New Freedom reviews 2026 draft budget as capital projects, emergency services drive temporary deficits

New Freedom Borough officials opened their first budget workshop of the fall to review a draft 2026 spending plan that relies on one-time cash and committed fund balances to cover large capital projects and rising emergency-services costs.

The borough manager, Andrew (staff member), said the draft budget shows planned deficits in several funds next year because the borough will draw down cash that was accumulated for capital projects. "We're showing a $3,500 deficit in cash" in the general fund for 2026, he said, adding that the borough still projects an available general-fund balance of about $616,000. "It's the use of cash," he said, not an inability to pay ongoing bills.

Why it matters: Council faces choices about whether to use reserves to smooth large, one‑time construction and engineering costs — notably water and sewer upgrades and a planned Pleasant Avenue culvert replacement — or to increase recurring revenue. Staff outlined several possible revenue options and places to reduce spending, and warned that some lines will be unusually lumpy because grant reimbursements and treasury investments are being spent in different years than they were received.

Major budget drivers and discussions

Local services tax: staff discussed a proposed local services tax on employees who work in the borough but live elsewhere. Andrew described the levy as "charged on employees in the borough" and noted the York/Adams tax bureau estimates about 1,400 employees work in New Freedom. At a $52 annual levy per nonresident employee, Andrew estimated New Freedom's share (after bureau collections and the borough's 2% share similar to earned-income tax collections) would be roughly $52,000 in gross receipts…