Hughesville Borough Council approved a preliminary $1.3 million budget for next year that includes a 1.25 millage increase.

The vote came after Councilman Jerry Daugherty reported that the borough was facing a budget deficit of nearly $50,000 next year.

He attributed the shortfall to rising insurance and employee costs.

“Almost half of it (deficit) is insurance increases,” said Daugherty, who chairs the borough’s finance committee.

With all borough job slots filled, personnel expenses have increased as well.

“We are at full capacity of people,” he said.

Council members conceded the possibility of a rare property tax millage increase to balance the 2026 budget. The borough’s millage rate stands at 5.25. One mill equals $82,111.

“Are you thinking we can get away with a one-half mill (increase) for the budget?” Mook asked.

Daugherty said a half-mill increase along with tapping the borough’s reserve fund may be the answer.

Cale said he’s always fought for lower taxes but suggested a more than one-mill-tax hike to avoid additional millage increases down the road.

“We’ve held the line for as long as we can hold it,” he said.

Council soon thereafter adjourned the meeting and went into an executive session.

After re-convening the meeting, they voted for the preliminary budget and the 1.25 millage hike which will include a half mill for EMS costs.

Under a 1.25 tax-mill-hike, those with properties having an assessed value of $100,000 would pay an additional $125 next year in real estate taxes.

Council faces a Dec. 31 deadline to pass a final 2026 spending plan.

In other matters, council approved a resolution eliminating employee contributions to the police pension plan for another year.

The next council meeting will be at 7 p.m. Monday, Dec. 8, at the municipal building, 147 S. Fifth St.