The borough assembly approved a budget for the fiscal year that started last Friday similar to past years — no increase in property tax or sales tax rates, and with more than half of the total spending going to the self-supporting operations of sewage, water, garbage, electricity, port and harbors services.
The budget approved by the assembly June 28 includes more than 20 repair, maintenance and improvement projects across the borough and in several departments, including:
Repairs and maintenance at the schools, recreation center and pool, including new exterior siding at the rec center/pool building.
Replacement of the fire alarm system at the high school, middle school and pool.
A new elevator at the high school.
Power distribution upgrades at the borough’s standby diesel-fueled power plant.
Cemetery expansion.
Mount Dewey trail extension.
A larger emergency power generator at the Nolan Center.
Rebuilding the main pavilion fire pit at City Park.
Installation of video surveillance cameras at the port and harbors
A new electrical-use metering system that will allow reading the data remotely.
A combination of state and federal funds, borough general funds and directed revenues from the self-supporting operations will pay for the work, much of which is still in the design stage. The budget year runs through next June 30.
The assembly in recent months approved rate increases for water, sewage and trash services to cover rising costs, needed improvements and help build reserves for pending large-ticket costs such as a new water treatment plant.
Besides for the electric utility, port and harbors budgets, the borough’s contribution to schools, at $1.617 million, is the single largest municipal expenditure in the overall $22 million budget. The borough contribution for the school district’s 2022-2023 operating budget is the highest ever, an increase of $300,000 over recent years.
Sales tax revenues and federal money pay for the borough’s school funding.
Though the sales tax rate has not changed in more than a quarter-century, “sales tax revenue has consistently increased year‐over‐year,” moving up an average of 4.4% a year 2017 to 2021, according to the budget report presented to the assembly. Sales tax revenues hit a record $3.3 million in the fiscal year that ended last Thursday, with the new budget based on the same $3.3 million, though the budget presentation said that revenue estimate is conservative.
In addition to the return of visitor spending after the past two years of pandemic-inflicted travel restrictions, high consumer prices are generating higher sales tax revenues for the borough.
The only vote against the budget last week came from Assemblymember David Powell, who later explained he opposes the borough’s $10,000 contribution to radio station KSTK. The station should be treated the same as any business in town, none of which receive financial donations from public funds, he said
Powell said he objects to the borough’s $27,000 contribution to the chamber of commerce for the same reason.
He had tried at an earlier assembly meeting to convince his colleagues to delete the KSTK money but failed to win their support.
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