Jeannette property tax rate expected to hold, future reduction of earned-income rate discussed

Property taxes in Jeannette are not expected to rise in 2025 under a tentative spending plan.

“For now, we’re not anticipating a tax increase,” said city manager Ethan Keedy.

Council members and Keedy on Tuesday discussed the proposed budget that would hold the line on property taxes at 35.62 mills. It will be up for an initial vote Nov. 14 before a final approval in December.

There are still some numbers officials are waiting on before the tentative plan is complete but revenues are pegged at $6.2 million. Keedy said he anticipates an increase in workers compensation costs in either 2025 or 2026.

“We’ve had a lot of claims this year,” he said.

The earned-income tax is going to remain the same, at least for now. Keedy said he’s budgeting that revenue at $960,000, an increase from 2024’s anticipated amount of $925,000.

“Wages are going up,” he said. “Businesses are opening and employing more people.”

Councilwoman Michelle Langdon requested the earned-income tax rate be reduced. One percent of earned-income taxes are used for general purposes and an additional .4% is put toward pension plans for retirees.

“I’d really like to see the earned-income tax rate come down, even if it’s just a little bit,” she said.

Keedy said the city is waiting on a determination from the state Auditor General’s office related to financial calculations for retirees’ health benefits before potentially looking at reducing the tax, which he described as the ultimate goal.

“I would like to lower it, but I think we should wait until it makes sense,” said Councilman Chad Krawtz.

The earned-income tax was raised in the mid-2010s as the city grappled with underfunded pensions. It was decreased to the current rate — 1.4% — in 2020. That came after years of fluctuations, to as high as 2% in 2015, as the city caught up on its overdue obligations for the funds.