ALBURTIS, Pa. — The borough of Alburtis has voted to raise its real estate tax rate about 20% — its first increase in a decade — with officials citing raising costs and upcoming capital projects.
The new 4.58-mill tax rate — up from 3.75 mills — includes a 4.50 mill general purpose tax and 0.08 of a mill fire services tax.
A mill equals $1 of tax for every $1,000 of a property's assessed value. So under the final budget, the owner of a property valued at $100,000 for tax purposes would pay $458 a year in property tax — up $83 from $375 this year.
"Our cash reserves have gone down over the last five years, and even if we did no infrastructure projects, we would have to raise taxes, something that has not been done over the last decade."Council President Ron DeIaco
The borough has not raised taxes since 2014, but borough officials say running pre-coronavirus pandemic revenues against post-pandemic expenses and trends is no longer sustainable.
That's especially true with the anticipation of garbage and sewer rates increasing as it has in other municipalities.
The borough also is facing expensive projects, such as sidewalk revitalization in the bicentennial village neighborhood.
"Our cash reserves have gone down over the last five years, and even if we did no infrastructure projects, we would have to raise taxes, something that has not been done over the last decade," Council President Ron DeIaco said.
Other cost increases loom
DeIaco noted that upcoming street and water projects also could also raise property values.
Council members noted the lack of debt the borough has, but acknowledged unexpected cost increases on some projects and say the choice to increase taxes was not made lightly.
The final budget general fund shows $3,615,571 in total revenues and $3,529,050 in total expenditures, with a projected $86,521 surplus.
Losses of $36,588 and $323 are projected in the sewer and water funds, respectively.
No changes were made in the borough's per capita tax ($10), earned income tax (1%), local services tax ($52), realty transfer tax, water rentals and fees, sanitary sewer rentals and fees, and waste fees.
Fees were altered for zoning hearings and permits, returned checks, subdivision and land development applications, residential rental property registrations, renewals and reinspection, water connections, curbing and sidewalk permits and inspections, sewer tapping and water meter readings.
Some fees, such as those related to requesting a zoning hearing board or conditional use proceedings, more than double.
Those zoning related fees will shift from $200 to $425 for residential and $875 for all other applications.
More proactive in managing costs
The borough also approved salary increases for many borough employee positions.
The budget and tax increases were approved 5-2 with council members Hector Moss and Mehmet Birtek voting in opposition.
Pay increases for borough employees was approved 6-1, with Moss in opposition.
Birtek said he knew a tax increase was needed, but wanted to voice that the borough needed a clearer tracking and view of future expenses such as new trash and police contracts.
He said he and other council members will work toward being more proactive in managing costs for projects and other expenses.
Moss agreed there needs to be greater accountability for when projects increase in cost and argued for having a better system for determining staff raises.
Nearby Lower Macungie Township has a real estate millage rate of 0.25 with a 1% resident earned income tax.
East Penn School District, which includes the borough, raised property taxes in 2023 by 2.5% for the current school year.
