Lansford Borough Council has approved a 2021 budget with a 1-mill property tax increase.

Borough council voted 5-0 to approve the $2 million spending plan Wednesday night. Bob Silver and Marie Ondrus were absent.

The budget includes a tax increase of 1 mill, or about 2.8 percent. The 2021 municipal property tax rate for Lansford residents will be 36.84 mills.

Of that, 30 mills are for general purposes. The other 6.84 mills are for separate funds: 1.28 go toward debt service; 1.5 for fire equipment and firehouses; 0.5 for pensions and retirement; 2.81 for street lighting; and 0.75 for parks and recreation.

The annual municipal property tax bill for a home worth $40,000 will be $736.80, an increase of $20.

The tax increase will generate about $26,000 in revenue for the borough.

Half of the new revenue is designated for American Fire Co. No. 1, which was unable to hold many of its regular fundraisers due to the pandemic.

The other half is designated toward park maintenance, which council members said was previously paid for out of funds intended for street repairs.

“We were shortchanging people on having their streets repaired because we were spending the money down at the parks,” council President Bruce Markovich said.

The 2021 police budget is $846,687, $43,000 less than 2020, due to the elimination of one full-time officer position.

The public works department budget is $361,023, about $24,000 more than 2020.

Both the police department and public works department plan to purchase new vehicles in 2021, funded in part with grants from the U.S. Department of Agriculture.

Markovich predicted that next year’s budget process will be more difficult, and council can’t continue to ask taxpayers to carry a greater share of the burden.

“We cannot keep going to the taxpayer. We’re at the limit now. I don’t want to go down before the judge to ask to increase the millage,” he said.

If the borough would raise its property tax rate for general purposes, it would require court approval. The current rate, 30 mills, is the maximum allowed under state law.

Markovich said he hopes to form a redevelopment committee in the new year to attract more state funds for community development.

Another possible opportunity for revenue is renting buildings formerly occupied by Silberline Manufacturing.

The company has pledged to donate several acres, with buildings, located along East Dock Street.

The borough plans to use the property for its long-awaited borough garage, for which it has a $160,000 grant that expires on June 30.

Council members said they hope the property will be officially transferred to the borough in the spring, and they hope to attract businesses to locate in some of the existing commercial buildings.