Borough staff flags $390,000 preliminary budget gap; council weighs using reserves or cutting projects

Staff presented the borough's 2027 budget outlook and warned of a preliminary deficit of about $390,000. "We're currently looking at a deficit of about $390,000," the staff member said, and noted that the borough targets a three-month operating reserve of about $1,400,000 to cover unexpected expenses.

The presentation outlined revenue assumptions — real-estate taxes as the largest source and EIT contributing roughly 31% — and emphasized that EIT projections remain subject to revised figures from Berkheimer. Staff described trade-offs for closing the gap: using general-fund balance (the budget can absorb the shortfall while preserving the reserve), carving expenditures from the operating budget, or adjusting revenue sources such as millage (which would require an ordinance and the formal ordinance process). Council members asked for additional analysis before making rate or policy changes and directed staff to present a revised budget at the October business meeting.