Council hears year‑end finance report; approves Feb. 4 check warrant

Councilman Gary Herbert said the borough’s financial review as of Dec. 31, 2025, shows the general fund is down about $1.4 million year‑over‑year, which he attributed to the absence of ARPA funds and lower‑than‑expected tax revenue. He added sewer revenue fell by roughly $1.3 million, in part because Merck temporarily shut down operations, while parks revenue was up about $220,000. Herbert said expenditures in the sewer department have decreased, leaving the sewer fund net down approximately $556,000.

Herbert told council the 2024 audit is near completion, with auditors having accepted more than 75% of the submitted work; staff aims to close the audit by the end of the month and begin work on 2025. He said the borough currently holds about 4.5 months of unassigned fund balance and that the highway fund shows a $2.2 million surplus after late‑arriving funds.

During follow‑up, a council member pressed Herbert on earlier statements about reserve levels. Herbert clarified the $13.8 million figure he cited referred to projected cash spending over the next 12 months to complete planned projects and operations, not that reserves were “squandered.”

Council voted to approve the check warrant dated Feb. 4, 2026, after Councilman Herbert made the motion; the motion was seconded and approved with all members saying “Aye.”

Next steps: staff will finalize the 2024 audit and continue budget work for 2026; additional budget documents and requests for a mid‑year audit were raised during public comment and will be discussed by the borough manager and the admin/finance committee.