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With the City of Williamsport proposing a 1 mill real estate tax increase in the 2024 budget, city council took a deep-dive into the Department of Community and Economic Development, questioning why overages showed up in 2023.
Nothing seemed out of the ordinary for the department after some explanations were given ahead of the full budget discussion next Thursday.
"It is a pretty straightforward budget," said August "Skip" Memmi, department executive director, whose salary is about $66,000.
During a recent budget work session, Memmi answered the council's questions and was provided assistance from Tracey Rash, manager of Government Finance Solutions, who is finishing up her contract as a city finance consultant after city Finance Director Heather Jacoby was hired full-time earlier this year.
Overages explained
"Why are so many numbers in 2023 showing up as substantially over in the personnel services for the planning department?" Councilwoman Liz Miele, chairwoman of the finance committee, asked Memmi. "Is that because it is the entire allocation of funding?"
The department showed on paper that it was $171,000 over budget for this year, but is promised it will receive reimbursements.
"There are funds that reimburse the general fund for wages," Memmi said. "We are behind in getting the allocation from Redevelopment Authority, Land Bank, Community Development Block Grant fund and Housing and Urban Development reimbursing the city," he said.
As for some of the wages and salaries that are attributable to the general fund, RDA, land bank and PHARE -- which show as expenses in the general fund -- and revenue that reimburses, Rash said. However, CDBG and HOME, because they are part of the city -- that reduces the expense that is being budgeted in the general fund, Rash added.
"Then what you are saying is the difference between the $241,000 and $171,000 or $87,340 is all HOME and CDBG funds, not RDA or Land Bank, Miele said.
"Correct," Rash said.
"The department is behind on drawing down the funds from CDBG and HOME to reimburse the general fund," Rash said. "It is two different treatments because you are dealing with in the city and outside of the city."
In another area of the department's budget, Councilman Eric Beiter observed a "significant decrease" in contracted services and asked Memmi about the entry.
Memmi answered by saying in the year that Beiter was looking at contracted services, the office included SEDA-Council of Governments in contracted services.
As of last year, SEDA-COG officials were being paid to offer assistance through the Community Development Block Grant budget, Memmi said. Other changes were due to services provided to the office through the finance office, he said.
Council leadership enters the conversation
Council President Adam Yoder asked Memmi if he could provide a breakout of the three of the five employees in the office who are funded through the general fund.
Memmi said he had a breakout of how each employee was funded including any time worked for the RDA or land bank, for example.
Miele said she understood based on that perspective, but also said she would be interested how the RDA was breaking out its time versus materials.
"I'm curious because I want to know what the city is doing for them and what the authority is being charged," she said.
Overall, the city administration has proposed a 1 mill of property tax increase that would equate to about $800,000 in tax revenue, Mayor Derek Slaughter said.
The current tax rate is levied at 16.22 mills, or $1,622 a year in city real estate tax for homes assessed at $100,000.
To provide more perspective, the city real estate tax millage rate in 2019 was set at 15.47 mills; 15.72 mills in 2020; 16.22 mills in 2021; 16.22 mills in 2022; and 16.22 mills in 2023, according to the city operating budgets.
Council holds its December meetings at 7 p.m. Dec. 7 and 7 p.m. on Dec. 14.