At a Sept. 9 Finance Advisory Committee meeting, Millersville Borough staff outlined key items shaping the 2026 budget: an expected shortfall in the solid waste operating fund because of annual contract increases with Penn Waste; growing stormwater maintenance and replacement needs; ongoing labor cost increases tied to union contracts; and a proposed unreserved fund balance policy to hold operating reserves equal to about six months of expenses.
Borough Manager Rebecca said the borough’s five-year trash contract with Penn Waste includes small annual increases and that, unless the borough raises the resident solid waste fee, expenses will outpace revenue in the solid waste fund. She said new-home construction in Crossgates and Winfield will slowly increase revenue but not enough to offset the near-term shortfall.
Rebecca told council that stormwater maintenance — including sinkhole repairs, pipe replacement and inlet cleaning — is an increasing, recurring expense that will appear in both operating and capital budgets. She said some pump stations (notably the Quaker Hill station) are at the end of their useful life and that the borough plans a feasibility study with engineering firm GHD that could lead to future capital work.
On labor costs, staff noted the Aspen union has a 4% contract increase and the police union negotiations were not finalized; the borough expects higher personnel costs and an estimated 10% increase in health-insurance costs pending carrier rates. Rebecca also said the Penn Manor school district’s share of crossing-guard costs will now be reflected in the general fund revenue line after the borough moved the crossing-guard service into a contract.
The finance committee approved a motion to accept the August financial reports and authorize staff to satisfy ordinary borough obligations for the month. On community services contributions, Rebecca highlighted a recent Lancaster EMS funding request that grew from $5,000 in 2025 to a $21,000 request for 2026; she said council could request a presentation from Lancaster EMS to explain the increase.
Separately, staff proposed an unreserved fund balance policy to formalize reserves for emergencies and capital needs. Rebecca said the draft policy initially suggested 18% but that staff prefers a target expressed as an average of three to six months of operating expenses to reflect seasonal tax revenue timing; committee members signaled support to continue drafting the policy for solicitor review.