West Chester finance committee trims 2026 budget gap; wastewater fund balanced after rate increase

West Chester’s Finance Committee reviewed the borough’s September financial report and its 2026 preliminary budget on Oct. 8, hearing from finance staff that the wastewater fund is now balanced and that the general fund’s projected shortfall has been reduced to $387,170.

Barb Leonte, director of finance, told the committee the borough received its state aid payment in September and used part of that money, plus EIT 0.25 revenue, to make contributions above the minimum municipal obligation to pension plans. "We made an excess contribution of $148,771 to the nonuniform plan and $304,195 to the police pension plan," Leonte said. She also said the borough received a $145,763 refund (PHMIC) and $139,096 from the auditor general's office for volunteer fire relief companies; checks have been processed for the West Chester Volunteer and Good Fellowship fire relief companies.

Why it matters: The committee must balance the general fund before council adopts a final 2026 budget. Officials said a combination of expense reductions, targeted revenue adjustments and deferred capital projects have narrowed the gap substantially but that more work remains before the budget is finalized.

Leonte said the wastewater fund was balanced by implementing a 3% increase in sewer revenues for both residential and commercial customers and by deferring a $2.1 million sludge dewatering capital project to 2027. She outlined department-level changes that lowered the general-fund shortfall: roughly $170,182 of additional revenues in administration (from line items including real estate taxes, a refund and state aid), $52,549 in admin expense reductions, an $88,484 reduction in police capital and operating costs, and housing department cuts that included eliminating a requested administrative position and $217,634 in expense reductions. Public works revenue assumptions rose by about $133,000 (recycling grant, winter maintenance, street openings) while public works capital was reduced by about $1,334,967 through deferrals and removals.

Committee members identified additional candidates for cuts. One member suggested postponing purchases such as a proposed dump truck and delaying brick-sidewalk repairs, estimating combined savings of about $350,000–$400,000 if both were removed from the 2026 plan. The committee also discussed the parking budget and accounting changes tied to the garage that may create removable expenses if revenue offsets are reallocated.

Health-insurance costs were noted as a near-term concern. Leonte and members said they expected to present more detail next week after additional review; Leonte said an 8.5% increase had been projected but that she expected some relief when Mr. Metrick (staff member referenced in the meeting) presents next week.

During public comment, Daryl Cook of South Walnut Street urged revisiting a downtown street closure. "It may be a little late now, but I think the residential taxpayers could save a bunch of money if we didn't close Gay Street for the profit of some businesses," Cook said. Committee members suggested placing further discussion on the Smart Growth agenda or exploring permit-based fee structures for on-street closures.

The committee spent roughly 15 minutes on the budget update and directed staff to continue identifying reductions and bring revised figures back at the next meeting.

The meeting also included routine committee business and a brief consent vote on September minutes and several procurement items (see "Votes at a glance").