Taxes are going up in Cumru Township after officials approved an $11 million budget that increases the township’s real estate millage, as well as its tax rates for fire and emergency services.
The budget increases the millage rate to 6.5 mills from 5.34 mills, the fire rate to 3 mills from 2.3 mills and the emergency services/ambulance rate to 0.5 mills from 0.34.
The increase brings the township’s total millage to 10.85 from 8.83 mills, meaning a tax increase of $202, or about 23%, for a home valued at $100,000.
Cumru officials said the increase is needed to offset stagnant real estate valuations, as well as rising staff costs and other municipal expenses.
Township Commissioner Greg Miller noted the township suffered substantial budget deficits between 2021 and 2024, reducing the township’s general fund balance, or reserve funds, to $3.5 million from $5.7 million.
He noted that any further dip in the fund balance would put the township at risk of a lower credit rating from auditors so using more reserves was impossible.
“The challenges that we faced when creating the 2026 budget was the combination of declining tax assessed real estate valuations, the lack of development in the township, the lack of a usable fund balance in any of our funds and the staffing of a full-time fire department that unionized in 2025,” Miller said.
He said the township was looking at a $1.8 million hole in the budget and had to decide to increase taxes, lower service levels or do some amount of both.
“Staff reductions would be the only way to fill a hole as large as $1.8 million as approximately 80% of expenses are personnel related,” Miller said. “More specifically, the decision was to choose between a $2 million tax increase or a reduction of four police officers, four public works/admin staff, and two firefighters.”
He said staffing levels in the township were compared to other municipalities and it was found that any staff reduction could negatively impact safety.
“We weren’t willing to take that risk,” Miller said.
He said commissioners recognize people are struggling with high prices and stagnating wages, and raising taxes wasn’t a call anyone wanted to make.
“I’m sure a lot of people will be angry and you should be,” Miller said. “So am I, but these are the cards we were dealt and we only had bad options to choose from.”
Miller noted the township is working to finalize an economic development plan aimed at bringing new commercial developers and new tax revenue to the township.
The plan will be presented at a meeting Jan 13 at 6 p.m. in the township building.
Miller and Commissioner Andy Donnell were elected in 2023 on a platform of opposing warehouse development in the township.
They share that position with recently elected Commissioners Mark Ferrero and Tonya Liepins, who won in November after voicing similar values.
Ferrero, Liepens and incumbent Commissioner Lisha Rowe beat David Batdorf and William Miller, both of whom had consistently voiced support for and voted in favor of warehouse development in the township as a means of generating tax revenue.