Borough manager warns of large general fund gap, urges three-year capital plan

Borough Manager Sean Metrick told the Westchester Borough Council on Sept. 16 that the borough is facing a significant gap in its general fund and urged council and staff to adopt a multi‑year capital plan, pursue grants and other revenue, and avoid unplanned tax increases. "We are really in the embryonic stages of putting this budget together," Metrick said, noting capital spending volatility and a $2.3 million year‑over‑year net expenses increase.

Metrick said the borough relies heavily on tax revenue and parking operations and that the general fund is the principal budget the council should focus on because it affects property taxes. He told council the borough manages a roughly $5,000,000 parking operation and that about 60 percent of borough income comes from taxes; he estimated the borough's taxable assessed base at about $775,000,000 and said property taxes account for roughly $13,600,000 of revenues in the figure he cited.

The manager outlined expected modest revenue gains — a projected 3 percent growth in earned income tax that he estimated would generate about $195,000 and improved parking revenues — and proposed a proposed increase in rental‑license fees (he said the current average inspection cost effectively made the fee "$44 per unit"). He also noted progress on pension obligations, saying transfers to two defined‑benefit pension plans have declined over eight years, providing relief to the general fund.

On the expense side, Metrick identified public safety costs — including a $130,000 year‑over‑year EMS change and a 3 percent contracted fire increase — and higher net capital expenses driven by public‑works and parks projects as the main upward pressures on the budget. He warned that capital spending swings wildly year to year and advocated budgeting to a steadier three‑year (or longer) trend line and holding reserves for high‑cost years.

Metrick said the borough has been active in grant applications: staff have seven pending grant applications requesting about $4,000,000 and have secured approximately $5,300,000 in funding across sewer, general‑fund and stream‑protection needs. He said the Goose Creek Wastewater Treatment Plant permit process will likely demand costly improvements, that permit limits are set iteratively by the Department of Environmental Protection, and that sewer funds may require slow, modest rate increases to fund anticipated work.

Metrick concluded by asking council and staff to focus on sustainable, year‑over‑year funding for capital needs and promised to provide detailed numbers to council in the coming weeks. "Our goal is always to work to eliminate or reduce a property tax increase," he said, adding that staff will return in October with more concrete figures.

The presentation drew a brief council comment urging strategic prioritization and recognition that state and federal funding uncertainties (the state budget and federal grants) will affect the borough's options.