Evans City's proposed budget for 2022 appears to include a small operating deficit.

The budget, which will be considered by borough council at its monthly meeting Monday, projects nearly $1 million in expenditures. Excluding the receipt and transfer of funds as a result of the American Rescue Plan Act — Evans City received $89,492 from the federal program — the borough will fund its expenses in part via an $89,000 transfer from savings should the budget pass.

Without the $89,000 transfer from savings, the borough would be receiving $795,445 via taxes, rent, sales of assets and other sources of income.

In terms of operational expenses, the borough projects it will spend $884,445 from the general fund, with its two largest expenses — police services, at $317,000, and public works wages, at $130,900 — accounting for about 51% of the total outflow.

Under the current proposal, Evans City would also earmark $10,000 for its ongoing downtown redevelopment program and contribute $12,000 to the Evans City Public Library.

The borough also will continue paying down debt it incurred as part of the damming project, budgeting roughly $13,250 in repaying the principal and interest on the loan.

While the proposed general fund budget includes scant details on how Evans City plans to expend the funds it received from the American Rescue Plan, the borough's options are limited by the statute from which it received the funds.Under current federal regulations, Evans City only may use its Rescue Plan funds by replacing revenue lost as a result of the COVID-19 pandemic, or on certain infrastructure projects, including water, sewer and storm sewer infrastructure.Borough secretary-treasurer Beth Crowley said council plans on using the funds for stormwater management, primarily via repairs and upgrades to the storm sewers. The advertised budget, however, does not include specific details.