Phoenixville borough manager E. Jean Krack outlined the broad contours of the borough’s 2013 draft budget during the council’s November 13 monthly meeting.
Krack emphasized that the figures are preliminary as a “number of factors impacting” the general fund, water fund, waste water fund, and sanitation fund still must be addressed.
The budget will be available for public review on November 19.
- Krack said the general fund is expected to pull in $7,973,055 in revenue against $8,020,161 in expenditures for a shortfall of $47,106. This marks a 1.3 percent increase and could cause a millage hike from 5.25 to 5.32.
- The water fund is estimated to provide $3,327,055 in revenue against 3,315,716 in expenditures for a surplus of $12,046. Water rates could remain at $6.80 per 1,000 gallons of usage.
- The waste water fund is expected to bring in $2,626,075 of revenues against $2,620,387 for a total surplus of $5,867. Waste water rates could remain at $5.15 per 1,000 gallons of usage.
- The sanitation fund is expected to provide $1,635,758 in revenue against $1,566,322 in expenditures for a profit of $32,853. The trash fee for 2013 should, accordingly, remain at $74 per quarter.
Krack added that the borough will also have to shoulder salary and wage increases in 2013. Uniformed union employees will get a 3.75 percent raise, non-uniformed union employees will get a 2 percent raise, and non-union, non-uniformed, full-time employees will see a 2 percent raise as well. Krack said the finance committee has also recommended several salary adjustments for other employees.
As for new hires, Krack said the borough expects to fill the 28th police officer position in 2013 and will also, in all likelihood, add another administrative/finance employee.
The draft budget allows for two capital purchases: two new police cars and a pickup truck with a utility cover. Additionally, the finance committee is establishing a vehicle replacement program that will require annual funding, starting in 2013.
Krack added that the borough will face debt servicing payments of $572,850 in 2013—$280,000 principal and $292,850 in interest—and provided updates on the borough’s pension funds. The police fund has a balance of $8,862,379 as of October 15 while the non-uniform fund has a balance of $7,765,293.