Palmyra Borough Council approves paving projects and balances budget

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Palmyra Borough Council awarded its paving projects to the lowest bidder on Dec. 9 and, by eliminating one alternate bid option and removing a requested full-time public works employee and replacing it with two seasonal employees, the 2026 general fund budget will be balanced.

Before the paving approvals, the borough’s budget had $252,871 more in expenses than in revenue, according to borough manager Roger Powl.

The advertised budget showed an estimated $534,000 coming out of the general fund to resurface parts of South Duke, East Walnut, East Pine, East Birch, East Cypress, and East Elm streets, Sycamore Lane, Sandalwood Drive, and Colonial Road. There was an additional $75,000 option to pave the Southeast Park parking lot, for a total of $609,000.

Powl said the estimates tend to be higher than in reality and he was hoping the bids would come in around $100,000 cheaper.

Pennsy Supply, the lowest-priced option, bid to mill and pave East Walnut Street, East Pine Street, Sandalwood Drive, Sycamore Lane, and Colonial Road for $485,609.53. They submitted an alternate bid to mill and pave South Duke Street for $234,551.13 and another to excavate, stone base, and pave the Southeast Park parking lot and access driveway for $41,418.33.

Council voted not to pave South Duke Street, so the borough will pay $527,027.86 for paving out of its general fund — about $81,000 less than outlined in the advertised budget.

Powl said even with the general fund now balanced, the borough still expects a deficit to start the year.

“With the November numbers entered, we are looking to start next year with a General Fund balance of $484,204, which is $215,796 short of the $700,000 minimum first-quarter balance needed,” he said via email after the meeting.

Budget discussions have been ongoing for several months now. Council’s first report was considered the “worst-case scenario” and would have included a 0.9-mill increase. The advertised budget included a 0.7-mill increase.

The final approved budget can levy a lower tax rate than advertised, but it cannot be any higher. This means the highest increase that borough residents could see would be 0.7 mills, and the final budget will be voted on at council’s next meeting.

Council also voted 5-1, with councilman Anthony Catalani dissenting, to increase the fire tax by 0.17 mills in 2026. The new millage rate will be 0.84.

Palmyra Fire Department report

Dave Dugan, chief of the Palmyra Fire Department, spoke to the council during his report to follow up on the budget discussion that occurred at the last meeting and later Facebook posts made by councilman Marcus Riddell, who was not present on Tuesday.

During the second November meeting, Riddell asked Dugan about the department’s fundraising efforts and said they should look into raising some of their own funds rather than relying on Palmyra Borough and North Londonderry Township. Dugan responded by saying they don’t have the manpower to run their own fundraisers on top of the volunteer hours necessary for training and serving the community.

Riddell then posted on his Marcus Riddell for Palmyra Borough Council Facebook page to say he was not looking for a “heated debate” in questioning Dugan. He outlined various department expenses in his post and recommended that they look into fire department mergers, among other feedback.

“People need to get off their high horses, stop thinking one company is better than another, and let old rivalries die,” he wrote. “Fire companies must work together, or we are going to have a major problem.”

Dugan said his report, which he read before council and a crowd including members of the volunteer fire department, was meant to correct some of the misinformation shared online.

He said they hold and attend many meetings that are meant to “look beyond Palmyra” and find ways to better serve the community going forward. Dugan added that they hold a fund drive that can bring in around $80,000 on a good year.

He said the department is invoiced and pays for its own fuel, doesn’t have a say in fire hydrant costs, and owns its fire station, though the borough and township pay the mortgage. The department pays for station maintenance and utilities, according to Dugan.

“Since I became chief and moved up through the ranks, what has been asked of the volunteers and of the department has changed dramatically, and the number of volunteers has decreased, while the volunteer members have never been asked to do more,” he said.

Prior to Dugan’s report, council voted 5-1, with Catalani dissenting, to state formally that Palmyra Borough Council doesn’t operate and maintain any official social media accounts, and any opinions expressed by or through individual borough council members’ social media accounts are not authorized by borough council and are not policy statements or actions of the borough.

This came in response to a formal complaint made by a resident regarding Riddell debating and blocking borough residents on Facebook in response to the fire department discussion and Facebook post. Powl said the borough solicitor recommended they make a formal statement regarding their social media policy.

Palmyra Borough Council will meet next at 325 S. Railroad St. on Dec. 23 at 7 p.m. Meetings are streamed on the Palmyra Borough, Lebanon County, Pennsylvania YouTube page.