Royersford Borough residents will not see an increase in borough property taxes in 2027 under a proposed budget advanced by borough council on Tuesday, November 10.
Council members agreed to maintain the borough's existing property tax rate for another year, despite an initial recommendation from the finance committee to implement a modest increase to offset rising operating expenses.
The decision followed a discussion about the borough's financial position, rising personnel costs, and the long-term sustainability of relying on reserve funds to balance its budget.
Councilor Tom Weikel, speaking on behalf of the finance committee, explained that the borough began its budget process facing a $702,201 shortfall. After several rounds of adjustments, the committee reduced that figure to $414,928.
To address the remaining gap, the committee initially recommended a 0.5-mill property tax increase, which would have generated approximately $96,146 in additional revenue. Royersford's current property tax rate is 8.7 mills, with an additional 1.25-mill fire tax bringing the combined rate to 9.95 mills.
According to Weikel, the proposed increase would have cost the average homeowner approximately $72 annually, or $6 per month. The remaining $318,782 shortfall would have been covered by the borough's capital reserve fund.
Weikel cautioned that the borough has relied on its reserves to avoid raising property taxes for the past four years.
"Continuing to rely solely on the reserve funds to balance the operational budgets is financially unsustainable over the long term," Weikel said.
He attributed rising expenses to employee benefits, wages and salaries, and required pension contributions.
Mayor Alex Metricarti also acknowledged that the borough's recently negotiated police contract contributed to rising expenses, but emphasized that competitive salaries were necessary to recruit and retain qualified officers as neighboring municipalities increased their pay.
Despite those financial pressures, several council members expressed reluctance to raise property taxes.
Councilor Amy Demchik opposed the proposed increase, while Councilor Ryan Conroy said he would prefer to avoid raising taxes.
Council Vice President Tiffany Moyer acknowledged that the proposed increase was relatively small and suggested that the finance committee's recommendation represented a reasonable compromise between generating revenue and preserving reserves.
Council President Anil Dham also expressed reservations about raising taxes, pointing to Montgomery County's decision to maintain its property tax rate for 2027.
Councilors Dana Mathes and Matt Stehman were absent from Tuesday's meeting, but Dham indicated that Mathes supported the 0.5-mill increase while Stehman opposed it.
Metricarti, who does not vote on council matters, suggested that using reserve funds to keep taxes low was reasonable given the rising cost of living.
She noted that much of the borough's reserves originated from the sale of its sewer system, which subsequently resulted in higher sewer expenses for residents. Using those proceeds to offset property taxes, she argued, could help ease the financial burden on households.
Ultimately, council members agreed to eliminate the proposed 0.5-mill increase and cover the entire $414,928 budget shortfall through reserve funds.
The decision puts Royersford on track for a fifth consecutive year without an increase in its borough property tax rate.
However, officials acknowledged that the borough would likely need to raise property taxes next year, as continued reliance on reserves could leave it vulnerable to unexpected expenses.
Trash Collection Fees to Increase
Although borough property taxes will remain unchanged under the proposed budget, residents can expect a slight increase in their annual trash collection fees.
Weikel announced that higher bids for the borough's trash collection contract will result in an approximately 2.3 percent increase in residential fees.
The annual residential rate will rise from $470 to $481, an increase of $11 per year, or less than $1 per month.
Council voted to advertise an ordinance reflecting the new collection fees, with adoption scheduled for November 24.
Budget Adoption Scheduled for November 24
Following the discussion, council voted to advance the proposed 2027 budget without a property tax increase.
The budget will be made available for the required 10-day public inspection period before council considers formal adoption at its November 24 meeting.
The trash collection fee ordinance is also scheduled for consideration at that meeting.
