Pitman officials project 9-cent tax increase in 2026 budget largely due to 2025 bond debt

Council President Mazzola said the borough’s proposed 2026 municipal budget would include a nine-cent tax increase, which he calculated would amount to about $18.36 per month or $220.40 per year for the average household. He attributed six cents of the increase to debt service from the borough’s 2025 $2.5 million capital bond and the remaining three cents to insurance, FICA, workers’ compensation and previously agreed union contract increases.

Borough CFO Bachich reported the borough began with $2.3 million in surplus and is using $1.93 million in the 2026 budget, slightly less than the $1.94 million used in 2025; she also said the 2025 bond payment this year includes $765,000 in principal and $320,000 in interest. Administrator McCafferty noted the borough typically replenishes roughly $2 million into surplus annually and described 2026 as a year with higher debt-service pressure that the borough expects to moderate with long-term capital planning.

Mazzola said initial discussions with department heads trimmed roughly $95,000 and a subsequent meeting with the Administrator, CFO and Deputy Clerk produced another $270,000 in reductions or reallocations, including cuts to gasoline and electricity and shifting some items into Capital or the water/sewer budget. Administrator McCafferty said variable items were chosen because they can be restored later as emergency appropriations, which would require funding in the 2027 budget if used.

Council members and staff agreed the borough faces non-discretionary cost pressures and that a disciplined capital plan and targeted fee changes will be part of the strategy to control future rate spikes. The council plans to introduce the budget at its April 27 meeting with adoption expected in late May.