BELLEFONTE — Bellefonte Borough Council unanimously approved a $16 million budget this week that keeps tax rates mostly steady while slightly increasing funding for emergency medical services.

The 2026 budget keeps taxes at their current levels across all categories except EMS, which will rise by one-tenth of a mill, to 0.50 mills. The income will be used to modernize vehicles and medical equipment, improve recruitment and pay for EMS professionals and maintain 24/7 emergency service coverage for the borough.

Scott Rhoat, chief and executive director of Bellefonte EMS, called the increase a “modest contribution for a service that provides immediate, life-saving care to your community.”

For 2026, the borough will assess an overall millage of 19.435 mills.

In 2025, the average market value of a single-family home in the borough was $301,393, with an assessed value of $53,607.75. That equates to an average borough tax bill of $1,041.87, which is up $5.36 from last year.

Real estate millage in the borough will remain at 15.155 mills, with revenue supporting the municipality’s general fund.

Allocations in the 2026 budget include $4.183 million to the General Fund, $126,000 for Street Lighting, $281,000 for Fire Department Operations and $113,000 for Fire Department Equipment; $1.83 million for Water and $4.014 million for Sewer; $1.399 million for Refuse; $2.787 million for Special Projects; $299,000 for Liquid Fuels; $48,000 for EMS; $222,000 for Capital Projects; and $552,000 for Bulk Water.

While borough officials have described the budget as “balanced and lean,” it draws from nearly $400,000 in unrestricted reserve funds to achieve that balance. That money comes from surpluses accrued over time and parking fee revenue, according to Interim Borough Manager David Pribulka.

In a letter accompanying the budget, he said it is common for municipal budgets to show deficits on paper and require reserves to balance, and that revenues and expenditures often align as the fiscal year progresses, reducing or eliminating the need to use reserve funds. Multiple factors contribute to this, including deferred expenditures, higher-than-expected revenue and operational efficiencies.

To illustrate his point, he pointed to the borough’s 2025 budget. Although more than $200,000 in fund balance had been budgeted to cover a projected deficit this year, none is expected to be used, and instead the borough will see a small surplus of about $12,000.

“This is not to suggest there are no signs of concern. Operational cost increases continue to outpace revenue growth by a wide margin,” Pribulka said. “Inflationary pressures have increased the borough’s cost of doing business and made it difficult for revenue growth without overly burdening residents who face increasing expenses to maintain their quality of life and operate their businesses.”

In 2026, the borough’s electricity costs are expected to nearly double following the expiration of a favorable multi-year supply contract. Since the contract was signed in 2021, utility prices have risen sharply and become increasingly volatile, in part due to the proliferation of AI data centers.

Healthcare costs have also increased, by 14.4 percent, which represents the second consecutive year the borough’s healthcare-related expenses have seen double-digit increases.

Pribulka said this is largely due to utilization of health insurance and market pressures, like volatility, in the prescription drug and reinsurance markets.

While borough employees share in the cost, most is paid from the General Fund.

“Efforts should continue to be made to close any structural or operational deficits, with prudent planning for revenue growth and sustainable capital outlays,” Pribulka told council. ” I cannot emphasize enough how difficult it is to make these investments in the operational and capital needs of the borough while still being mindful of the impacts on household budgets.”

There are two notable changes in the format of this year’s budget.

At the urging of Pribulka and Financial Director Lori McGowan, the 301 N. Spring St. Fund has been incorporated as a sinking fund within the General Fund account.

“This will allow for ease of accounting while still permitting the encumbrance of lease revenue to be used for building operation and maintenance, as well as the accrual of a sinking fund balance year-to-year,” he said.

The other change relates to negative expenditures, which have been moved to the revenue side of the ledger. Pribulka said that change is most evident in police expenditures from the General Fund, where reimbursements for special details, including the DUI task force and Penn State special event support, were historically accounted for.

This creates the illusion that police expenses have dramatically increased, but Pribulka emphasized that there is no change to the bottom line.

Despite the retirement of high-level borough management, including Borough Manager Ralph Stewart and Assistant Borough Manager Don Holderman, Pribulka said council’s vision and investment in staff allowed the team to achieve many of the goals outlined in the 2025 budget.

Those accomplishments include paving streets and replacing critical sewer and water infrastructure, developing a “Complete Streets” policy, allocating additional resources to the police department, supporting local volunteer fire and EMS services and advancing the Big Spring cover replacement, the Talleyrand Park stage, Kepler Pool rehabilitation and ADA access to the Talleyrand Train Station.

Many of these projects are expected to conclude in the upcoming year.

To view Bellefonte’s finalized budget in detail, visit bellefonte.net/wp-content/uploads/2025/12/2026-Budget-Book-Final.pdf.