A 1-mill increase in their municipal tax rates appears to be in the cards for Palmerton residents next year.

On a unanimous measure, borough council on Thursday granted tentative adoption to the 2022 spending plan.

If council were to raise taxes by 1 mill, it would increase the millage rate from 12.77 to 13.77 mills.

Last month, borough Manager Donna McGarry said that a 1-mill increase would result in about a $2 per month increase for the smaller homes in the borough, and about a $7 per month increase for the larger/newer homes in the borough.

At that time, McGarry explained that the borough realized a significant increase in police overtime costs, which she anticipates to continue again next year.

McGarry said she met with the borough’s fire chief to establish a long-range plan for replacement of fire vehicles, as the capital projects fund will be the area the borough sets aside money for these future purposes, as well as some other capital purchases (such as trucks for the Streets Department) it may face in the future.

She said the borough also saw a nearly $50,000 increase in its pension obligation for next year, and have worked those costs into the 2022 budget without a tax increase over the 0.5 that will be part of the transfer to the capital program.

McGarry said a half mill would go into the debt fund to finance the firetruck loan, while a half mill would go into the general fund with the intention of starting annual transfers into a capital projects fund for future equipment purchases.

However, McGarry said there will be no increase in the sewer, water or trash rates.

Council is expected to grant final adoption of the 2022 budget when it meets at 7 p.m. Dec. 16.

Last December, council unanimously adopted this year’s budget with a 1-mill increase in the municipal tax rate.

That raised the millage rate from 11.77 to 12.77 mills, which meant the average homeowner saw an increase of about $4 to $6 per month.

There was no increase in water, sewer or trash rates.