Tarentum property owners would see their taxes rise by 9.1% in 2025 under the council’s proposed budget.

The proposed $4.7 million budget would raise taxes by half a million from the current rate of 5.48 million.

The increase is specifically intended to benefit the three borough fire companies as a fire tax.

For a homeowner whose property is assessed at the district’s median value of $40,000, the half-million increase means taxes on that property would increase by $20, to $239 a year.

For an individual whose property is assessed at more than $100,000, the increase would result in an additional tax of $50 per year. The property tax would increase from the current $548 per year to $598.

The council is due to adopt a final budget on December 10.

Volunteer fire companies in Pennsylvania have struggled financially for years as aging vehicles must be replaced or undergo expensive repairs; fuel costs have increased; the equipment must be updated; and fundraising, not to mention staffing calls, have been adversely affected as active volunteer rolls have dwindled.

This has left municipalities and fire companies scrambling to cover their expenses and maintain essential services.

With the fire tax designation, the borough is locked in how the estimated $44,000 in revenue is used.

“We can’t use that money,” Boddorf told the council. “It has to be for the fire department.

“This increase in miles is to ensure they have the resources and equipment they need.”

Revenue from the tax increase would be split equally among the three fire companies — Eureka, Highland Hose and Summit Hose — each receiving $14,666.

Financial assistance from the district to the fire companies has for years come in the form of annual contributions approved by the board.

This year, contributions per company increased to $17,000, up from $12,500 in 2023.

They will remain in place in 2025 despite the fire tax being imposed, along with money earmarked for fuel expenses, truck repairs, building repairs and insurance.

Rising electricity bill

Another area of ​​the proposed budget that would result in higher costs for Tarentum residents is the borough-owned electrical distribution network, according to Boddorf.

He said negotiations with a new electricity supplier for a five-year contract are nearing completion, with the district going for a rate of $54 per megawatt, compared with the current rate of $35 per megawatt. This is an increase of 54%.

The district does not have to increase its base cost per kilowatt hour because of the new contract, Boddorf said.

But, he said a fee of 1.8 cents per kilowatt hour must be added to all electricity programs in the district to cover an increase in capacity costs estimated to be somewhere between $800,000 and $900,000.

Capacity charges are payments levied by PJM Interconnection, the regional transmission organization that provides the electric grid in a number of states. The charges are to ensure sufficient power at peak times. They affect all of Pennsylvania, along with Ohio, Maryland and New Jersey.

“We don’t expect to use more (power), but that cost is being passed on to us by PJM,” Boddorf told the board. “Tarentum does not have to raise its prices. This is imposed on us by PJM.”

No garbage pick up, water charges

Two areas where property owners won’t see any cost increases are trash fees and water rates.

“I’m happy to say that for the first time in many years, in 2025 we will not be subsidizing the water fund from the electric fund,” Boddorf said.

Improvements to the borough-owned water system were made thanks to grants. The result is streamlining operations and reducing the number of shifts at the treatment plant from three to two and saving overtime, he said.