Kittanning Borough Passes Tentative Budget

Council members Betsy Wilt, Chris Schiano and Joe Kiehlmeier spread out with Andy Peters, Scott Davis, and David Croyle (not pictured) to review the 2020 budget. Council members Kim Chiesa and Mike Johns were not present last night.

Kittanning Borough Council last night approved the tentative 2020 budget at a special meeting.

Cyndee McDermott, who has been borough manager for less than a year, worked with other members of the Finance Committee to arrive at a budget that calls for no tax increase.

The budget calls for using $140,211 from 2019 surplus to balance the 2020 budget. Revenue (income) is expected to be $2,883,123 while expenses will rise to $3,006,963 for next year.

Borough Manager Cydee McDermott said expenses still are more than income.

“Kittanning Borough has had a past practice of using the surplus from one year to fund the next year’s budget,” McDermott said. She said that since the large projects such as Revitalization and extensive paving has been completed, she looks for a higher fund balance next year.

“I look for it to be higher next year because the Borough doesn’t have the matching requirement of the grants that Council has been doing for the last few years in very high numbers. A lot of cash was expended on the Revitalization project. So now our cash flow should improve. The financial status isn’t all about income and expense. The cash flow situation was impacting it.”

McDermott said that in the future, the Borough will have to find a way to cut expenses if it is going to be able to reserve funds for capital improvements.

“The Borough is still running $140,000 in expenses over revenue. Unless you start slashing expenses – which can be done in certain areas – you will continue to be over-budget.”

McDermott said there are line items that can be tightened up to reflect accuracy in terms of expected verses actual expenses.

Council members will now review the budget and suggest changes before final adoption at their next meeting on Monday, December 2, at 7PM in Council Chambers. Anyone wishing to examine the budget is welcome to come to the Municipal Building for review.