New Freedom Borough council discussed whether to include a local services tax (LST) in the draft 2026 budget to cover rising police and service costs. Borough staff reported that York Adams Tax Bureau’s analysis identified approximately 1,670 potential filers for New Freedom—significantly higher than the 1,000 used in the draft budget.

Staff advised council that, per DCED guidance, a municipality enacting an LST for the first time must submit an adopted ordinance to DCED by Dec. 1 to be effective Jan. 1; no extension is available for first‑time enactments, staff said. Council members questioned implementation burdens on employers (payroll withholding, exemptions filings), whether residents who work in the borough would be taxed, and whether the borough should rely on new revenue or cut spending.

Several council members argued the $52 per year tax (described in discussion as “a dollar a week”) would generate enough revenue to cover an increase to the police budget estimated at roughly $85,000–$100,000; others objected and called for spending reductions instead. After extended debate, multiple council members asked staff to remove the LST from the draft budget and to bring the matter back for a full‑council vote at the next meeting. Staff said they would leave the LST in the draft for Monday to authorize advertisement unless council directed otherwise; subsequent discussion resulted in a direction to take the LST out of the advertised draft so the full council can consider it.

Next steps: staff will follow council’s direction for the Monday meeting to either advertise the draft budget with or without the LST. If the borough wants an LST effective Jan. 1, council must adopt an ordinance and submit it to DCED by Dec. 1.