“One of the reasons the City of Williamsport is considering Home Rule charter again is we need to increase revenue in the city, but not solely rely on property taxes.”

That is what Council Vice President Eric Beiter said in a town hall meeting to Jonas Crass, local government policy specialist at the Governor’s Center for Local Government Services at the state Department of Community and Economic Development (DCED).

Crass was joined in the town hall by Andrew Sheaf, deputy executive director at the DCED.

Williamsport has a large elderly population, many retired senior citizens and those on fixed-incomes, but it also has a significant nonprofit population where about 40% of the land/buildings is owned by nonprofits. Another high percentage are rental properties because of the two colleges, Beiter said, echoing concerns on the number of taxable parcels made by outgoing veteran councilman Randy Allison.

“What would we as a city and a community be looking at as revenue generating options with a Home Rule charter?” Beiter asked.

Williamsport is not unique as it faces a potential 2026 budget deficit of at least $3 million to $4.6 million, according to Public .

In fact, a common pressure point for municipalities is real estate tax, Crass said.

That is partly because of a cap of 30 mills, based on state legislation.

With the Home Rule charter that cap is removed, Crass said.

Currently real estate is at 17.05 mills. City taxes on a property assessed at $100,000 is $1,705 not counting the school and county taxes. Average homeowners pay more than $4,000 a year and more.

“Williamsport may not want to have that real estate tax cap so that it has a little breathing room,” Crass said.

“When the city has to pay for fire and police, and you aren’t able to afford it, the Home Rule charter can be written to restructure the taxation and find ways to pay for necessary public safety departments,” he said.

Earned income and real estate transfer tax adjustments are options under the charter.

“But you’re also going to be looking at things like land use,” Sheaf said.

“You’re also going to be looking at things like your ordinances,” he said.

The city could create or update its landlord registry and ensure those who are here are working or reporting that income.

Sheaf, who said he lives in Lancaster, said its officials were also focused on not raising property taxes.

Earned income tax (EIT) is on wage earners not on people on fixed incomes who own homes.

EIT tends to have more natural, organic growth.

It’s hard to get property taxes to grow each year because a lot of times it is dependent upon a property value reassessment.

For this county it was 20 years ago, Councilwoman Liz Miele, chair of the city finance committee, said.

That process, however, is being done by order of the county commissioners.

“To get that accurate property value, set that millage correctly you need that reassessment,” Sheaf said.

Miele said the administration and the council has made a firm commitment not to increase property tax to unbearable levels, certainly not 30 mills or over.

Miele has long advocated for gradual yearly tax increases to avoid taxpayers being slammed.

She asked if there were taxes able to be levied differently by eliminating the caps.

The answer seems primarily to be real estate transfer and earned income.

Home Rule charter does not allow a municipality to impose sales tax.

Essentially, the menu of tax revenue streams does not change.

Councilman Vincent Pulizzi also noted how 38.7 percent of the properties are off tax rolls due to nonprofit status.

Regardless of whether Williamsport has a Home Rule charter, the city has established relationships with certain nonprofit entities to establish payments in lieu of tax.

Sheaf said the process of nonprofit status of properties can be reviewed as can activity occurring on those parcels of land.

The Governor’s Center for Local Government Services has a multitude of effective ways for communities to generate revenue and lower expenses.