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Borough reports sharp drop in delinquencies, moves to cap insurance exposure and advertise retirement-option ordinance
Summary
Council heard a treasurer's report showing delinquent balances falling from about $1 million in February to roughly $140,000, approved a one-time insurance payment approach to cap future overages, and authorized advertising an ordinance to let nonuniform employees increase voluntary PMRS contributions.
The borough committee heard a finance update Tuesday showing a marked reduction in delinquent accounts and approved steps to limit short-term insurance exposure as staff continue work on next year's budget.
The treasurer (Speaker 4) told the panel that cycle 2 billing went out Nov. 1 and that the borough's delinquency rate had fallen to about 15 percent from 24 percent the previous quarter. "From February, there were over $1,000,000 delinquent and now we're down to $140,000," Speaker 4 said, a decline council members called significant.
Why it matters: lower delinquencies improve operating cash flow and reduce pressure on reserves as the council finalizes 2026 budget priorities. Finance committee members said ongoing work includes requests from fire and EMS on possible millage adjustments and a review of the lighting specialty tax, which currently does not cover lighting costs.
Insurance and a one-time payment: Council discussed an insurance provision that would require a $37,000 payment now to avoid responsibility for claims above current levels after Jan. 1, 2026. Speaker 3 outlined trade-offs, saying the new insurer has offered roughly $50,000 in first-year savings (a $20,000 immediate discount plus $30,000 spread over 12 months) that would largely offset the up-front payment. Speaker 5 said finance recommended making the $37,000 payment to avert future overage charges.
Infrastructure update: Public works reported progress on a wastewater digester lining project. Speaker 3 said the interior lining is complete, chopper-pump nozzles are staged for installation, glass-lined piping is en route via LB Water, and associated electrical conduits are being installed. A roof component for the system is expected to arrive from Austria in December.
Pension advertisement: The council voted to advertise an ordinance (20-25-12) that would allow nonuniform employees to voluntarily contribute up to 20 percent of pay into their PMRS retirement accounts; the borough would not match those additional contributions. The ordinance will be advertised for public notice and brought back for formal approval at the Nov. 17 meeting.
What comes next: Finance staff will continue refining the 2026 budget, including potential millage recommendations and specialty-tax adjustments. The advertised pension ordinance will return for a vote on Nov. 17. Public-works staff said digester installation activities and the insurance procurement timeline will be reported in subsequent meetings as components arrive and invoices are finalized.
