Avalon Introduces $37-Million Budget

AVALON – Avalon’s total 2020 introduced budget of $37.4 million includes the general government budget of $28.7 million and the borough’s two utility budgets.for Water and Sewer at $6.9 million and Beach at $1.8 million.
The budget calls for no increase in the local purpose tax rate.  The overall budget represents an increase of $782,241 over 2019.
Council President Nancy Hudanich called the budget “sound” and characteristic of the borough’s conservative approach to fiscal management. 
The borough’s budget contains three component budgets including two utilities.
The general government budget is up by $626,726 over 2019. That budget includes an expected $18.4 million raised through the local purpose tax and $3.2 million anticipated as a result of the library tax levy. Avalon is not part of the county library system and supports its independent library.
In the general operating budget salary and wages rose only 1%, with other expenses increasing by 4.7%.
Debt service increased by 11%. The allocation for capital improvements is down 30%.
The $6.9-million budget for the dedicated Water and Sewer Utility is flat, up $265 over 2019. A decrease in capital improvement funds allowed for a 3.7% increase in other spending while maintaining a flat bottom line.
The $1.8-million Beach Utility increased 9.5% over 2019 requiring a $70,000 additional infusion from the borough’s general budget.
In 2019, the Beach Utility received deficit funding of $414,708 from the general budget, which will grow to $485,958 in 2020.
The budget lists outstanding bonds and loans, interest and principal, of $3.4 million for the general budget and $16.4 million for the Water and Sewer Utility.
A public hearing will be held on the proposed budget at the council’s April 8 meeting. A vote on the adoption of the budget will likely follow the hearing. The state deadline for municipal budget adoption is April 30.
To contact Vince Conti, email vconti@cmcherald.com.