Budget funds long-discussed economic development position
A 2026 budget with increases in property taxes, electric and sewer rates is now on the books.
Council members voted unanimously in mid-December to approve the budget after months of talks on how to keep up with rising costs and infrastructure needs.
“I’d like to take a minute to thank borough council for its careful review and approval of the ’26 budget,” said Borough Manager John Ernst.
“This year’s budget continues a commitment to fiscal responsibility and long-term planning, even as it includes difficult but necessary adjustments: notably, a half-mill increase in taxes, and a 15 percent increase in electric rates,” he said.
Budget talks began in depth in October as staff outlined several large projects that finished during the year, including the long-planned East Main streetscape work, renovations to the Whites Road pool complex, a grant-funded upgrade to the playground at Fifth Street Park, trail paving in four parks, and a series of road repaving and underground infrastructure projects throughout the town.
In mid-November staff presented several budget scenarios for council to consider, including options with a tax increase meant to cover an increased contribution to Hatfield-based VMCS-EMS, the ambulance corps that has made the case to several local towns they cover for a steady stream of annual funding, and an electric rate hike that would help offset higher electric costs seen nationwide due to aging grids, fluctuating natural gas prices, and increased demand due to data centers that have all led electric costs to sharply increase.
That electric rate increase would cost the average residential electric customer roughly $336 for the year or roughly $28 per month, while the tax increase of 0.5 mills to 8.5 mills would raise the average resident’s tax bill to $1,105, based on an average assessed value of $130,000; the increase would cost that taxpayer an additional $65 per year or just over $5 per month.
Totaling the tax rate, electric, and a sewer rate increase following a series of hikes first approved in 2023, the average resident’s bill would increase by just under $38 per month, with roughly $28 of that amount going to electric, just over $5 for the general fund taxes and the remaining $4 for sewer.
“These decisions were not made lightly, and I recognize the thoughtful deliberation and conversations that went into balancing the needs of the community, with the realities of rising costs and aging infrastructure,” Ernst said.
In mid-November, borough officials posted an explainer on the town’s Facebook page detailing the reasons for the rate hikes, and details of the full budget — with expenses and revenues totaling just over $68 million across all funds — are included in the Dec. 17 council online meeting materials. In prior years, the town has transferred roughly $5 million per year from electric revenue to the general fund to cover other operating expenses such as parks and recreation and police costs; for 2026 that transfer is budgeted to increase to $6 million, and an additional $821,269 is budgeted to transfer from electric revenues to electric capital funds for use on equipment and/or infrastructure projects.
The 2026 budget also funds another long-discussed priority: in addition to $50,000 for the town’s Discover Lansdale nonprofit that organizes and publicizes local events, and an additional $35,000 for economic development incentives such as the town’s façade improvement grant program, the 2026 budget adds a new $150,000 line item for wages for a planned ‘Main Street manager’ staff position that could help market and fill vacant properties.
The total economic development budget is slated to jump from just over $82,000 in 2025 to $309,000 in 2026, including insurance and benefits for that new employee.
“The approved budget positions Lansdale to maintain our high-quality services, invest in critical capital improvements, and ensure the continued, award-winning reliability of our electric utility,” Ernst said.
“Thank you to council for your leadership and partnership as we work together to build a stronger and more resilient community,” he said.
Other year-end approvals passed by council included votes to set the new real estate tax millage, an updated fee schedule, and a 2026 schedule of council meeting dates; details for all are also included in the Dec. 17 meeting materials.
Council President Mary Fuller added a round of thanks to borough department heads “for your dedicated service to this borough,” along with the town’s professional consultants, both throughout the year and during budget season as they plan the year ahead.
“We appreciate you, and all the work and guidance and professional things you do for us,” she said.
She then added thanks to the rest of the council for representing the public, saying “it’s an honor and a privilege to serve you, and the community at large,” and said she looks forward to many more public events like the town’s Dec. 5 tree lighting for residents to gather.
“It’s just great to gather as a community. That was evidenced by the tree lighting: that was really awesome. All the feedback was positive. I love our little tree that could, and it will grow to a mighty pine. But it was all beautifully done, and I’m just really proud to be part of this community,” Fuller said.
Lansdale’s borough council next meets at 7 p.m. on Jan. 5 and 21, both at the borough municipal building, 1 Vine Street. For more information visit www.Lansdale.org.
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