Lancaster City Alliance formally backs home rule [Voters Guide]

Lancaster City Alliance on Friday became the second local community group to throw its support behind the city’s proposed home rule charter.

The Alliance’s announcement comes just one day after the Lancaster Chamber of Commerce announced its support for home rule. City residents will vote during the Nov. 5 general election on whether to adopt a new form of government, which would grant the city greater taxing power.

In a statement, the Alliance, a nonprofit that plans and finances city projects and events, supports home rule as the “only viable way to address the (city’s) structural deficit in an equitable way.” Lancaster is currently facing a $10 million deficit next year as a result of rising health care costs and the end of American Rescue Plan Act funding.

The city can raise only property taxes to generate revenue, which the Alliance board of directors called “unsustainable.” Home rule would grant elected officials the ability to raise other existing taxes, namely earned income tax.

Politics

Taxes at center of Lancaster home rule debate ahead of November election [Voters Guide]

JADE CAMPOS | Staff Writer

“Currently, the structure of municipal finance forces Pennsylvania Cities to rely on the property tax as the main source of revenue, with little power to create new revenue sources or to impose different taxes to reduce the burden of property taxes on its residents,” the statement said.

Download PDF

The Alliance also pointed to “additional important benefits” like greater public budget presentation requirements as the reason for its support.

Mayor Danene Sorace has proposed a .3% or .5% earned income tax increase if home rule is adopted. She argues raising income taxes would benefit low-income homeowners because people are taxed more if they earn more. Without home rule, the city plans to adopt an 8% property tax increase, or 1 mil. A mil equals $1 in property tax for every $1,000 of a property’s assessed value.

Sorace has said income taxes could remain stable over the next 10 years if increases are possible, though property taxes would likely have to go up four more times in the next decade without a new charter.

Home rule opponents have argued a new charter would hurt low-income residents, because elected officials would have more ability to raise taxes beyond property taxes. Messages left Friday with vocal home rule opponents including City Council member Janet Diaz, Lancaster City Republican Committee Chair Lisa Colon and grassroots organization Lancaster GateKeepers member Ray Harrison were not immediately returned.

Visit lanc.news/HomeRuleFinal to read the full home rule charter.