After years of spending cuts, Hanover officials have cut all they can, causing the borough to propose a tax increase for 2013, an official said.

"They've cut where they could cut ... but there's nowhere else they can cut," said Barbara Krebs, borough manager.

The proposed tax increase would see taxes increase 38 percent from 3.99 mills to 5.5 mills. That means an owner of a property assessed at $100,000 would have a tax bill of $550 next year.

If the $30 million budget is approved by the council during its Wednesday meeting, it will be the first to include a tax increase in nine years, Krebs said.

Employee cuts: The council approved the preliminary budget by an 8-1 vote in November.

In order to balance the budget, the borough must also pull about $1 million from its reserves, Krebs said.

The borough was able to avoid tax increases in the past by cutting spending and not hiring employees to fill vacant positions.

The borough opted not to fill at least eight positions, ranging from office staff to public works, that haven't been filled over the past few years, Krebs said.

No additional spending could be cut without greatly reducing services, she said.

"We're at bare minimum," Krebs said.

-- Reach Greg Gross at