Williamsport faces tax hike, possible layoffs as city proposes budget

By Chris Benson

Williamsport, P.a. — Frustrations and concerns were relayed during budget talks last week at a first reading of Williamsport’s proposed 2025 financial blueprint. 

In addition, the city now joins Williamsport’s school district in allowing residents to break up tax payments. The city council approved in its final reading of the ordinance that will allow property owners to make real estate tax payments in installments. This allows property owners to pay the face value rather than going into penalty and allows for two-month payment installments, according to City Treasurer Kevin Mackey, The city shouldn’t see too much difference in revenue, Mackey previously noted.

At a past meeting, Mackey said his office expects to see a greater use by taxpayers going into a penalty phase. It will not change the date taxes currently are due, and the online tax payment system already in use will change little.

The tentative 2025 budget plans for more than $32 million in spending and a third-of-a-mill real estate tax increase at a 17.05 mill tax rate. If approved, this increase will generate nearly $290,000 in needed additional revenue. The first reading passed 4-2 with council members Bonnie Katz and Eric Beiter voting no. Councilman Jon Mackey was absent. A second reading and final vote on the city’s 2025 budget will be this week.

Council considering layoffs

On Thursday, the city paid off its final invoice for payments related to rehabilitation of the bandshell in Brandon Park. Councilwoman Liz Miele called for the city to actively begin looking at plans for a bike lane in Williamsport, and members spoke of “a more and more challenging” financial road ahead for Williamsport.

There’s going to be layoffs if deeper action isn’t taken to address rising taxes with a shrinking local population, alongside ballooning financial obligations, warned Councilwoman Bonnie Katz. 

“I’m really concerned,” she said.

Katz pointed to the $25 million Williamsport got in American Rescue Plan Act funds, saying the city was “saved” by the law signed by President Joe Biden. “We can’t sustain ourselves,” Katz added.

“It’s always a balancing act,” Council President Adam Yoder said of the mandate to provide vital public services like safety. There’s a need for local officials to “look at systemic components to get more in line with our economic demographics,” he added. Yoder nudged Mayor Derek Slaughter at one point to advocate at the state level for modifications to the taxing ability of Pennsylvania’s cities, boroughs, and townships. 

Notably, in October Slaughter was elected president of the Pennsylvania Municipal League by leaders around the commonwealth with localities like Philadelphia, Harrisburg, Pittsburgh and scores of others. This puts Williamsport in a unique position, Yoder said. It represents nearly 4 million citizens as a unified voice to lawmakers in Harrisburg. “It’s already started,” the mayor said of the effort to address Yoder’s concern.

Budget and audits

The council accepted a series of audits as the city keeps at the task of putting Williamsport back on stable financial ground after years of fiscal mismanagement under prior administrations. Due to “uncertainties of information,” the city’s 2021 financial statement arrived with a “disclaimer of opinion” similar to “what we’ve had in the past,” explained Kim Stank, an official with Zelenkofske Axelrod LLC of Harrisburg. However, the city did anticipate a budget deficit for that year, stated Councilwoman Liz Miele. She says the city saw an increase in its 2021 budget balance largely due to reigning in spending.

“Of course we’re still in a vast hole,” Miele pointed out. But, “we were not in deficit spending in 2021,” she noted of the achievement, adding, “we’re aiming to be up to date on our audits” by the end of next year. The 2022 audit “started in an uncertain position,” according to Miele, council’s finance committee chair. But Stank hopes the proposed 2023 audit will see an “unmodified opinion.” Miele expressed hope Zelenkofske soon “will have firm numbers” on the city’s financial outlook and “ideally” will have 2024 processed by the end of 2025.

The city’s use of new financial software started in March this year. Slaughter had pushed for the change in his first term as a remedy to the wide-ranging financial scandal which ultimately led city council in 2022 to separate what was then known as River Valley Transit, under the city’s umbrella, to the independent River Valley Transit Authority.

Things will be more streamlined for future budgets, Stank noted on Thursday. A public request for proposal was put out for audit services but only one replied: the current one, according to Jamie Livermore, the city’s finance director. The city’s 2022 and 2023 audit will be completed by the end of next year, according to Harrisburg-based Zelenkofske Axelrod.

Councillors did express frustration over the years-long process of audits and multi-agency investigations taken for the city to fully regain its financial footing but were optimistic. “I feel like we’re hopefully turning a corner,” Yoder said. “But if not, we’ve gotta figure out how to turn it.” Livermore echoed Yoder’s sentiments. “We’re heading in a positive direction,” she said. “It’s just a lot of work to clarify and get done.” 

Levee, park to see upgrades

In other business, officials approved the Williamsport Municipal Water Authority to perform installation work on deteriorating water lines on city streets during its moratorium period from November to March. However, there will be no overnight disruption to water service for residents, according to Gary Knarr, the city’s zoning and code administrator. After some back-and-forth over the topic, council did approve a regular renewal of an agreement with Keller Partners & Co., the Washington, D.C.-based consulting firm aiding the city for projects related to the levee system.

Also, pending work in Elm Park will include parking and sidewalk upgrades to align with the Americans with Disabilities Act, according to Valerie Fessler, Williamsport’s community and economic development director. New changes will see tennis courts converted to pickleball courts and a new bathroom. 

In addition, the city signed off on subdivision plans at 2250 Reach Road on a plot of land that housed Primus Technologies Corp.

City council is expected to approve the 2025 budget at its next regular meeting at 7 p.m. on Thursday, Dec. 12, on the third floor of Trade & Transit II at 144 W. Third St.