Churchville council weighs 1.5-mill tax option as sewer fund and paving needs loom

Churchville borough council spent the bulk of its Nov. 4 workshop reviewing next year's budget options, including a proposal to raise the real-estate millage by up to 1.5 mills and separate actions to address a long-underfunded sanitary-sewer fund and deferred capital work.

Staff and finance committee members presented two basic budget paths: a no‑tax-increase scenario and a plan that contemplates a 1.5‑mill increase. Committee members stressed that operating revenues and capital needs are diverging, noting rising repair costs for roads and sewer infrastructure and the higher prices of materials such as asphalt.

Council members described a large backlog of capital projects. Staff provided an "ideal" list of stormwater and road projects that council estimated would total more than $8 million. Council discussed financing options to address that gap, including borrowing. Staff noted a taxable bond typically is used for projects above roughly $1 million, while loans can be structured for smaller sums.

Council members debated tradeoffs between using a millage increase to maintain basic operations and using borrowed funds to accelerate capital projects. One council member said the finance committee recommended a 1.5‑mill increase to stabilize operations; another council member said she was not personally recommending a 1.5‑mill increase and emphasized the proposal was newly introduced at the workshop.

In discussion of reserves, staff reminded the council about the borough's existing reserve policy (an 18% target adopted in recent years) and the need for sufficient beginning balances so the borough can pay essential invoices before tax receipts arrive in January.

Council asked staff to advertise a 2025 budget open house on Nov. 13, 2024, 6–7:30 p.m., at the borough building so residents can review budget options and provide input. Council voted to direct the borough manager to advertise that open house; the item will appear on a future regular meeting agenda when formal ordinance or resolution language is prepared. Staff noted that if council ultimately increases the real-estate tax rate, that change must be adopted by ordinance; if there is no rate increase, a resolution is sufficient.

Council also discussed non‑tax revenue strategies, including moving borough funds to a different bank to earn more interest, and longer-term debt options to sequence capital work and avoid emergency repairs.

The workshop did not adopt a final budget or set a tax rate. Council directed staff to advertise the open house, continue outreach, and return to the regular meeting with ordinance or resolution language and refined numbers.