BELLEFONTE — As the new year approaches, the Bellefonte Borough Council has begun financial planning for 2025, approving its Tentative Budget for the year at the Dec. 2 council meeting.

The proposed budget includes a 0.92-mill increase, bringing the total millage in the Borough to 19.185 mills, or approximately 19.19 cents per $100 of assessed property value.

The council hopes to use the budget to advance the goals developed in their 2021 Strategic Management Plan. These objectives include increasing revenues for long-term financial sustainability, developing a comprehensive long-term financial plan, improving operational efficiency within the borough and promoting environmental sustainability.

The increased taxes, if adopted in the final budget later this month, would support the operating fund for the Fire Department, street lighting initiatives, parks and recreation and Emergency Medical Services.

Because of the community’s limited tax base, there are certain challenges associated with maintaining and expanding government services within the Borough.

“Bellefonte Borough is honored to be the County Seat and laid out like a small city,” wrote Borough Manager Ralph Stewart in the budget’s foreword. “This honor comes with a high percentage of non-taxable real estate including county buildings, school buildings, parks, cemeteries, libraries, post offices and fire houses. With little room for new homes that bring increased real estate revenue and new wage earners (who move into the new homes), Bellefonte Borough has a real financial struggle in maintaining the same level of services each year without a millage rate increase.”

During the 2022 annual budget preparation process, staff adopted a priority-based budgeting strategy. While initially confusing and time-consuming, Borough Manager Ralph Stewart noted that staff refined the process throughout 2023 and 2024 by incorporating data visualization and charts to highlight top spending areas for each fund.

This approach focuses on evaluating the relative importance of individual programs and services rather than addressing budget concerns at the departmental level. The goal is to ensure that higher-priority projects and services retain funding while achieving cost savings by reducing service levels, divesting or eliminating lower-value offerings.

This philosophy emphasizes reexamining past spending practices, committing to fiscal responsibility within the borough’s means and fostering transparency about community priorities. By assessing the impact and holistic costs of services, residents can better understand how and why funds are allocated.

This year’s budget proposes using approximately $168,000 of revenue from 2024 to balance the 2025 General Fund Budget and to maintain the same level of services in 2025.

No tax increase was proposed for the Borough’s General Fund, which will remain at 15.1555 mills, equating to $3,784,210.

There are also no proposed increases to the Bellefonte Fire Department’s Equipment Fund. The millage will remain at 0.36 mills, generating an expected $101,390.

“There are a couple places where we’re looking at some increases,” said Stewart

The tentative budget indicates taxpayers could see a 0.12-mill increase for the Fire Department’s Operating Fund and a 0.05-mill increase for the Street Lighting Fund. This would bring the budgets to an estimated $250,925 for the Fire Department’s Operating Fund and $109,045 for street lighting projects.

Also proposed was a $4 per quarter increase in the refuse utility fee.

The tentative budget additionally includes a 0.20-mill increase for the Parks and Recreation Fund.

“That’s to try to provide some winter maintenance for the walkways, which we have not done in the past,” Borough Manager Ralph Stewart explained. The additional funding would enable the borough to afford winter maintenance for the Waterfront walkway, an identified need.

Councilmembers also approved modifications for two additional proposed budgetary changes.

One request involved increasing Public Transportation funding by $35,000 for 2025 to help ease the borough’s transition away from Centre Area Transportation Authority (CATA) services.

Although the tentative budget initially proposed raising the millage by 0.35 mills to cover the cost, Councilmember Joanne Tosti-Vasey suggested using available reserve funds instead, a motion that was approved in a five to three vote.

“We’re still in the process of trying to figure out exactly how to move forward, but we think it’s really important to keep money in the budget to maintain at least the service we are getting now, but have the possibility to fund the expansion if needed,” said Councilmember Debrorah Cleeton, who noted opportunities to enhance existing transportation services in the area and improve public accessibility, while stressing the importance of reserving additional funds to support those improvements if needed.

Councilmember Doug Johnson, however, raised concerns about using reserve funds for some expenses while increasing taxes for others. “If you’re going to use reserve funds, let’s take another look at the budget,” Johnson said, suggesting that, for example, winter maintenance might have been addressed similarly.

“Unfortunately, I don’t agree with the additional money for public transit,” he said. He was joined by Council President Kent Bernier and Randy Brachbill in voting no.

The other change to the Tentative Budget approved by the council was a further increase to the millage hike proposed to support EMS services.

Earlier, the Bellefonte EMS Chief Scott Rhoat submitted a letter to the borough requesting that 0.5 mills be allocated to EMS services.

“He proposed that all the participating municipalities contribute 0.5 mills, and we’re obviously struggling to reach that goal,” Borough Manager Ralph Stewart explained.

Councilmember Barbara Dann, however, felt that the planned 0.05-mill increase, which would bring the municipality’s support to 0.30 mills, was insufficient. She motioned to increase the real estate tax line item to 0.40 mills, a 0.15-mill increase, and the motion was adopted.

“I think EMS is another (service) that has been completely underfunded,” said Dann. ” When I started council, I had no idea it was this poorly funded countywide.”

There are no changes being considered for the Special Projects Holding Fund, Liquid Fuels/Highway Aid Fund, Capital Projects Fund, Bulk Water Fund or the 301 North Spring St. Fund, which manages the Armory building’s revenues and expenditures.

The adopted changes to the Tentative Budget will occur before the budget is made publicly available on Dec. 6. From Dec. 6 through Dec. 16, the Borough will allow for the required 10 day inspection period before acting on the budget.

On Dec. 10, the Borough will meet to consider any increase to water and sewage rates, which may also impact borough residents’ utility fees in the new year.

Prior to the adoption of the Final Budget at the council meeting at 7:30 p.m. on Dec. 16, there will be a Public Hearing and consideration of the adoption of any changes. Comments will be received and the proposed budget will be an action item on that meeting agenda

The formal comment period is now open. Any comments should be directed to the Borough Manager/Secretary, Bellefonte Borough, Ralph Stewart at 301 North Spring Street, Suite 200, Bellefonte PA, 16823 or rstewart@bellefontepa.gov.

The budget will be available online and paper copies will be available during normal business hours 8 a.m. to 4:30 p.m. Monday through Friday

The Borough is obligated by the Commonwealth to approve a balanced budget by Dec. 31 for the upcoming calendar year.