Pottstown draft 2026 budget shows $416,960 shortfall; mayor highlights tax-exempt property impact

Finance staff member Marley presented a revised draft 2026 budget to the Committee of the Whole on Nov. 5, reporting a remaining deficit of $416,960 and a proposed not-to-exceed millage of 0.522. Marley said the change represents a projected 3.45% tax rate increase as previously modeled and would translate to a $52.16 increase for a property assessed at $100,000 under the numbers shown.

"At this point, we are down to a deficit of $416,960," Marley said, adding staff reduced the shortfall by nearly $200,000 since the October presentation and will continue line-by-line reviews to close the gap. Marley said council will be asked Monday to approve a not-to-exceed millage and the overall total budget so the borough can move through the public-notice and adoption timetable.

Mayor Hendrick used his remarks to outline the borough's tax-exempt property base, saying exempt properties total about $147,000,000 in assessed value. He said the Hill School's assessed value was listed at $45,000,000 and churches and nonprofits account for roughly $80,000,000. "If you look at a $147,000,000, and the municipal revenue that we lose to that is $2,300,000," he said, and argued that the burden of funding municipal services falls more heavily on taxable property owners. The mayor framed the policy question for council as how to "raise revenue without raising taxes and without raising fees, without doing the very things that are going to hurt this town."

Councilors asked questions and discussed options; no formal adoption occurred at the Nov. 5 meeting. The finance presentation and the mayor's comments indicate council will continue to consider a mix of expenditure adjustments, fees, and revenue strategies as it finalizes the 2026 budget.