BELLEFONTE — It’s that special time of year when the leaves begin to change, sweaters come out of storage and local municipalities turn their attention to next year’s budget.

It’s no different in the Borough of Bellefonte, where budget season is officially underway. Leading the discussion at this week’s council work session, Financial Director Lori McGowan offered an overview of three funds, setting the stage for the budget deliberations to come.

The Streetlighting, EMS and Liquid Fuels funds were first up.

Streetlighting

In Bellefonte, most streetlights are owned and maintained by West Penn Power, but the borough covers the upkeep and electricity of its decorative lighting fixtures.

This year’s budget set aside $55,000 for decorative lighting upgrades, split between wages and materials. But those plans are on hold.

“With all the upheaval that we had this year, that kind of got put on the back burner,” said McGowan, who noted the delay may actually work in the borough’s favor.

“Our electricity bid runs out in November, and when we did a preliminary talk with (West Penn Power), they’re talking about doubling what we currently pay,” she said.

“We put the upgrades on hold, as we felt that was most prudent for next year,” said McGowan.

In her plan, the borough would redirect that funding toward covering potential electricity cost increases, with plans to revisit the project once rates are finalized. If rates come in lower, the savings will go back toward maintenance.

McGowan also emphasized there is no planned tax increase.

The contract with West Penn Power is expected to come before the board at an upcoming council meeting.

EMS

Scott Rhoat, chief and executive director of Bellefonte EMS, requested $50,626 for emergency medical services in fiscal year 2026. That equates to 0.5 mill — roughly $8.29 per resident or $17.70 per household — which Rhoat described as a “modest contribution for a service that provides immediate, life-saving care to your community.”

In her proposed budget, Financial Director Lori McGowan allotted the same amount to Bellefonte EMS as in fiscal year 2024, leaving council to decide whether to levy a tax increase.

“That will be a decision you have to make when we get closer to finalizing,” McGowan told council.

Council President Barbara Dann noted that last year’s discussion had considered raising the levy to its maximum.

“Of course we won’t decide anything right now,” she said, “but part of the discussion was to take that up to what I believe is our max, which is 0.5 mill.”

The investment would help modernize emergency vehicles and medical equipment, retain and fairly compensate EMS professionals — who currently start at $15 an hour — and sustain 24/7 emergency coverage for the municipality.

“Your partnership helps ensure that Bellefonte EMS remains ready — day or night — to respond at a moment’s notice,” said Rhoat. “Strengthening our current system is far more cost-effective and responsible than facing the burden of rebuilding after a collapse.”

Liquid Fuels

The Liquid Fuels fund is a highly regulated state allocation that supports maintenance and construction on locally owned roads, streets and bridges.

“So we are very careful what we spend it on,” said McGowan, explaining that the money is typically used for snow and ice removal, storm drains, paving and both major and minor equipment.

In preparing the budget request, Superintendent of Public Works Matt Auman provided a list of what he considered the borough’s top priorities for the coming year. In addition to the $100,000 set aside for the regular street paving project, $75,000 was earmarked for storm drains, many of which he said are collapsing, costly to repair or needed in problem drainage areas. McGowan noted that depending on the costs of plowing roads, less money may be available for issues like drainage.

On top of that, the budget included an additional $18,000 for a snow plow and salt spreader, as well as a $49,500 request for a boom mower to clear overgrowth along roadways — a line item that drew concern from members of council.

“I don’t see where we would use that thing so much that we’re going to spend $50,000 for it,” said Councilman Doug Johnson, suggesting the cost may outweigh the benefit to the borough.

The discussion prompted Councilwoman Deborah Cleeton to propose borrowing or renting similar equipment from a nearby municipality.

At the request of council, McGowan plans to speak with Auman about the necessity of the mower and potential alternatives.

Fiscal Year 2024 audit

Included in the council’s agenda packet was a memorandum summarizing the borough’s audit report for the fiscal year ending Dec. 31, 2024.

“As of Dec. 31, 2024, the borough’s financial position is strong — characterized by a healthy net position, solid reserves, manageable debt service and well-funded pension plans,” wrote Interim Borough manager David Pribulka and McGowan in the memorandum.

The borough ended 2024 with a net position of $39.7 million, a $3 million increase from 2023. Net position serves as an indicator of overall financial health, with year-to-year growth generally reflecting strong conditions. Calculated as the ratio of assets and deferred outflows to total liabilities and deferred inflows, it is comparable to net worth in personal finance.

“Challenges to this position include unanticipated capital needs, unfunded state mandates and the rehabilitation of aging infrastructure. On the revenue side, limited potential for new development and comparatively higher real estate millage constrain future growth,” said administrators, who added strategic planning will be critical, particularly in pursuing new revenue streams.