Youngsville Borough's proposed preliminary budget for fiscal year 2013 will not include increases in the property tax rate, borough earned income or local service taxes, but does include a tentative new recreation tax.
A proposed flat recreation tax of $120 per-year on each of the 817 property parcels within the borough would generate $98,040, bolstering general fund revenue and covering recreational expenses currently paid out of the fund. The tax has not yet been approved by borough council, but is included in proposed budget figures.
The borough's general fund revenue and expenditures zero out, both standing at $798,844.
However, $102,337 is tentatively budgeted to be transferred to capital reserve and contingency funds. Capital reserve spending on general expenditures totals $41,914, or $63,273 less than is being transferred. The fund is set to begin and end the fiscal year with an existing balance of $2,850. If the transfer were not made, the fund would end the year with a balance of $66,123.
The transfer will allow the funds to be used to shore up shortfalls in other accounts and provide for non-routine and unexpected expenses.
Total proposed general fund expenditures stand at $798,844.
The sanitation fund will begin the fiscal year with a balance of $2,600 and end the year with a balance of $2,660, but only because of an infusion of funds from capital reserve.
The borough will tentatively transfer $9,647 from capital reserve funds into the sanitation fund. Without the transfer, total revenues entering the sanitation account would stand at $190,960. The fund is starting the fiscal the year with a balance of $2,600. The combined existing balance and new revenue of $193,560 would be $6,987 less than the $200,547 in expenditures projected to be taken out of the fund. An additional $500 is slated to be taken out of capital reserve funds for projects related to sanitation, bringing the total shortfall without reserve spending to $7,487.
The transfer leaves a projected balance at the end of fiscal 2013 of $2,660 in the sanitation fund.
Total proposed sanitation fund expenditures stand at $200,547
The borough's water fund is projected to end the fiscal year with a balance $180 higher than it begins. The fund will begin fiscal 2013 with a balance of $2,600, a figure which will rise to $2,780 by year's end.
Total proposed water fund expenditures stand at $252,680
The borough's sewer fund is in a situation similar to its water fund.
While the fund is projected to end the fiscal year with a balance of $3,439, $839 more than the starting balance of $2,600; the total follows a transfer to capital reserves funds which is less than sewer related capital expenditures.
The budget proposes a transfer of $33,460 from the sewer fund to capital reserve funds. However, proposed capital expenditures related to sewer are projected to total $54,620, a $21,160 difference.
Accounting for the initial fund balance, sewer would face an $18,560 shortfall were the transfer and expenditure to be handled within the fund.
Total proposed sewer fund expenditures stand at $393,021.
The borough's capital reserve and contingency funds are projected to begin fiscal 2013 with a balance of $604,700 and grow to $617,178 by the end of the year.
Total transfers of $207,854; $102,338 from the general fund, $70,056 from the water fund and $33,460 from the sewer fund; are projected to combine with $2,000 of interest earned on the account for a flow of $812,554 through the fund. Projected capital expenditures of $195,376 will leave the fund with $12,478 more than it began the year with.
Borough revenues projected under the proposed budget total $1,611,524. Including $798,844 in general fund revenue, $165,960 in sanitation fund revenue, $252,860 in water fund revenue and $393,860 in sewer fund revenue. The figure includes revenue from both local sources, such as taxes and utility service charges, and non-local sources, such as state and federal program payments. The total also includes the borough's proposed new recreation flat tax on property.
Projected borough expenditures under the budget total $1,624,967. Including $738,420 in general expenses, $201,047 in sanitation expenses, $271,319 in water expenses and $414,181 in sewer expenses. The figures include related capital expenditures.
The borough is beginning the fiscal year with $10,650 in accounts outside of capital reserve funds.
The proposed budget will now face public review. A borough council approval vote on the budget is tentatively scheduled to take place at council's next regular meeting Dec. 10.