SAXONBURG — Two weeks ago, borough council members lamented the fact that it would take a 2.5-mill tax increase to cover the expenses proposed for the 2022 budget.

But innovative thinking by the borough manager flipped that scenario to a 2-mill tax decrease next year.

The council at its Oct. 19 meeting heard Mary Papik, borough manager, report a $29,800 deficit in the proposed budget being prepared for approval in November.

None of the council members were interested in increasing taxes, so they decided to meet in two weeks from that time to discuss ways to cut expenses.

At that meeting Wednesday, Papik told the council that $91,500 of the $150,000 in American Rescue Plan Act funds received by the borough for pandemic relief can be transferred to the general fund to cover expenses.

She said $75,000 can be transferred to the 2022 budget and the remainder of the $91,500 in 2023.

In addition, taxpayers will see a 2-mill tax decrease because a loan that required that millage was paid off.

The council had a lengthy discussion regarding Mayor Bill Gillespie's request that a $30,000 expenditure be included in next year's budget for repair of the failing foundation at the wire rope shop at Roebling Park.

Gillespie said no review of the problem or grant applications for funds to fix it can move forward until the borough shows it is financially committed to the project.

The council members finally agreed to include the $30,000 in the budget to pay for engineering fees or matching funds for a grant to cover the project.

The $30,000 will come from the borough's $177,000 capital improvement fund.

A $70,000 project to repair rotted wood causing water damage below the borough building's windows and another to pave at the borough building for an estimated $38,000 were scrapped for next year's budget and will be postponed to 2023.

Papik said she wants the window project to precede the paving, so heavy trucks used in the window project do not damage the new pavement.

The council is expected to vote on the preliminary 2022 budget at its Nov. 16 meeting.