Mount Gretna Borough might consider 2026 budget with tax increase

This article was funded by LebTown donors as part of our Civic Impact Reporting Project.

Mount Gretna Borough Council on Nov. 10 went over the first reading of its 2026 budget, which shows two options for tax increases — 5% or 7%. The current millage rate for borough residents is 2.2352 mills.

The budget column that doesn’t show a tax increase estimates $748,434.69 in total income and $709,434.69 in expenses. This scenario would bring in $127,983.08 from real estate taxes. Other sources of income would include licenses and permits, fines, building and equipment rentals, and state aid. These additional sources stay consistent across the alternative millage rates.

A 5% increase would bring the rate to about 2.35 mills and would raise the real estate tax income to $134,556.30. Total income would go up to $755,007.91. With a few other adjustments throughout the budget, total expenses then rose to $716,007.91.

The 7% increase option would bring the rate to around 2.4 mills and would fetch $137,419.20 in real estate taxes. If approved, total income could be $757,870.81, and total expenses could be $718,870.81.

Each budget option also shows $39,000 in allocations and transfers.

The general government expenses would be $78,877.50 for the option without a tax increase. The tax hikes would bring general government costs down to $77,220, with several hundred dollars being cut from bills at the borough building and office.

Each tax increase would also raise the amount of money allocated for repair to roads and storm sewers, and highways.

Council president William Kleinfelter said accounting, police, and insurance costs are going up in 2026. The contract with the Cornwall Borough Police Department would span five years and include the same amount of coverage for a higher price. Solicitor Keith Kilgore said he’s working on the contracts now. It hasn’t been finalized, but the budget has $48,329 set aside, which is an increase from 2025’s budgeted $45,905.

The budget shows insurance increasing from $9,685 in 2025 to $10,575.50 in 2026. Auditing services, also not finalized, are expected to increase from $9,700 to $13,500.

“We have costs that are just going up, and we just have to somehow keep pace with what’s happening, and we haven’t,” Kleinfelter said. “We’ve been sort of treading ourselves and being very good about budgeting the last couple of years, but now I think we have to almost look at biting the bullet and saying things are going up.”

In other business, council:

• Heard a report that brush collection will happen on Nov. 17 and Dec. 8.
• Will consider a new accounting firm, with a vote likely happening in December, according to Kleinfelter.

Mount Gretna Borough Council will meet next at 6 p.m. on Dec. 8 at the firehouse on Boulevard Avenue.