Harrisburg’s 2025 Budget Maintains Tax Rate

 Harrisburg has adopted a 2025 budget that keeps municipal property taxes unchanged for the coming year.

The $86.9 million general fund budget includes funding infrastructure projects, the Broad Street Market rebuild and regular operational costs.

“As in previous years, this budget is fiscally sound and responsible,” said Mayor Wanda Williams, at the budget presentation. “This administration continues to invest in the residents of Harrisburg.”

In total, the 2025 budget equals $142 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. For the former, the city must accommodate contract-obligated raises for staff, as well as salary increases to account for inflation, Brooks said. Capital expenditures, such as roadwork and construction, are other significant budget items, though the city has taken some of that work in-house, which saves some money, he said.

In the 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 revenue losses, said Business Administrator Samuel Sulkosky. Other sources like federal COVID funds and grants filled in gaps, as well, as did about $3.5 million in interest accrued from the city’s share of federal American Rescue Plan Act money, which sits in the general fund, he said.

These monies helped offset the city’s ongoing post-pandemic challenges, which includes a loss in parking revenue, business privilege taxes and property taxes. The lingering remote work culture detrimentally 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.

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 outside funding.

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.

Improved Finances for Broad Street Market

About a year after the Broad Street Market nearly faced closure, it has a healthy financial projection for the new year.

Last month, the market’s board approved a $513,524 budget for 2025 that includes funds for infrastructure improvements, a new manager position and marketing.

“It’s obviously been a very hard year,” said board chair Eric Hagarty. “A whole bunch of things helped us get to this point, but first obviously is the outpouring of community support.”

According to Hagarty, the market began 2024 with only about $14,000 in its operating account and owed thousands of dollars in delinquent and unpaid bills. The previous July, the market’s brick building caught fire, closing the building and significantly decreasing revenue. In August 2024, the former executive director of the market, who resigned in February, was charged with stealing money from the market.

Since then, Hagarty said that the market cut down expenses and saved money by having volunteers take on responsibilities in place of a market director. Donations and the temporary tent opening helped as well. Additionally, market vendors agreed to a 25% rent raise in January, which helped bring in funds. The 2025 budget does not include a vendor rent increase.

In the 2025 budget, the market will begin using some of its $350,000 grant from the state Department of Community and Economic Development, which was awarded in August. That money will go towards renovations and improvements in the stone building.

The budget also accounts for the hiring of a new market manager, a position that Hagarty said will be posted online soon. The role will look a little different moving forward, as well, Hagarty said. The manager will focus more on day-to-day operations, and responsibilities such as grant writing will move to the board.

The market has also allocated funds for resuming preventative maintenance and paid advertising, as Hagarty said that he believes many people still don’t realize that the market is open post-fire.

As the market leverages its state grant and raises revenue over the year, Hagarty believes that the market will be able to build up a cash reserve of around $100,000 to carry into 2026.

“I’m just so appreciative for everybody that has helped make this possible,” he said.

In other recent market news, Honeybush Raw Smoothie Bar, a former brick building vendor, will return to the market, as the board approved its vendor application.

2025 Utility Costs to Rise

The average Harrisburg utility customer will pay about 3.7% more for water and sewer service under a new rate schedule for 2025.

Recently, the board of Capital Region Water (CRW) approved new budgets and rates, which will increase the average customer bill by about $3.45 per month, from $92.31 to $95.76.

“While it’s difficult to raise rates, we are only talking about a $3.45 increase per month or roughly $40 (per year) to the average rate payer,” said board chair Marc Kurowski. “We don’t portray that as less, but we are getting a lot done for very nominal rate increases.”

Last year, CRW raised rates by an average of 5.2% per month.

Effective Jan. 1, CRW’s charge for drinking water will increase from $10.65 to $10.97 per 1,000 gallons consumed, or about $1.20 per month for the average customer, according to the new rate schedule.

The wastewater charge will increase from $9.98 to $10.58 per 1,000 gallons consumed, or about $2.25 monthly for the average customer. The stormwater fee will remain unchanged at $6.77 per month for the average residential customer.

The rate schedules all passed by a 3-1 vote, with board member Nate Davidson voting no.

During a budget presentation, Douglas Keith, CRW’s chief financial officer, said that the utility had to raise rates due to its own increasing costs. Health insurance, pensions and union-mandated salary increases all will raise expenses by over $1 million next year, he said.

Keith also stated that CRW plans to spend about $192 million over the next three years on infrastructure projects. CRW is currently under a consent decree to vastly reduce the flow of wastewater into area waterways and expects to spend some $327 million over the next decade improving its system.

It plans to pay for these capital improvements through a variety of possible funding sources, including grants, low-interest loans, bonds and customer fees.

“While an increase to the rates is not something that is particularly fun to have to talk about and engage with, it is necessary and it’s very proper based upon the situation we find ourselves in, with an opportunity to improve our system dramatically,” said board member Andrew Enders.

Tax Abatement Extended

Harrisburg City Council has extended the city’s tax abatement program for another year.

Last month, City Council approved the extension of the Local Economic Revitalization Tax Abatement (LERTA) program, which gives tax break incentives to developers, as members also questioned its success.

“We want time to be able to convene a committee that will involve council as well, to talk about the LERTA, whether the LERTA has been as successful as we want it to be over the last 10 years,” said Gloria Martin-Roberts, interim director of building and housing development. “We need a year to just have that meeting to give us some time to be able to come up with a better LERTA.”

The city’s program was first approved by council in 2015, giving developers 100% tax abatement for 10 years for residential renovations and construction. Commercial and mixed-use projects were eligible for 50% to 100% abatement. However, to qualify, the city imposed certain requirements on new construction and commercial buildings, such as employing 15% minority businesses and 15% city-resident workers, and paying prevailing wage.

Over the years, the effectiveness of LERTA has been questioned by developers, some who say the requirements significantly raise the project cost, and city officials who see low numbers of developers erecting new buildings opting in.

At the meeting, Jason Graves, director of economic development for the city, shared that, in the past three years, only 43 out of 426 eligible projects applied for LERTA.

By extending the program, which was set to expire Dec. 31, officials said the city will have more time to move current applicants through the process, while brainstorming ways to improve LERTA.

Council voted 6-1 for the extension, with council member Shamaine Daniels voting against it.

Housing Project for Veterans Approved

A project to construct affordable housing for veterans in south Harrisburg can move forward to a groundbreaking.

In late November, City Council approved the land development plan for New York-based Tunnel to Towers’ 64-unit apartment building and 20 small “comfort homes” for veterans along the Susquehanna River, near the PennDOT building.

Originally, the proposal generated some controversy, as the project will take land long used by the Capital Area Greenbelt Association (CAGA) to connect its trail segment in south Harrisburg.

The Harrisburg Planning Commission approved the project on the condition that the developer allow the Greenbelt to remain along the southern border of the property. However, council removed that condition, after CAGA, at a prior work session, said it planned to pursue an alternative route around the Tunnel to Towers site.

“I really look forward to this project because I feel like it is something that is very much needed,” said council member Ausha Green.

Tunnel to Towers is the second housing project for veterans in the South Harrisburg area. In May, Veteran’s Outreach of Central Pennsylvania cut the ribbon on its tiny houses for veterans nearby.

In addition, another group of local residents has teamed up with Missouri-based nonprofit Eden Village to propose constructing tiny houses for unhoused people in the same area. That project still must go through the city’s land development process.

Police for School District

The Harrisburg School District will move forward with plans to hire police officers for its schools.

In late November, receiver Dr. Lori Suski approved a new safety plan that will bring four police officers and a police station into the district, due to a recent increase in violent incidents.

“Looking at some of the positive factors of having police presence in the schools is the extra layer of security and protection for the students and the staff,” Suski said.

At a previous board meeting, the district presented the plan, citing a significant issue with violence in the schools, expulsions and often slow city police response times.

Under the plan, the district plans to hire four officers of its own to help with high-level incidents such as drug use, weapons and physical violence. They will also help implement educational programming and patrol buildings.

Two officers are slated to be stationed at Harrisburg High School-John Harris Campus, one at Camp Curtin Middle School and one will float between the elementary buildings.

Current safety monitors and coordinators will still be employed and present at each school. However, district officials explained that officers are needed to handle violent incidents, such as those including weapons, that safety monitors are not equipped or trained for.

Also under the plan, the district will spend $441,507 to convert empty classroom space in John Harris into a police headquarters.

Officials said the plan will be phased in beginning during the 2025-26 school year. In the meantime, they will begin looking for candidates.

Home Sales Dip, Prices Rise

Harrisburg-area home sales ticked down, but prices crept higher in November, according to the latest report on previously owned houses.

For the three-county region, 474 homes sold compared to 492 in November 2023, as the median sales price rose to $275,000 from $259,500, said the Greater Harrisburg Association of Realtors (GHAR).

In Dauphin County, 214 houses sold, a drop from 250 a year ago, while the median sales price grew to $250,000 from $235,000, GHAR said.

Cumberland County had 240 home sales, up from 214 in the year-ago period, as the median price increased to $314,297 from $302,000 in November 2023, according to GHAR.

In Perry County, 18 houses sold compared to 32 sales the prior November, and the median price rose to $237,500 from $205,000, GHAR stated.

In November, the pace of sales slowed, as the “average days on market” increased to 28 days versus 22 days in the year-ago period, GHAR said.

So Noted

Annie Hughes last month was appointed to the Harrisburg School Board, filling an open seat following the death of long-time board Director James Thompson. The board voted 5-2, with one abstention, for Hughes, who will serve the remainder of Thompson’s term.

Finanta is the new name of Community First Fund, a Lancaster-based community development financial institution. Finanta serves immigrants, people of color, women and those living in low-income communities in the greater Philadelphia area, eastern and southern Pennsylvania, New Jersey and Delaware.

Messiah Mickens, a Harrisburg High School junior, last month was named the 2024-25 Gatorade Football Player of the Year for Pennsylvania. This award celebrates high school athletes for their success on the field, in the classroom and in the community, honoring one winner in each state across 12 high school sports.

Michael McCarthy last month was named the new executive director of the Susquehanna Chorale, leading all non-artistic aspects of the 43-year-old organization. McCarthy is the former director of music at the Washington National Cathedral in Washington, D.C., where he led their choirs for 21 years. The move was made in anticipation of the future retirement of founder Linda Tedford, according to the chorale.

Michelle Gonzalez Maldonado, Ph.D., last month was named provost of Lebanon Valley College. She previously served as professor of theology and religious studies at the University of Scranton, as well as provost and senior vice president of academic affairs. She is slated to assume the position at LVC on July 1.

Mint will be the special milkshake flavor at the PA Farm Show this month, said the PA Dairymen’s Association. The association also will offer its standard chocolate and vanilla flavors at the show, which runs Jan. 4 to 11.

Mischelle Y. Moyer last month was named Harrisburg’s new communications director. She has served for over two decades in various strategic communications, community engagement and nonprofit positions, according to the city. Moyer replaces Matt Maisel, who left the post in September to join Penn State Health’s communications team.

Open Stage and Dr. David Bronstein have been named the recipients of the 2025 Awards for Distinguished Service to the Arts in the Capital Region, an annual honor bestowed by Theatre Harrisburg. Open Stage will receive the award for an “organization, company or group,” while Bronstein will receive the award for an individual for their contributions to the advancement of the arts in the Harrisburg area.

Pennsylvania College of Art & Design has selected Andrew W. Barnes, Ph.D., as its next president, replacing interim President Audry Carter. Barnes currently serves as dean of the School of the Arts, Humanities, Education and Social Science at York College of Pennsylvania, and will assume his new position at the Lancaster-based arts-focused college on Jan. 13.

Changing Hands

Bailey St., 1227: D. & R. Wieand to P. Novas, $62,599

Balm St., 116: 2020 Real Estate Ventures LLC to S. Olson, $130,000

Bellevue Rd., 1833: First Choice Home Buyers LLC to Mau Properties LLC, $85,000

Berryhill St., 1306: H. Le to E. Cortes, $78,000

Berryhill St., 2241: D. Listan & S. Liu to I. Lim & M. Wijaya, $75,000

Boas St., 1842: Penn Properties Associates LLC to A. McCandless, $205,000

Chestnut St., 2024: W. White to A. Nimala, $161,000

Curtin St., 613: F. Ruiz & C. Zapata to Turner Associates Inc., $120,000

Dauphin St., 630: Otter Creek Associates LP to G. Alemnji, $85,000

Emerald St., 333: G. Neff to M. Castillo, $134,000

Forster St., 1821: C. Casby to T. Scott, $92,500

Green St., 1413: Aljo Properties LLC to Cummings Real Estate LP, $260,000

Green St., 1900: A. & S. Lowry to S. Hicks, $274,900

Herr St., 1619: R. Hatcher to V. Martinez, $138,000

Holly St., 2019: M. Eshenauer to B. Caraballo, $145,000

Hunter St., 1717: R. & L. Stile to Bloom Investment LLC, $65,000

Kensington St., 2137: R. Neidlinger to R. Guallasaca, $96,000

Market St., 1152, 1152½  & 1154: 1152 1154 Market St LLC to First Choice Home Buyers LLC, $230,000

North St., 1836: J. Paulino to J. Gundermann, $152,000

N. 3rd St., 2103: SVN Real Estate LLC to PAN Holdings Inc., $900,000

N. 3rd St., 3115: Equitable Rentals LLC to J. Foster, $318,000

N. 4th St., 2203: Bill Culwell Enterprises to C. Payne, $139,900

N. 4th St., 2434: H. Qiu to C. Laird & A. Ceja, $140,000

N. 4th St., 2603: Equity Trust Co. Custodian Seth Pomeroy Ira to Top Cash Paid LLC, $77,000

N. 4th St., 3229: 3229 N 4th St LLC to B. Nassirou & S. Balla, $150,000

N. 5th St., 2515: Capital Realty Guild LLC to CVL PA Investments LLC, $205,000

N. 6th St., 2229: M. Gonzalez to Sky Resort Rentals LLC, $160,000

N. 6th St., 2426: R. Daniels to BAH Equities LLC, $130,000

N. 15th St., 1301: Capital Realty Guild LLC to BYD Properties LLC, $725,000

N. 16th St., 47: M3 6 Realty LLC to RNP Property Holdings LLC, $99,000

N. 16th St., 917: J. Waters & L. Polite to J. Waters, $75,000

N. 18th St., 74A: Angdupe2011 LLC to Hillside Financial LLC, $145,000

N. 18th St., 88: Bridger Investments LLC to Mau Properties LLC, $55,000

N. 18th St., 710: I. Rhodes to M. Gaeta, $137,000

N. 18th St., 902: D. Ward & R. Shokes to S. Marshall & J. Colbertson, $179,900

N. 19th St., 31: Community Investment & Development LLC to HBG Rental Group LLC, $125,100

N. 20th St., 34: J. & M. Thompson to F. Back, $115,000

Oxford St., 627: HD Financial Services LLC to M. Perez & V. Serrano, $129,900

Parkside Lane, 2902: D. & C. Casner to M. & S. Manley, $425,000

Penn St., 2151: Equitable Rentals LLC to D Villa LLC, $169,900

Radnor St., 611: M. Garcia to J. Bergey, $110,000

Reel St., 2422: Akadi Trucking LLC to D. Cosme & F. Rentas, $147,340

Regina St., 1612: R. Garcia to Mau Properties LLC, $75,000

Rolleston St., 1225: A. Perez to A. Moscoso, $150,000

Rudy Rd., 2409: R. Roccato & G. Schwab to S. Knoble, $289,000

S. 13th St., 30: DAG EKG Properties LLC & Heavy Lifting Properties to 30 South 13th LLC, $275,000

S. 13th St., 1463: D. Adams, B. Groft, E. Roy & A. Sullivan to Rimax Investment Properties LLC, $140,000

S. 17th St., 200: Harrisburg Masjid Company to Hamilton Health Center Community Services Inc., $242,500

S. 19th St., 227: Penn Properties Associates LLC to C. Lozado, $167,000

S. 21st St., 962: H. Thai & M. Lan to Z. Ali & F. Zaib, $90,000

S. 25th St., 638: MidAtlantic IRA & Eshelman James IRA to D. Williams, $128,000

S. Front St., 545: G. Stansfield to S. Raudabaugh, $195,000

State St., 1910: C. Easter to X. Archer, $215,000

Susquehanna St., 2134: D. Wise to M. Jones, $124,000

Swatara St., 1911: G. Amador to R. Castro, $140,000

Swatara St., 2017A: G. Mora to Mau Properties LLC, $50,000

Sycamore St., 1701: D. Duong & T. Nguyen to J. Restituyo & P. Lopez, $200,000

Whitehall St., 1923: Y. Verde to J. Nunez, $200,000

William St., 1425: J. Scott to Capital Revamp LLC, $125,000

Wilson Parkway, 2751A: A., H., J. & T. Logan to Taylor Park Holdings LLC, $21,500,000

Harrisburg property sales, November 2024, greater than $50,000. Source: Dauphin County. Data is assumed to be accurate.

If you like what we do, please support our work. Become a Friend of TheBurg!