BELLEFONTE — Bellefonte Borough Council approved their tentative budget this week, and it is now available to the public.

After weeks of previewing individual funds, council reviewed its remaining accounts during Tuesday’s work session before releasing the budget for public inspection on Friday.

The final accounts reviewed by council included the Bulk Water, Capital Projects and General funds. All other accounts were previewed at earlier meetings and previously reported by The Express. Those stories are available at www.lockhaven.com.

The tentative budget is available online at www.bellefonte.net and at the borough office, 301 N. Spring St. A public hearing on its contents will be held during council’s Dec. 15 meeting, where adoption of an updated tax ordinance and schedule of fees will also be considered.

GENERAL FUND

“This is the big one,” Bellefonte’s Financial Director Lori McGowan said, noting that the fund encompasses most administrative costs as well as the borough’s various authorities, boards and commissions.

“This is not a balanced budget, however, Dave (Pribulka, interim borough manager,) and I sat down today to try to brainstorm a little bit,” said McGowan. “We always say that we’re going to have a shortfall, and 99 percent of the time we don’t… so Dave and I talked, and we’re comfortable with letting that shortfall be there and making sure that we have enough revenue and that our expenses are low enough next year to cover that.”

She said that any deficit could be covered with reserves if necessary.

Across the borough, several revenue streams are declining. Parking revenues are one example.

“I have been tracking them, and they are definitely going down each year. To the point that we’re not predicting very much in parking fine revenue for next year,” McGowan said.

Councilwoman Debra Cleeton noted that local services tax revenue has also decreased, by about $50,000, reflecting roughly 100 lost jobs.

“That and the earned income tax has been going down,” McGowan agreed.

Councilwoman Joanne Tosti-Vasey and Pribulka suggested that retirements are likely a driving factor, but the exact cause of declining employment remains unclear.

Despite the losses, the subtotal of revenues is projected at about $3.2 million. Accounting for transfers and reserves, the borough’s total revenues are approximately $3.65 million.

Expenses are expected to reach $3.9 million, leaving the borough with an estimated $265,000 deficit.

Major components of the fund include the addition of a new staff member who will split their time between streets and refuse.

There is also money to renew taser and radio leases for the police department expiring in 2026.

McGowan said she made some assumptions regarding the borough manager position.

“I don’t know that my assumptions are right, but I had to go with something,” McGowan said, noting she assumes the borough will employ an interim manager through March 2026.

Earlier this fall, council discussed shuttering the 301 N. Spring St. fund, which is a change also reflected in the budget.

Pribulka then touched on anticipated electricity cost increases, noting that distribution costs are not rising. He expects overall costs to increase closer to 75 percent rather than the previously feared 100 percent.

BULK WATER FUND

About half of Bellefonte’s roughly $120,000 in annual bulk water sales is deposited into this fund, which is used to cover waterfront expenses and match grants.

Consistent with assurances to residents that no tax dollars would be used to fund or maintain the waterfront, the project’s loan continues to be paid from the account and is expected to be retired in 2030.

McGowan said, “This kind of has a little bit of everything, but it is a balanced fund.”

Included in the account are $4,000 for a rapid flashing beacon, funds to cover repayment of approximately $15,000 in CDBG funds, $10,000 to finance a feasibility study for an accessible walking trail on S. Potter St., $30,000 for a railroad spur and a $34,550 donation to the Nittany Valley Joint Recreation Authority for the Kepler Pool. The fund also supports contributions to the Spring Creek Watershed, Keystone Water Resources and the Chamber of Business and Industry of Centre County.

$165,000 is earmarked for a traffic light at the intersection of Parkview and Zion Road, with a potential $100,000 in funding from a liquid fuels grant. Half of that project’s cost is expected to come from the Capital Projects fund.

The fund also includes the Section 902 Recycling Program Development and Implementation Grant, which serves as both an expense and a source of revenue for the borough.

At the meeting, Councilmember Doug Johnson proposed an alternative use for the grant, which is supporting the compost facility. Revisiting the nearly $50,000 boom mower requested by Public Works Superintendent Matt Auman, Johnson suggested the grant could be used to fund the purchase in 2027.

“I’m not supporting $49,500 for a boom mower, at least not this year,” Johnson said. “If we could get some 902 grant money to fund it, I would probably support that.”

Council President Barbara Dann said she supports the purchase, noting it has been repeatedly requested and would save time while improving safety for public works staff.

“I think it’s a very important part of our budget,” said Dann in support of keeping the mower in the budget, noting it could be rented to other nearby municipalities to recoup the expense.

CAPITAL PROJECTS FUND

Within the Capital Projects Fund is money to complete a number of projects around the borough.

McGowan noted this particular fund won’t be finalized until the borough authority meets to decide whether it will use any of its reserves, but that it is otherwise complete.

Major changes to the fund include the addition of the borough’s forklift and service truck, which were previously part of the streets fund.

In terms of expenses, $25,000 had been budgeted to survey roads, but that was reduced to about $10,000 after the interim borough manager suggested an AI-based alternative could save money.

“We can comfortably reduce that to $9,500 and still pursue this solution if there’s interest,” Pribulka said.

The fund also sets aside $50,000 for new roofing on part of the 236 W. Lamb St. property.

After voting to approve the tentative budget, Pribulka thanked council, staff and McGowan for their hard work, taking extra time to commend the financial director on her work ethic.

“I can honestly say, having worked with her on this, she’s developed this budget with a deep commitment to being fiscally responsible and each dollar has been vetted against priorities that have been established by council and weighed against the needs of the borough to continue its exemplary public service delivery,” said Pribulka.