Harrisburg City Council at Tuesday’s meeting.
Harrisburg has proposed a spending plan for the coming year.
On Tuesday, Mayor Wanda Williams presented her $87 million general fund budget proposal for 2025, which includes funding infrastructure projects, the Broad Street Market rebuild and regular operational costs.
The budget does not include a property tax increase.
“As in previous years, this budget is fiscally sound and responsible,” Williams said. “This administration continues to invest in the residents of Harrisburg.”
In total, the proposed 2025 budget equals $142.6 million, including a $21.7 million neighborhood services fund budget, among other budget categories.
Last year’s 2024 adopted general fund budget was $109.4 million, and the overall budget totaled $141 million. While the proposed general fund budget is lower this year, other fund areas are higher, bringing the total budget close to last year’s.
According to Budget Manager Timothy Brooks, personnel costs and capital expenditures make up some of the largest budget expenses this year. For the former, the city has to accommodate contract-obligated raises for staff, as well as raising salaries to account for inflation, Brooks said. Capital expenditures, such as roadwork and construction are another significant budget item, though the city has taken some of that work in-house, which saves money, he said.
Money-saving strategies such as that are important, especially as the city still deals with post-pandemic challenges like a loss in parking revenue, business privilege taxes and property taxes. The lingering remote work culture affects those revenue sources, as fewer people come into the city to park, work, shop and dine regularly, and as owners of largely empty office buildings seek property tax reassessments.
According to Business Administrator Samuel Sulkosky, those issues are affecting cities nationwide, as well as Harrisburg.
In the proposed 2025 budget, items like reduced debt service payments, due to the city paying off significant debt in 2023, freed up funds to make up for the revenue losses, Sulkosky said. Other sources like federal COVID funds and grants fill in gaps, as well. Even things like about $3.5 million in interest accrued from the city’s share of federal American Rescue Plan Act (ARPA) money, some of which sits in the general fund, help, he said.
Other “big ticket” items on the proposed budget include costs associated with the Broad Street Market rebuild and the FNB Field stadium upgrades for the Harrisburg Senators, explained Bryan McCutcheon, accounting manager. Both of those expenditures, however, are supported by grant funding on the revenue side.
Broad Street Market spending is estimated to be about $6 million this year, with about $4.5 million in insurance money to help cover it. For the Senators’ project, the city received a $6 million Redevelopment Assistance Capital Program (RACP) grant from the commonwealth, which covers about half of the total project cost.
Harrisburg City Council will hold budget hearings to discuss the proposal in-depth on Dec.3, 4, 10 and 11. Each meeting will begin at 5:30 p.m.
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