PFM lays out financial recovery plan for Williamsport, urges home rule and police facility planning

Williamsport City Council · February 6, 2026

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Summary

Consultant Gordon of PFM told the Williamsport City Council the city faces a structural budget gap and recommended pursuing home rule for taxing flexibility, digitizing records with grant support, advancing a housing study this year, and planning for a new police headquarters tied to a multi-year financing plan.

Gordon, a consultant with PFM, presented a financial management plan to the Williamsport City Council on Feb. 5 that framed the city's fiscal challenge as a structural deficit driven by slower revenue growth and rising personnel costs and laid out a multi-year roadmap for stabilizing finances.

"You do not have a $5,100,000 deficit to start this year," Gordon said, describing the July baseline projection and stressing that the 2026 budget functions as a bridge while longer-term options are pursued. He recommended pursuing home rule so the city would have both real estate and earned income tax levers, and outlined a multi-step timeline that would put a home-rule vote on the fall ballot in the typical November window if study and election steps proceed this year.

Why it matters: Home rule could give Williamsport new taxing flexibility that consultants and some council members say is a key tool to close recurring budget gaps. Gordon told the council that home-rule adoption and a coordinated capital plan would put the city in a position to borrow for a new police headquarters later in the decade.

Key details from the plan: Gordon urged immediate steps this year to digitize city records (a grant-eligible activity under DCED’s strategic management planning program), to complete a housing study, and to evaluate outsourced residential rental inspection services. He said digitizing records would facilitate reuse or sale of the old city hall building and improve operations. On police facilities, Gordon recommended starting planning work next year and linking final construction borrowing to tax flexibility likely available only after a successful home-rule process.

Council discussion and follow-up: Council members pressed Gordon on whether home rule reliably improves municipal finances and on responsible debt thresholds. Gordon said municipal debt should be guided by multiyear affordability metrics and recommended retaining an independent financial adviser for any debt issuance. He also said outsourcing rental inspections can be a useful force multiplier if the RFP and contract set clear performance standards.

What’s next: The plan is a public document and staff said it can be used to apply for remaining STAMP grant funds to support the government study commission and other implementation steps. Gordon said PFM is available for follow-up as the city moves into implementation and the home-rule study process.