Borough of Mount Penn

The workshop/townhall meeting addressed financial pressures facing the borough, including infrastructure repair costs and projected future deficits, exploring a conveyance and leaseback concept for the water system as a means for long-term stability and local control. Presentations detailed the rationale, clarifying that no sale of the water system is currently being considered and no authority employees would lose their jobs. Financial projections indicated that the recommended leaseback structure, involving an annual payment to the borough growing with inflation, would result in water rate increases of approximately 3-4% annually, keeping rates below the state average. Legal counsel emphasized that the arrangement would maintain local control and contractually prohibit future sale of the system for up to 50 years. Public commentary focused on concerns regarding rate impacts on residents, the protection of the system from privatization, representation for non-resident water authority customers, and potential staff synergies.

The Reorganization Meeting involved the administration of oaths of office to newly elected officials, including the Mayor and several Council Members. A key action was the formal refusal of office by one elected Council Member and the subsequent unanimous appointment of a replacement. Officers were elected, resulting in the unanimous election of Richard Lombardo as Council President and Christine Dise as Council Vice President. The Council proceeded to appoint numerous officials and staff for 2026-2027, including the Solicitor, Auditor, Borough Manager, Treasurer, and various inspectors and coordinators, all approved via resolution. Other reorganization items included setting meeting conduct rules, designating the legal publication, and authorizing participation in the Uniform Construction Code Appeals Board. Further business included approval of updates to the Employee Handbook, a quote for borough codification review, and approval for a server replacement, all funded primarily through grants. The Treasurer Report for December 2025 and the minutes from the December 16, 2025 meeting were approved.

This discussion document for Mount Penn Borough addresses key issues such as potential relief for strained municipal budgets, maintaining local ownership and control, and ensuring long-term sustainable authority rates. It outlines non-negotiable principles, including avoiding sales to regulated utilities, protecting employees, ensuring financial benefits, and guaranteeing reliable water services. Various strategic options are explored, with a detailed focus on a 'Convey/Lease-Back' approach as a solution for financial challenges and fostering collaboration.

This document outlines the strategic and financial context for Mt. Penn Borough, focusing on long-term sustainability and evaluating conveyance-leaseback as a solution. The plan aims to prevent future pressures to sell assets by ensuring permanent public water protection and achieving financial stability through lease payments, unified capital planning, and integrated operations. It addresses critical structural challenges related to housing instability, blight, and crime, with the overarching goal of improving financial resilience, enhancing service delivery, and strengthening community character over the next five years.

Key discussions included a public comment regarding community holiday festivities and plans for horse and carriage rides. Fulton Bank presented available banking services for the Borough. The Council reviewed and approved the CY 2026 Preliminary Budget, which included a proposed millage rate increase from 1.0 mill to 1.25 mills to cover police pension expenses, passing with a 6-1 vote. Road improvement projects status was reviewed, with paving completed on two roads and two others postponed until spring 2026 pending waterline installation. The Council discussed updates to the fee schedule, including increases for rental unit fees and yard sign deposits, and reviewed plans for securing a $600,000 Tax Revenue Anticipation Note (TRAN). Decisions were made regarding the adoption timeline for 2021 ICC codes and the donation of Block Party excess funds to the "Shop with a Cop" program. The anticipated Borough Council vacancy was discussed, along with the schedule for the 2026 Reorganization Meeting and the 2026 meeting schedule. Updates on the Lower Alsace & Mt. Penn Merger exploration were provided. The Council unanimously approved the Teamsters Collective Bargaining Agreement with an HRA language amendment, authorized engagement letters for PFM Financial Advisors, and approved engaging special counsel for matters related to the Mt. Penn Borough Municipal Authority. The Council also approved a Statewide Local Share Account (LSA) Grant Application resolution, and contracts for Safety Net Sanctuary animal control services and No-Nonsense Neutering services.