Jim Thorpe Borough residents will see a tax increase next year, but borough officials say it will be offset almost entirely by a reduction in annual garbage bills under the 2026 spending plan.

The change stems from a required shift in how street-related expenses are budgeted. Council President Greg Strubinger explained that the borough’s sanitation fund “had previously included some public service money because the trucks took their toll on the roads,” but an audit recommended moving those costs into the general fund.

To make the transition, he said, sanitation fees will drop.

“What was proposed was to actually decrease the garbage bill for residents,” Strubinger said. “The decrease amounts to a $154.80 annual garbage bill reduction.”

Covering those expenses in the general fund necessitates a real estate tax adjustment.

The shift, Strubinger said, “causes a 2.25-mill tax increase, which equates to about a $156 increase for the median taxable property in the borough.”

“It is essentially an offset,” he added.

Even with the change, borough leaders emphasized that the general fund remains stable heading into next year given recently completed work and projects yet to come.

“We have a new public service garage, a renovated Memorial Hall, Memorial Park improvements underway and the Silk Mill restoration coming,” Strubinger said.

Street improvements will receive one of the largest increases.

“We are putting an additional $150,000 into street improvements,” he added. “I think we spent $150,000 last year and we’ll be up to $300,000 in 2026.”

Insurance increases continue to be a challenge. Health premiums will rise.

“We settled on around a 16.5% increase in Blue Cross and Blue Shield,” Borough Manager Maureen Sterner said.

General municipal insurance, she added, is currently estimated at an 8% increase, with final figures not expected until closer to the end of the year.

Some costs will not change next year.

“There is no water increase for 2026,” Strubinger said. Sewer fees, however, will see a 5% adjustment.

Strubinger on Thursday acknowledged the amount of review required to limit increases while keeping projects on track.

“There was a lot of work put into this budget to get it to this point, and I have to say I’m happy,” he said. “We were thinking we were looking at a more sizable millage increase.”

Council’s budget vote is scheduled for next week.