EMMAUS, Pa. – Emmaus Borough Council advanced a proposed 2026 budget which raises property taxes for the second consecutive year Monday night at borough hall.

The spending plan, approved on first reading, calls for an increase to 10.6456 mills, up from 10.4455 mills. This translates to a 1.92% increase. A $200,000 assessed property’s tax bill would increase an additional $40 per year under the proposed budget.

The budget offers also water and meter rate increases. Based on an average household of four’s average flow rate and then combined with the property tax increase, this produces an annual $92.36 or 2.72% increase.

The proposed average 2.72% overall increase comes one year after the borough approved a 25.6% tax increase.

Borough Manager Shane Pepe blamed inflation, significant utility costs, labor and rising insurance costs for the latest tax hike. For example, he said electricity costs are increasing by 10%, with health insurance premiums rising by 9.9%. Wages are 3.35% higher than in 2025.

The borough also has various capital expenses. These include improvements to Lions Park for $650,000, of which $319,000 will be funded through a grant. A leaf truck will cost $300,000 with two-thirds of this — $200,000 — coming through a grant. The proposed spending plan also allocates $172,000 for a bucket truck.

Operational costs include $4.87 million for the police department and $3.1 million for the fire department, with $1.4 million of that designated for a new fire apparatus, which will be paid for by acquired debt.

Collected property taxes cover 35.4% of the borough’s total budget costs. A total of 44.6% of Emmaus’s general fund is covered by property taxes. The remaining 55.4% is covered by fees, wage taxes, grants and other revenue sources.

Pepe said the borough’s frugality produced $12.6 million in total costs savings. He cited in-house work at Lions Park rather than outsourcing the project saved taxpayers $1 million. In addition, in-house paving retained another $202,025 for Emmaus property owners.

The total tax rate is comprised of the general fund tax rate of 6.9268 mills, the fire fund tax of 1.4751 mills, a special roads fund tax of .32 mills, a streetlight fund tax at .159 mills and then two new taxes — a library tax of .1794 mills and debt services tax of 1.5853 mills. The new categories do not increase property tax rates in the 2026 spending plan, Pepe said.

Final budget approval is scheduled Dec. 15.