PFM urges study of home rule for tax flexibility but flags pension aid risk

PFM told council the report will recommend exploring home rule to gain taxation flexibility over the long term — for example allowing changes to the earned‑income tax base that could grow with wages — but emphasized the process requires multiple votes, public education, and legal review.

"In the plan, we are going to recommend, looking into home rule as a potential way to gain taxing flexibility," a consultant said, but she cautioned that home rule benefits are multi‑year and that the city must investigate whether a charter change could jeopardize state pension aid because some pension provisions may not align with the 3rd class city code.

Council members raised equity concerns about shifting tax burdens, including risks to BIPOC representation if governance changes (electing legislators by district) were proposed. PFM recommended legal counsel and actuary input before pursuing a study commission or ballot step and suggested a thorough public education campaign if the council considers the option.