Ridley Park Borough says is proposing a 17% tax increase on all property owners to make up for a nearly $500,000 deficit left by the owners of Taylor Hospital.
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The borough says Prospect Medical Holdings, which owns Taylor Hospital, has not paid any of its taxes in 2023.
In order to balance the budget, the borough says it is turning to property owners.
"We've sent late notices, we've reached out through our attorneys, we're not getting much of a response," said Dane Collins, the council president. "The impact is a minimum of a 17% tax increase we're looking at right now."
That will be imposed on all property owners.
Borough officials say Prospect Medical Holdings owes $487,000 in taxes, roughly 10% of the borough's $5 million budget.
"We have one way to bring in tax revenue, and that is through a property tax, and we have to balance the budget. That's our obligation," said Collins.
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It will average out to about $400 extra per year per homeowner.
"It's a lot, especially for people like myself who live paycheck to paycheck," said Kevin Pierce, a resident.
For business owners, the cost will be even steeper.
"We're already on our knees from COVID as it is, anything like this is just another kick to us," said PJ Dolan, the owner of Dolan's Bar.
He says the increase will equal thousands of dollars extra for him, but he doesn't blame the borough - he blames the hospital owners.
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"Especially a corporation that's not from this area, we're stuck holding the bag and it's probably going to force a couple of people out of their homes, I would imagine," he said.
Next door, the owner of Lux and Roses hair salon says the tax increase may put her out of business.
"I'm usually a big supporter of Taylor [Hospital] because it's local and it's easy, but if they're not doing what they're supposed to do, it's backfiring on me," said Machele Kortum.
A spokesperson for Crozer Health, which is part of Prospect Medical Holdings, said in a statement:
Crozer Health has been in active negotiations with the taxing authorities to determine the fair market value of the property which the property taxes should be based upon. We are optimistic that we will be able to reach a mutually agreed-upon resolution shortly. The sewer bill fees should be paid by the end of this week.
The borough says it expects to vote on the tax increase at its normal meeting next Tuesday night.