Borough Manager Justin Keller presented the borough's 2026 draft budget on Oct. 8, outlining a total projected deficit of $602,000 and describing the document as "our initial cut." The draft would require a 7.53‑mill increase across all funds, producing a combined millage of 15.871 and representing roughly a 4.98% tax increase (about $75.35 on a $100,000 assessed value), Keller said.

Keller said staff will return in November with a pre‑final budget and seek council approval of a not‑to‑exceed figure. "Then staff continues to work on the budget after November to try to get that number even further below the not to exceed amount," he said. The timetable includes legally required advertising of the tax rate before a final vote in December.

Finance Director Marley Boone provided detail on revenues and expenditures. Boone said wage and benefit pressures are a major driver: AFSCME wages are budgeted at 3%, police wages at 5% and management wages at 3.5%. The borough's combined Minimum Municipal Obligation (MMO) for the police and nonuniform pension plans is budgeted at $3,170,000; Boone said this figure reflects the council's prior decision to use a smoothing method to blunt year‑to‑year spikes. Boone also warned of rising benefits costs: health care was described as likely to increase "at least 15 to 20%" and workers' compensation was projected to rise about 26%.

Boone and Keller summarized fund‑level positions in the draft: the general fund shows a $425,000 deficit under current assumptions (the borough would need roughly 0.53 additional mills to bring the general fund to balance, yielding a proposed overall millage of 11.702 mills using current calculations); the parks and recreation fund shows a $32,000 shortfall and the fire fund a $144,000 shortfall. Capital priorities in the draft include police vehicle and camera upgrades, airport hangar roof work, stormwater grant matches and sidewalk and streetscape seed money; the draft maintains a $250,000 OPEB contribution and $100,000 to capital savings.

Boone reviewed revenue trends the borough is counting on: local wage‑related taxes rose in 2025 (earned income up about 5% and local services tax up about 7%), transfer tax revenue was budgeted conservatively (a modest 6% increase from last year), and interest earnings remain elevated because of high market rates. Keller emphasized the borough's strategy of leveraging state, federal, county and private funding to limit reliance on local taxpayers for big infrastructure projects.

Councilors pressed staff on next steps and the impact on residents. Councilor Menasco said residents are "sick of it" and urged staff to seek alternatives to further burdening taxpayers. Keller and Boone responded that this is a first draft, that staff will continue to pursue revenue and expenditure adjustments, and that some figures (notably health insurance costs) cannot be finalized until mid‑November.

No formal action was taken at the Oct. 8 meeting; Keller asked councilors to consider participating in further review and said staff will return with revised numbers. The council's finance committee will continue analysis and staff will present a pre‑final budget in November with the expectation of a final vote in December.

Clarifying details: the $602,000 figure is the combined shortfall across all funds; the general fund deficit and the separate park/fire fund shortfalls are included within that total. The draft includes staff estimates and contract assumptions that remain subject to collective‑bargaining outcomes and insurer quotes that are not yet finalized.

Looking ahead, Keller asked councilors to expect two additional budget presentations (a November pre‑final and a December final), and to note that the borough must advertise the proposed tax rate prior to final adoption.