City Council members say they want a clearer picture of how potential property tax increases would affect residents and city finances as they continue reviewing a proposed 2027 budget that relies heavily on reserves to balance spending.
During a budget review Monday, Councilman Raymond Baker requested projections for tax increases ranging from 1% to 5%, including the long-term effects of smaller annual increases rather than occasional larger hikes.
The discussion came as council examined spending plans for the Public Works Department, including street paving, snow removal, parks, street lighting and trash collection.
Baker said he wants to understand whether modest, predictable tax increases could help preserve the city’s financial reserves without placing an undue burden on taxpayers.
“You never know when the rainy day is going to come,” Baker said.
Council previously learned that a 3% property tax increase would generate approximately $740,000 in additional revenue. Baker requested projections extending several years into the future, along with estimates of how increases would affect individual property owners.
Council President Donna Reed supported exploring incremental increases, saying they could be preferable to imposing larger increases after several years without adjustments.
“The incremental, I think, is a lot better for everyone,” Reed said.
In a phone conversation last month, City Managing Director Jack Gombach said city administrators have been advocating for an incremental increase since the 2026 budget discussions last year.
No new tax projections were presented Monday, and council has not settled on an increase.
Monday’s review also highlighted the challenge of maintaining Reading’s aging streets.
Baker questioned how the city intends to catch up on paving work that has fallen behind over several administrations.
Public works officials speaking at the meeting Monday night said the city should ideally repave approximately 3 miles of streets annually, based on a roughly 20-year maintenance cycle. However, required accessibility improvements consume about one-third of available paving funds.
Public Works Director Kyle Zeiber explained that projects funded through the state’s liquid fuels program must include accessible curb ramps at intersections, significantly increasing costs.
Officials estimated that paving alone costs approximately $700,000 per mile, while projects incorporating ramps and related improvements can approach $1 million per mile.
The city received $2,097,569 in state liquid fuels funding this year. The proposed 2027 budget includes $3.88 million in revenue and expenditures for the fund, including $3.5 million for contracted services.
Earlier Monday, Mayor Eddie Moran and city officials launched a $2.1 million liquid fuels-funded project that will repave streets across the city beginning with Joan Terrace and Summit Chase Drive. Roadwork is expected to finish in November with ADA curb-cut upgrades continuing into 2027.
Officials said using federal Community Development Block Grant funds for curb ramps could free more liquid fuels money for paving over the next two years, potentially allowing the city to reach its 3-mile annual target.
Gombach said city officials planned to meet with PennDOT on Thursday to discuss grants and other funding opportunities.
“We are trying to have those conversations, but there’s so many limited pots of money,” Gombach said. “Unfortunately, we just can’t do everything at once.”
Finance Director Joseph Famiglietti also outlined several adjustments to the department’s proposed spending plan.
The city would increase its snow-removal overtime budget from $75,000 to $90,000 following higher-than-anticipated costs this year. A separate $100,000 emergency snow-removal allocation would not be renewed, although officials said additional funding could be authorized if necessary.
The proposed parks budget eliminates funding for one equipment operator position that has historically remained vacant. Officials said employees are routinely shared among public works divisions to meet operational needs.
Street-lighting expenses would decrease from $1.15 million to $1.125 million, reflecting historical spending. Zeiber said an ongoing conversion to LED lighting by the electric utility could further reduce costs.
The administration also created a separate sustainability division in the proposed budget to provide greater transparency for expenses previously grouped under a single account.
In the solid waste fund, proposed contracted services total approximately $3.03 million for recycling and $6.09 million for trash collection.
The review also uncovered discrepancies in salary figures for the garage and streets divisions. Famiglietti acknowledged that some figures did not align with staffing levels and said corrections or further review were needed.
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.