Tarentum manager presents 2026 budget with no tax increase, urges phased tax plan to ease electric fund dependence

Borough Manager Dwight Bator told the Tarentum Borough Council that the draft 2026 budget holds property taxes flat for the coming year while recommending several modest adjustments to utility rates and fees to keep core services funded.

"There will be no property tax increases in 2026," Bator said, while recommending a 5% electric rate adjustment consistent with the borough's five‑year electric stabilization plan and a $1 monthly increase in garbage fees to cover rising contractual costs. He also said residential water rates would remain frozen for 2026 thanks to recent grant awards and operational efficiencies.

The manager framed the approach as a tradeoff between short‑term affordability and long‑term stability. Noting the borough has not raised general fund taxes in roughly two decades, Bator urged council to consider a gradual, predictable tax adjustment over several years to reduce a continuing dependence on transfers from the electric fund.

Bator highlighted several budget drivers: regional inflation, labor and contract increases, and rising wholesale electric capacity costs. He described the borough's strategy to smooth a near‑term spike in capacity charges — now projected to rise about 20% next year — by drawing on a dedicated capacity reserve and phasing annual rate adjustments of roughly 3–5%.

On infrastructure, the draft budget includes capital work at the water plant (a new tank and pump upgrades), transmission and transformer refurbishment in the electric system, and continuing the borough's blight demolition program. Bator said one large project, a $1.5 million water tank replacement, has $1 million in grant support and that the borough is budgeting its local match for the remainder.

Bator also warned of operational risks tied to staffing and institutional knowledge. After recent retirements, the borough faces the loss of decades of utility expertise, he said, and recommended succession planning, training, and consideration of bringing some trade and technical functions in‑house. That, he said, should happen only after ensuring sufficient staffing and safety—"linemen first," he added—before resuming transfers out of proprietary funds.

Council members asked for modeling of multi‑year tax scenarios; Bator agreed to provide five‑year projections at various millage levels. After the presentation, council moved to advertise the 2026 operating budget for public review.

The council and manager emphasized the role of grant funding in the capital program: the borough reported active grant applications for waterline replacements and other plant work that, if awarded, would reduce local match needs. Bator said Tarentum will continue pursuing state, county and federal grants but warned that match requirements make it hard for smaller municipalities to secure many large projects without setting aside local capital.

What happens next: council voted to advertise the 2026 operating budget for public review; Bator offered to meet with members and residents offline to answer follow‑up questions and to provide the five‑year tax scenarios requested by council. The council will consider adopting the budget after the required advertisement and any additional hearings.