Lansdale Council Approves 2024 Budget with No Tax Increase

Dan Sokil | The Reporter•

Borough Council members closed out 2024 with good news for taxpayers — for now.

The council voted unanimously on Wednesday night to adopt a 2024 budget with no tax increase for the upcoming year — and warnings that the same conversation may need to happen again soon.

"In case anyone is curious, that number is not changing: that is the same tax rate that we had last year, going into next year,” said council President Denton Burnell.

Starting in October, council and borough staff held lengthy talks on a 2024 budget with revenues and expenses balanced at just over $59.1 million, down from the roughly $63 million 2023 budget due to the removal of road repair and repaving projects, and with taxes held at 7.25 mills, the level set after a one-mill increase in 2022 for ’23.

Council had already voted on a sewer rate increase effective Sept. 1 that staff have said could be the first in a series of increases over the next several years, and an electric rate study is examining whether that fund could need future rate hikes after 2024.

Council also heard in October about a potential $10 million bond borrowing that could pay for capital projects like road repairs, sewer infrastructure, and other needed long-term expenses, and how that borrowing would require $200,000 to $250,000 in new revenue in the first two years to offset capitalized borrowing costs.

During committee meetings in early November, staff presented a series of line item cuts that could help narrow the deficit, and in mid-November staff requested council consider approving a one-eighth-mill tax increase, which would yield $101,000 in new annual revenue and would raise the average resident’s tax bill from $780 per year to $795, or from $60 per month to $66.25 per month, based on an average assessed property value of $120,000.

Talks continued in the council’s December committee meetings on whether the group should approve a smaller increase this year, or keep current levels but be prepared to consider a request for a larger increase in late 2024 for the following year. Their answer came Wednesday night, with a motion from administration and finance committee chairwoman Carrie Hawkins to approve the current millage, followed by comments from council members.

"I know we had a tough decision to make, whether or not to raise even an eighth of a mill. And I think most of us felt strongly this wasn’t the year,” said council VP Mary Fuller.

"While it would’ve helped our budget overall, and there were strong reasons to consider that, I think we all landed in a good place, where we wanted to hold the line this year,” she said.

Councilman BJ Breish added thanks to staff for preparing several budget scenarios, with the increase and without, and for fielding feedback from residents and council members about possible cuts.

"The writing seems to be on the wall, in terms of the fact that we’re most likely going to be having the same conversation again this time next year, and we may unfortunately be in a different situation,” he said.

"It seems that the prudent course would be to encourage residents to prepare for potential increases if we want to continue to invest in our critical infrastructure and continue to see the progress we have around town. But I’m glad, and I hope this gets approved for this year,” Breish said.

In a series of unanimous votes, the council adopted the 2024 budget, the 2024 tax millage, a 2024 fee schedule, and a 2024 meeting calendar; all are included in the meeting materials packet for Dec. 20.

One budget-related public comment was made Wednesday night, but not about the borough’s books: resident Rose Chapman voiced concerns about another hike that could hit taxpayers soon: the voter referendum scheduled for January 16 across the North Penn School District, where voters could approve $97 million in borrowing, and a series of annual tax increases to pay for it.

District officials have said the referendum, if passed, would require four tax increases from 2025 to 2032 that would raise taxes by a cumulative total of $319 per year and by $5,473 over 32 years for the average resident, above and beyond the Act 1 index by which the school board can increase taxes each year for annual expenses without a referendum.

"When they’re saying the taxes will be raised $5,000 over a period of time, that doesn’t even include other things that’ll come up: salaries, supplies, transportation, et cetera. I think it’s going to hurt,” Chapman said.

"Think about, next month if you’re voting for or against it, what it means for the future. It’s going to be strapping budgets. I know I just speak for myself, but for the retired, the young, the middle class, upper class, I personally don’t see the need for it, and I think it’s just putting money that we don’t need to spend,” she said.

Voters across the North Penn School District will be able to have their say at the polls during a Jan. 16 voter referendum, and can learn more about the topic on the district’s "Reimagine NPHS” website; Burnell encouraged voters to be informed before they do so.

"Definitely an issue that the entire community has to grapple with, for sure. I think the positive thing is, we all get to have a voice in that decision,” he said.

Lansdale’s borough council next meets at 7 p.m. on Jan. 2, 2024, at the borough municipal building, 1 Vine Street. For more information visit www.Lansdale.org.

This article appears courtesy of a content share agreement between North Penn Now and The Reporter. To read more stories like this, visit www.thereporteronline.com.