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Episode 4 Primary Operating Revenue Sources
The two major sources of operating revenue are Taxes and Service Charges.
The taxes and service charges you pay are shown on the Borough Taxes bill sent to you every year from the Ridley Park Borough Tax Collector.
For property owners the Real Estate taxes are based on assessed value of the property and the millage rate set by the Borough Council. Taxes appear in the left hand box of the tax notice. Other significant sources of taxes are Per Capita Taxes, Real Estate transfer taxes and Emergency & Municipal Services Taxes.
Service charges are shown on the Tax Notice under fees for Trash and Sewer Rent.
There are many other sources of revenues that are shown in the Auditor’s report each year.
The charts below show the history of Taxes collected and Service Charges collected for the period 2001 to 2008. The 2009 Audit report is currently being prepared by the Auditors.
You will see that even though the real estate tax millage rate was increased for 2008, there was a decrease in assessed value of the properties. Therefore the Taxes collected in 2008 were less than that collected in 2007. Charges for Services collected in 2008 were almost identical to the charges collected in 2007.
Taxes and Service charges combined increased about 53% from 2001 to 2008.
The Consumer Price Index (CPI) increased a cumulative total of about 20% from 2001 to 2008. Social Security payments were not increased for 2010. Of course most pensions did not increase at all during this period.
I was surprised to find that middle income wages on average increased a cumulative total of only about 30% from 2001 to 2008.
Borough Council believes they can improve our quality of life more effectively with tax increases that are a larger and larger share if our income. They also believe they can hide increases in spending with debt that is disproportionately greater than the tax increases they levy.
Spending in excess of income ultimately falls into the category of all debt – pay me now or pay me later. Later has arrived and Episode 5 will deal with the growth in expenditures for the period from 2001 to 2008.
See the Charts below which show the growth in taxes and fees.
Charts will be updated for 2009 when Auditors' report is released in April 2010.