Muncy Borough Council at its recent meeting approved a proposed 2025 budget that includes a 0.25 real estate tax millage hike.

It would mark the borough’s first tax increase since 2018 to bring the overall millage rate to 5.55, according to municipal officials.

Council voted 5-1 in favor of the $1.3 million spending plan with the millage increase.

Voting yes were Richard Sutton, Scott Delany, Steve Swank, George Henry and Ryan Scruggs.

Thad Martin voted no.

Bill Scott was absent.

“We’ve held the line for six years,” Swank, chair of the finance committee said. “Unfortunately, in those six years, things have gotten more expensive.”

For those with properties valued at $100,000, the 0.25 millage increase will mean an additional $25 in taxes next year.

Overall, real estate taxes are expected to generate $540,000 in revenue for the borough. Other taxes are real estate transfer, local service, and earned income.

Last year, council had approved a 0.50 millage increase to balance the 2024 budget before later reopening the spending plan and voting to remove the tax hike after Mayor Jonathan Ort had vetoed it.

Driving the 2025 tax increase are various factors, including higher costs with the new police contract and less reimbursements for health insurance. Police wages will be up $13,000 from this year and public works employees will increase $4,500.

Hall noted the borough may face up to $174,795 in matching borough grant money for upcoming projects.

The 2025 budget, even with the tax hike, will show a deficit of $36,000, according to Hall. However, that deficit can be made up from the borough’s surplus dollars, he said.

Total revenues and expenses are down slightly from the 2024 budget. Some savings from this year’s budget include $30,000 in grant writing expenses with council’s decision to no longer contract with Penn Strategies.

The final spending plan is expected to be approved at council’s next meeting, Dec. 19. The deadline to pass a final budget is Dec. 31.

In other matters, Hall announced that leaf collection in the borough will end Wednesday, Nov. 27.