Revised Honesdale budget proposes one-mill tax increase

HONESDALE, PA — The fourth budget proposed in two months by the Honesdale Borough Council includes a property tax increase of one mill, which will bring in over $400,000 in additional revenue for the borough in 2025. This is a reversal of the previous version which proposed no tax increase.

Various tax proposals were considered during this year’s budgetary cycle, with some drafts proposing to keep taxes flat, and others proposing some combination of increased property taxes and/or a new tax on earned income. 

The most recent budget proposal, heard by the Honesdale Borough Council on November 25, includes an increase in property tax rates from 6.58 mills to 7.58 mills. 

A mill is a tax unit equivalent to one dollar per $1,000 in assessed value of a property. A borough resident with $100,000 worth of property would see their taxes go from $658 to $758 with the proposed increase. 

The increase is necessary, according to the executive summary prepared by finance committee chairman William McAllister, because the borough’s capital reserve funds will be used up during next year’s operations, leading to issues for the borough in subsequent years. 

The executive summary says the borough is trying to improve its future-planning and provide citizens with a way to get involved. 

The borough is working with the Pennsylvania Economy League, a nonprofit that provides technical assistance and research to promote good governance. Together, they will prepare a five-year plan of operations for the borough. This process is expected to start in December and finish by June 2025. 

The finance committee plans to “secure a survey of the citizens to establish their recommendations in defining the priorities of borough operations,” with that survey to take place after the Pennsylvania Economy League has presented its findings and recommendations, according to the executive summary. 

In other business

The borough council approved the hiring of councilor David Nilsen as director of the Honesdale Department of Public Works. The vote was 6-0 with Nilsen abstaining. Nilsen resigned from the council effective November 25 to take the role, which will start on December 2. 

The borough council voted 4-3 not to hire Justin Taylor to be Honesdale borough manager. Kevin Kundratic currently serves as interim borough manager. 

The dog park at Apple Grove Park is ready for public use, with a soft opening effective November 25 and an official opening ceremony scheduled for Monday, December 9 at 11 a.m.

Editor's note: This  article has been updated with an updated day and time for the official opening ceremony., as of 1:15 p.m. on December 4.