VALENCIA — Financial solvency has become a concern in the borough and has council members weighing their options to forge a sustainable future.

Valencia had to dip into its savings to cover expenses in its budget as rising police and fire costs and government regulations have exceeded the borough's marginal growth.

“What we do know is the amount of money required for our contracts is beyond our budget,” said Shanon McKenna, borough council vice president. “Financially it looks like we are not going to be able to survive indefinitely if we don't do something sooner rather than later.”

The borough's 2018 budget lists expenses at $67,844. Unfortunately, those projected expenses have already been exceeded.

“We're going to have to reopen the budget anyway because what's reflected in our police budget isn't up to date,” McKenna said.

Fire costs are also increasing he said.

In addition, the DEP's recent MS4 (stormwater) requirements will also need to be met.

To address the problem the borough has reached out to the state Department of Community and Economic Development (DCED) to apply for its Early Intervention Program.

“That entails getting a grip on our financial future as a borough and try to see if we are solvent,” McKenna said. “We knew we needed to do financial planning. Now we need it more than ever.”

The program provides matching grant funds to aid struggling municipalities in developing financial plans and establishing f goals. Municipalities that are accepted into the program can be eligible for up to $200,000 for 50 percent of the total cost.

McKenna and the rest of the council hope the program could help them forge a path to long-term financial stability.

“The DCED explained as a part of that process you would utilize consultants to formulate that financial forecast for you,” said McKenna. “It sounds exactly like the right medicine for us.”

This proposal, known as an RFP or request for proposal, must first be drafted and approved by the municipality before it is sent to consultants.

Once the consultants make their recommendations and the municipality approves the final proposal, it then goes to the DCED which decides whether it qualifies for the program.

McKenna hopes to submit the first draft to council by the next meeting on May 14. If that happens, he still expects that it will take a few more meetings to get everyone on board.

There is no timeline for when this proposal will be submitted.

Other council members directed questions on the matter to McKenna.

Valencia is also weighing options such as implementing zoning laws for the first time in the hope that developers would be more likely to do business with the borough.

“I see zoning as an opportunity to help drive our financial future as well and maybe bring in developments to help us increase our tax base” McKenna said.

Valencia is looking to pass an ordinance to form a planning commission and has begun researching how to enact zoning.

Additionally, the borough has mulled a possible merger with Adams Township, which supplies many of their services already including fire and police coverage.

“I think (a merger) is always in the back of our mind because our tax base hasn't been growing substantially,” McKenna said. “It sounds exactly like the right medicine for us.”

Adams officials have said they are not interested in a merger at this time.