Valencia to see first tax increase in decades
Valencia borough council recently approved the first tax increase in over 30 years as it tries to resolve a budget shortfall. The borough’s tax rate went from 7.5 mills to 10 mills at the start of the year.
The decision was made at the monthly borough council meeting Dec. 9 where the $141,907 budget was approved. According to the minutes of the November meeting, the tax increase was necessary to cover an anticipated deficit of $39,000 in 2025.
“In general, the cost of expenditures has increased for just about everything,” said council member Torey Verts. “However, the primary reason is the rising cost of emergency services.”
Specifically, police coverage from the Adams Township Police Department was noted on the minutes as the most expensive line item on the borough budget.
Despite the tax increase, the borough only will bring in an additional estimated $3,000, as it reported a low number of taxable properties, with taxable properties valued at approximately $1 million and non-taxable properties valued at approximately $5 million.
Part of this is due to the presence of the St. Barnabas Health System, which owns multiple parcels of land along or near Three Degree Road. Most of the land belongs to, or is close to, the system’s two old-age communities, The Arbors and The Woodlands.
According to Butler County property records, St. Barnabas Land Trust owns approximately 125.596 acres of property in Valencia. St. Barnabas is a tax-exempt health care entity. The borough is 0.4 square miles which is about 256 acres.
The borough said that one of the other solutions it explored to address its budget problems was “putting pressure on St. Barnabas.”
“St. Barnabas owns approximately 80% of the taxable land in Valencia borough, which limits our yearly revenue,” Verts said. “Due to the increased costs in emergency services, we are asking them to contribute to help cover expenses.”
St. Barnabas Health System did not responded to request for comment by the Butler Eagle as of press time.
Although the decision to increase taxes was an unusual one, Verts said that it was not very difficult for the borough to make.
“This was a unanimous decision among the borough officials,” Verts said. “We have not presently received any complaints from our residents.”
The Mars Area School District, which contains Valencia borough, voted to raise its own tax rate from 105.526 mils to 109 mills for the 2024-25 school year. A mill equals $1 in tax revenue for each $1,000 of a property’s assessed value.
