Grove Park council weighs cuts and fee hikes to close 2026 budget gaps
October 30, 2025 | Clarks Summit, Lackawanna County, Pennsylvania
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Council members and staff spent the bulk of a special meeting on an initial review of the borough's 2026 draft budgets, which show three separate deficits in the general, sewer and fire funds.
"We have a deficit of $71,001.77," Jen, borough staff, told council when presenting the general fund figures, and later cited a $75,007.13 shortfall in the sewer fund and a fire fund deficit of just under $35,000. Jen also told council capital reserves could be drawn down by about $230,000 if planned projects proceed.
Why it matters: staff said several cost increases outside council's immediate control are driving the gaps. Jen noted the sewer authority is planning an 11% rate increase that would add roughly $110,000 in expense to the borough next year. Council members also flagged a jump in health insurance budgeting from about $587,000 in 2025 to $672,000 in 2026 and a multi-year increase in workers' compensation costs tied to a documented workplace injury.
How council could close the gaps: members discussed trimming the borough's paving allocation (from a $500,000 line toward roughly $350,000), modest increases to user fees, or limited millage changes within borough code limits. Jen said each $1 increase in sewer billing would generate a little over $30,000, while each $1 increase in the quarterly trash fee would produce about $8,000. The borough's general millage could rise up to the 30‑mill statutory cap; staff estimated a half‑mill increase would raise about $20,000. The fire tax cap is 3 mills (currently 2.25), and raising it to 3 mills would roughly cover the fire fund shortfall.
Council members emphasized tradeoffs. Several said cutting paving would delay maintenance on streets already identified as priorities, while others noted residents had previously told the borough they prefer preserving current services even if taxes rise. On that point one council member said, "I hate to see us continue to defer maintenance on our roads because we do have roads that are getting behind."
Next steps: the finance committee and staff will prepare a budget draft for a vote next week to advertise the budgets for public review and a December final vote. Council asked residents and committee members to review the draft and submit line‑by‑line suggestions to the finance committee before the next meeting.
"We have a deficit of $71,001.77," Jen, borough staff, told council when presenting the general fund figures, and later cited a $75,007.13 shortfall in the sewer fund and a fire fund deficit of just under $35,000. Jen also told council capital reserves could be drawn down by about $230,000 if planned projects proceed.
Why it matters: staff said several cost increases outside council's immediate control are driving the gaps. Jen noted the sewer authority is planning an 11% rate increase that would add roughly $110,000 in expense to the borough next year. Council members also flagged a jump in health insurance budgeting from about $587,000 in 2025 to $672,000 in 2026 and a multi-year increase in workers' compensation costs tied to a documented workplace injury.
How council could close the gaps: members discussed trimming the borough's paving allocation (from a $500,000 line toward roughly $350,000), modest increases to user fees, or limited millage changes within borough code limits. Jen said each $1 increase in sewer billing would generate a little over $30,000, while each $1 increase in the quarterly trash fee would produce about $8,000. The borough's general millage could rise up to the 30‑mill statutory cap; staff estimated a half‑mill increase would raise about $20,000. The fire tax cap is 3 mills (currently 2.25), and raising it to 3 mills would roughly cover the fire fund shortfall.
Council members emphasized tradeoffs. Several said cutting paving would delay maintenance on streets already identified as priorities, while others noted residents had previously told the borough they prefer preserving current services even if taxes rise. On that point one council member said, "I hate to see us continue to defer maintenance on our roads because we do have roads that are getting behind."
Next steps: the finance committee and staff will prepare a budget draft for a vote next week to advertise the budgets for public review and a December final vote. Council asked residents and committee members to review the draft and submit line‑by‑line suggestions to the finance committee before the next meeting.
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