JOE LINTNER | COLUMBIA SPY
Despite a 2024 tax hike that took the tax rate to 10 mills, Columbia Borough finds itself in a growing fiscal crisis as officials are seeking a $2 million bridge loan to cover expenses during early 2026. At Tuesday night’s meeting, council voted unanimously to begin the process of applying for the loan.
The borough’s financial troubles became apparent last year when it fell short of meeting its expenses by more than $1 million at year’s end. In spite of the shortfall, borough council decided not to raise taxes, instead balancing the budget by drawing from reserves. That decision left the reserve fund at about $300,000, a level officials acknowledged is “uncomfortably low.”
The borough is seeking $2 million to pay for operations until tax payments arrive in April 2026. Of course, the loan would need to be paid back—with interest.
Borough officials are exploring several revenue-generating options that could potentially reduce or eliminate the need for a tax increase in 2027:
- Sale of borough sheds
- Sale of the former firehouse on Front Street
- Sale of a portion of property at 11th Street and Ridge Avenue
- Sale of the former McGinness property
- Anticipated receipt of $1.75 million in state RACP funds for the market house, although hopes for receiving this money continue to diminish.
In addition, the borough recently auctioned off several acres of the borough farm for close to $1 million. Revenue from the sales of these properties goes into the capital fund and not the general fund used for operating expenses.
There are significant expenses to be addressed. The Columbia Crossing building needs $400,000 in repairs, in addition to operating expenses. (The building does not generate any revenue for the borough. In fact, it costs taxpayers to manage and maintain it.) A planned maintenance building at 11th Street and Ridge Avenue is projected to cost several million dollars. The Walnut Street project, which is on hold, will also entail significant expense. Additionally, the borough is still paying off a $9 million series of municipal bonds taken out 10 years ago.
If borough officials can’t find ways to increase revenue and decrease expenses, they’ll have no choice but to raise taxes again for next year.
Note: During the meeting, the loan was alternately referred to as a bridge loan, a line of credit, a tax anticipation note (TAN), and a revenue anticipation note (RAN).
Columbia Spy 