Mount Gretna Borough approves 2026 budget with 7% tax increase

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

Mount Gretna Borough Council approved its 2026 budget with a 7% tax increase during the Dec. 8 meeting.

The millage rate will increase from 2.2352 mills to 2.4 mills, marking the borough’s first rate increase since 2015.

The final budget shows a total of $727,344.50 in estimated income, $688,344.50 in ordinary expenses, and $39,000 in allocations and transfers.

$224,419.20 is expected to come from taxes, with the largest portion — $137,419.20 — coming from real estate taxes. $9,300 will come from licenses and permits, $1,500 from fines and forfeits, $29,120 from rents, $28,856.46 from intergovernmental revenue, $410,800.38 from charges for services, and $23,348.46 from culture and recreation.

The advertised budget shared at the November meeting showed income and expenses if there was no millage rate increase and if council chose to raise it by 5% or 7%. Council member Robert Eynon started the discussion on Monday by pointing out the small difference between the two tax increase options.

“The two increases in millage are only .11 or .16, and it’s actually very, very small. The difference between them is splitting hairs in many ways, and I figure the difference was about 14 bucks a property per year, so it’s very, very small,” he said. “I’m more concerned that we pick a number that covers our budget.”

Council president William Kleinfelter said the number that best covers the budget would be 7%, which the council approved unanimously.

Read More: Mount Gretna Borough might consider 2026 budget with tax increase

The largest expenses in the final budget include $78,867.50 for the general government, $51,142.08 for public safety, $148,398.27 for health and human services, $100,281.97 for highways, $85,890.37 for the water authority, and $108,725.85 for culture and recreation,

The smaller expenses include $3,500 in fire contributions, $250 for emergency management, $10,952.70 for debt service, $825 for miscellaneous, $33,347.57 for pension, $2,970.88 for workers’ compensation, $10,575.50 for insurance, and $52,616.81 for insurance benefits.

Bill Care, director of public works, said the tax increase was minimal and won’t add up to a lot of additional income for the borough. More millage rate increases could be discussed in future budgets, he said.

“I really seriously think we should have went up a little bit more,” Care said after the meeting. “Probably next year we’ll have to go up. A little bit at a time is better.”

The approved 2026 Mount Gretna Borough budget is included in its entirety below.

2026 meeting dates

Council also approved its 2026 meeting dates and locations, which are as follows:

• Jan. 5 at 5:30 p.m. at the borough office (reorganization meeting)
• Jan. 12 at the Mount Gretna Fire Hall
• Feb. 9 at the Mount Gretna Fire Hall
• March 9 at the Mount Gretna Fire Hall
• April 13 at the Mount Gretna Fire Hall
• May 11 at the Hall of Philosophy
• June 8 at the Hall of Philosophy
• July 13 at the Mount Gretna Fire Hall
• Aug. 10 at the Hall of Philosophy
• Sept. 14 at the Hall of Philosophy
• Oct. 12 at the Mount Gretna Fire Hall
• Nov. 9 at the Mount Gretna Fire Hall
• Dec. 14 at the Mount Gretna Fire Hall

In other business, council:

• Approved 10 short-term rentals — 310 and 316 Pennsylvania Ave., 206 Lancaster Ave., 312 Lafayette Ave., 112 Columbia Ave., 5 and 8 Muhlenberg Ave., 216 Harvard Ave., 417 Yale Ave., and 118 Princeton Ave.
• Passed a resolution agreeing to a five-year contract with the Cornwall Borough Police Department.
• Voted to have Hamilton & Musser, P.C., do the borough’s 2025 audit.

Mount Gretna Borough Council will meet next on Jan. 5 for its reorganization meeting and Jan. 12 for its next regular meeting. The reorganization will take place at the borough office at 5:30 p.m., and the regular meeting will be at 6 p.m.