During Catasauqua Borough Council’s budget session Nov. 30, borough Manager Stephen Travers noted there has been roughly a 20-percent reduction in some revenues that has created a budget shortfall. Travers explained earned income tax and local services tax receipts are down and will not be recovered.

At this point, the budget may need a 0.75-mill tax hike for 2021. This will generate about $250,000. It includes the replacement of two new police cars and the new firetruck.

Travers noted there are few cuts that can be made, adding there is no fluff in the budget. He noted that if only one police car is acquired, existing maintenance costs of the older vehicle goes up substantially.

The intention of the budget, Travers explained, was to keep the services provided to residents on par with 2020.

The water rates are expected to rise about 10 percent. There will be a water rate study completed to justify the possible rate hike. The sewer rates are also expected to increase about 10 percent. A recent study justified the proposed rate hike.

The budget is stressed because of the pandemic and its effects on real estate transfer tax, earned income tax lost revenues and 2020 real estate taxes not yet paid by residents.

Travers noted this is a very lean budget. A lengthy discussion ensued on how to better understand the budget numbers.

Council reviewed two ordinances to be voted on at the Dec. 7 council meeting. One ordinance is to grant permission for an accessible parking spot at 110 Race St.

The second ordinance would grant restricted parking 40-70 feet north of Pine Street on Front Street 9 a.m.-6 p.m. Mondays through Fridays. It would remove restricted parking on 10th Street from Race Street to Bath Avenue. Also permitted under this ordinance is a loading zone designation on Bridge Street 120-160 feet east of Front Street.

Travers noted the public works and police contracts will be extended another year under the same terms as the current contract and will have to be voted on at the Dec. 7 meeting.

Mayor Barbara Schlegel said she is working with Travers to plan a virtual tree-lighting event. Schlegel also asked that the unused funds budgeted for the George Taylor House be rolled over and added to the 2021 allocation and to keep the GTH budgeted amount the same as 2020.

Vanessa Nedrick, of Remington & Vernick Engineering, attended her first meeting but had no report. Travers commented the transition with the new engineering firm is going well.

Councilman Gene Schlegel reported recreation committee activities are reduced during this time of year. He also noted the prospect of having the pool open next year is dismal due to needed repairs.

Additionally, the recreation committee is seeking a pseudo-mailbox, painted red, for children’s letters to Santa Claus.

The next council meeting is 7 p.m. Dec. 7. It is a virtual meeting.

To receive the call-in phone number and meeting access code, visit catasauqua.org or call the borough office at 610-264-0571.

There is a 2021 budget review meeting 7 p.m. Dec. 3. Contact the borough office for the call-in phone number and the meeting access code.