Walnutport finds itself faced with a hefty deficit as it crafts next year’s budget.

Borough council reviewed the 2020 spending plan on Thursday, at which time it was noted there is a $131,000 shortfall.

Councilwoman Jennifer Wentz said that the mercantile tax and cost of living are among the key contributors to the deficit.

“So, we’re trying to be very conservative,” Wentz said. “We have to play it safe; we don’t want to overestimate it.”

Council will get a crack at reducing next year’s spending plan when it holds a budget workshop at 7 p.m. Nov. 5.

Preliminary budget adoption is anticipated to take place Nov. 12, with final budget adoption expected for Dec. 17.

In December, council on a 4-1 vote adopted this year’s budget with a half-mill increase.

That decision raised the millage rate from 18.75 to 19.25 mills, and meant that a homeowner with a home assessed at $50,000 paid about $25 more to the borough this year in taxes.

Wentz said at that time health insurance costs, along with wage increases, were among the borough’s largest expenses.