West Chester Borough Council agreed to increase real estate taxes by 20 percent for 2011 instead of implementing a 7 percent tax increase and new trash fees. Council agreed to eliminate its proposed “pay as you go” trash bag system in exchange for a 20 percent property tax increase along with various parking alterations. The bonus of this system, according to residents and some on council, is that residents can write off property taxes in their federal filings. The approved tax increase would move the real estate millage rate from 5.8 mills to 6.96. A mill is $1 of tax paid for each $1,000 of a property’s assessed value. The tax hike equates to an additional $130 for a total of $828 a year for the average single-family residence with an assessed value of $119,000. Council also agreed Wednesday to extend business district parking meter hours until 10 p.m. on weekdays and implement business district meter hours from 5 to 10 p.m. on Saturdays. In order for council to make the new tax rate official for 2011, council must hold a special meeting by Dec. 31 to approve a millage rate ordinance.’