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Akron tax hike is the 'cost of doing business with everything inflating,' council president says

E.Garcia1 hr ago

When: Akron Borough Council meeting, Oct. 28.

What happened: Council voted to open its annual budget for public inspection. The $3.73 million spending package is up 2.63% from 2024's $3.64 million budget.

Tax hike: The highlight of the budget is a proposed hike in real estate taxes from 3.3 mills to 3.6 mills.

Quotable: "The current tax is $330 per hundred thousand dollars of assessed value," said Assistant Borough Manager Sue Davidson. "That will go up to $360 per hundred thousand. So it means an increase of $30."

Aging infrastructure: President Nathan Imhoff called the increase the "cost of doing business with everything inflating."

Quotable: "We have a lot of infrastructure that needs tending to, so we're just trying to pay for it in small increments instead of one big jump," he said.

General fund: Revenue is budgeted at $2.14 million, up 2.77% from last year's $2.08 million. The water fund is budgeted to go up 3.87% from $551,550 to $572,913, and the sewer fund will go up from $1.01 million to $1.02 million. General fund revenue will generate $2.14 million, up $57,468 from $2.08 million. Real estate taxes will bring in $937,765, up $76,988 from $860,777. Local taxes such as earned income tax and real estate transfer taxes will raise $810,000, up $20,000 from $790,000 in 2024.

Sewer fund: Akron's sewer fund rose from $1.01 million to $1.02 million, a difference of $16,805. Davidson said this hike reflected a jump in treatment costs at the Ephrata treatment plant which rose from $335,650 to $411,680.

Covering shortfall: To address the cost, Davidson said she took "about $58,000" from the sewer reserves and transferred $18,905 from the general reserve to balance the sewer fund.

Highway aid: The highway aid fund will see a jump of $132,876, going from $175,834 to $308,719. This includes $34,210 for highway and bridge repairs and $250,000 for reconstruction of Diamond Street, set for 2026.

Police coverage: A large budget expense is police coverage. West Earl Township Police patrol the borough. The police budget is at $1.03 million, up $47,601 from 2024.

Administrative costs down: Administration costs including salaries for office staff and other non-uniform employees, website maintenance, and other administrative duties will drop $269,244 to $172,705. The $96,539 difference reflects Davidson's upcoming retirement as the borough won't fill her position.

Contributions: Contributions include $35,000 to Akron Volunteer Fire Company, $12,500 to the fire truck reserve, $10,000 to Ephrata Community Ambulance Association and $23,979 to the fire relief fund. Other contributions include $20,000 to the Ephrata Public Library, $4,200 the Lancaster County Drug Task Force and $2,500 to the Historical Society of the Cocalico Valley.

Budget vote: Council will vote on the budget at its Dec. 9 meeting.

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