Harrisburg City Council on Tuesday
Harrisburg appears to be mostly on track with its budget for the year.
At a City Council meeting on Tuesday, city administration presented a mid-year financial report, in which they stated that Harrisburg is in solid fiscal shape.
For 2023, Harrisburg’s overall spending plan totals $109.4 million, including the $82.3 million amended general fund budget and the $20 million neighborhood services fund budget, among other items.
According to the report, the city is “largely on track” with meeting that budget.
The city’s mid-year review states that, by the end of June, about 47%, $38.8 million, of the general fund budget was spent. Harrisburg has spent about $10 million more at the mid-year point than it did in 2022, due largely to an $8 million debt payoff to bond insurer Ambac Assurance in March, as well as additional capital expenditures, according to the report.
At the end of June, the city had also received 55% of its budgeted $69.6 million in revenue. According to city Budget Manager Timothy Brooks, Harrisburg has seen significantly increased rental revenue due to payments from PennDOT for land used for its I-83 widening project. Earned Income Tax and Mercantile/Business Privilege Tax revenue are higher than expected, as well. Officials forecast that those taxes will exceed budgetary expectations by year end.
The report projects that by the end of the year, Harrisburg’s expenditures will reach $84 million, nearly $2 million over the general fund budget, due to the Ambac debt payoff, using federal American Rescue Plan Act (ARPA) funding and increased personnel medical claims, among other expenses.
However, the budget is still expected to remain balanced, with additional federal funds yet to come in and with additional fund balance appropriations.
At mid-year, the city’s cash reserves equaled $22.9 million. Currently, they total about $23.8 million.
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