Altoona City Council adopts 2025 budget, raises earned income tax and millage; council hears union wage appeals

Altoona City Council on Dec. 2 adopted its 2025 budget and approved multiple ordinances, including changes to the earned income tax and the city millage rate, in unanimous votes.

Council approved the 2025 budget ordinance and a suite of related measures by votes recorded 7‑0. Vice Mayor Ellis moved adoption of the budget ordinance; Mayor Merritt Pacifico seconded the motion. Council also adopted an ordinance to amend chapter 6-46 (taxation) to set earned income and net profits tax rates for residents and certain nonresidents, an ordinance setting the real estate millage at 7.129 mills for 2025, and an ordinance authorizing participation in the Cambria County Building Codes Enforcement Agency.

Council took a consent vote, 7‑0, to approve multiple items including minutes of the Nov. 12 meeting; a Tenth Avenue retaining wall demolition and guide rail installation contract for $198,253.13 payable from ARPA funds; approval of the capital improvement program for the next five years; the 2025 council meeting schedule; a subrecipient agreement with the Altoona Parking Authority for use of ARPA funds (amount listed in meeting materials); and sale documents for property at 1501‑1507 Twelfth Avenue involving Curry Realty (terms detailed in attached documents). The consent agenda also included amending the fee resolution to adjust multiple permit and fee schedules; authorizing a power of attorney and representative declaration for the Sewer Revenue Bond Series 2019 audit; and approving a repository bid of $250 for property at 324 Spruce Avenue.

On the earned income tax ordinance, council recorded unanimous support for rates described in the ordinance: specified percentages for resident and nonresident withholding authorities and a separate pension‑related levy component. The ordinance continues employer withholding, return filing requirements, designates a tax collector and sets penalties, interest and severability provisions.

Council also approved an ordinance to participate in the Cambria County Building Codes Enforcement Agency (administered by the Laurel Municipal Inspection Agency), which will add another option for inspection services alongside the department the city currently uses.

Separately during public comment, members of the city's union negotiating committee urged council to secure a multiyear wage agreement to restore purchasing power lost during the recent period of high inflation. Scott Campanero, who said he works for the city and is part of the negotiating committee, told council the union seeks a multiyear pay increase to make up for what he called a substantial loss in worker purchasing power over the past three years. "People are not asking for a windfall. We're just asking to make up what's been lost," Campanero said.

In response to a question from council, a staff member reported the union had proposed a three‑year contract that would increase wages by roughly 12 percent over that period; staff said the city could not recommend a settlement that would risk reinitiating state oversight or otherwise be fiscally irresponsible. Council members said negotiations remain ongoing; nonuniform employee contract negotiations are active and police and fire contracts come due next year.

Council also authorized the mayor to sign a power of attorney and declaration of representative form so the city's attorney may act on behalf of the city in an IRS audit of the Sewer Revenue Bond Series 2019. Staff said the IRS audit appears to be a standard verification that bond proceeds were spent for their intended purposes.

All recorded votes mentioned above were unanimous (7‑0).