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City Council Monday adopted a budget for next year that calls for a half-mill tax hike, increasing the bill for a property assessed at $100,000 by $50 -- for a total of $563 in city real estate tax.
City Manager Omar Strohm initially proposed a budget calling for no tax hike, but it covered a $1 million operational deficit with money from the city's American Rescue Plan Act allocation -- money that won't be available after the end of next year.
Last month, when council approved its tentative budget, it altered Strohm's proposal to include the millage increase, which will generate $1 million over the course of 2024, creating a cushion that will help the city deal with expenses in 2025 -- instead of facing a $1 million hole.
It was right to approve the tax increase because otherwise, at this time next year, the city would have had to pass a "huge" tax increase -- or cut staff, like it did in the 1980s when federal revenue sharing ended, said Councilman Mitch Cooper.
The city needs the workforce it has now to keep residents and businesses safe from fire, crime and blight and to maintain the streets, said Councilman Dave Ellis, who has frequently praised staff for doing more with less.
And while comparisons between cities may be "apples to oranges," Altoona's property tax burden is far below the average of the state's 15 largest cities, Ellis said, citing numbers presented at the meeting by Altoona's comprehensive plan consultant.
"We have to be committed to these (services, although) they cost money," Ellis said.
Residents want to see quality-of-life amenities, including investments in parks, as recommended by the comp plan consultant, said Mayor Matt Pacifico, who also cited the widespread public approval generated by the city's investments this year in Prospect Pool.
Taxation in the U.S. is backward because local government, the one closest to the people and the one that provides essential services -- like firefighting, police and code enforcement -- takes less from its constituents than the federal government, which is most distant from constituents' daily lives, according to Councilman Jesse Ickes.
He wants to see low taxes, Ickes said.
But he can't advocate for council to be irresponsible by failing to meet its contractual obligations, he said.
Council "never wavered" in its commitment to law enforcement, as did some communities that talked about defunding the police -- which was nonsense, said Councilman Dave Butterbaugh.
Strohm recently began cobbling together a financial plan that will look 10 years ahead, which will help stabilize Altoona's fiscal situation, said Councilman Ron Beatty.
The real long-term answer is to bolster the property tax base, which council is trying to do with measures like the creation of a blighted property rehabilitation program -- but that kind of thing takes a while to generate results, according to Ellis.
Mirror Staff Writer William Kibler is at 814-949-7038.