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Williamsport City Council passed a 1 mill real estate tax hike on first budget reading Thursday with a promise that at the next stage the size of the increase will be smaller.
"Doing quick math, we took a net $124,000 out," said Council President Adam Yoder at the end of the three-hour meeting.
"It will not be 1 mill," Councilman Eric Beiter said at the Lycoming County Commissioners' meeting ahead of the city meeting.
It was the first reading of the budget.
"We are a quarter of the way there," Yoder said.
The real estate tax increase was included because since 2019 the city has been responsible for the debt service, which had been funded by River Valley Transit in the amount of about $800,000 per year. River Valley Transit is now the River Valley Transit Authority.
"That equates to the approximate 1 mill that now we are responsible for," Mayor Derek Slaughter said during a recent budget work session.
Further cuts were possible as another $107,000 in support equipment for police and fire departments has been deemed to be eligible under expenses taken from American Rescue Plan Act funds, according to UHY, a city consulting firm after discussion begun by Councilman Jon Mackey, chair of the public safety committee.
Furthermore, Councilman Vince Pulizzi said he will continue to reach out to each department head and go over the budget closely to find possible reductions that he will introduce Thursday.
About $906,000 will be transferred to the emergency and reserve fund, leaving the city's 2024 budget with an anticipated cash balance in the general fund of $3.8 million.
The deficit was headed closer to $3 million, however, with transfers of $2 million from the American Rescue Plan Act fund and $237,000 from funds available from prior ballpark activities, the city has reduced the budget deficit to about $800,000.
Without the one-time revenues, 2024 budget revenues increased from the prior year, while expenditures are going down.
Changes in budget on first reading
Council added and subtracted budget items where it felt it was necessary.
As such, contracted services were increased from zero to $85,000. A third-party needs to livestream the council meetings and a third party consultant costs were put into the budget.
The Bureau of Law was increased by $75,000 bringing it to $203,000 to cover costs associated with hiring a third-party negotiator for union contracts.
The mayor's travel expense was reduced by $3,000 on a recommendation by Councilwoman Bonnie Katz.
August "Skip" Memmi, executive director of the department of community and economic development, said he would abide by the council decision as it looked at a proposed office manager position. Department salaries went from $161,135 to $129,123.
Council asked for another week on funding an assistant director position at public works.
It took the flood contract materials from $25,000 to zero, to look at ARPA funds for herbicides and pesticides.
Line painting for proposed updates to city bicycle lanes is thought to be available by budgeting $15,000 from liquid fuels funds.
The police department vehicle expense went from $265,000 to $41,000. It was proposed that ARPA would be used and there are two payments on cars from 2021. "We have seven vehicles in service with over 100,000 miles," police Chief Justin Snyder said.
Other expenses such as gas and oil and contract services may also be able to be reduced.
Mackey again noted the possible availability of federal "Rescue Plan" funds for purchasing uniforms and support equipment.