Palmyra Borough hopes for further cost cuts in budget deficit discussion

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Palmyra Borough Council on Nov. 13 hopes to further trim expenses to reduce a budget deficit before approving its 2026 spending plan in December.

Borough manager Roger Powl said the borough currently has a deficit of $306,228, which would require a 0.61-mill increase on top of the current 5.3 millage rate.

The money from the sale of the borough’s 40 E. Front St. property to Railroad Road Investments LLC for $103,500 will go toward the capital reserve fund rather than the expected $80,000 transfer from the general fund, officials noted.

The borough will also receive bids for the 2026 paving projects on Dec. 2, so it will have a better idea of costs before approving the final budget. Powl said borough staff usually overestimates prices, so they’re hoping it will shave another $100,000 off expenses.

This deficit is lower than the one outlined in the “worst-case scenario” budget presented to the council in October, which would have necessitated a 0.9-mill raise.

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

Council members went through the budget and said they tried to find areas where they could cut back on costs. They had questions about a few line items, but overall said the budget didn’t have frills.

“Last year, all totaled between trash, sewer, everything just for borough, my payments, taxes, trash, whatever went up $698 all totaled,” council member Jane Quairoli said. “This year with this budget, it’s going up another $216. Where the hell does everybody in this town get that money?”

Anthony Catalani, who offered finding a different and cheaper ambulance service, said the borough’s millage rate is one of the highest in the county. In 2025, the only municipalities with rates higher than Palmyra’s 5.3 mills were Annville Township (5.79 mills) and West Lebanon Township (6.5 mills). When considering school district taxes as well, residents in Palmyra Borough pay the second-highest rate.

Mayor Tom Miller said the cost of living in Palmyra is lower, so people have a higher millage rate, but they aren’t paying more. He said keeping the town maintained requires spending money, and inflation throughout the economy is making that maintenance more expensive.

Powl said the borough used to be behind on paving projects, so they’ve had to spend to catch up with that maintenance.

“The other component of public works that we’re still suffering for is all the paving that we’ve been doing because we haven’t done any paving here for 20-plus years, and now the roads are crap at the same time, and that’s what we’ve been fighting through, unfortunately,” Powl said. “This year, there’s probably the most paving we’ve done.”

Council will have another two weeks to consider the budget and make further edits before a vote to advertise it at the next meeting. Then, they can continue making cuts but cannot adopt a final budget with a millage rate higher than advertised.

In other business, council:

• Approved to pay the estimated $31,459.32 cost difference between the Melrose developer’s park & recreation fee-in-lieu money of $42,500 and the total cost of $73,959.32 to the developer to complete a proposed off-site stormwater pipe improvement project. Stormwater will be taken from the developer’s stormwater detention basin to North Lincoln Street via Kramer Way.
• Authorized the borough treasurer to transfer $6,656 from zoning and code enforcement wages to recreation supplies to replace the LED light bulbs on the snowflake utility pole lights and the town square Christmas tree, and to purchase an ornament package for the tree.
• Enacted Ordinance #839 to update the regulation of hotels, motels, inns, and boarding houses.

Palmyra Borough Council will meet next at 325 S. Railroad St. at 7 p.m. Nov. 25. Meetings are streamed on the Palmyra Borough, Lebanon County, Pennsylvania YouTube page.