City Council Monday adopted a 2025 budget that will require a property tax increase of 1.5 mills and an earned income tax increase of 0.1% — largely so it can put into practice recommendations in the new comprehensive plan.

The real estate tax increase would raise millage to 7.129, adding $150 a year for a total bill of $713 on properties assessed at $100,000.

The earned income tax increase would bring the rate for city residents to 1.7%, adding $50 for a total of $850 a year on wages of $50,000.

There are no changes in the budget and its associated tax increases from what council proposed at its November meeting, officials said.

The additional property taxes alone will generate $3.04 million.

With the help of the additional money, council will invest in neighborhood improvements — including streets, sidewalks, curbs and recreational facilities, said Councilman Dave Ellis last month.

The budget will also enable the city to increase its workforce by 11 or 12 positions, focusing on the Codes and Inspections and Community Development departments, said interim City Manager Nate Kissell last month.

The additional workers could help the city track problem properties owned by people who live out of town and banks that have foreclosed on those properties, so that the buildings on them don’t deteriorate so far they need to be demolished, Kissell said then.

The hope is to stabilize marginal neighborhoods, Kissell said.

The increased revenues can also be used to fund new posts for the Public Works, police and fire departments, according to Kissell.

The city cut four or five positions during COVID to avoid the need to raise taxes.

The increased revenue should also allow the city to put $1 million into the capital reserve fund, Kissell said.

The hope is that the city can begin a “pay as you go” policy for building construction and maintenance.

Altoona ranks 14th among Pennsylvania’s 15 largest cities in taxation per capita, Councilman Jesse Ickes said last month, citing the comprehensive plan.

The comprehensive plan is designed to help the city move beyond its current “bare bones” operation, Ickes said in November.

The total 2025 budget is $41.7 million, about $3.5 million more than the 2024 budget.

The proposed budget is balanced — meaning that expected revenues would just cover expected expenses, said Finance Director Jim Gehret in November.

The city has been maintaining an unreserved fund balance of about $12.4 million, according to Gehret.

Mirror Staff Writer William Kibler is at 814-949-7038.