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Narberth projects balanced 2026 budget, council moves to advertise Earned Income Tax change
Summary
Finance staff presented revised 2026 numbers showing an anticipated $6.2M revenue base and a roughly $683,000 2025 surplus; council debated using EIT or millage to fund capital and directed staff to start the EIT legal advertising process and public outreach.
Finance Director Maggie presented updated budget estimates at the Nov. 6 work session that produced a balanced 2026 general fund and an unbudgeted surplus this year. "Our total budget revenue is $6,200,000 anticipated for 2026," Maggie said, noting that revised EIT collections (Bergheimer’s estimate around $1.6 million) materially improved the outlook.
Staff showed that the borough could maintain existing service levels without raising the mill rate but that capital needs — about $1.1 million projected for 2026 and larger stormwater projects in 2027–29 — would quickly deplete current capital reserves unless the council set a recurring contribution. Maggie said the borough has roughly $1 million in capital cash now and that transferring the expected 2025 surplus into capital would seed 2027 work.
Council debated options for steady capital funding: increase the Earned Income Tax (EIT), raise millage, or a combination. Members split on whether EIT was sufficiently stable in an uncertain economy; opponents cited volatility and job losses, while supporters noted that a portion of EIT revenue already flows to other municipalities and would return to Narberth if an EIT were adopted. One councilor described EIT as an equity measure because retirees on fixed incomes are affected less by wage‑based taxes than by property tax increases.
After discussion, council directed staff to begin the legal advertising process for an EIT change (the borough must advertise a notice of intent in the local paper three consecutive weeks before adopting an ordinance and must adopt at least 30 days before the effective date). Staff committed to a public Q&A session with Bergheimer on Nov. 20 and to prepare ordinance language and outreach material for a potential Dec. 1 special meeting to adopt the ordinance.
No final rate was adopted at the Nov. 6 work session; council members emphasized public outreach, an F&A session with Bergheimer, and more detailed modeling before any final vote.
