Palmerton residents will see an 11.45% increase in their municipal tax rates next year.

Borough council on Thursday unanimously adopted the 2026 budget with a 2-mill increase that raises the tax rate from 17.47 to 19.47 mills.

Council did not discuss the budget Thursday night, but after last month’s meeting, borough Manager Autumn Canfield explained the primary cost drivers behind the proposed increase.

Canfield cited personnel costs, property insurance increase, workers comp insurance, health insurance, vehicle, equipment and building maintenance, and police Tasers coming out of warranty (as part of a five-year contract) as main increases.

Projects

Earlier in the meeting, Canfield recapped the larger projects that have been completed.

Those include the Third and Delaware street offset signals; paving of the 800 blocks of Alleys H & J following up a 2024 stormwater improvement project; roof replacement on one of the borough’s buildings; body worn cameras and motor video recording equipment purchased and implemented with the police department; clearing a treed lot infested with spotted lantern flies; implementation of a new finance system; technical upgrades in the Cyber security realm, stormwater improvements and paving of a portion of MaryAnn Alley; and cure in place pipe lining for sections of the sewer system as part of a multiyear project.

Canfield said projects to be done before year end include the paving of the south side of Mauch Chunk Road, and fixing a collapsed stormwater pipe in Railroad Alley.

Councilman Kris Hoffner said the borough’s facilities are aging, which is going to continue to require more maintenance.

This year, residents saw a 2.5-mill increase after borough council last December adopted the 2025 budget that raised the millage rate from 14.97 to 17.47 mills.

Before that vote, resident Raberta Hans noted that such an increase is a lot for the public to absorb.

Canfield said at that time maintenance on buildings and lots, along with an increase in electric rates, were the primary reasons for that raise in taxes.

Additionally, she said the borough was looking at a reduction of revenue, as it had eliminated transfers from the water and trash fund to the general fund.