Columbia Borough residents may face another property tax increase in 2026, following a significant hike approved last year, according to indications from borough officials.
In 2024, borough council raised property taxes by 2 mills for the 2025 budget year, bringing the total millage to 10 mills—the current rate. Now, less than a year later, signs suggest another increase is possible.
Council approved an $8.33 million general fund budget for 2025 by passing a 25% property tax increase, with warnings that further increases would likely be necessary.
"It's going to be 2 mills this year, 2 mills next year," Council Vice President Eric Kauffman said in 2024, according to LNP/LancasterOnline. "I just don't know what else to do."
Particularly alarming were statements by Mayor Leo Lutz, who suggested the borough may need to implement a multi-year plan for tax increases. "You're almost gonna have to set a plan. It might be 2, 2, 2, 2. I don't know. It might be 2, 1, 1, 1, 1, whatever," Lutz said at a November 20, 2024 budget meeting. Those amounts could add up to 6 more mills over the next three years.
In addition to raising the millage, council could borrow from reserves, but doing so at this point would reduce the amount to a critically low level. Council has traditionally maintained reserves at 15% of the budget (about $1.1-1.2 million) as a financial safety net.
A recent budget draft for 2026 shows a budget amount for 2026 expenditures for the general fund alone at 9,151,171, compared to 8,311,717 for 2025—an increase of $839,454. A 2-mill tax increase ($876,000 in revenue) would more than cover that amount. (Each mill of property tax generates approximately $438,000 in revenue for the borough.)
Currently, not all numbers are available, and council still has to vote on a final budget.
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