The Home Rule Study Commission held public in-person information sessions on the draft charter on July 29 and August 6, and a virtual information session on July 31. The Commission received the following questions at these sessions, with answers included below.
General Questions
Do residents get a vote on whether we choose home rule?
Yes! Voters will make the ultimate decision on November 5 during the General Election.
Are Lancaster city residents being well informed with Home Rule and will there be a mailing going out to inform them?
The Commission’s meetings are all public and accessible by attending in person or watching a live stream or the recording. The Commission also held 4 meetings in each City quadrant that were open to the public to explain the Home Rule process and answer questions.
The Commission has a robust webpage with links to all meeting agendas, meetings minutes, recordings of meetings, meeting materials, and a video of the Home Rule Basics presentation.
Methods of communication include opting-in to receive emails from the commission (an email was sent to the entire city list asking residents to sign up to get emails from the commission). These emails are turned into blog posts on the website and shared on the City of Lancaster Facebook and Instagram page. The Commission has its own Instagram page.
Two local reporters have attended Commission meetings since the start of the process. These articles are available at no cost, no subscription is needed. Links to these articles are on the Home Rule Commissions webpage.
The Commission has set up information tables at various public events throughout the process and reached out to Neighborhood and other groups to provide presentations.
SACA’s radio station WLCH recently started promotions based on educational materials from the Commission.
The Commission will discuss a mailer to all voters at the August 15 meeting.
Are there any new powers proposed to guide the city staff or elected officials to control expenses growth?
It is the responsibility of elected officials and city staff to balance expenditures based on current service needs, anticipated revenue and fiscal issues facing the city that impact the cost of goods and services.
There is a revenue increase limit of 6 percent from one year to the next. A revenue limit will also keep expenditures within the budget.
If the Home Rule charter passes, citizens will have expanded participation in the budget process with more public inspection time and the ability to directly ask questions in writing to officials. Those officials are then required to answer spending and revenue questions in enough time for citizens to read them and to attend another public meeting before the budget is adopted. Citizens’ voices will be heard much more under Home Rule.
Home Rule doesn’t remove elected officials’ responsibility to voters and constituents, rather it increases accountability to citizens, oversight by citizens, and transparency in actions by elected officials.
With so many opportunities for citizens feedback, budget plus other things, how will the city make these meetings more accessible to more city residents?
The charter creates conditions to increase self-governance, citizen oversight and engagement. Ultimately, it is the responsibility of future elected officials to find ways to connect with and engage the public.
The Charter requires Council to meet twice a month. Meetings must be held after 6 PM. There are also extra public meeting requirements for the budget.
The Charter also provides a process for citizens to request a special meeting on a specific topic.
Would we be a third-class city if this Home Rule was passed? I downloaded the third class city rules from 2014 I believe and it was over 90 pages long.
No the City will become a Home Rule municipality with the name of the City of Lancaster. What changes is that our “local constitution” would become the Home Rule Charter rather than Third-Class city code as defined by state law.
What procedure would be put in place to revoke the charter (if adopted) if in the future the citizens wish to go back to the current system?
The charter must be in place for 5 years before citizens can petition to revoke it and study another form of government using the same process they used this time.
Have you gotten a warning or violation regarding the sunshine rule for not notifying all residents in our municipality or informing many to attend meetings for educational purposes? Many residents still do not know this exist or what was discussed.
The Commission advertised all public meetings and informational sessions as required under the Sunshine Act. The Commission has gone above those requirements though in publicizing its activities.
There is a commission website with detailed material available for public inspection.
By eliminating the treasurer, please explain to us why this position would be or is limited and who would be controlling the checks and balances for that matter.
The Treasurer collects taxes. The current Treasurer duties are fulfilled by the City’s Department of Administrative Services under a services contract with the Treasurer. The Controller checks expenditures. The Charter expands the powers of the Controller for additional checks and balances and give s the Controller a review responsibility for the annual budgets.
How would the “licensed public accountant” requirement for Controller be enforced?
The Controller is required to be an accountant, but there is no requirement for the Controller to be a licensed public accountant, which is a very specific credential. There is a requirement that the Deputy Controller be a licensed accountant if one is appointed.
Are there any controls under the charter to determinate how much debt and consequent debt service the city can take on?
A capital program and budget must be prepared and subject to public review every year by September. The capital budget and program is usually the place that borrowing for projects is required. There is robust public participation required in the development of the capital budget. The City would still be required to follow the debt limitations of applicable state law (Local Government Unit Debt Act.)
If equitable representation is part of the preamble, how does the committee [commission] intend to achieve this?
There is increased public participation and Council consideration of public input as well as the ability to place topics in front of Council for action by petition as well as direct citizen representation through petition and referendum.
If the charter is not adopted and the city would need to look at bankruptcy (Act 47?) what might that look like?
If the City met the criteria for Act 47, a Coordinator would be appointed to develop a recovery plan that would address the City’s financial issues and provide recommendations for the provision of necessary and vital services and balanced budgets within the constraints of available revenues.
Can the city eventually transition to a manager form of government under the charter?
The Mayor/Council form of government would continue unless a future government study commission recommended a Council/Manager form of government and citizens voted to approve it.
If Lancaster City adopts a home rule charter, is there ever an option to go back?
Under the Home Rule law and after 5 years, citizens may use the same procedure to change the structure of city government as they did to adopt a Charter.
Why eliminate the City Engineer?
The City has engineering talent on staff as well as for project specific specialties. The City can also engage outside consulting firms on a project specific basis.
Budget & Finance
Why would there not be an annual capital budget?
There is. It is required to be introduced in June, and adopted in September with the subsequent year’s provisions incorporated in the ensuing operating budget.
Revenues must equal proposed expenditures?
Correct, like now, the budget must be balanced.
Will new young homeowners have to pay more?
Property owners of all types, except non-profits, pay property tax. Tax rates under the PA Constitution must be the same for all types of property.
How much additional revenue would the city like to raise?
This is a question for council and the mayor. There is a looming 10 million deficit and with federal funds through ARPA dollars the Mayor and Council recommended to voters consideration of Home Rule to provide flexibility in how to raise revenue.
Will the city be required to provide monthly revenue report similar to what SDOL currently does?
The Home Rule charter proposes monthly and quarterly reports to Council. Under current law this is not required.
Is the requirement for a 2-year budget forecast to be a line-item detail forecast or is this a summary forecast?
It is a summary forecast by fund and category.
Under HR, who would set the EIT rate for the city and the school district and would the split between them continue to be 50/50?
Future elected officials would determine all tax rates during the budget approval process. School districts currently receive .5% of the 1.1% earned income tax. That percentage would not change. School Districts are not permitted to increase their share of the EIT rate.
Is there an ordinance to attract new tax revenue to the city via business development and to revisit the nonprofits not paying taxes if they are over a certain revenue.
By state law, municipalities cannot create new taxes. The only taxes available to cities like Lancaster are property tax, earned income (wage) tax, local service tax, and real estate transfer tax. Nonprofits are tax-exempt by federal law. The City currently negotiates with non-profits on an in-lieu of tax payment which some non-profits provide. This can continue under Home Rule.
What about sales or city tax?
Under current law or Home Rule, the city cannot create new taxes that are not authorized by PA State government for local governments. PA has a state sales tax of 6%. Only Philadelphia and Allegheny Counties are allowed to levy a sales tax. Municipal governments cannot create a sales tax – under current law or under Home Rule.
What is your best guess as to how much the EIT might initially be raised and are you proposing a cap on EIT?
At a recent council meeting, the Mayor provided insight into two potential options depending on if Home Rule passes or not.
My main concern is that Home Rule is intended to raise current taxes already in place without any oversight from any other level of government.
Home Rule increases citizen involvement in and the elected Controller’s oversight of the budget process. The mayor presents a budget proposal and Council must approve it by ordinance (passing a law). This check and balance remains in place.
Could we get more clarification on taxation structure
The Commission anticipates more information by September to help residents understand PA tax policy basics and how various tax rate increases will impact different annual income brackets.
How the city will ensure diverse and equitable feedback on the budget from all four sectors of the city and diverse socioeconomic backgrounds.
It is the responsibility of future elected mayors and council to do this hard and essential work.
How does home rule impact bonding for infrastructural projects and grants for services?
Increased revenue flexibility will positively impact the City’s credit score. Compliance with the Local Government Unit Debt Act will continue to required. This establishes certain debt limitations.
No carryover and Rainy-day funds permitted?
Rainy Day Fund is another term used to describe a Fund Balance, and there is a requirement for an Administrative Code that will address a Fund Balance policy.
Are capital expenditures typically significant?
Capital expenditures can range from police cruisers to miles of paving and underground pipe as well as well as building projects. Generally anything with a useful life of more than 2 years is considered a capital expense.
Petition and Referendum
How long would it take for the petition to be accepted, reviewed or replied?
Petitions must be circulated, signed and filed within forty-five (45) days after the issuance of petition blanks by the City Clerk under this Article. Within 20 days after the petition to initiate an ordinance is filed, the City Clerk shall complete a certificate as to its sufficiency When a petition to initiate an ordinance has been finally determined to be sufficient, Council shall promptly consider the proposed ordinance.
Are there any qualifications limiting referendums beyond state or federal law?
Certain things are not subject to referendum and petition. Referendum powers shall not extend to the adoption or amendment of the budget ordinances for the General Fund, capital, or other funds and the tax levies and fees contained therein; the long range operational, fiscal, and capital plan; the Administrative Code; the personnel code; annual tax levy ordinances; any ordinance fixing the salaries of elective City officials or City employees; ordinances authorizing emergency loans; ordinances relating to zoning and land use regulations; ordinances exercising the power of eminent domain; any ordinance related to or adopted in response to an existing declaration of emergency; any ordinance for the opening, paving, grading or other improvement of streets or highways, when the improvement is petitioned for by a majority in number or interest of the abutting property owners; or any ordinance for which the procedures for adoption or amendment may be established by applicable law.
What is the timeline of referendum from petition to vote?
Petitions must be circulated, signed and filed within forty-five (45) days after the issuance of petition blanks by the City Clerk under this Article. Within 20 days after the petition to initiate an ordinance is filed, the City Clerk shall complete a certificate as to its sufficiency When a petition to initiate an ordinance has been finally determined to be sufficient, Council shall promptly consider the proposed ordinance. If the Council fails to adopt a proposed ordinance without any change in substance within 60 days of the certificate of sufficiency, the proposed ordinance shall be submitted for consideration to the voters of the City. If the petition to initiate an ordinance is deemed sufficient and following the Council’s lack of action thereon, the question shall be placed on the ballot at the next primary, municipal or general election occurring at least 90 days after the expiration of Council’s time to act or judicial approval of the petition. Further details are in the Article on Petition and Referendum.
How does the referendum process impact municipal planning code? AirB&B for example.
The Municipalities Planning Code is exempt by state law from referendum.
How many petition signatures are needed to add agenda, petition, referendum, etc.?
The number of signatures required are based on the number of voters in the most recent Mayoral election. 20% are required to propose an ordinance, 20% are required to reconsider an ordinance adopted by Council, and 3% to request a special meeting of Council or to add an item to a Council meeting agenda. Using 2021 Mayoral election as a basis, where 6,161 votes were cast, these numbers would be 1,232 voters, 1,232 voters, and 185 voters.
City Council
Why not term limits?
This was discussed at several Commission meetings during the drafting process. Ultimately a majority of commission members supported no term limits. Voters possess the ultimate term limit through the ballot box.
After Council member are in office, how will they reach out to residents and property owners in their districts?
That is a decision for each elected official – how to communicate and make themselves available to constituents.
Why change from 7 to 9 Council members?
Some members of the Commission have expressed that this would be a benefit with the possibility to add diverse voices to council.
Residency requirements: Are these time periods measuring the years immediately prior to a role as cumulative total of time living in the city but not needing to be continue?
Elected officials must live in the city during the term of office and also prior to election for specific times.
Administrative code: Would this 18 months process be a revision of existing code or new code written from scratch?
It can be either. Just as the Home Rule Commission chose to build on the existing form of government rather than starting from scratch, Council could choose to do the same for Administrative Code.
Under the removal section, there should be an option for recall of council member by citizen referendum
PA state law does not allow municipalities to recall through referendums.
How about a majority/minority split? To allow further diversity.
This was proposed and discussed by the Commission. A majority of commissioners voted to not include this option in the charter.
Do city council members get elected?
Yes council members are elected in 4 year cycles. Currently 3 are on the same election cycle and elected at one time, and 4 at a different election cycle. Voters do not elect all 7 at one time. The Charter calls for 9 members, therefore 5 will be elected in one cycle and 4 in another.
Rather than council pick the replacement, how about it go to a vote of the people?
Special elections cost money and holding a seat open till the next election is also not a good solution. The term of office following a vacancy is limited so there is a public vote to fill the term. See the Council article for details.
What are the qualifications of residency for city council members
They must live in the city for 2 years prior to running for office and they must continue to live in the city while in office.
If a Council vacancy occurs prior to next election (resignation, relocation, or death) what will be the process for filling vacancies prior to next general election?
If position is vacated, Council has 45 days to appoint, by majority vote, an individual to complete the term.
If no appointment is made within 45 days, an appointment will be made by the County Court of Common Pleas.
Why does it make sense for City Council to set their own salary?
Council has set their own salary under current law, by ordinance, which means they have to pass a law with public review and input. Since there is public review and oversight there was confidence among Commissioners that citizens would pressure council should they increase their compensation in a manner that is bad for the city or not something their constituents will accept. Also the Charter prohibits Council from raising their own pay during thier term of office.
Why is increasing council to 9 members being proposed if the annual budget costs is a concern?
This came about as a compromise after the Commission decided to stay with at large elections for Council members.
How can we ensure minority voices are also represented/given agency? Adding two more council and increasing pay to $12,000.00 expenditures gang up, what happened to good old volunteering?
The majority of commissioners agreed that council members should be paid for their service and work and equated the compensation to a stipend not a salary.
What is the difference between “super majority” and “majority plus one”?
They are essentially the same. A super majority is a description of what is needed to pass and ordinance. Majority plus one describes what a super majority is. For a council of 9, a super majority is 6 of 9 members. For a council of 7, it would be 5.
Why isn’t there support for district representation?
Some commissioners were concerned it would fracture the city, others commented that the city is small and our council members should represent and think about what is best for the entire city not a neighborhood or sub-section of the city. That it was important for candidates to have to garner the support from all areas of our community. Others were concerned that districts were not going to solve the problem that was expressed – that members of our community do not feel heard or would say that government does not work for them.
What happens if only one or no candidate for City Council emerges from each district?
Since the commission decided to stay with at-large elections, this scenario was not discussed.
It was stated that number of council members was increased to 9 to add more diversity, what diversity is the commission addressing? Council is already greatly diverse, if addressing sectors, nothing guarantees each sector’s representation.
Members of the commission who supported district elections, sought to have geographic representation that roughly aligned with what we commonly refer to quadrants Expressing concern that in recent years there has not been a council member who (currently) lives in the southeast section of the city. Suggesting that this equates to a lack of representation for some members of our city.
Mayor
Will the role of mayor change?
The Mayor’s role remains the same – the Mayor is the chief executive of the city.
Will it be possible to have a “City Manager” and mayor is more of functionary?
While this is an option when drafting a Home Rule Charter, the commission opted not to go this route and stick with the Strong Mayor/Council structure. Nonetheless there is nothing in the Charter to prevent a City Manager position from being created by Council and Mayor though it would function under the direction of the Mayor.
Has the commission considered a professional administrator vs mayor? Why or why not?
During the study phase municipalities that either use to have or currently have a City Manger or professional administrator were interviewed. Ultimately the Commission determined that the current structure of the Mayor as chief executive and council as the legislative body was appropriate for Lancaster. The Director of Administrative Services has specific experience and qualification requirements under the Charter and is considered a professional administrator.
Why not require more than a majority to override a mayoral veto?
The charter requires a majority +1.
Have you heard from any mayors whose cities have already adopted a home rule charter? And what did they say?
The Mayors interviewed indicated that Home Rule was working well in their experience.
Taxes
Under home rule, could Lancaster implement something like plastic bag fees (or tax)?
If you mean a charge for plastic bag for refuse collection, then that is possible now under the Third-Class Code as a refuse fee. If you mean something related to the use of plastic that is not already allowed, then the answer is No; Home Rule municipalities such as Lancaster cannot create new subjects of taxation.
I am not sure what “no new taxes” means, no sales tax?
A municipality can’t create a new tax, such as a sales tax. Only taxes that are available to the City currently will remain available under Home Rule. There is no way to create a tax unique to Lancaster City.
The state allows limited methods for raising revenue through taxes – property, earned income, local service and real estate transfer tax. Cities like Lancaster can only use those four options to raise revenue.
Aside from tax flexibility, what are the major advantages, changes, disadvantages for going to home rule? What is the benefit of home rule for a taxpayer.
Notable improvements include (but are not limited to):
- expanded referendum and voter petition powers, expanding residents’ ability to have ordinances adopted or repealed
- ability to call a special meeting of council or add an agenda item to regular meeting
creation of an ethics commission - a longer and more publicly engaged process for the adoption of annual budgets
- A requirement for five-year capital budgeting
- requirements for quarterly annual public budget reviews by the Administration with City Council
- expansion of the powers and responsibilities of the Controller
Would SS be included in the tax base?
Social security is considered retirement income, not earned income, so it is not taxed at the local or state level and is not now nor will be in the future taxed locally as part of the City’s Earned Income Tax.
Young home buyers are worried, the income tax will rise plus they will carry the burden so I guess, HR cannot make new taxes, we cannot change the tax-exempt properties to instead pay taxes. So, since County manages property taxes there is no guarantee property taxes will not go up.
The Commission expects to have data in September to help voters understand how existing Home Rule municipalities in Pennsylvania have used which taxes and at what rates over time.
The Commission found “It’s Not 1965 Anymore” to be a valuable resource in understanding this dynamic.
Saying that the charter itself cannot raise taxes does not answer people worry that their taxes will go up.
This is a worry many have expressed. The charter includes taxpayer protections that protect citizens from budget policies that may disregard the ability of citizens to pay. The charter adds a 6% Tax Revenue Increase Limit, but allows for Council to override this limit when necessary. This 6% limit keeps government from harming citizens through tax increases that would be put in place before citizens can respond through the ballot box.
Under current law elected officials can raise property taxes currently. This can happen every year. State law currently imposes a limit of 30 mills, Lancaster’s current millage is 12.64, so even without Home Rule property tax could more than double before reaching this cap. Prior to 2024 there had been a four-year period of no increases in property taxes primarily due to federal ARPA funds related to the impact of the Covid pandemic.
Home Rule gives elected officials the ability to choose which taxes to use and at what rates to balance where revenue comes from to avoid overburdening any one group.
Home Rule gives citizens expanded budget participation and ability to protest any tax increases at special public hearings and more Council meetings than currently available.
Which taxes have flexibility in the current structure?
Only property tax, however it has a cap of 30 mills. The EIT, LST and Realty Transfer taxes are all fixed by the state at their statutory rates.
Does home rule allow reassessment of exempt properties?
Property that is tax exempt is covered by applicable laws. Home Rule cannot change the tax status of an entity. The county is the only government that can reassess properties. LNP published an article about tax exempt properties.
In regard to real estate transfer tax, is this something that may be increased? And if so, is there a cap for increasing this tax? (Concerned about the implications for homeowners, home buyers and sellers)
Under home rule this tax rate can be increased but any increase will be limited by the total revenue limit in the Charter.
Reading is a Home Rule City and they have a business tax, if Home Rule passes can the city impose a business tax?
The imposition of any new business gross receipts tax is prohibited after November 30, 1988 under the terms of the Local Tax Reform Act 11. Because Lancaster did not have this tax in effect as of November 30, 1988, it is not now able to impose this tax.
Isn’t the financial cliff facing the City the result of decades of decisions made by elected officials rather than types or levels of taxation?
This assumes that elected officials — at times — make poor decisions or decisions that harm the voters and that the voters either approve of it or don’t care about it. Elected state officials have a responsibility too. For decades lawmakers in Harrisburg have not modernized the ways that City officials can fund vital and necessary services such as police and fire.
State legislators’ inaction leave no option for cities like Lancaster other than to have local citizens make local decisions that are best for local services by adopting a home rule charter.
Will increasing earned income tax impact lower socio-economic citizens?
Because earned income is a percentage of income, those earning less will pay lower taxes than those earning more.
Will the home rule charter allow city to offer tax incentives, like for affordable housing?
The City can presently offer these incentives, and will be able to do so under home Rule. It’s important to note that, in order to offer an incentive like this to developers, the City would either need an external funding source, or would need to raise taxes on residents or make other budget cuts and corresponding reductions in services in order to allocate funds for this purpose.
To be clear, the commission cannot raise taxes, but home rule makes it easier for elected officials to use discretion in raising taxes, what is the possibility of raised taxes and what are the limits that the commission can put in place?
The Commission has created a revenue increase limit of 6% of total tax revenues for the amount each budget could increase. A budget will have to be prepared with this limit in mind.
