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City’s tax bump will help future

3 min read

An article published in the Mirror's Dec. 11 edition not only reported on the Beaver County community of Aliquippa's exodus from state fiscally distressed status.

That article also delved into Altoona's exodus from the same program in 2017 after only five years of that unwanted status.

With the start of a new year -- one that will see Altoona property owners pay only an additional half-mill of city real estate tax -- it is a good time to reflect on why the Mountain City is in the solid financial shape it can boast about while numerous other Pennsylvania municipalities are not blessed with such an upbeat situation.

When Altoona was declared financially distressed, it had experienced a deficit over a three-year period, expenditures had exceeded revenues for three or more years and the quantity and quality of municipal services had decreased from the year preceding the distressed designation.

But Altoona showed from the start that it was committed to exiting distressed status as quickly as possible, rather than languish in the program for decades. That commitment proved fruitful through 2023 and portends a solid fiscal foundation going forward, as long as local officials remain dedicated to correct decision making.

Current and other recent leaders presiding over the city have demonstrated such a dedication.

While some local property owners are unhappy about paying a higher city tax, they need to acknowledge what the tax increase for this year is buying them -- protection from a potentially bigger future tax increase.

There are officials in some municipalities who opt to implement a politically inspired tax decrease when it appears that they will be able to "get by" with a smaller tax inflow.

However, in many instances, the financial cushion that decision fails to provide comes back to haunt them in the not-very-distant future, and the taxpayers ultimately pay a heavier price than they otherwise would have.

In Altoona's case, 2024's additional half-mill will prevent what could have been a $1 million deficit in 2025 if the quantity and quality of city services were not cut irresponsibly.

For example, no right-thinking city resident wants a police department that is incapable of adequately protecting the community, nor do right-thinking residents want a fire department that is incapable of mustering the manpower and equipment necessary to deal with whatever kind of blaze or other emergency that occurs.

Additionally, right-thinking residents do not advocate a deteriorating infrastructure that erodes property values and undermines efforts to attract new enterprises.

Meanwhile, Aliquippa, which remained under the distressed status umbrella for 36 years, but which now has improved management practices and is minus its longtime structural operating deficit, can presumably look forward to a brighter fiscal future.

With Aliquippa gone, only five state municipalities remain classified as distressed. Johnstown shed its distressed designation earlier in 2023.

Pennsylvania's Department of Community and Economic Development, which administers the law providing for distressed status for financially troubled communities, spoke with Altoona Mayor Matt Pacifico in 2018 about this city's successful journey between May 2012 and September 2017 under the Pennsylvania Municipalities Financial Recovery Act of 1987.

"It came down to hard work from elected officials and city staff, who worked diligently … to implement our recovery plan," Pacifico told DCED.

That hard work and dedication never must be relaxed.

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