READING — Monday may be the last chance for residents to give their opinions about the City of Reading proposed 2026 budget. City Council currently is scheduled to vote on the 9% property tax increase after discussing around $1 million in cuts this week.
A home valued at $100,000 would see a $163 property tax increase under the proposal, and the city would generate an estimated $1.8 million to help cover the growing structural deficit, Finance Director Jamar Kelly told Spotlight PA this week. The mayor’s administration presented a different millage rate in October that reflected a 6% tax increase, but did not include the mils dedicated to the shade tree and library funds.
City Council members and the elected auditor have discussed lowering the increase because of the back-to-back hikes at the county level in 2024 and 2025. The mayor’s administration argues the current proposal is already the lowest reasonable request given the growing deficit without instituting citywide staff reductions, and possible service cuts.
“Nine percent is just a down payment on this growing structural deficit,” Kelly said at a city council committee meeting Wednesday. He continued that he believed another 9% raise would be reasonable in about two years.
Kelly said that he would “definitely have to ask for at least 25% next year” if the 9% increase did not pass. He and Managing Director Jack Gombach said the only way to avoid it would be “mass layoffs.”
Approximately 70% of the budget is tied into personnel costs (salary, healthcare, pensions, extra benefits), which will only grow as new union contracts negotiate raises and healthcare prices go up.
The city could consider cutting vacant positions, but the majority of open roles are in the police and fire departments. Cutting five of the 27 open police patrol positions would save the city approximately $1 million annually, Kelly estimated. However, the administration is trying to recruit for those positions, not cut them, Gombach said.
Council President Donna Reed suggested delaying a final vote on the budget until Dec. 15, but the decision was not made.
The council went over some cost cutting measures Wednesday, potentially eliminating around $1 million in expenses ranging from the upgrade of certain public works vehicles and postponing a scheduled $350,000 demolition. Councilors are also considering cutting management level raises — which are outside union jurisdiction — from 3.5% to 3%. The final decisions on those cuts will come Monday
The mayor’s administration agreed at the beginning of the meeting to rescind requests for new employee positions, including a deputy managing director, fire training lieutenant, and downtown activities coordinator.
The city ran a $1.9 million deficit in 2024 and expects similar, or larger, in 2025 and 2026 depending on the amount of earned income and real estate taxes collected. Gombach said the goal is to avoid returning to state-declared financial distress.
City Council is scheduled to hear public opinion and vote on the budget Dec. 8, though councilors may choose to delay the vote to Dec. 15. Council members may still propose new amendments to the budget beyond the changes accepted Wednesday.