City Council members questioned travel expenses, staffing levels and departmental spending as they began a detailed review of the city’s proposed 2027 budget.
During a committee of the whole meeting Wednesday, Finance Director Joseph Famiglietti walked council through budgets for the mayor’s office, City Council, managing director, downtown operations and Human Relations Commission, along with debt service and pension obligations.
Famiglietti said the administration began reviewing departmental budgets in April, examining expenditures dating to 2022 and reclassifying expenses to provide a clearer accounting of how city funds are spent.
The changes prompted questions about apparent increases in several spending categories.
Councilman Raymond Baker questioned why the mayor’s advertising budget increased to $7,000 from $500 and requested additional information about expenditures previously recorded under other categories.
Famiglietti explained that some increases reflect changes in accounting classifications rather than additional spending.
Council President Donna Reed pressed the administration for a detailed accounting of travel, lodging and mileage reimbursements, emphasizing that council members generally pay their own travel and lodging expenses.
“I think it’s an important choice in a city that’s impoverished,” Reed said.
Mayor Eddie Moran defended the reimbursements, saying his administration has increased its outreach and advocacy efforts, including trips to Harrisburg.
“Unfortunately, with my salary, I have to ask for reimbursement,” Moran said.
The mayor’s salary is $90,750.
The exchange grew contentious, prompting Baker to call for order and Councilman Jaime Baez Jr. to urge greater civility during budget deliberations.
Council members also questioned staffing in the mayor’s office, which includes the mayor, a chief of staff and two special assistants.
Chief of Staff English Bradley said the assistants handle scheduling, constituent inquiries and more complex requests for assistance. She said eliminating a position would strain an already busy office.
The proposed budget includes 3.5% raises for nonunion management employees, while elected officials would receive no increase.
The administration proposed reducing downtown event spending to $73,000 from $100,000 and downtown contracted services to $48,000 from $60,000.
The Human Relations Commission’s general fund allocation for contracted services would decrease to $5,000 from $14,000, although Famiglietti noted that much of the commission’s funding comes from grants.
Council also received encouraging news about the city’s pension funds, which have combined investment balances exceeding $353 million.
Famiglietti said the police pension plan is 83% funded, the firefighters’ plan is 87.7% funded, and the officers and employees plan is 102% funded.
The city received a pension distress score of 1, the lowest possible under the state’s assessment system, he said.
This means Reading’s municipal pension plans are considered to be in relatively good financial health under Pennsylvania’s pension monitoring system.
However, Famiglietti noted, required pension contributions will increase by approximately $584,000 for firefighters and more than $1.1 million for police in 2027, adding to the city’s financial obligations despite the plans’ relatively healthy funding levels.
Famiglietti also acknowledged that principal and interest payments on a 2012 bond were inadvertently omitted from the draft budget and must be added. The bond is scheduled to be paid off in 2027.
Asked whether the administration anticipates additional borrowing that would increase future debt payments, Famiglietti said no new bond issues are planned.
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.