Berks County CFO unveils 2025 draft budget, proposes 8% property tax increase to address $12.8M operating shortfall

Chief Financial Officer Bob Patrizio presented the Berks County Board of Commissioners with the county's draft 2025 budget and outlined why officials recommend an 8% increase in the property tax rate to address an operating shortfall.

Patrizio said the county starts the 2025 budget cycle with an all‑funds deficit of about $37.3 million and a general governmental operating deficit of $12.8 million. To close the shortfall he recommended an 8% tax increase that would raise the millage to 9.013 mills, which the county estimates would add about $66.80 per year on a $100,000 taxable assessed value.

The CFO attributed much of the gap to higher personnel costs, inflationary increases in contracted services, a decline in taxable assessed value driven by recent large assessment appeals and court decisions (about $133 million in taxable base reductions since 2023), and new or expanded costs such as a youth shelter program. Patrizio said the county is proposing a combination of measures — limiting headcount growth (19 fewer positions year over year), reining in wage growth to projected inflation, increasing some fee‑for‑service revenues, drawing on reserve interest, and issuing up to $35 million in bonds to fund capital — to meet fiscal policy goals without exhausting reserves.

On capital financing, Patrizio said the county recommends authorizing bond proceeds up to $35 million to support a three‑year capital plan; he estimated debt service on a $35 million issue at about $2.5 million a year over 20 years and argued borrowing now preserves reserve levels and helps maintain the county's bond rating.

Patrizio also highlighted corrections‑related costs, noting inmate health care for 2025 is budgeted at $7.4 million (about $450,000 higher than the prior year), and emphasized that public safety and judicial services consume a large share of county tax dollars. On the youth shelter, he said a proposed three‑county partnership would significantly reduce the county's net cost and lessen the tax impact if partners commit as assumed.

The draft recommends a general fund expenditure budget of $310.8 million and total expenditures across all funds of $686.7 million, leaving a net deficit figure the county described as $24.5 million (presentation materials explain how one‑time resources and fund accounting affect that number). Patrizio said the draft budget will be posted to the county website and that the board will reconvene on December 19 for any revisions; the budget will be available for the statutorily required public inspection period before final adoption.

Patrizio introduced members of the budget team (including Deputy Director Laura Jones, Dawn Koch, Kate Renschler, Jackie Shepherd, Jen Savage, Kevin Rentz and Yadira Ramos) and thanked county staff for their work preparing the plan. Commissioners asked clarifying questions during and after the presentation and thanked staff for transparency and efforts to limit fiscal impacts on taxpayers.