Reading Council Weighs Tax Hike to Balance 2027 Budget
Council members are reviewing a proposed 2027 budget that relies heavily on reserves while considering property tax increases from 1% to 5%.
Updated on Nov. 5, 2026 in Saving
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Would you support a small annual property tax increase to protect city finances?
Reading City Council is reviewing a proposed 2027 budget that depends heavily on reserves to balance spending. Councilman Raymond Baker has requested projections for property tax increases ranging from 1% to 5%.
Why it matters
Baker said he wants to understand whether modest, predictable tax increases could help preserve the city's financial reserves. The review comes as the council works toward adopting the 2027 budget by December.
The city received $2,097,569 in state liquid fuels funding this year, and a 3% property tax increase would generate about $740,000 in additional revenue. Council has not presented final tax projections, and no increase has been approved.
The players
Reading City Council
The seven-member legislative body that governs the city of Reading and must adopt its annual budget.
Raymond Baker
A Reading city councilman who requested property tax increase projections ranging from 1% to 5%.
Donna Reed
The Reading City Council president who supported exploring incremental property tax increases.
Jack Gombach
Reading's City Managing Director, who has advocated for an incremental tax increase since the 2026 budget discussions.
PennDOT
The Pennsylvania Department of Transportation, which administers the state liquid fuels funding that the city relies on for road work.
The details
Council members examined spending for the Public Works Department, including street paving, snow removal, parks, street lighting and trash collection. Council President Donna Reed supported exploring incremental property tax increases, while City Managing Director Jack Gombach said administrators have advocated for one since the 2026 budget discussions.
Timeline
Last month: Gombach advocated for an incremental tax increase in a phone conversation.
Monday: Council reviewed proposed tax increases and public works spending.
Thursday: City officials plan to meet with PennDOT on funding.
November: The Joan Terrace and Summit Chase Drive paving project is expected to finish.
Dec. 15: Council must adopt the 2027 budget.
Big Picture
Pennsylvania's liquid fuels program requires accessible curb ramps at intersections, and that mandate now consumes about one-third of Reading's available paving funds. Officials have proposed using federal Community Development Block Grant money for ramps to free more state funding for repaving.
Possible property tax increases would raise household costs for Reading homeowners, with a 3% increase generating about $740,000 for the city. Residents should watch the council's final budget vote by Dec. 15 to see whether any increase is adopted.
The takeaway
Monitoring municipal budget votes can help homeowners anticipate changes to property taxes before they take effect. Modest, predictable increases are one option council is weighing to protect reserves.
What happens next
Council must adopt the 2027 budget by Dec. 15, and city officials plan to meet with PennDOT on funding this Thursday.
Further reading
Explore more on personal saving strategies to see how municipal tax decisions can affect household budgets.
Source note: This article includes information reported by Reading Eagle.
Live Poll
Would you support a small annual property tax increase to protect city finances?
