CHA Partners deal to acquire Crozer Health collapses
CHA Partners had signed a letter of intent to purchase the embattled four-hospital system from Prospect Medical Holdings.
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Delaware County Council adopted its 2025 budget Wednesday evening — which establishes a 23% property tax hike.
Citing a need for a steady injection of revenue amid rising costs, the all-Democratic governing body voted 4-1 in favor of Ordinance 2024-10, solidifying the new tax rate.
The action was met with groans of disapproval from members of the public in attendance.
The average household will see an annual increase of $185 on their tax bill. Approximately one-third of homeowners will see a hike of less than $100, county officials said.
“Delaware County was under-invested in for many years,” Council Chair Dr. Monica Taylor said. “Many, many years of deferred maintenance on public infrastructure can seem like a cost saving measure in the short term, but it leads to higher costs in the long run.”
Members of council pointed to years of minimal or no tax increases, inflation and high labor costs as major contributors to the county government’s financial hardships. Councilmember Christine Reuther said in retrospect, the county should have been incrementally increasing its taxes over time like neighboring counties.
Officials acknowledged the difficulties homeowners with fixed incomes might face when it’s time to pay their taxes. However, Councilmember Kevin Madden said the county has already made tough cuts. He categorized the tax hike as a tool of last resort.
“I know it’s not popular with everyone. I get that,” Madden said. “We are not going to make everyone happy but I will vote my conscience. And my conscience today says that I need to do the right thing — not necessarily the most popular thing — but the thing that is fiscally responsible for this county. And unfortunately, that is making the tough call and supporting the budget that’s before us.”
Council Vice Chair Richard Womack was the lone vote against approving the new budget. His vote was met with applause at the packed meeting in Media Borough. He proposed putting together a budgetary commission to review finances and return with a plan to make suggestions that might have been overlooked.
“Once we do that, it may still come out to the same 23%,” Womack said. “It may come out less, but at least there was another set of eyes there. That would be transparency. We’re not going to please everybody, but at least we could say that we went through a process.”
During the public hearing, community members urged elected officials to find another way to fill the county coffers and avoid fiscal issues.
Kim Rankin, of Newtown Township, said the modern-day cost of living will make any tax hike hard to handle. She asked council to consider what an increase will mean for lower middle-class households like hers.
“I’m fighting every day to pay my bills and I can’t afford anymore,” Rankin said.
Nicholas Gualberti, of Springfield Township, said he understood taxes are a “necessary evil” but he wondered if there was a potential compromise that could lessen the impact on working-class Delco residents, especially younger people who cannot afford homes.
“It’s mind-blowing,” he said. “It’s discouraging to me as a young person because I make good money and it’s not the point. But it’s disheartening for all the younger people who want to keep Delaware County going and remain in Delaware County and work in Delaware County and take part in the traditions. Why would I stay here?”
Michael Straw, of Media, urged elected officials to make cuts to the budget.
“I want to raise a family here but I can’t do that if you’re going to burden us all with more costs for a ballooning government that can’t live within its means,” Straw said.
People took turns demanding answers from council members and accused the process of being devoid of transparency.
“Have you lost your minds?” Daniel Murphy, of Newtown Square, asked.
Democrats wrested majority control of Delaware County Council in 2019 for the first time since the Civil War. The new majority shepherded the creation of the county health department, the deprivatization of the George W. Hill Correctional Facility and the establishment of various new programs and initiatives.
Delco was previously the largest county in the country without its own health department.
One meeting attendee used his time on the floor to applaud the council’s approach to governing, which differed from the GOP administrations of years past.
“I support this council and all of the programs I’ve heard you propose and implement over the last several years,” Mike Hoppus, of Upper Providence said. “You’ve been very transparent. These same people that are complaining about these taxes, were not here when you talked about the health department. They probably weren’t here when you talked about green space. They probably weren’t here when you talked about why we need a public prison.”
But many slammed the changes as a symbol of overspending and mismanagement. Some saw the tax hike as a broader rebuke of the party’s relatively new reign.
“The reality is this council has chosen to dramatically increase the size of government without a common sense plan to fund it,” said Frank Agovino, chair of the Delaware County Republican Party. “In short, whether you like it or not, this is your government now, in its entirety. And to say anything less insults the intelligence of voters.”
Marc Luca, president of Aqua Pennsylvania, said during public comment that Delco should reconsider the company’s offer to purchase the Delaware County Regional Water Quality Control Authority (DELCORA).
In 2019, the then-GOP-controlled wastewater authority initiated efforts to sell the system to Aqua — the same year that Democrats moved to take control of the County Council. The parties agreed to a $276.5 million agreement.
The new council majority almost immediately moved to stop the sale.
“Aqua and DELCORA already have an agreement of sale which will resolve the need for a tax increase, while reducing the annual DELCORA rate increase. We see it as a win-win,” Luca said.
Madden immediately threw water on the proposal as a “devil’s bargain.” Reuther balked at the idea of Aqua taking control of the wastewater system. She said as an Aqua customer herself, she’s seen her water bill rise 400%.
“DELCORA is not the problem here,” Reuther said. “The problem is a structural problem.”
Taylor said the county will establish a budget commission going into next year’s cycle.
“This commission will be focused on creating revenue enhancements, developing cost containment measures and reviewing our budget documentation for clarity, consistency, transparency and ease of use for our residents,” Taylor said.
The process to apply will be available in January.
Taylor said Delco is developing a real estate tax deferral program as well as a first responder tax rebate program.
“We have heard your calls to keep Delco a place where families can buy a house and raise a family,” Taylor said. “We want that too. We are going to leave this county with a stable and balanced budget, quality services, bridges, parks and trails to be proud of, and an experienced workforce that cares. It is not easy work in these difficult financial times, but with your help, we can achieve it.”
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