Council tackles budget pressures, tax-collection options and community donation requests

Borough staff warned council on Oct. 7 that, under the current mix of departmental and community funding requests, the borough would face a substantial draw on reserves. Staff said the draft numbers indicated a potential $922,000 draw on reserve funds if all community asks and proposed increases were approved as-is.

Council examined several budget issues raised during the workshop: whether the borough should continue deputizing the elected tax collector or turn local tax collection responsibilities over to the Lancaster County Tax Collection Bureau (which would change revenues and expenses tied to collection commissions); the need to create a distinct capital line for fire apparatus funding; and how to prioritize community donations to groups including the library, veterans council, historic preservation society and others.

On deputization, staff noted boroughs have routinely deputized tax collectors in the past; council asked finance staff to return with numbers on county collection costs and a recommendation. On community donations, staff reminded council that municipal code and auditor guidance limit to whom boroughs may lawfully appropriate funds; staff said some requests may be treated as economic- or community-development expenditures rather than donations, depending on the program and legal classification.

Council did not adopt a final budget or tax-rate change at the workshop and asked staff for updated figures in time for the Oct. 16 budget meeting.