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Frenchtown council introduces 2025 municipal budget; public hearing set for May 19
Summary
Council introduced the 2025 budget, citing major cost drivers — a projected 18% health‑insurance increase, rising pension costs, unpaid taxes from River Mills Development (~$100,000+), and around $40,000 in affordable‑housing expenses — and set a public hearing for May 19 at 9 a.m.
Council introduced the municipal budget for 2025 and set a public hearing for Monday, May 19 at 9:00 a.m.
Staff summarized the budget drivers: an approximately 18% rise in the state health‑benefit program costs, increased pension liabilities and a large revenue shortfall resulting from unpaid taxes by River Mills Development (described in the meeting as "over a $100,000"). Staff said the borough must budget a reserve for uncollected taxes and noted about $40,000 in affordable‑housing costs assigned to the borough this year. Taken together, those items were described as the principal pressures on the borough’s tax rate.
Staff also explained that roughly $225,000 of the increase in the total budget reflects new grant funding and does not increase local tax burdens. Council discussed the possibility of adding a third police officer; staff said hiring a $50,000 officer (and associated benefits) would increase the tax rate by an estimated 2¢ per $100 of assessed value. Staff described a borough collection rate of about 94.8 percent and said removing River Mills from the calculation would raise the rate toward an estimated 98 percent.
Council members discussed accelerating a tax sale for delinquent properties (targeting June) to recover unpaid liens and noted the borough’s use of short‑term financing (bond anticipation notes) while awaiting loan/grant closings tied to capital projects. On a recorded roll call the council voted to introduce the budget and schedule the May 19 public hearing.
