Annville commissioners approve $3.06M budget, 0.5 mill property tax increase

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The Annville Township Board of Commissioners approved a $3.06 million budget for 2026 and a 0.5-mill property tax increase to 6.29 mills, both by 4-0 vote Tuesday.

Board president Rex Moore was absent. There was no board discussion on the budget.

The half-mill increase comes to an additional $72.20 per year, or $908.28, in township property taxes for a home with the median assessment of $144,400, according to Lebanon County assessor Daniel L. Seaman. He notes there will be a small difference between this calculation and taxes billed for 2026, as the calculation is based on township assessment only and does not include streetlight, fire hydrant, and other assessments.

The 2026 budget provides for $3.06 million in revenues to balance $3.06 million in expenses, with zero budget reserves. This is a 23.9% increase over the 2025 budget of $2.47 million.

Public safety is the largest expense in the 2026 budget, at $1.25 million. Other key expenses include:

• Non-active police pensions, $366,247
• Public works, $338,288
• General government, $304,795
• Insurances, benefits and pensions, $295,000
• Fire and emergency medical services (EMS), $169,431
• Debt payments, $152,260

In a separate 4-0 vote, the township paid off its sewage system centrifuge debt of $228,130.69. The debt was incurred in 2018.

Estimated real estate taxes of $1.59 million cover more than half the budgeted expenses. Other budgeted revenues include:

• Local tax collections, $753,000
• Special assessments, $110,500
• License and permit fees, $74,500
• State revenue sharing, $62,853
• Interest income, $60,000

Commissioners also approved a sewage rate increase for the coming year with a 3-1 vote, with commissioner Anthony Perrotto dissenting. Sewage rates will rise $3 per quarter to $186 per quarter, for up to 7,500 gallons, from the current year’s 10,000-gallon minimum. Each 1,000 gallons consumed above 7,500 gallons will cost an extra $19.

After a study this year of residential customers, the township’s sewer engineers, GFT (formerly Gannett Fleming), is on to phase II with a study next year of commercial, industrial and institutional users in 2026, according to township administrator Candie Johnson.

From the second phase of the study, commissioners will consider separating the township’s commercial, industrial and institutional sewage customers into their own higher rate structure to reflect much higher usage. The goal is to keep sewage rates more affordable for residential customers, especially those on fixed incomes, including Social Security, Johnson said.

The cut in the base usage level from 10,000 gallons per quarter to 7,500 gallons represents savings for those residential customers, because they are not paying for an extra 2,500 gallons they don’t use, she said.

Perrotto told LebTown Tuesday evening he voted against the fee schedule because he prefers holding rates at 2025 levels until the engineering study is complete.

Annville Township laundromat owner Dean Wolfe said at the meeting that he investigated sewage rates in other municipalities and found that some charge a flat fee plus per-1,000 gallon rates.

“Basically, you raised the sewer rates 25%,” Wolfe said.

“People who use it are going to pay more,” Johnson replied.

“Sixty percent or so of folks won’t feel an increase, based on their usage, according to our study,” added commissioner Henri Lively.

The township hasn’t raised sewage rates for nine years, Johnson said, and lost revenue when a centrifuge broke down for three months early this year.

Other fees approved under the 2026 fee schedule resolution include bulk waste/green waste pick-up at $150 per load and a $100 per year drop off center annual use permit for residents. Non-residents pay $350 annually for a drop off center permit.

In other business, the board:

• The board voted 4-0 to table UGI Energy’s request to cut into a newly paved Church Street curb to revisit pending more information. The township typically does not allow street cuts after new pavement.
• Approved 4-0 a plan to subdivide lots at the corner of 180 N. Mill St. and 190 N. Mill St. in Annville Township, and portions of 195 N. Mill St. between the township and Cleona Borough into one 2,000-acre lot under the ownership of Mid Atlantic Interstate Transmission, with residual lands of 72.17 acres owned by Daniel P. Kreider.
• Approved 4-0 a Historical Architectural Review Board recommendation to allow Joel and Missy Shenk, owners of a property at 219 W. Main St., to replace the former fire house’s overhead door panels with new entry doors for first-floor commercial office use.
• Noted that downtown Annville Township’s Christmas tree lighting ceremony is 5:45 p.m. Saturday, Dec. 6.

Editor’s note: This article was updated after publication to correct details of the pavement request that was tabled.