Palmerton residents will in fact see a 1-mill increase in their municipal tax rates next year.

Borough council on a 6-0 vote Thursday granted final adoption of the 2021 budget. Councilman Randy Gursky was absent.

That will raise the millage rate from 12.77 to 13.77 mills, and will result in about a $2 per month increase for a smaller home in the borough, and about a $7 per month increase for a larger or newer home in the borough.

Borough Manager Donna McGarry said a half mill would go into the debt fund to finance the firetruck loan, while a half mill would go into the general fund with the intention of starting annual transfers into a capital projects fund for future equipment purchases.

However, McGarry said there will be no increase in the sewer, water or trash rates.

McGarry previously said that the borough realized a significant increase in police overtime costs, which she anticipates to continue again next year.

In addition, McGarry said she met with the borough’s fire chief to establish a long-range plan for replacement of fire vehicles, as the capital projects fund will be the area the borough sets aside money for these future purposes, as well as some other capital purchases (such as trucks for the Streets Department) it may face in the future.

She said the borough also saw a nearly $50,000 increase in its pension obligation for next year, and has worked those costs into the 2022 budget without a tax increase over the 0.5 that will be part of the transfer to the capital program.

Last December, council unanimously adopted this year’s budget with a 1-mill increase in the municipal tax rate.

That raised the millage rate from 11.77 to 12.77 mills, which meant the average homeowner saw an increase of about $4 to $6 per month.

There was no increase in water, sewer or trash rates.