The discussion revealed that a significant cause for the increased budget is the jump in interest rates on temporary bonds from 2% to around 9%, leading to higher debt service costs. To mitigate this impact, the council is planning to buy down approximately $130,000 of the debt this year, which is expected to save a considerable amount in the long run. The decision to increase the budget by nearly $1 a day for the average household was described as a necessary step to maintain the borough’s services and small-town character.

In addition to managing debt, the council expressed concerns about the borough’s ability to compensate employees fairly. The council acknowledged that many employees are not paid commensurately with the work they do, especially when compared to other municipalities and considering recent inflationary pressures. The council has made adjustments to employee compensation in this year’s budget to address this issue.

Furthermore, the council discussed the impact of delayed openings of new businesses on anticipated revenue and the loss of revenue from various sources, including certain property taxes. Despite these financial setbacks, the council is committed to fiscal management, including the possibility of leveraging certain fiscal opportunities in 2027 when a substantial amount of bonded debt is scheduled to be paid off.