Altoona City Council’s proposed budget holds line on taxes

Despite deficit, city has no plans for tax hike

City Council Monday introduced a tentative budget that calls for no increase in property tax, despite a projected operating deficit.

The spending plan predicts the city will spend $45.346 million, but receive only $45.114 million in revenues, according to Finance Director Jim Gehret.

The city will cover the resulting $231,000 deficit by drawing on its approximately $15 million unrestricted fund balance, Gehret said.

Projected expenses for 2027 are $1.8 million more than for 2026, Gehret said.

The additional costs are due mainly to increases in salaries and benefit expenses, based on contracts with the city's three unions, which represent the firefighters, police and non-uniformed workers, he said.

Between 80% and 90% of the cost of running the city goes to salaries and benefits, Gehret said.

There are about 220 full-time-equivalent employees, according to Gehret.

The budget predicts typical increases for insurance premiums -- 3% to 6%; with healthcare premiums a little higher than that, according to Gehret.

The budget is "tight," and staff did an excellent job to "hold the line" on taxes, said Councilman Dave Butterbaugh.

"The department heads went above and beyond" in keeping costs down as far as possible, said Councilman Jesse Ickes.

The budget is scheduled to be adopted on Dec. 2.

Property tax in the city is 7.129 mills.

A property assessed at $100,000 would thus pay $713 in property tax.

In other business, council OK'd a pair of applications for Local Share Account grants: one for $207,000 to buy a pothole patching machine and an asphalt recycling machine for the Public Works Department; and the other for $117,000 to replace five-inch hoses for the fire department.

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