Palmyra’s ‘worst-case scenario’ budget could include a .9-mill tax increase

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The “worst-case scenario” in Palmyra Borough’s 2026 budget plan could include a tax increase of 0.9 mills if all possible projects were included in the spending plan, borough council members heard during a budget report on Oct. 28.

Read More: Palmyra Borough Council discusses 2026 budget, which is not as dire as 2025’s

In this worst-case scenario, the projected budget deficit sits at $456,872. If approved, the 0.9-mill increase would impact the average homeowner with a property assessed at $152,554 with an additional $137.29 in taxes per year, or $11.44 per month.

“Are we recommending a tax increase? No. Do we want a tax increase? No,” borough manager Roger Powl said. “We’re just saying us as a staff, hearing the complaints that we’ve heard and trying to figure out how we can do the jobs better to satisfy what people are looking for, everything that’s in here is what that costs. It’ll be up to [the council] to decide what we do or not do.”

The projected beginning general fund balance is $422,787, according to the slideshow presented during the meeting, and the minimum balance needed for the first quarter of 2026 is $700,000. This leaves a deficit of $277,213 to start the year.

One factor affecting the 2026 budget is the consumer price index being 3.3% and salaries increasing by that minimum. The treasurer, utility billing specialist, and administrative assistant will receive an additional 1.55% increase, as agreed to in the previous budget. 

The borough gets Capital Blue Cross health insurance through Benecon – PA Municipal Health Insurance Cooperative, which is raising the borough’s rate by 19.8%, though the average overall increase is 14% to 18%. Powl said this is because the borough has had a few claims, which raise rates.

Dental insurance will increase by 4.8%, and auto, liability, and property insurance renewal could increase by an estimated 8%, though the final amount increase won’t be known until Dec. 1. The borough does not expect an increase for vision insurance.

Administration costs show a 12.2% decrease because they decided to eliminate the second zoning and codes enforcement officer position. The contribution to the Western Lebanon County Regional Police Department remains relatively steady at $2,052,855.

Another major portion of the general fund is the road maintenance and repairs. The draft budget sets aside $25,000 for asphalt road repairs that the public works crew can do, and $764,000 is set aside for contracted repair, milling, and re-paving of several streets.

Other funds

The budget states that the 2026 quarterly sewer fee would remain consistent at $109 per quarter.

The refuse fees, as mentioned at the first October meeting, will likely need to increase. Tipping fees at the Greater Lebanon Refuse Authority increased from $72 per ton to $82 per ton for 2026, and the Casella contract will increase by 3.3% from 2025. The budget estimates the quarterly refuse fee would grow from $112 to $121.

Powl also mentioned that the fire tax millage rate will likely need to increase. The original firehouse loan schedule will resume in 2026, raising the payment from $74,966 in 2025 to $129,881. The department requested the incentive program be increased to the maximum allowable by law, which is $300,000, and would raise the borough’s portion from $112,500 to $150,000.

If these changes are approved, the fire tax rate would increase by 0.18 mills to 0.85 mills.

After the meeting, Powl said the borough could manage without a millage rate increase for the general fund, but to complete all of the projects and maintenance that people in the borough request, a 0.9-millage rate increase could be necessary. Council will now go through the budget and decide what costs they want to take on as they continue refining the budget before the final approval by the end of the year.

In other business, council:

• Voted to authorize the borough solicitor to advertise Ordinance 839 to amend the Code of Ordinances of the Borough of Palmyra Chapter 209 (Hotels, Motels, Inns, and Boarding Houses).
• Authorized the borough manager to execute a contract with Green Commercial Cleaning. The contract includes $2,200 per month for daily cleaning services at the municipal building, $375 for an annual cleaning of the interior and exterior windows, and $150 for weekly cleanings at the Memorial Park bathrooms between April and November.

Palmyra Borough Council will meet next at 325 S. Railroad St. on Nov. 13 at 7 p.m. Meetings are streamed on the Palmyra Borough, Lebanon County, Pennsylvania YouTube page.