City Council members are asking the administration to explore annual property tax increases and take a closer look at personnel costs as they continue reviewing the city’s proposed 2027 budget.
During Monday’s committee of the whole meeting, council members requested projections showing how annual tax increases, beginning with 3%, would affect the city’s budget deficit and its reliance on general fund reserves.
Councilman Jaime Baez Jr. raised concerns about the city’s declining reserves and the prospect of another substantial tax increase in the future.
He noted that council approved a 6% property tax increase for 2026 after the administration initially proposed 9%.
Baez also called for a review of employee salaries, overtime and staffing levels.
“We can’t continue to put this on the backs of our residents alone, and there has to be some accountability on our side as legislators, and of course the administration,” he said.
Councilman Raymond Baker supported examining several tax scenarios rather than limiting the analysis to 3%.
Finance Director Joseph Famiglietti said he expects to provide the projections next week.
Baez also requested the city’s current unassigned general fund balance and projections showing whether the city would maintain its minimum required reserves after planned withdrawals in 2026 and 2027.
Famiglietti said the administration expects to meet the reserve requirement but did not have the current balance available.
The proposed 2027 budget does not include a property tax increase.
Famiglietti said the administration wants to examine departmental procedures and identify opportunities to collect additional revenue before raising taxes.
Council President Donna Reed emphasized the importance of examining personnel expenses, which account for approximately 70% of the city’s budget.
Managing Director Jack Gombach said Reading is not alone in facing rising employee costs, citing similar pressures in other Pennsylvania cities.
Councilman O. Christopher Miller cautioned against cutting positions that are essential to economic development and neighborhood services.
The discussion followed a detailed presentation of proposed spending for finance, purchasing, accounting, information technology, human resources, self-insurance and the law department.
Famiglietti outlined numerous adjustments intended to bring spending estimates closer to actual expenses and consolidate costs into consistent budget categories.
Among the savings, the accounting department is processing federal 1099 tax forms in-house rather than using an outside contractor, saving approximately $6,000 annually. A revenue accountant position vacated by retirement is expected to remain unfilled in 2027.
Human Resources Director Deborah Twigg outlined a proposed program to control soaring costs for GLP-1 weight-loss medications.
Twigg said the number of employees using the medications increased from 72 last year to about 340 this year, with spending exceeding $1.5 million by mid-August.
Under the proposed program, employees receiving the medications solely for weight loss would be required to participate in coaching, dietary and exercise programs to retain coverage.
Twigg also reported that changes to Medicare prescription coverage for eligible retirees are saving the city $50,000 to $200,000 monthly.
Council will continue reviewing departmental spending proposals in the coming weeks, with a public hearing scheduled for Oct. 28.
Under the city’s Home Rule Charter, council must adopt the 2027 budget by Dec. 15 or the mayor’s original proposed balanced budget will automatically take effect.