Dormont Borough Capital Budget Meeting - March 18, 2026

Note: The transcript indicates the meeting occurred on October 14, 2025, but the provided instructions specify the meeting date as March 18, 2026. This summary uses the instructed date, but the discrepancy is noted.

This meeting focused on the borough's 2026 capital budget, including revenue projections, expenditures, major capital projects (Next Generation Playground and Potomac Avenue redesign), and tax increase scenarios. The presentation was led by Mr. Sinner, with discussion and questions from council members. Public comments addressed millage increases and utility road repairs.

Revenue and Expenditure Overview

• Projected 2026 revenues: $10.6 million, reflecting stagnant growth over three years and a $100,000 decline from 2025. Property taxes are the largest revenue source, followed by real estate transfer, earned income tax (EIT), and local services tax (LST). Revenue-raising capacity is limited by the Commonwealth Borough Code; the borough cannot impose a business privilege tax.
• Projected 2026 expenditures: $11 million, outpacing revenues. The borough faces $450,000 in new and increased spending due to collective bargaining salaries, solid waste contract increases, employee benefits, new software/IT costs, utility rates, and third-party contractor costs. Previous cost savings (e.g., switching banks saved $34,000/year) were implemented.
• The borough carries over $1.1 million from the general fund, of which $400,000 is needed to offset the deficit, leaving $700,000 for the unreserved fund and capital budget.

Capital Budget and Financing

• Road program: Capitalized at $650,000, with $50,000 allocated for Potomac Avenue redesign and $600,000 for road remediation/reconstruction. A road condition survey from Pavement Management Group is pending; the program likely proceeds in March/April 2026. The borough typically repaves 5–6 roads per year.
• Recreation plan: Must be completed in 2026 per a Pennsylvania DCNR grant requirement, or the borough must repay the grant. A $42,000 match has been budgeted repeatedly.
• Parking meters: Four new solar-powered kiosks and four motherboards for existing kiosks will be purchased.
• Security cameras: $50,000 for expanding the camera network in Beg Snyder Park and Dormont Park, also enabling Wi-Fi in park spaces.
• Department requests: $32,000 total, including a trenching attachment (saves on third-party costs), paint machine, public works vehicle radios and lights, police parking enforcement officer promotion (operating budget), and rifle replacements.
• Sidewalk program: $25,000 for a 50% subsidy program, modeled after Brentwood's program, to be bid alongside road work.
• Next Generation Playground financing: A $1.5 million construction note (draw note) from Brentwood Bank, with a 10-year amortization recommended. $1.2 million will fund initial construction, and the borough will receive $685,000 reimbursement from a National Park Service grant. Additionally, a $300,000 LSA grant for surfacing is pending. Phasing: phase 1 includes the playground, hillside engagement ($170,000–$200,000), and parking lot; phase 2 includes the Great Lawn, stage, and pavilion.
• Potomac Avenue redesign: Estimated at $2.5 million; financing may use debt service becoming available in 2027 and 2028 (from maturing notes). Stormwater mitigation is a complicating factor; the stormwater authority may not fully fund it.
• Future concerns: Tennis court resurfacing ($40,000–$50,000), Builtmore Retaining Wall ($50,000 design), Dormont Avenue traffic calming ($75,000 design), municipal building generator ($100,000–$200,000), repointing the rec center, and union contract renegotiations in 2026–2027.

Tax Increase Scenarios and Council Deliberation

• Scenario 1 (no tax increase): Leaves $850,000 for unreserved fund and capital budget, providing no rainy day fund. Not recommended.
• Scenario 2 (1 mil increase): Generates approximately $483,000; with the carryover, allows $700,000 for capital and $960,000 for the unreserved fund (two months of expenses). Deficit covered.
• Scenario 3 (2 mil increase): Generates $960,000, fully recapitalizing the unreserved fund.
• Council discussed the need for an unreserved fund policy (two months of expenses recommended), and the desirability of incremental tax increases rather than large one-time hikes.
• Council positions:
  • Amy and Chris leaned toward scenario 3 or between 2 and 3, citing deferred road needs and the risk of insufficient reserves.
  • Daniel supported at least 1 mil, noting expenses are not one-time and deficits will persist.
  • Brandon expressed hesitation about raising taxes, concerned about economic pressure on residents, but acknowledged the road program's importance.
  • John recommended at least 1 mil and advocated for incremental increases to avoid large jumps.
  • Kate suggested scenario 2 or 2.5 may be sufficient, given CD maturity will bolster reserves.
• A councilmember (John) proposed developing incremental increase scenarios for future years.
• The borough manager will prepare a detailed analysis for one-and-a-half mil and other options for further discussion.

Public Comments

• Helen Cleanwoods (via question to council) asked whether millage can be increased in fractions (e.g., 1.5 mil) rather than whole mills to bridge between scenarios.
• A resident from Beltmar Avenue (name not given) inquired about who will pay for repaving after utility work tore up the street from top to bottom. Discussion followed about the borough's ordinance requiring utility companies to restore only partial paving, and council noted they are working on a stronger ordinance to require curb-to-curb repaving. The resident expressed frustration that utility work in the past (e.g., 1996 on Gaylord Avenue) led to full repaving, but current practices do not.

Key Outcomes

• Council expressed consensus that Scenario 1 (no tax increase) is irresponsible. No final vote was taken; further discussion is scheduled for the next meeting (noted conflict with one member's anniversary).
• The borough manager will provide council with detailed projections for one-and-a-quarter mil and one-and-a-half mil increases, including impacts on the unreserved fund and capital programs.
• Council directed staff to draft an unreserved fund policy pegging reserves at two months of expenses ($960,000) and to explore incremental annual tax increases.
• The borough will continue coordinating with utility partners on road paving and strengthen the ordinance regarding utility restoration.
• A motion to adjourn was approved.