Lock Haven looking at nine percent jump in real estate levy in 2022

LOCK HAVEN, PA – Word Monday night from Lock Haven city council was that another $200,000 in real estate tax income would be needed to adequately secure a balanced budget for 2022.  City Manager Greg Wilson on Tuesday ran the numbers to hike real estate taxes to produce that amount of money. His computations produced the need for a nine percent increase in the city’s overall millage.

If approved by city council at its Monday, Dec. 6 meeting, the hike would be the first in the real estate levy since 2015.

The city manager on Tuesday provided the media with information on how the number was determined and the proposed tax increase’s impact on the median household within Lock Haven:

Ordinance No. 2021-12 represents a 9% increase in overall millage increasing the rate on “land” to 28.0 mills and “improvements” to 6.1 mills.  The median household will see an increase of the equivalent to $6.42 per month.  About 60% of the parcels in the city will see a similar increase.  When removing the top 25 commercial and/or industrial properties (largest taxpayer), the average property will pay $6.92 per month ($83 per year) more in RE Tax to the city in 2022 than in 2021. 

Wilson said since the last real estate tax increase in 2015, the city has lost three percent in assessed real estate value, primarily driven by property purchases by tax-exempt entities; while the cumulative price increases due to inflation since 2015 have been more than 15 percent.   He said a copy of the 2022 Budget Book as well as the proposed ordinances are available at lockhavenpa.gov or in person at City Hall.

The December 6 meeting will see council hold its final hearing on the proposed; council will then consider an ordinance to adopt the 2022 budget and the ordinance to set the increased real estate levy.