CHAMBERSBURG, Pa. — The Chambersburg general fund shows some shortages at mid-year, the town council learned this week. While most areas indicated a strong financial position with steady revenue and expense activity, concerns were raised about the general fund revenue, which supports police and fire services.
The nearly $22 million general fund covers six departments: administration, police, fire, recreation, land use and community development and general highway. All departments’ revenue, expenses and overhead are combined into one cost center.
Current tracking shows spending is expected to fall short of the budget by the end of the year. Issues stem largely from general fund revenue constraints since nearly every revenue category is set at a fixed rate by the state, council members were told.
As a result, operations remain underfunded, especially police and fire services, with no financial capacity to add staff. Options have been reviewed to increase funding in the police and fire departments, including shifting expenses to different revenue sources or adjusting other departments and personnel, but none would have a significant impact, borough officials said.
Other general fund expenses could also be reduced, but the cuts would need to be substantial as police and fire already receive most of the resources. Increasing utility rates to redirect funds to police or fire services was not recommended due to legal concerns.
Chambersburg has one of Pennsylvania’s largest municipal budgets, with a $146 million operating budget driven by its vast utility and support services. These utilities help fund other borough operations and contribute to strong finances and cash reserves.
The electric and natural gas utilities are profitable and financially strong, while water and wastewater utilities are stable and near break-even, despite exceeding budget projections. Sanitation remains the weakest utility financially, as its services are neither required nor profitable, though a rate review is planned for next year.
The internal service fund was also reviewed as it supports other funds and departmental needs, with stores and warehouses and self-insurance financially strong. While the self-insurance fund is over budget, it is expected to balance out by the end of the year.
Administrative services broke even, as expected. Motor equipment is over budget due to rising fuel costs, and engineering is also over budget as it undergoes major updates in software and utility mapping.
Future budget meetings will be held to review each department’s funding in more depth, and the council will be presented with solutions to some of the budget challenges faced throughout the year.
Fee waiver, e-bikes and South Gate project
Downtown Chambersburg Inc. received a one-time borough fee waive of $6,638.22 for the Fountain Fest event held April 24-26. Council voted 5-5 on approval of the fee waive, with Mayor Kenneth Hock breaking the tie in favor of approval.
The council reviewed a draft ordinance that would allow local regulation of e-bikes on borough-owned and regulated sidewalks, parking lots, trails and parks. The recreation department and the parking, traffic and streetlight committee will refine the proposal before it returns to council for approval.
The Chambersburg Area Municipal Authority has started phase one of the South Gate Shopping Center project, which includes demolition of the former Chambersburg Beauty School. After demolition is complete, construction will begin on a new storm sewer bio-retention area.
