The City of Williamsport has approved a half-mill real estate tax increase for 2026.

The tax rate was fixed at 17.55 mills, or $1,755 for a house assessed at $100,000.

The city has a bridge budget plan to try and be in a stronger financial position heading into 2027 as recommended by Public Financial Management (PFM) of Philadelphia, a firm assisting the city on its strategic management plan.

Council reduced a line item in the police budget by $71,700, which is for an officer salary and FICA. This was done to account for the possibility of an officer deployment in the military in January. It was a temporary measure so there is that money in the event of a hiring needed, according to Councilwoman Liz Miele, chair of the finance committee. Councilman Jon Mackey voted against this motion.

Council decided by a 5-2 vote to defeat a motion of reducing a first-year firefighter by a value of 0.3. It would have reflected an attrition move. Council President Adam Yoder and Miele voted in favor of a motion to reduce the fire department by a firefighter, clarifying how it was a temporary move that could be revisited, if and when the city was on a stronger financial footing. It was strictly a decision, each said, as an attrition recommendation by PFM, and means of crossing the two-year bridge budget in place to where the city could be more financially stable should it become a Home Rule chartered form of governance.

“It’s a stab to the heart,” said Fire Chief Sam Aungst, who minutes before said goodbye to the department intending to retire. “I hope you can find other ways to be creative. Other ways to handle that,” he said. Besides Aungst retiring, the department anticipates another retirement in early 2027.

Aungst warned how such a decision could increase overtime and further hamper efforts with the new alliance formed with South Williamsport, as the department continues to work with nearby fire chiefs on continuing regionalization. Aungst explained various scenarios where the platoons were limited on manpower already.

Councilman Eric Beiter, vice president, went on the record asking Aungst if the department could be envisioned to take over much of the role handled by the Bureau of Codes. Beiter said he knew what he was asking was controversial but wanted it to be on the record and made public.

To draw down the deficit, the city used one-time reserves, removed $755,000 from its capital projects budget and spent what is a limited emergency and reserves fund. It also removed the police assistant chief position and added the sale of City Hall at $560,000.

The council has added language in the May 19 primary election ballot question on a government study commission to study Home Rule.

Council also added $50,000 in the budget for this purpose for a match to a grant on Home Rule charter study.

A PFM official said it will have further recommendations on ways to improve the city strategy and financial picture in the new year.