Finance committee reviews PFM contract to update Williamsport five-year financial plan; state to cover 90%

Councilwoman Liz Meeley and members of the Williamsport City Council finance committee on Feb. 25 reviewed a resolution authorizing a professional services agreement between the City of Williamsport and PFM Group Consulting, LLC to produce an updated five-year financial strategic plan (STAMP). The committee heard that the Pennsylvania Department of Community and Economic Development (DCED) will cover 90% of the contract, leaving the city to pay about $12,000.

Why it matters: the STAMP update would re-evaluate priorities the city set in its prior five-year plan and could add projects that make the city eligible for state funding. The previous plan, produced with state support, funded the city’s HR, payroll and financial software upgrades; council members said they want the new plan to produce implementable recommendations and not simply another study.

“What you have before you is, as you said, a resolution, for consulting services with PFM. This is in relation to an updated financial strategic plan,” Derek said in opening remarks, describing the contract scope and the state’s role in funding it. Committee members asked about the city’s share and the mechanics of invoicing. Committee members heard that DCED approved a “notice to proceed” and that the likely process will be PFM invoicing the city and the city seeking reimbursement from DCED for the 90% share.

Councilman Randy Allison noted the city’s 10% portion “leaves us with a bill of $12,000,” and called that amount “well worth doing.” Councilwoman Bonnie Katz asked whether PFM has done similar work for other Pennsylvania municipalities; the committee was told PFM has worked with multiple cities and counties, including Allentown, Erie, Johnstown, Lancaster, Norristown, Pittsburgh, Reading, Wilkes-Barre, York, Upper Darby, Lycoming County and others.

Gordon, a PFM representative on the call, described the firm’s phased approach: “The phased engagement starts with information request and data gathering. You do the financial projection, the baseline projection for the city's revenues and expenses ... and then you get into the operational review once you have more of a financial picture to speak to.” He emphasized the work is meant to connect financial math to operational goals and department needs.

Committee members asked about timing and deliverables. The resolution as written is for a one-year contract term (through Feb. 28 next year), though PFM and staff said a typical timeline for such work is six to nine months. Members also discussed how the city might sequence implementation of recommended projects; DCED in the past has preferred that a city implement an early priority from the STAMP before pursuing multiple large projects simultaneously.

No formal vote was recorded at the Feb. 25 finance-committee meeting. Committee members agreed PFM would join the full council meeting on Thursday to present contract specifics and answer detailed questions.

Next steps: PFM will present scope and benchmarks at the full council meeting; the administration will proceed with contract execution contingent on DCED funding and the city’s reimbursement process.