Tax Hike Expected In Lower Merion As 2027 Budget Talks Begin

LOWER MERION, PA — Lower Merion officials will present the township's proposed 2027 budget on Wednesday, warning of another potential property tax increase as rising personnel, health care and other expenses continue to outpace revenues.

The Board of Commissioners will hold a budget workshop that evening, giving the township's elected officials their first detailed look at departmental requests for next year.

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The figures on the meeting agenda remain preliminary. An official proposal is expected in November, followed by public hearings.

Township Manager Ernie McNeely said preliminary figures already indicate "there will again be pressure for a tax rate increase" — the third in as many years.

Lower Merion raised its real estate tax rate by 6.5 percent for 2025 and another 8 percent for 2026. The increases followed more than a decade in which the township held the rate flat, according to McNeely's budget summary.

Sanitary sewer rates have also increased 15 percent over the past two years, while the solid waste fee has risen by more than 20 percent over several years.

But the township's financial picture for 2026 has improved significantly since the current budget was adopted, McNeely says. Officials initially budgeted for a $5 million General Fund deficit this year. The latest projection puts that deficit at about $2.5 million, which would leave the township with a year-end fund balance of about $21.2 million, or 24.9 percent.

But McNeely cautioned that much much of that improvement came from a spike in business tax revenue that can't necessarily be expected next year. Lower Merion is also expected to spend $1.2 million more than budgeted responding to this year's severe winter and summer storms.

Health care is another potential pressure on the 2027 budget.

The township saw health insurance premiums increase 19.9 percent for 2026. With general health care costs surging and higher-than-expected claims utilization, there could be another double-digit increase in 2027.

Lower Merion is also negotiating contracts with its two unions, adding further uncertainty to next year's personnel costs.

Additionally, police are requesting the purchase and implementation of a Drone as a First Responder (DFR) program through Axon. Axon DFR allows a drone to be remotely deployed to qualifying calls of service, providing real-time aerial intelligence before emergency responders arrive and while they're present.

It could be particularly useful for incidents involving crimes in progress, armed individuals, vehicle pursuits and searches for missing persons, officials say. The program would cost an estimated $75,000 per year for five years.

The preliminary budget includes department requests that have been submitted to the Finance Department since June.

The budget workshop is scheduled for 6 p.m. Wednesday in the second-floor board room of the Township Administration Building (75 E Lancaster Ave., Ardmore).

Members of the public can attend in-person or virtually. Anyone attending on Zoom who wishes to participate should email publiccomment@lowermerion.org before noon Wednesday.

Here's the meeting agenda.