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Palmyra Borough Council on Dec. 23 approved the 2026 budget with an increased fire tax rate of 0.84 mills in a 5-2 vote.
This is a 0.17-mill increase from the 2025 rate and would impact the average property owner with an additional $25.94 per year, or $2.16 per month, according to the budget. The general fund and public library tax millage rates will remain consistent at 5.3 and 0.06 mills, respectively.
Council members Anthony Catalani and Marcus Riddell voted against the budget adoption.
The final approval marks the end of a months-long discussion as council and borough staff looked to balance the general fund. In October, the “worst-case scenario” budget had a 0.9-mill tax increase, but with paving bids coming in lower than anticipated and a few further cuts, they managed to balance the general fund.
The fire tax was raised to accommodate an increased incentive program for the volunteer Palmyra Fire Department and to pay for the fire hall’s mortgage, which will see a higher interest rate in the new year.
To balance the general fund, council voted to accept Pennsy Supply’s bid to mill and pave East Walnut and East Pine streets, Sandalwood Drive, Sycamore Lane, and Colonial Road for $485,609.53. They also approved an alternate bid to excavate, stone base, and pave the Southeast Park parking lot and access driveway for $41,418.33.
They voted not to pave South Duke Street and will hire two seasonal public works employees rather than one full-time employee, as recommended by the public works supervisor.
Catalani and Riddell didn’t provide a reason for their no votes during the meeting, but Riddell said after the meeting that it was due to the fire tax increase.
Fire department argument continues
The conflict between Riddell and the fire department continued Tuesday and culminated with Riddell calling Chief Dave Dugan a “pompous ass.”
The public back-and-forth started Nov. 25 when, during budget discussions, Riddell asked about the department’s lack of fundraising efforts. Dugan replied, saying a 2012 study recommended the department not do fundraising, though they do an annual fund drive. He said that with training and an overall lack of volunteers, it would be difficult to ask members to do more work raising money.
Riddell later 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.
Riddell was not present at the Dec. 9 meeting when Dugan addressed council and the public to go through the statements made in Riddell’s Facebook post. He said he had various questions for Riddell but would have to ask them later.
Later came on Tuesday. Riddell said he did not view the video of the previous meeting, so Dugan went through some of his remarks again and asked Riddell his questions. Toward the end of his remarks, Dugan asked Riddell why, with his stated 35 years of fire department service, he wouldn’t volunteer with the Palmyra crew.
“I never did because I never would want to run with you,” Riddell said. “From my past experience with Palmya, I would never want to apply to you guys. Never.”
Dugan asked if that included volunteering in fundraising efforts.
“I have other obligations I’m a little bit more busy with,” Riddell responded.
Dugan then asked if anyone on council had any further questions, and Riddell said he had a statement for him.
“I’ve been told by a couple people the same thing, and I’ve always thought this of you and if it’s true, especially with one of the gentlemen you’ve spoken to about me and he told you the same thing — you’re a pompous ass,” he said. “This is why I would never join Palmyra. This is why there’s issues getting people.”
Catalani sat agape and councilwoman Jane Quairoli said, “Oh my God. Oh my God.”
“That was one of the most repulsive things I’ve ever heard,” Dugan said. “I understand where you stand now.”
“Well, I’m sorry, but sometimes the truth hurts,” Riddell responded.
Council president Beth Shearer cut off the conversation and made a statement at the end of the meeting addressing the discussion.
“I just want to comment on the name-calling that happened a couple minutes ago,” she said. “As a council member, public official, elected official, we need to remember that we are in the public’s eye. We may have personal feelings, we may hear from other people certain things, but I do not agree with what you just did to Chief Dugan. That was very unacceptable at a public borough council meeting.”
With ongoing discussions between North Londonderry Township, the borough, and the department about funding and staffing, she said Riddell’s words could have further effects.
“Considering the fact that we are approaching possible standstill, probably sooner than later, of having to make a decision on funding a fire department or not, what you just did did damage that you don’t even realize,” Shearer said. “And I can only hope and pray that it didn’t do the damage that I’m afraid it did.”
On Dec. 26, Riddell posted again on Facebook to address his Tuesday comments. He said he “allowed frustration to influence” his words and tone and “did not meet the standard of professionalism” he expects of himself. He apologized and said the incident occurred while he was recovering from a knee surgery.

“I remain fully committed to serving the residents of our borough and will continue my work on borough council,” he wrote. “I respect my fellow council members and the fire company, and I will ensure that future discussions are constructive and professional.”
Palmyra Borough Council will meet next at 325 S. Railroad St. on Jan. 5 at 7 p.m. for its reorganization and regular meeting. Meetings are streamed on the Palmyra Borough, Lebanon County, Pennsylvania YouTube page.
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