The Crofton Civic Association is asking its members to approve a slight tax increase when they vote on the budget next month, a move board members say is necessary because of rising insurance rates.

The fiscal 2004 budget, which homeowners vote on at the general membership meeting Jan. 13, asks them to approve a new tax rate of 12.3 cents per $100 of assessed value, compared with 11.4 cents in the budget for the current fiscal year. With the new rate, the owner of an average-priced home would pay about $20 more a year in the special benefits tax district, which has its own police force, maintenance staff and Town Hall.

The recommended fiscal 2004 budget of about $1 million would represent a 7 percent increase over the current fiscal year, which ends June 30.

Rising liability insurance premiums for Crofton's board of directors and the town's six-member police force were a main reason for the increase. Premiums more than doubled from last year, and are budgeted at $25,568 for fiscal 2004.

Town Manager Barbara Swann says she is looking for a more affordable policy, but acknowledged that the Sept. 11 terrorist attacks have led to soaring premiums for public safety officers.

"Even in a small department like this, they're considered high-risk," she said.

Crofton also has to buy new radios for its Police Department because the county is changing its radio dispatch system. The radios are expected to cost $10,000.

"These are all necessary. They're not discretionary items," Crofton police Chief Larry Schweinsburg said of the budget items. "We need them to continue to operate."

About 3,000 homeowners are eligible to vote on the budget Jan. 13. If fewer than 75 homeowners vote, the board will not have a quorum and can't approve a tax increase.

Swann, who has been town manager for 30 years, said Crofton has managed to assemble a quorum most years.

To ensure it would have a quorum this year, the association recently mailed copies of the budget and newsletter to homeowners.