Williamsport City Council approved a half-mill real estate tax increase in a first reading of the proposed 2026 budget.

It is the proposal presented by Mayor Derek Slaughter. A promise has been made by council members to make a few changes. A second reading is held Dec. 11.

The tax rate was set at 17.55 mills. That’s $1,755 for a house assessed at $100,000.

The vote was 5-0, with Councilwoman Bonnie Katz and Council Vice President Eric Beiter absent.

A much worse $4.8 million projected budget deficit was reduced by $3 million making it a deficit of $1.4 million. To accomplish this reduction the city is using the tax hike, removing over $750,000 in capital projects and a one-time use of reserves.

“None of us like it,” Council President Adam Yoder said of the tax-increase budget.

“To provide the level of service, we need it,” he said. “Hopefully, it’s a means to an end.”

The city is following the strategy and recommendations given by Public Financial Management (PFM), a Philadelphia-based firm that is preparing a final report in January.

The report is expected to reveal ways the city can accomplish its operations while continuing to shift costs and lower deficit, create revenue sources and provide officials with a “bridge” to get to 2027 and beyond.

The budget added the sale of condemned City Hall, listing the item at $560,000.

Councilwoman Liz Miele, chair of the finance committee, said to expect a handful of changes for the budget vote on second reading.

She also remarked on how while she supported the “bridge budget strategy,” cautioned how it would only work if the city realized an increase in revenue in the next two years.

She considered what was on target for passage Dec. 11 as a “shaky bridge.”

The onus is on “us to find revenue” and that can be accomplished through transitioning to a Home Rule municipality or, “we are building a bridge to nowhere,” she said.

Miele noted the one-time spending of reserves, but said the city can’t increase the debt ceiling.

“We don’t print money here,” she said.

“We need to eliminate inefficiency and find ways we can keep the city’s money,” said Councilman Vince Pulizzi.

One of the concepts council is banking on is voters choosing to transition to Home Rule, a decision to be made by the electorate which rejected it eight years ago but who may see benefits of more tax revenue options such as increasing earned income tax.

This is to be much discussed in the new year with $50,000 put in the budget for a match as

part of the cost related to work by a Government Study Commission that would, if formed, examine aspects related to Home Rule.

The general consensus of council leadership and council was the hope that PFM was available after it releases its final report.