Palmyra Borough Council advertises 2026 budget with 0.7-mill tax increase

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Palmyra Borough Council voted to advertise its 2026 budget with a 0.7-mill tax increase at its Nov. 25 meeting.

The final budget can be voted on at the Dec. 23 meeting. Additional cuts can be made until that point, but the tax levied cannot be higher than the one advertised, so a total local real estate tax of 6 mills is the maximum residents will see.

The borough’s fire tax rate is also expected to increase by 0.17 mills to 0.84 mills. The department serves both Palmyra Borough and North Londonderry Township.

The budget discussion started with councilman Marcus Riddell asking the Palmyra Fire Department Chief David Dugan about their fundraising efforts. Dugan said they did not do any fundraising due to the low number of volunteers and a 2013 study that recommended the department not do any. Riddell suggested not increasing the incentive fund to $150,000 and cutting the apparatus fund in half down to $37,500.

After back and forth between the chief and council, Riddell withdrew his motion to cut the borough’s fire department spending after learning his recommended cuts would not lower the general fund deficit of around $350,000, and North Londonderry Township already voted to advertise its budget with the increased financial support to the fire department.

Read More: North Londonderry Twp. approves tentative balanced budget for 2026

Council didn’t make any decisive cuts to the budget during the discussion, but they can continue decreasing expenses until the final budget approval. Council members and borough staff offered several items that could be reconsidered over the next month.

Borough manager Roger Powl said council can consider lowering some public works costs by choosing not to hire a seasonal public works employee and cut down on some stormwater management projects planned throughout the borough.

He said the 2026 paving bids will come before council on Dec. 2, and he’s expecting them to be about $100,000 cheaper than they budgeted for.

“If that bears out and true, then we’re at a half-mill increase on the general fund side — unless you want to reduce some of the street [work],” Powl said.

He said paving Southeast Park’s parking lot is estimated at $75,000 and is being bid as an alternate, so council can decide not to move forward with that expense. Other options thrown out during the meeting included the borough’s plan to purchase a new paver and redo its basketball court.

Council also voted 6-1, with council member Anthony Catalani voting no, to increase refuse rates from $112 per quarter to $121 per quarter. Catalani said he voted against the motion because he wants to keep costs down for borough residents. The rate is increasing primarily because of increased tipping fees.

“The only other thing we could do is let everybody get their own trash service, which would cost us a lot more than $121 a quarter,” councilwoman Jane Quairoli said.

Powl said the contract is for three years, and the borough is currently in its second year. At the end of the three-year term, they can choose to extend for two additional years.

Palmyra Borough Council will meet next at 325 S. Railroad St. on Dec. 9 at 7 p.m. Meetings are streamed on the Palmyra Borough, Lebanon County, Pennsylvania YouTube page.