Palmerton residents could be in store for a hefty increase in their municipal tax rates next year.

Borough council on Thursday unanimously agreed to advertise the 2025 budget for public review with a 2.5-mill increase.

If council were to follow through as such, that would raise the borough’s millage rate from 14.97 mills to 17.47 mills.

No further discussion took place on the matter during the meeting.

After the meeting, borough Manager Autumn Canfield delved deeper into the numbers.

For starters, Canfield noted that the borough’s garbage rates will increase significantly next year.

Earlier this month, council awarded a three-year contract to Whitetail Disposal Inc. in the amount of $2,388,759.

Currently, the borough charges $72 a quarter. The new rate will be $119 a quarter.

The contract is for trash pickup and recyclables.

The borough is in a five-year contract with its current waste hauler, Waste Management, for trash disposal and recycling that will end this year. The contract is set to expire in December.

Canfield added that the borough is looking at a few larger costs next year.

She said those include implementing a rental program; completion of a traffic signal project at Third Street and Delaware Avenue; increased maintenance on its buildings; training and equipment for the police department; and an anticipated increase in electric costs.

Canfield said some smaller costs include continuing with sewer line projects; safety equipment in water and sewer; the expense of the last of the borough’s American Rescue Plan Act funds; and equipment purchases from out of liquid fuels.

Final budget adoption is expected next month.

Last December, council unanimously adopted this year’s budget with a 1.2-mill increase to be used to establish a fire fund.

In addition, a resolution for the borough’s water rate resulted in a 25% increase across the board for residential meters.