Pottstown shows $416,960 2026 budget deficit; mayor urges review of tax-exempt properties
Get AI-powered insights, summaries, and transcripts
Sign Up Free
Summary
Finance staff reported a $416,960 deficit in the draft 2026 budget and proposed a not-to-exceed millage for advertisement. Mayor Stephanie Henrick highlighted roughly $147 million in locally assessed tax-exempt property value and estimated about $2.3 million in foregone municipal revenue as a driver of the gap.
Finance staff presented a revised draft 2026 budget to the Committee of the Whole on Nov. 5 showing a $416,960 deficit. Staff member Marley said the current proposal would require a 0.522 millage increase (a 3.45% tax increase) that would add about $52.16 in annual taxes for a property assessed at $100,000. Marley said staff had trimmed nearly $200,000 from the deficit since the October version and will continue line-by-line review before returning a final recommended budget.
Marley said council will be asked on Monday to approve a not-to-exceed millage and the overall total budget for advertisement.
Mayor Marlon Hendrick outlined what he described as a structural revenue shortfall driven in part by tax-exempt properties. The mayor said the borough has about $147 million in tax-exempt assessed value and estimated that represents roughly $2.3 million in foregone municipal revenue; he translated that to approximately $97 per borough resident. Hendrick urged the council to seek ways to raise revenue "without raising taxes and without raising fees," saying exempt institutions currently contribute a small fraction of the services they use.
Council members and staff discussed next steps and the timeline for formal advertisement and approval of the 2026 budget.