At a City Council meeting Monday, two residents complained about the 1.5 mill — 26.6% — property tax increase for 2025 that council passed in December.

“It’s a huge burden for the elderly,” Margaret Ebersole told council members. “How many (such elderly) are on fixed incomes?”

Council “appreciate(s) your angst,” said Councilman Bruce Kelley. “(But) it’s not something we (did) lightly.”

The increase is in keeping with recommendations in the city’s new comprehensive plan, said Councilman Dave Ellis.

Council intends to use the extra money — the increase will add $3.4 million a year — for additional staff, to contend with blight, to bolster the housing stock with renovations and new construction, to make improvements on sidewalks and curbs and to strengthen public safety, according to Ellis.

The city also plans to put away some of the money for capital improvements, thus reducing the need for borrowing and the interest on that, Ellis said.

The city’s property tax rates were low compared to peer cities in Pennsylvania, members said, citing the comprehensive plan.

As of last year, it was taxing at a lower rate than all but one of the 15 largest cities in the state, Ellis said.

Those lower taxes translate into a smaller workforce than in most of its peer cities, Ellis said.

The additional tax revenue will allow for restoration for workforce losses in recent times, Kelley said.

Even after the tax increase, Altoona’s rate is still below average for the peer cities, said Councilman Dave Butterbaugh.

“It’s a big bite, we realize,” Kelley said of the hike. “But we’re putting (the money) to good use.”

“It’s a lot all at once,” Butterbaugh conceded. “But we’re going to make an investment now to expand the tax base, so we don’t have to do it again.”

The tax increases will make owning property here more expensive, and may discourage young people who are starting out in adult life from purchasing a house, said resident Todd Stoner.

Yet houses in the city are still significantly less than they are in Hollidaysburg and State College, Ellis said.

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

As part of the 2025 budget, council also raised earned income tax by 0.1%.

That brought the total earned income tax rate to 1.7%, adding $50 for a total of $850 a year on wages of $50,000.