Charleroi Borough council will present the first reading of its proposed 2023 budget next week, but several major changes are likely down the pipeline before it is approved next month.

During an agenda meeting Wednesday, Borough Manager Matt Staniszewski presented council with a drafted 2023 budget and options on how to get the borough into the black. Last night’s meeting follows two budget workshops that both painted bleak pictures of the borough’s current financial status unless big changes are made.

Because of several unfunded obligations in the 2022 spending plan, when council accepted the budget last December, a deficit of at least $478,644 was created. That largely came from transfers of funds that were not budgeted properly, through line items to specify “transfers in” or “transfers out.”

While the borough waits to see how much of a deficit they will end this year with, council will have to make some difficult decisions in coming weeks to ensure they are in a better financial position next year.

According to preliminary numbers, revenue is projected to sit around $3.1 million, which includes a $500,000 Tax Anticipation Note and approximately $3.6 million in expenditures.

If council opts to not increase taxes and keeps millage at 6.85, it would leave them with a deficit of almost $472,000 as the budget currently stands.

Increasing taxes up to 12 mills, with a barebones budget, would leave council about $75,000 in the black, Staniszewski projects.

That does not include capital improvements, which currently total $695,924.

Even with a tax increase and a modified capital improvement budget of $368,000, the borough would still face a deficit.

With an adjusted millage and lowered capital improvements budget, mills would need to be increased to 15.5 total to leave the borough with a projected $78,000 fund balance in the last quarter of 2023.

Staniszewski explained to

CHARLEROI • A7 council that his current assumptions include fee increases to garbage for a total of $279 per customer annually and an increase in water service fees from 50 cents to $2.50.

Currently the water fee generates about $8,500 annually for the borough, which would increase substantially with the new fee structure to $22,000.

Money generated from the water fee would be placed in a restricted account to be used for public works.

Staniszewski said the budget will look different than it has in the past as he has worked to drastically change its structure to a more logical format and include more detailed line items and areas for interfund transfers, which were previously omitted.

“These options look at a tax increase, not other options like department cuts or more drastic measures,” Staniszewski said.

He encouraged all members of council, six of which were in attendance Wednesday, to take a close look at the proposal and to send him changes or recommendations prior to next week’s first official reading.

Some numbers, he said, will be lower as more quotes come in and numbers are finalized.

“Next week will be our first official reading, there is still time to make changes and firm everything up for adoption in December,” he said. Council members Paul Pivovarnik, Jerry Jericho, Joe Smith, Nancy Ellis, Randy DiPiazza and Larry Celaschi posed few questions to Staniszewski as they are still reviewing the proposal.

Councilman Frank Paterra was absent.

Council will meet 6 p.m. Wednesday to approve the first reading of the preliminary budget.