North Elm CFO proposes using $700,000 in reserves to balance 2025 budget; council asked to bank extra cap

North Elm held a special meeting to introduce the proposed 2025 municipal budget, where Chief Financial Officer Joe Lupino said the borough will use $700,000 of its fund balance to cover revenue shortfalls and limit the tax impact on residents.

Lupino said the borough has pursued a multiyear fund-balance strategy and is proposing to “use 700,000 of this fund balance as a revenue source” for 2025. He told the council the fund-balance strategy began in 2021 and has allowed the borough to cancel unused appropriations at year-end and rebuild reserves.

The budget presentation identified several principal cost and revenue drivers. Lupino said rising health-insurance costs are a major factor — “we're up 18.7%” this year and he projected the figure could rise to about 30% next year — and that the borough is exploring alternatives to the state health plan. Grants and one-time federal COVID relief also declined: Lupino said American Rescue Plan/CARES-style recovery funds used in prior years have expired, and that grant receipts were materially lower in 2025. He listed the loss of revenue, health insurance increases and solid waste and library costs as the main contributors to an estimated $491,000…