SOUDERTON — Souderton Borough Council will hold a work session meeting 7 p.m. Monday, Oct. 26 to discuss the borough's proposed 2021 budget. 

The preliminary budget will be officially presented at the board's Nov. 2 meeting, with a final vote coming in December.

Information comparing income and expenses through the end of September with budgeted numbers for the same period has been distributed to the council members, Borough Manager Mike Coll said at the board's Oct. 12 work session meeting.

Earned income tax, which had been expected to fall, is still running around budget, he said.

"We're not being hurt too terribly bad by the pandemic on that, but you can see the realty transfer tax did go down quite a bit," Coll said.

"During the bulk of the pandemic, the real estate market was really shut down, so I don't see us recovering significant monies from that," he said, "but overall revenues are doing pretty well."

Coll said he expects to have proposed budget information at the Oct. 26 meeting on all the borough funds, except the pool. The reason the pool information won't be ready is because discussions are being held on whether the borough will lease the pool out to a company that would operate the pool or whether the borough will continue to operate it, he said. 

The pool was not open this year because of the coronavirus pandemic. 

In another budget-related matter, Coll said he got a quote from Univest Bank in preparation for a tax anticipation loan to be taken out at the beginning of 2021.

"Our cash flow is actually doing rather well, but I think I would be more comfortable recommending that we do another $250,000 tax anticipation loan for the first quarter of 2021, especially with some of these bigger projects that may require us to put some cash up front," Coll said.

The loan would have an interest rate of 2.4 percent and be repaid by April or May, he said.

The total fees and interest would be about $4,500, council President Brian Goshow said. 

Both Coll and Goshow said the borough is approaching a time when it may not need to take out a tax anticipation loan, but that point has not yet been reached.  

"I don't think you want to be too tight and then get in a position where you don't have cash on hand to pull something off that you need to pull off," Goshow said. 

The borough doesn't receive much income in January and February, Coll said. 

"You don't get much earned income tax coming in and your real estate taxes aren't coming in yet," he said. "They start trickling in in February. March is when you really get almost a million dollars in revenue from there." 

comments powered by Disqus