues and $11.45 million total expenditures.
The budget expenditures include $3.19 million in capital projects, which are projected to include equipment replacements, road projects, signals and signage, building and grounds, stormwater and other, and parks and recreation, according to township budget documents.
An amount of $1,743,278 will decrease reserves, providing an ending combined balance of $1,534,945, according to township budget documents.
Patton Township
The Patton Township 2023 budget has the tax rate remaining at a total rate of 9.5 mills. The total revenue is $14,779,737 with $16,374,774 in expenses. The budget anticipates that cash reserves will be used to make up the difference between anticipated revenues and expected expenditures, according to township budget documents.
Key projects listed in the budget include Phase 2A of Bernel Road Park and Atherton and Woodycrest improvements, in which the township will “utilize state grant funds to reconstruct and upgrade intersection that will serve as entrance to Patton Crossing development.” Police K-9 control is also included, which will be trained in narcotics detection and tracking, and will be “utilized at community events to facilitate positive community engagement,” according to township budget documents.
Ferguson Township
The 2023 Ferguson Township budget shows $23,573,967 in revenues and $27,970,729 in expenditures. The tax rate will remain at 2.422 mills, as it has since 2006.
Budgeted governmental expenditures (not including pension trust funds or Tom Tudek Memorial Park Fund) are $23,494,088 and revenue totals are $18,926,050. Nearly $4 million of interfund transfers will be used, according to township budget documents.
The budget includes five new staff positions and salary increases for employees (5% cost of living adjustment and 2% merit increase). Two neighborhood parks are set for “significant park improvements” and capital investments include two police vehicles, according to township budget documents.
Harris Township
For the first year since 2017, Harris Township will have a tax increase. The Harris Township 2023 budget includes a 0.3 mill tax increase.
“In deciding to raise taxes, the Board noted that with record inflation, they can’t continue to pay for 2023 goods and services with 2017 dollars,” the township website states.
Revenues total $3.98 million and expenditures total $4.25 million (not including the capital budget of $865,500).
The township will also raise the fire hydrant assessment “in response to escalating hydrant fees set by the State College Borough Water Authority,” the website states. “Hydrant fees have tripled in recent years, with the Township paying $56,000 in annual fees for its 168 hydrants.”
According to township budget documents, several projects are proposed for 2023, including completion of the paving project on Rosslyn Road, paving South Church Street and continuing the Boalsburg Pike paving project. Improvements to Fasick Park — a new pavilion roof and entry road paving — and Tussey Pond Park — installation of a fishing pier and pond management — are also in the budget.
Halfmoon Township
The 2023 Halfmoon Township budget totals $1.23 million and reflects a tax decrease. The millage rate “due the abolishment of the Fire Tax Levy for the General Fund as well as an anticipated tax decrease is 5.37 mills,” according to township budget documents.
“The anticipated tax decrease will decrease the citizens of Halfmoon Township’s County/Municipal Real Estate tax bill by an average of $71.17, but can range from as low as $0.24 and as high as $312.00 depending upon assessed value,” according to township budget documents.
Bellefonte Borough
The 2023 Bellefonte Borough budget is $14,637,635 with no tax increase, so millage will remain at 18.265 mills. The budget anticipates about $78,000 of reserves from 2022 to balance the general fund budget and to maintain the same level of services, according to township budget documents.
