POTTSTOWN — The projected tax increase for the draft $69 million 2025 borough budget has dropped from nearly 5 percent to just under 4 percent in the last month, borough council was informed Wednesday.
Finance Director Marley Boone updated council and said the projected deficit of $581,858 between projected revenues and expenses has dwindled by 1 percent, thanks to department directors cutting costs.
The deficit is currently estimated at $458,318, which would require a property tax hike of 3.92 percent to close. That’s a millage increase of 0.572 mills for a total millage of 15.181 mills.
For the average homeowner, the tax hike would increase their annual bill by $57.21. Under the previous budget draft, that bill would have gone up by $72.63.
The deficit reduction will also allow the borough to decrease the amount of money drawn from its reserve fund to balance the budget.
The budget also proposed a 12 percent increase in trash fees, or $45 per year, to help make up a $177,000 deficit in the $3.8 million trash fund. The increase will help reduce the amount of reserve funds used to close the gap in the trash account by $173,450, Keller said.
In previous years, estimated tax hikes have dropped as the budget season progresses and more exact information replaces estimates. In the last four years, the borough has not raised taxes above 3 percent.
“We will continue to review the budget in the coming weeks and hope to have more good news at the next meeting with additional reductions,” Boone said.
“When we look at the actuals at the end of the year, its evident out directors do a very good job of being conservative with their expenses, and we come in under budget usually,” she said.
At next week’s regular meeting, scheduled for Tuesday because of the Veterans Day holiday, Borough Manager Justin Keller said council will be asked to adopt the draft budget, so it can be advertised in time, but which can still be cut.
“We would ask it be advertised on a ‘not-to-exceed’ basis,” said Boone.
