Manager’s Budget Message
Overview
Daniel L. Penatzer, Borough Manager of Ebensburg, Pennsylvania, submitted the 2019 Operating Budget to Mayor Datsko and the Borough Council on October 22, 2018. The budget is designed to comply with the Borough Code and Commonwealth of Pennsylvania requirements, aiming for strong financial management and continued growth.
Financial Summary
The 2019 Operating Budget projects total revenues of $6,036,770 and expenditures of $5,927,480, resulting in a total surplus of $109,290. This marks the 9th consecutive year without a tax increase for general purposes.
Fund Breakdown
The budget is managed within a single operating fund but includes snapshots for specific operations:
- General Fund Budget:
- Revenues: $2,207,270
- Expenditures: $2,149,200
- Surplus: $58,070
- Water Fund Budget:
- Revenues: $1,670,500
- Expenditures: $1,651,970
- Surplus: $18,530
- Wastewater Fund Budget:
- Revenues: $1,933,000
- Expenditures: $1,900,310
- Surplus: $32,690
- Stormwater Fund Budget:
- Revenues: $226,000
- Expenditures: $226,000
- Surplus: $0
Budget Increases and Drivers
The overall 2019 Operating Budget represents a 5. 5% increase from 2018 levels. Specific increases include:
- General Fund (6. 8% increase): Driven by one additional staff position, higher personnel costs, additional police expenses, contractual garbage increases, higher insurance premiums, and corrections to unemployment insurance calculations. Additionally, $99,200 in liquid fuels subsidies for street resurfacing will be received.
- Water Fund (7. 0% increase): Due to increased personnel and insurance costs, scheduled debt service increases, and higher costs for chemicals, supplies, and maintenance.
- Wastewater Fund (3. 3% increase): Due to increased personnel and insurance costs.
Basic Policies
The Borough has established several key policies for the 2019 budget:
- Taxation: No increase in real estate tax rates for day-to-day operations; a two-tier real estate tax will be maintained.
- Revenue: Revenues will be estimated conservatively.
- Borrowing: Borrowing is minimized and reserved for capital expenditures only when current funds are insufficient.
- Service Levels: Existing levels of service shall be maintained.
- Self-Sufficiency: Program fees for specialized services (swimming pool, tennis center, YPCC) will be set to cover expenses, with self-sufficiency as the optimal goal.
- Maintenance: Adequate funds will be budgeted to maintain assets and minimize future repair costs.
- Capital Reserves: Departments will contribute to Capital Reserves for vehicle/equipment replacement and facility improvements.
Conclusion
The budget is presented as a reliable financial plan that maintains key services within financial constraints. The Borough aims to provide high-quality service in a cost-effective manner while protecting public finances and ensuring accountability.