Plum property owners are looking at a level tax rate next year after council passed its budget Monday.
The budget keeps the tax rate for residents at 6.63 mills for the second year in a row.
That means the annual borough property tax bill on a home at Plum’s median assessed value of $117,500 would remain at about $778.
Plum Finance Director Michael Whitico told council next year’s budget will see the borough drawing from its fund balance, however. Projected total revenues are set at $25.7 million, while expenditures at $27.2 million.
That leaves a $1.5 million deficit the borough will make up by pulling from its current $10.7 million fund balance.
This year’s budget saw total expenditures of $26.5 million, meaning next year’s proposed budget would represent a 2.5% increase in spending.
Whitico cited rising health care and insurance costs among the primary reasons for the increase.
Still, with a projected fund balance of about $9.2 million at the end of next year, Whitico said, the borough remains on solid footing.
“That’s pretty standard,” he said.
Borough Manager David Soboslay he’s glad this year’s budget avoided a tax bump.
The borough’s general fund, which accounts for the largest chunk of the budget, would receive $17.6 million in revenue while spending nearly $17.8 million.
The largest costs to the borough come from police, nearly $7 million; municipal services, $2.5 million; and borough administration, $1.9 million.
On the revenue side, Whitico said, the borough derives more than 80% of its funds from real estate taxes, income taxes and sanitation fees. The director said there’s no proposed increase to sanitation collection fees next year.
Plum hiked taxes by nearly 40% in 2024 in an effort to avoid more tax increases in the coming years.
So far, Whitico said, that plan seems to be working. He said he doesn’t expect council to have to opt for another tax hike for at least several years.
“The general fund is in pretty good shape due to revenue coming in since 2024 and 2025,” he said.
