Bristol Looks To Use Investment Interest To Close Budget Gap

Bristol Borough officials are proposing filling a projected $1.8 million budget deficit by using interest revenue from an investment fund.

The proposed $7.25 million spending plan for 2026 keeps the tax rate steady but relies on using interest revenue to cover the shortfall.

According to the proposed spending plan, the borough plans to use interest generated from the investment account, which holds proceeds from the $50 million sale of the wastewater system to the Bucks County Water and Sewer Authority.

The interest revenue is projected to yield between $1.6 million and $1.7 million annually.

Council President Ralph DiGuiseppe said the move would not deplete the principal amount of the investment.

DiGuiseppe noted that the budget shortfall is recurring and stressed the need for officials to explore cost-cutting measures, largely through attrition.

“The only way we could save money is through salaries, retirements and cutting, not replacing people,” DiGuiseppe said

The financial crunch is compounded by rising costs, including a 20 percent increase in health insurance costs, up from an initially projected 12 percent. The 8 percent jump adds $37,000 to the budget, with the police insurance costs leading to $21,000 of that increase.

The police department accounts for $3.6 million of the total budget.

Councilmember Greg Pezza, who said he supports police, noted the department’s large share of the borough’s budget.

“[Police] are at 50 plus percent of our budget for a town that’s 1.9 square miles,” Pezza said.

The cost is driven by full-time officer salaries, which, including benefits but excluding overtime, which range from $176,400 to $234,000. Overtime costs have the potential to push the total cost for some officers past $260,000, officials said.

DiGuiseppe said the borough’s $385,000 in police overtime costs are driven by contract requirements that mandate two full-time patrol officers on duty at all times.

“Unless that contract gets changed, I don’t care if you hire five cops, 10 cops, you go back to 12 hour shift, 8 hour shift. If it says you need two full time officers on at all times, you’re going to pay overtime,” DiGuiseppe said.

The council plans to address overtime costs in contract negotiations with the police union, set to begin in December

Council rejected a budget proposal from Mayor-elect Frank Peranteau, the borough’s former police chief and district judge, that would have added two officers and restored a full-time detective position due to cost and recommendations from borough officials.

Police Chief Joe Moors opposed the additions, noting that the department is not understaffed, with two officers currently on workman’s compensation.

“I cannot sit here and honestly in good faith tell you that we are understaffed and we need more full time police officers,” Moors said.

Moors also opposed restoring the full-time detective role, citing the low number of arrests made by the current detective working patrol duties and the fact that major cases are investigated by the Bucks County District Attorney’s Office and Bucks County Detectives.

Council supports a police staffing plan of 10 full-time and nine part-time officers, along with a command structure of a chief, four sergeants, and a newly created lieutenant slot. Moors previously said rumors of a deputy chief position being added were untrue.

The council is exploring a transition toward using more part-time officers, who earn $28 per hour without benefits and cost approximately $52,000 annually for a 36-hour work week.

Peranteau said residents want a fully staffed police department. He previously warned part-time officers juggle multiple jobs and can be difficult to schedule.

“We can’t afford it,” DiGuiseppe said of adding more full-time officers, adding that he supports the use of more part-time officers to replace full-time officers as they leave.

During the discussion, resident Dawn Hogan questioned Peranteau about campaign statements on lowering taxes for seniors.

“I didn’t say I would. I didn’t say it was a promise I was going to do that,” Peranteau said.

The mayor-elect, who takes office in January, said he had hoped for a tax reduction for the elderly, first responders, and veterans as a sign of respect.

Council members informed the mayor-elect that selective tax reductions for specific groups are not legal under state law.

DiGuiseppe explained the borough had discovered in a similar attempt several years ago.

“I didn’t know that,” Peranteau said.

Pezza added that while he respects seniors, younger residents are also facing high costs, including the housing crisis.

Council plans to vote on the preliminary budget later this month.

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