Summary of General Fund Budget Process
The 2020 Draft General Fund Budget was developed by the Finance Committee of Steelton Borough Council in consultation with the Borough Manager, Assistant Secretary-Treasurer, departmental staff and consultants. The process for developing the budget was as follows:
Staff Level Budget Meetings
Borough Manager and Assistant Secretary Treasurer met with Department Heads to review “Wish List” budgets including all desired capital and operational expenditures requested in the 2020 budget. Borough Manager and Assistant Secretary Treasurer met with Department Heads to review “Wish List” budgets including all desired capital and operational expenditures requested in the 2020 budget.
August 26th Police and Codes Departments
August 27th Highway and Sewer Departments
August 28th Fire and Emergency Management Departments
Departmental meetings were used to compile a draft initial budget that included all desired expenditures. This budget was presented to the Finance Committee for review and represented a large deficit due to the budget including all desired personnel, capital purchases, and capital projects.
Publicly Advertised Finance Committee Meetings
September 12th – Review of Wish List Budgets with Department Heads – Each Department Head met directly with the Finance Committee to review and make a case for their budget requests as well as discuss areas in which they could cut their budget.
WISH LIST BUDGET DEFICIT: -$494,072 (this deficit was after eliminating debt service due to water system sale)
October 9th and 16th – Review and Discussion of Cuts to Balance Budget Cuts agreed upon by the Committee, in consultation with staff, included:
- NEW POLICE VEHICLE – Purchase moved to 2019 utilizing savings realized form defeasance of 2019 debt service. Prevents expense from hitting 2020 General Fund Budget.
- DUPLICATE PATROL OFFICER CORRECTED: Removed errant duplicate of patrol officer wage from Patrol Officer Wages line item due position also being reflected in new Corporal Wages line item.
- REMOVED FIRE TRUCK LOAN DEBT SERVICE: Due to Council decision to include paying off 2017 Pierce Fire Rescue-Engine in recent debt defeasance.
- REMOVED ADDITIONAL PART-TIME PROPERTY MAINTENANCE OFFICER POSITION
- NEW STREET SWEEPER – Purchase moved to 2019.
- REMOVED GRASS CUTTING SERVICES FOR 2020 – PW to assume responsibility.
- REDUCED CEO WORK SCOPE – Reduced to three days per week due to proposed 2020 price increase.
The above cuts resulted in a budget surplus of $61,665 reflected in the Transfer to Reserves Line Item.
October 23rd – Vote to Recommend Budget to Steelton Borough Council Committee voted unanimously to recommend budget to Steelton Borough Council.
Publicly Advertised Council Meetings
November 4th – Council Votes to Lay Budget for Public Inspection: November 5th – December 6th: 30 Day Public Inspection Period
December 16th, or Sooner by Special Meeting,: Formal Consideration and Adoption: Council considers passing budget appropriations ordinance and tax ordinance including eliminating debt service tax in 2020.
KEY COMPONENTS OF BUDGET:
- Eliminates Debt Service Tax = Tax Reduction
- General Tax Millage Remains Same
- Saves capital projects/expenditures for separate Council action utilizing capital reserve funds from water sale
- No employee cuts