Franklin Park's 2021 budget balanced with cash reserves

Franklin Park council has approved a budget for 2021 that maintains public services and funds building, road and stormwater improvement projects without the need for a tax increase.

The $11.44 million spending plan will be balanced with about half of the $3.15 million in money left over from this year’s budget to make up for revenue lost because of the coronavirus pandemic.

“The borough’s present financial position will allow Franklin Park to fund the current level of services being provided, the initiatives established by council and the mayor and many of the additional services recommended by the department directors without any change in the tax rate,” manger Rege Ebner wrote in his budget address to council.

The unchanged 1.29 mill tax rate means the owner of a property with an assessed value of $100,000 will continue to pay $129 a year to fund borough operations.

Council voted unanimously at its Dec. 16 meeting to approve next year’s budget.

Revenue from the 1% earned income tax on residents’ wages, which is split with the North Allegheny School District, is expected to be about $4.5 million. It is the largest source of income for the borough and funds 46.7% of the budget.

The real estate tax is expected to generate about $2.225 million next year. The money collected covers about 23% of the budget.

While revenue from the real estate tax held steady this year, several other taxes suffered because of the pandemic shutdown.

In 2019, the tax paid on real estate transfers brought in nearly $663,000. But that amount dipped by 17% this year to $550,000 because of the disruption in home sales caused by the statewide pandemic shutdown.

Fees from public safety services brought in more than $362,000 in 2019. This year, less than $190,000, or 47.5% less was collected.

Fees for recreation programs also took a big hit because of the pandemic.

Last year the borough made more than $253,000 from the fees. This year, it dropped to $145,300, a decrease of 42.6%.

In addition to using cash reserves to make up for this year’s revenue losses, council agreed to add more than $1.9 million to the general fund for capital projects. Of that, more than $1.48 million will be used for planned improvements at Acorn Park, which also is receiving funding from the state.

Other projects that will be paid for with money in the general fund include:

• $100,00 to cover the borough’s share of the cost of upgrading traffic signals along the Interstate 79 and Route 910 corridor.

• $956,600 for street paving and curb replacement.

• $344,900 for the Northland Library, which represents an increase of 6.2% over this year.

• $65,000 to conduct an inventory of the borough’s stormwater control system and develop a plan to comply with federal requirements to reduce pollution in local waterways.

• $30,000 to help fund the McCandless-Franklin Park Ambulance Authority.

• $40,000 for a consultant to update the borough’s comprehensive plan.

The borough also will add $1.9 million to the $506,000 already in the capital reserve fund to cover the following purchases and projects:

• Addition to the public works building to create more indoor storage space.

• Replacement of two police vehicles.

• Replace several pieces of equipment used by public works.

• Installation of new sidewalks.

• Stormwater detention facilities along Montgomery Road and Nevin Drive.

• New fencing at ballfields in the borough.

• Completion of the pickleball and basketball courts at Blueberry Hill Park.

• Replacement of park equipment.

• Installation of a rain garden and walkway at the Lenzner-O’Keefe Pavilion and additional parking at Linbrook Park.

The borough expects to end 2021 with about $1.7 million in cash that will be used to cover expenses for the first several months of 2022 before residents pay their taxes.