Lock Haven Council approves nine percent hike in real estate levy

LOCK HAVEN, PA – Lock Haven City Council has approved a nine percent increase in the city’s real estate levy, effective with the 2022 tax year. The vote was 6-1 at council’s Monday night meeting. The hike ends a five year run without a real estate tax increase.

The budget reflects another $200,000 generated in real estate tax income to adequately secure a balanced budget for 2022.  City Manager Greg Wilson read a prepared statement in which he said that the city has not raised taxes since 2015 and “like everyone else who lives in the city, I would like that to continue as long as possible.” But he said the city has lost assessed value since that time, while the cumulative inflation from 2015 through the end of 2022 will be 21%. Assessed value lost in that period, he said, included the Piper Building acquired by Clinton County and the former Lock Haven Hospital, acquired by UPMC, previously taxpaying parcels. He said that means that while city tax revenue has decreased as more properties become tax exempt, the city’s “costs have inflated like everyone else’s,” citing items from “pipe for storm-water …to salt for snowstorms”

Council member Doug Byerly was the lone no vote as the $15 million budget and companion tax increase were approved. Byerly said, “This is not the correct time economically and politically to raise taxes,” stating there are other options including reducing expenses and raising revenue

Mayor Joel Long said, “None of us want to raise taxes,” but council has a responsibility to provide services and as costs go up the city has to be able to adjust. He said the city is looking at other ways to increase revenue, a view supported by council member Barbara Masorti.

With the final approval on the 2022 budget, council agreed to cancel its final meeting of the year previously set for Dec. 20; and council set Monday, Jan. 3 for its 2022 organizational meeting.