Yeadon borough finance staff presented the proposed fiscal year 2026 budget and warned that rising insurance, pension and contractual costs have created a budget gap that could require a real‑estate tax increase of up to 1.9 mills.

Presenter Nafis told council members that the borough projects a year‑end general‑fund balance of less than $50,000 for 2025 and has collected about 97% of the year’s budgeted taxes through Nov. 19, 2025. ‘‘We are about $700,000 above what we were last year,’’ Nafis said, while adding that several figures are still being reconciled.

The proposed FY2026 operating budget for the general fund is about $11.3 million. Nafis said the largest cost drivers are personnel and contractual obligations, including higher health‑care premiums (up 8.9%), negotiated wage increases (average 4.25% in the first year for representeda employees), and an actuarially driven increase in police pension liabilities. Nafis noted ‘‘we will have about a $107,000 in 2026 more that we would have to pay for our pension costs’’ and that the police department budget rises by roughly $771,000.

To close the shortfall, Nafis presented a worst‑case property‑tax option of 1.9 mills, which would move the borough’s current rate (9.832 mills) and raise the average assessed‑value household tax bill from about $1,791.63 to $1,955.62—an increase of roughly $13.66 per month. Nafis said staff are working to reduce that figure and hoped to lower the proposed increase to between 1.5 and 1.2 mills before the council’s vote.

Staff highlighted other pressures: an increase of about 7% in charges from the Darby Creek Joint Authority (sewer), higher fees from the county solid‑waste authority (prompting a recommended trash collection fee increase from $330 to $355 for 2026), and more than $350,000 in real‑estate tax refunds resulting from county assessment appeals. Grants receivable improved—Nafis cited about $407,000 more in grant receivables—and higher interest income on borough accounts has partially offset some revenue shortfalls.

Nafis also flagged a parking‑enforcement contract that yields about $6,000 a month in receipts but whose vendor fees currently consume roughly 90% of that revenue; staff said they are negotiating contract terms so the borough can realize more of the receipts. On insurance exposure, Nafis said the borough is responsible for the first $100,000 of most claims and reported total payouts this year of $375,002.96.

Councilors asked for clarifications about interest earnings, the scale of claims, and options to reduce costs. Councilor Peetz thanked staff and asked whether interest income is applied monthly; Nafis explained the borough receives interest based on account balances. Councilor Beattie requested increased pursuit of recreation grants and asked whether the budget contains reserves for potential lawsuits stemming from prior administrations; Nafis described the borough’s policies on reserving and loss runs and said the insurance market and prior claims affect future premiums.

Nafis recommended a contingency reserve for unexpected expenses, additional grant‑seeking to reduce borrowing, a dependent‑audit to identify savings in benefits, and pursuing police accreditation that could lower insurance costs. Staff also proposed considering capital borrowing to address maintenance and larger capital needs while potentially spreading costs into debt service.

The meeting was recorded and will be posted online with the presentation. Nafis told council members staff will continue revising figures and expects to report a lower proposed tax increase before the formal council vote scheduled for the 18th.