Kelly Ackley and Tyson Bode were determined to get to as many tattoo conventions as possible when they hit the road from their home in California recently.

But Scranton wasn't on their radar until Mr. Bode, a professional tattoo artist from Monterey, saw someone post photos of the Electric City Tattoo Convention on social media sites.

"Tattoos are artwork, and it's something that I can carry with me forever," said Ms. Ackley, 23, over the sound of innumerable buzzing tattoo needles at the Hilton Scranton and Conference Center on Saturday.

Ms. Ackley had just stepped off a stage at the convention, which swarmed with tattoo fans and artists from all over the country and the region. A three-judge panel eyed up her colorful back tattoo of the Hindu goddess of creativity and knowledge, Saraswati.

Mr. Bode's design, which took 55 hours of work, won second place in a competition, one of several that will be held over the three-day convention that started Friday and ends today.

A total of 108 tattoo artists from North Carolina, New Jersey, Ohio, Connecticut, New York and elsewhere made the trip to the convention to show off their skills and spread as much ink as possible to willing customers, said event organizer Woody Wodock, co-owner of Electric City Tattoo on Spruce Street. Several tattoo artists from Northeast Pennsylvania also participated. The convention is now in its fourth year and will be back next year, Mr. Wodock said.

Pat Murdough, 31, who owns Liberty Tattoo in Berlin, Conn., set up shop in a large room at the hotel filled with dozens of fellow artists, most tattooing a constant stream of people on Saturday.

"This whole convention, it's very laid back and it's a lot of fun," he said. "There's definitely enough work to go around."

Events continue today from noon to 8 p.m. at the hotel, with contests for best tattoo at 1 p.m. and the best tattoo of the day at 5 p.m. For more information, visit electriccity tattooconvention.com/events.

Contact the writer: smcconnell@timesshamrock.com, @smcconnellTT on Twitter

Night in the naked city.

Under the stuttering strobe of a dying streetlight, a lady of the evening struts her stuff.

A black Jaguar trawls the gutter. Behind the wheel is a wannabe player in a powder blue button-down and a Nautica windbreaker. His stick-figure family smiles on the back windshield. The boy plays football. The girl plays soccer. The dog and cat are probably on less friendly terms in real life.

She hikes up her fishnet stockings and names her price. He asks her to smile and counts her teeth. Nowhere near 32. No way she's an undercover cop. Negotiations begin, but she has all the leverage. He agrees to her terms. Money changes hands, and police swarm the scene.

Both are cuffed and booked. Under the law, a "john" who solicits a prostitute is as guilty as the object of his misguided desire. She was selling, but neither would have been busted if he wasn't buying. Fishnets can't swim without a partner.

Now let's rewrite the scene, substituting a state legislator for the prostitute, and replacing the john with a vendor hot enough for public contracts to pay the going rate. Terms are negotiated, money changes hands, and a no-bid contract is awarded to install a $6 million fog detection system on the Pennsylvania Turnpike.

Like most mammals, I was born with a fog detection system. I recently upgraded it with bifocals. They cost $450, and I used my own money to buy them. Guess that makes me a sucker.

Former state Senate Democratic Leader Bob Mellow is a crook. That was indelibly established with the plea agreement that earned him a 16-month federal prison sentence for mail fraud and filing a false tax return. He is innocent until proven guilty of the latest charges against him, but a state grand jury presentment released last week paints a lurid (and believable) portrait of Mr. Mellow as a high-profile streetwalker whose fishnets hauled in bribes in exchange for obscene outlays of public money.

He is charged with corrupt organizations, bribery, bid-rigging, conspiracy and related offenses. Attorney General and West Scranton native Kathleen Kane says Mr. Mellow and a handful of turnpike officials conspired to defraud state taxpayers out of millions of dollars. The former senator is learning the same lesson as Gov. Tom Corbett, R-Drillers, Jerry Sandusky, Lottery Giveaway, etc.: You can take the girl out of the West Side, but you can't take the West Side out of the girl.

Mrs. Kane is no girl, of course. She is a steely, self-confident woman, and the first to be elected Pennsylvania attorney general. She has already made history. The Turnpike Commission scandal affords her an opportunity to make some more.

All she has to do is publicly identify and prosecute the vendors she says paid Mr. Mellow and others for business. The grand jury presentment does not name most of these johns, nor does it out other politicians who took campaign contributions that in any other context would be plainly called bribes.

I can look out the newsroom windows with my fog detection system and see PNC Bank's local headquarters. What I can't see is the name of the PNC executive whose alleged gifts to Mr. Mellow supported "a larger pattern of bid-rigging, improper influence and commercial bribery."

You might think PNC would want to come clean, maybe say the executive in question has been disciplined and steps are being taken to avoid such chicanery in the future. Instead, the bank has circled the wagons and declined to comment. Regional President Pete Danchak is suddenly less accessible than Bigfoot.

Mrs. Kane says she lacks the evidence to prove a quid-pro-quo between contractors and politicians other than Mr. Mellow. Fine, but she still knows who paid whom, and how much. If vendors can engage in political prostitution and face no consequences, exactly what will deter them from continuing to pay to play?

And what about the honest vendors who get squeezed out because they play it straight? How can they compete against rivals who see bribery as "the cost of doing business?" Maybe that's why the same names seem to come up whenever we report on public corruption.

The public has a right to know how its money is spent, and whether we are unwittingly supporting individuals and institutions who game the system for fun and profit. We have a right to know if these cheats are sitting next to us in church, on charity boards or in the black Jaguar that just passed us on the turnpike with a pair of fishnets flying from the antenna.

The threat of being exposed is the only real pressure that can be brought to bear on the business community, especially if law enforcement is unwilling to bring charges. There may be legitimate reasons for not charging the vendors Mr. Mellow is accused of shaking down, but nothing prevents Ms. Kane or any other official from naming them.

Keep rounding up the hookers. Start exposing the johns.

CHRIS KELLY, The Times-Tribune columnist, cuts fog for a living. Contact the writer: kellysworld@timesshamrock.com, @cjkink on Twitter

PITTSTON AREA SENIOR HIGH

GRADE 12

Honors with distinction: Katlyn Arena, Nicole Baker, Alex Bauman, Kyle Berlinski, Aaron Black, Nicholas Bolka, Maria Capitano, Anthony Capozucca, Matthew Carroll, Kimberly Chesniak, Anthony Cotto, Jamie Coyne, Jordan Cumbo, Sara Czerniakowski, Kevin Dolman, Sarah Driscoll, Austin Elko, Kristen Fereck, Carmella Gagliardi, Alaina Garubba, Michael Harding, Jeremy Homschek, Karina Hoover, Mianna Hopkins, Lisa Karp, John Kielbasa, Austin Kostelansky, Kyle Kostelansky, Joseph Koytek, Kaitlynn Kuchta, Olivia Lanza, Catherine Lombardo, Jamie Lombardo, Kristen Lombardo, Angelo Lussi, Katrina Lutecki, Christopher Lynch, Justin Martinelli, Nicholas Maruska, Felix Mascelli, Michael McGlynn, Kaitlyn McGuire, Robert Meranti, Elizabeth Mikitish, John Minich,

Connor Mitchell, Kelly Mitchell, Nicholas Montini, James Musto, Santino Musto, Cassandra Nocito, Calvin O'Boyle, Karlee Patton, Matthew Pierantoni, Gabrielle Poplarchick, Mark Prebish, Suraj Pursnani, Shelby Rinaldi, Bryan Russo, Antonette Scialpi, Zachary Seeley, Marina Sell, Alexandria Serafin, Matthew Shamnoski, Julia Shandra, Amy Silinskie, Jillian Starinsky, Joseph Starinsky, Stephen Starinsky, Brian Stonikinis, Taylor Stull, Carissa Suhockey, Cory Tobin, James Tobish, Jonathan Tonte, Ryan Tracy, Shannon Turner, Michael Twardowski, Miranda Warunek, Kansas White, Ariele Williams, Kaitlynn Wolfram, Matthew Yatison and Lisa Yeager.

First honors: Alyssa Adkins, Mary Theresa Anderson, Frank Ardo, James Ardoline, Alexandra Cawley, Michael Chisdock, Joseph Chiumento, Alicia Chopyak, Justin Coe, Christian Curtis, Ronald D'Eliseo, Bruce Edwards, Samuel Falcone, Jenna Galli, Christopher Gilbert, Haley Kline, James Lizza, Cody McLean, Angelina Reed, Samantha Resilavage, Joshua Rugletic, Kristen Santey, Emily Seaman, Michael Sell, Chelsea Smith, Tiana Stull, Jonathan Sulkoski, Gary Thomas, Sharece Tillman and Ian Tracy.

Second honors: Timothy Allen, Alexandra Anastasi, Dillon Chapman, Christopher Evans, Santo Giambra, Ryan Hawksley, Samantha Hoban, Abby Joyce,

Kristopher Littleton, Reann Loftus, Stephanie Martinez, Brian Mlodzienski, Joshua Reynolds, Dakota Rowan, Bradley Rush, Tiffany Smith, Blasé Twardowski, Marisa Vogel, Sierra Williams, Ryan Youngblood and Hannah Zondlo.

GRADE 11

Honors with distinction: Michael Antal, Eastin Ashby, Taylor Balasavage, Anthony Baldiga, Jason Bandru, Kevin Boone, Ali Brady, Laura Brady, Terry Briggs, Christie Cadwalder, Nicole Chaiko, Joseph Champi, Robert Costello, Anthony D'Eliseo, Alexa Danko, Lori DeFazio, Dominique DelPriore, Megan Dougherty, James Emmett, Brandon Ferrance, Kayle Forkin, Marie Terese Fox, Lea Garibaldi, Alia Gestl, Mason Gross, Michael Harth, Emily Herron, Zachary Hoffmann, Kenneth Hoover, Brittany Hypolite, Katie Jobson, Samantha Kachinsky, Allison Kizer, Adrian Langan, Rachel Lazevnick, Steven Lee, Sierra Lieback, Carmen LoBrutto, Rachel Longo, Maria Lussi, Irene Magdon, Cameron Marotto, Jennifer Mataloni, Dana Maurizi, Nicole Mayerski, Patrick McGinty, Zachary McKitish, Kallie Miller, Mark Miscavage, Mark Modlesky, Tyler Mooney, Samantha Moska, Matthew Mott, Cales Owens, Leanne Para, Justin Peterson, Michael Pieszala, Troy Platukus, Charles Poli, Taylor Powers, Whitney Prescott, Jacqueline Rabender, Joshua Razvillas, Taylor Roberts, Justin Roche, Alyssa Rodzinak, Sara Ruby, Michael Schwab, Rachel Simansky, Kaitlyn Simyan, Ciara Smith, Martin Snyder, Tyler Spurlin, Bridget Starinsky, Alyssa Talerico, Kayla Vogue, Carly Walker, Richard Weinstock, Ryan Witman, Trent Woodruff, Tyler Woodruff, James Wychock, Meredith Yozwiak, Andrew Yuhas and Jean Luc Yurchak.

First honors: Rhiannon Avvisato, John Butera, Michael Carey, Amber Clarkson, Brielle Culp, Christopher Cummings, Nicole Dale, Casey Deaton, Tyler Demich, Adam Ginocchetti, Candido Green, Robert Koprowski, Kaycee Langan, Tyler Lutecki, Jessica Maleta, David Mancini, Mariah Mattioli, Jennifer Meck, Matthew Miller, Brittni Morrell, Tyler Mullen, Jenna Mundenar, Taya Oliver, Courtney Osiecki, Michael Parrs, Desiree Piotrowski, Rosemary Ritsick, Alexander Roper, Eric Scatena, Sarah Smith, Andrea Stephenson, Tatiana Supinski and Marissa Williams.

Second honors: Antoinette Antonacci, Samantha Baldwin, Christine Briggs, Nicholas Coleman, Enrico Connors, Jordan Consagra, Julie Kalinas and Patrick Lynch, Hassan Maxwell, Michael Mazur, Summer McLaughlin, Breana Miller, Samantha Piazza, Alleysha Reynolds, Robert Ryzner, Ian Satkowski, Scott Sayer, Megan Schuster and Antonia Timonte.

GRADE 10

Honors with distinction: Angelo Aita, Harlow Alexander, Elizabeth Baiera, Robert Bamrick, Allison Barber, Rebecca Battista, Desirae Bellas, Jacob Boedeker, Keith Boone, Shannen Brady, Elizabeth Brandt, Kristen Capitano, Elizabeth Cappelloni, Madison Cardinale, Christian Charney, Eric Curtis, Bryan Davis, Michael Delaney, Theresa Domarasky, Lauren Dragon, John Fagotti, Carly Filipski, Jordan Fritz, Kyle Gattuso, Olivia Giambra, Gina Grossbauer, Michelle Grossbauer, Michael Gutowski, Michael Havrilla, Rachel Hoover, Christopher Hufford, Joshua John, Jade Jones, Caycee Karpinski, Megan Karuzie, Katie Kelly, Robert Kelly, Christopher Konsavage, Joshua Kramer, Kayla Kruchinsky, Nia Lombardo, Brandon Lukachko, Tyler McGarry, Elaina Menichelli, Rhonda Miller, Michael Minich, Madeline Moss, Virginia Myrkalo, Mikayla Nardone, Rachel Naylor, Kristen Nerbecki, Callie O'Donovan, David Pacovsky, Nicole Psaila, Katelyn Pugliese, Amanda Radginski, Dylan Ratzin, Kristen Richards, Anamarie Rogers, Cassandra Ross, Nuncio Savoy, Elizabeth Scialpi, Claudia Shandra, Eric Sklanka, Katherine Stonikinis, Robert Swartz, Aryana Thompson, Kyle Tiffany, Mitchell Tomaszewski, Sarah Velehoski, Kevin Walsh, Nicole Walters, Brandon Winn, Brandon Winters, Stephen Yuhas, Brandon Zaffuto and David Zydko.

First honors: Jeffrey Allen, Hunter Antal, Michael Bunney, Mackenzie Carroll, Devon Dante, Emily Earlley, Taylor Eichler, Jasmine Gage, Paula Goss, Cristian Hansen, Cody Holl, Patrick Joyce, Matthew Klein, Kaitlin Loftus, Lyndsey Lombardo, Julianna Lyback, Marina Maida, Eann McCloe, Christopher McGlynn, Jared Melochick, Katrina Mikitish, Luke Morrison, Mark Naples, Tiffany Newell, Cheyanne Overby, Britney Pintha, Megan Ruda, Lauren Senese, Brandon Shamnoski, Chyanne Sherman, Jamie Smicherko, Jacob Vaxmonsky and Elizabeth Waleski.

Second honors: Michael Barney, Shivon Bellas, Leah Cavello, John DeBoard, Courtney Dougal, Marissa Facciponti, Ludwig Fleming, Adriana Franco, Harlee Fyock, James Galonis, Braulio Garcia, Kristen Gregorio, Ryan Gruttadauria, Brandon MacRae, Christine Maira, Vance Maslowski, Jasmine McGrade, John Meck, Mikhaela Moher, Meghan Murtha, Brittany Myers, Tynaisa Robertson, Jamie Rosencrans, Christen Shetler, Brandon Strelecki, Rebecca Tomko, Katie Wynn and Rebecca Zielinski.

GRADE 9

Honors with distinction: Andrew Adkins, Nicholas Allardyce, Henry Augenstein, Jeffrey Bachman, Taylor Baloga, Paul Brady, Alyssa Bukevicz, Jamie Bukevicz, Mason Callahan, Kathryn Cebula, David Cherkauskas, Jamie Chisdock, Erica Colon, Megan Cummings, John D'Amato, Paige Danko, James DeBoard, James DeGerolamo, Joseph DeMace, Parker Dorsey, Brianna Falvo, Alexander Felter, Gabrielle Galonis, Loran Garnett, Joseph Gubbiotti, Adison Hazlet, Kallie Healey, Ronald Herron, Shelby Hoffmann, Tara Johnson, Nicole Karuzie, Athena King, Aimee Kizer, Katherine Kuna, Samuel Lizza, Camaryn Lokuta, Alyssa Maskal, Bianca Mattei-Miller, Samantha Mayers, Anna McDermott, Alexa Menichelli, Sarah Mihalka, Marina Miller, Zachary Mlodzienski, Marissa Morreale, Kate Musto, Haley Norwillo, Marley O'Brien, Eric Petroski, Kyle Petroski, Daniel Pieszala, Alana Platukus, Andrew Podrasky, Jordan Romanczuk, Miranda Romanofski, Ashleigh Rose, Jessica Roxby, Ashley Scarantino, Rachel Schaffner, Vincent Shea, Abigail Sheerer, Amy Shotwell, Julie Silinskie, James Smith, Justin Sonera, Christopher Starinsky, Julia Stella, Jacob Swartz, Sara Swartz, Tyler Szumski, Jordan Tarter, Colin Tracy, Tiffany Tubioli, Kyle Turonis, Kaleigh Valeski, Brandon Walker, Molly Walsh, Edward Warunek and Kayla Williams.

First honors: Adriana Andrascavage, Tabytha Bastek, Jessica Borget, Emma Brieling, Ryan Davis, Jeffrey Donnora, Eric Fritz, Maria Garibaldi, Meghan Gerrity, Jordan Johnson, Shannon Langan, Benjamin Lopez, Juan Martinez, Lucia Menichelli-Bales, Madison Mimnaugh, Robert Neishman, Austin O'Reilly, Dylan Osticco, Matthew Ramos, Christopher Russo, Joseph Warren, Sarah Wesoloski and Cassandra Wilczewski.

Second honors: Anthony Adel, Matthew Ambrose, Dominic Anastasi, Nicholas Bellas, Bridgette Brandt, Jade Casella, Robert D'Eliseo, Bryce DeRoberto, Michael Felter, Gabrielle Genett, Tatiana Gianacopoulos, Brandon Goodlavage, Alyvia Guariglia, Conner Healey, Taeya Hughes, Taylor Jones, Michael Lewis, David Lyons, Anthony Maglio, Alfonso Mangione, Alexis Masker, Neil Murphy, Kylie Pintha, Kassity Roche, Chase Shotwell, Chaz Yager and Dana Zalewski.

ADDITION FIRST-QUARTER HONOR ROLL

Grade 12: Katelyn Morgan, Honors with Distinction.

MID VALLEY SECONDARY CENTER

GRADE 12

High honor roll: Melanie Abda, Amber Bello, Krista Berardelli, Maria Berg, Nikko Bonavoglia, Alexis Borgna, Jessie Brudnicki, Matthew Bukowski, Carmen Dellia, Nicholas Demian, Kyle Devereaux, Marissa Dzanis, Alexandra Evanina, Lindsey Evans, Ciarra Falzone, Brianne Faux, Heather Horvath, Brittney Jordan, Allison Kasper, Brian Kasperowski, Maria Kerecman, Cody Kisel, Julianne May, Allyssa Menendez, Megan Mercanti, Nicholas Michini, Casey Moore, Corinne Negvesky, Jamilyn Nemetz, Tyler Nolan, Erin North-Mozda, Cassidy Orrell, Matthew Pasquale, Danielle Perrone, Tara Phillips, Emily Pieshefski, Danielle Priblo, Amanda Promovitz, Michael Reid, Delaney Reynolds, John Rocco, Zackery Spears, Amy Yakacki, Kristin Yorkanis, James Yzkanin, Zachary Zagursky and Eric Zelinski.

Honor roll: Robert Andrewsh, Desiree Bauer, Kierstyn Bonaddio, Natalie Cantarella, Emily Cifuentes, Michael Collins, Cassandra Cutter, Zachary DeBlasio, Erica Dixon, David Graff, Rosabel Guzman Medina, Justin Guzzi, Dane Hill, Ashley Karzenoski, Justin King, Kasey Klees, Jamie Kuzmiak, Ryan Martinelli, Dominique Martino, Victoria Maza, Joel Muehling, Aaron Olecki, Francisco Olivera, Jesus Ozuna, Brian Pisarcik, Sara Radicchi, Christopher Rebar, Victoria Rinaldi, Francisco Rodriguez, Mark Seber, James Senecal, Sarah Sherman, Ronald Tomasetti, Joshua Warwick, Joshua Whiteduck and Duane Young.

GRADE 11

High honor roll: Nicholas Benzeleski, Hannah Bjornstad, Jason Bosket, Matthew Caines, Kellie Choyka, Haley Drutarovsky, Taylir Evans, Kara Falzone, Kyli Gibbon, Ashley Hanicak, Nicole Hughes, Vienna Jones, Jeffrey Jordan, Nina Kline, Joseph Palickar, Chelsie Ray, Samantha Reed, Kristen Roshak, Bria Nicole Seifert, Morgan Shepherd, Victoria Siess, Amy Simpson, Joshua Tanner, Michael Tuohey, Jessica Wood and Kendra Wuestling.

Honor roll: Edward Abda, Sara Aslam, Austin Caramanno, Marcos Paulo Cerra, Tyler Collins, Joshua Cook, Tyler Fiume, Frank Fornaszewski, Anthony Gangemi, Jacob Guzzi, Joshua Hinders, Ryan Kenny, Steven Kropa, Matthew Mann, Brandi Mascaritola, Anna Mercado, Matthew Mierzejewski, Julianna Rinaldi, Nicole Schmidt, Jake Scholtz, Lacey Stanton, Allison Veety, Kathleen Walsh, Martin Walsh and Adam Yurkanin.

GRADE 10

High honor roll: Phillip Baer, Yenifes Barranco, Brianna Bennici, Carlie Berardelli, Marja Bjornstad, Jessica Bonacci, Joseph Chieffallo, Cory Conserette, Kaine Gary, Stanley Gongliewski, Korri Hill, Tiffany Hill, Sundeep Kahlon, Jason Kenny, Olivia Keslosky, Nicole Kobylanski, Heather Lark, Jonathan Negvesky, Robert Owens, Jeffrey Panetti, David Repchick, Samantha Rutkosky, Cassaundra Senkow, Corey Tomasetti, Alexander Varaksa, Kylie Verespy, Carli VonWeinstein, James Walsh, Jenifer Walters and Chantal Whiteduck.

Honor roll: Sarah Brudnicki, Tyler Bruno, Kristen Buckley, Gina Calavano, Alicia Cutter, Tyler Czachor, Stefani Drake, Eric Eiden, Ashley Griguts, Kira Karboski, Connor Kiernan, Justin Kline, Vanessa Labert, Larry Menendez, Hannah Moran, Zachary Nemitz, Vanessa Olivera, Laura Penn, Frank Perrone, Alex Pieshefski, Adrianna Ratuszny, Jaylene Rodriguez, McKenzie Runco, Tyler Shay, Brooke Tanana and Angelica Urso.

GRADE 9

High honor roll: Renzo Barrenechea, Marissa Bennici, Megan Campbell, Daniel Chylak, Courtney Comonie, Jennifer Diehl, Paul Doyle, Samantha Evanina, Ethan Hasenzahl, Ginger Hill, Noah Kline, Zachary Larioni, Nicolo Manzo, Alyssa North-Mozda, Emily Onyshczak, Mark Pawelski, Andy Pham, Nicholas Pieshefski, Samantha Reid, Amanda Rimosites, Brandon Robbins, Gabrielle Senkow and Ryan Skapyak

Honor roll: Dominique Bonavoglia, Tyler Brady, Ryan Buchinski, Roman Crisafulli, Thomas Egnotovich, Ian Fabricatore, Stephen Ferke, Daniel Granza, Charlene Hartman, Sean Homenchak, Kaitlynn Hutchins, Sydney Kobesky, Robert Kokinda, Jordan Kucharski, John Lasewicz, Gino Leccese, William MacCallum, Amber Marcello, Martin Monahan, Victor Ozuna, Alexandra Patterson, Karisa Perrins, Marlena Raniello, Tealla Renzini, Reinaldo Roman, Anthony Romeo, Bethany Spencer, Chloe Stoffey, Shania Velikic, Lauren Walck, Aliyah Ware, Bonnie Wolo and Aaron Yatsko.

1. Who was the guest speaker at the Society of Irish Women's dinner?

A. Former Secretary of State Hillary Clinton.

B. Former President Jimmy Carter.

C. State Attorney General Kathleen Kane.

D. Scranton City Council President Janet Evans.

2. How many years has the Friendly Sons of St. Patrick of Lackawanna County had an annual St. Patrick's Day dinner?

A. This year is the 108th.

B. Everyone has lost count.

C. They don't focus on age.

D. It's the 15th year.

3. According to police, the man accused of killing a Pittston man said he ...

A. thought the man was an intruder.

B. only meant to scare the victim.

C. didn't know what happened.

D. didn't do anything.

4. What will Blakey Borough Council decide regarding Mellow Park?

A. To raze it and build the largest car dealership in Lackawanna County.

B. To charge admission starting in May.

C. To rename it Blakely Borough Recreation Complex.

D. To keep everything as is.

5. Lackawanna County has a $109,000 contract for ...

A. a study for a Russian-themed park in Moscow.

B. a temporary business manager to help sort out tax collection confusion.

C. hair care products for Commissioners Corey O'Brien and Jim Wansacz.

D. body restoration on a 110-year-old trolley car.

6. Scott Twp. officials are finally able to control ...

A. sewage odors.

B. overtime hours at the Police Department.

C. migrating Canada geese.

D. a township supervisor who sings at meetings.

7. Where does NEPA rank in a report on the healthiest counties in Pennsylvania?

A. The top six.

B. Right in the middle.

C. The top 20.

D. The bottom 16.

8. What did the health study look at?

A. Adult obesity rates.

B. Adult smoking rates.

C. Binge and heavy drinking.

D. All of the above.

9. Why does Carbondale plan to list residents in the paper?

A. They are outstanding citizens.

B. They are tax delinquent.

C. They are owed tax refunds.

D. Their cars are impounded for unpaid parking tickets.

10. What happened in a lawsuit against the county by fired employees?

A. They settled it for $1 million.

B. A judge threw it out.

C. They withdrew it and apologized.

D. Nothing. The case has been inactive for months.Answers: 1.C; 2.A; 3.B; 4.C; 5.D; 6.A; 7.D; 8.D; 9.B; 10.A

When pretzel companies want to fill their pretzels with peanut butter, they find Bruce Gutterman.

The 61-year-old entrepreneur, also known as a pioneer in developing peanut butter for ice cream, owns a business called Flavors R Specialty in Kingston. Peanut butter is his business.

He has brought his peanut butter to ice cream freezers and the shelves of pretzel aisles. His peanut butter has been used in famous ice cream flavors such as Ben & Jerry's "Chubby Hubby." He has concocted peanut butter used to fill pretzels for major manufacturers.

The key to his success in the peanut butter pretzel business began in March 1983 simply by finding a set of car keys.

The day after he found keys in the trunk of a car in Kingston, he knocked on the door of the home across the street and returned them to an elderly man visiting his daughter. Two weeks later, he got a call from the man, who turned out to be Max Reisman, president of Reisman Pretzel Co.

Mr. Reisman told him he invented a machine that could fill pretzels and he was looking for something to put them in them. He asked if peanut butter might work and invited Mr. Gutterman to his facility with giant ovens for baking pretzels in Pennsauken, N.J..

As Mr. Gutterman was driving home that day through the Lehigh Valley Tunnel in Allentown, he said, "I saw the future of the entire industry."

Mr. Gutterman came up with the trademark name "Nutter Nuggets" for peanut butter pretzels. Mr. Gutterman launched his product on the West Coast and Anderson Bakeries started producing Nutter Nuggets.

Eventually, Mr. Gutterman sold the name to Nabisco. He said selling the name was the worst business decision he ever made because he should have asked for millions of dollars but received less than $20,000.

Among his success stories in the ice cream business, Friendly's found Mr. Gutterman in the early 1990s and asked him to concoct the peanut butter that was poured over the Reese's Pieces Sundae, a promotion for the movie ET.

Ben & Jerry's came to him asking if they could take his peanut butter pretzel and make it a particular shape and size and the flavor "Chubby Hubby" was born in 1996.

His first success in the peanut butter ice cream business came when, working out of a bedroom, he got an official from Baskin Robbins to call him in 1976 on a rotary phone after he mailed him a peanut butter cup wrapper.

"It was enough to catch their attention," Mr. Gutterman said. "We didn't have computers then. I had nothing but a typewriter."

Mr. Gutterman works out of a small office and likes to do business through old-fashioned methods: writing letters and using the telephone.

"I know the power of a phone," he said from his office on Market Street, an area which he calls the birthplace of peanut butter ice cream and the peanut butter pretzel.

Today, he is watching an evolution as the peanut butter pretzel business continues to grow. His business is now connected all over the country. Today, he said, peanut butter frozen desserts, ice cream and even frozen yogurts continue to be some of the most successful and profitable products to date.

"All these pretzel companies keep finding me," Mr. Gutterman said. "If there is a peanut butter pretzel that has been manufactured in the United States in the last 30 years, they came to me to put the peanut butter in place for them and to create their program for them. This has to do with a lot of luck. Fate came my way. I've been fortunate to get some big companies to find me."

Soon, he will provide almond butter packets at Jack Nicklaus' upcoming memorial golf tournament in Dublin, Ohio. He has traveled around the country marketing his products. He credits his success to persistent marketing.

"The definition of successful marketing is to be able to see something that no one else sees and then have the drive and determination to achieve and accomplish the goal," he said. "That's in a nut shell."

His next goal is to sell jars of pourable peanut butter, which he calls Peanut Butter "Pourfection," to the public worldwide.

"You could add this to smoothies or milk shakes. You could pour it over ice cream. It has endless uses," Mr. Gutterman said. "If people are interested in it, I'll make sure I launch it first in this area."

Mr. Gutterman is asking peanut butter lovers who are interested in the product to call him at 287-8642 or email Bruce.Gutterman@flavorsrspeciality.com or info@flavorsrspeciality.com.

Contact the writer: dallabaugh@citizensvoice.com

Woman injured as ATV hits building

SCRANTON - A city woman was taken to Geisinger Community Medical Center after crashing her all-terrain vehicle into a city business on Saturday, police Sgt. Robert McCool said.

Kimberly Swartz, 37, of Scanlon Avenue, lost control of her ATV at about 3:40 p.m. and crashed into Diamond K Inc. at Battle Street and Providence Road, Sgt. McCool said.

She suffered minor head injuries, along with a possible shoulder injury, he said. Her condition was not available Saturday.

Her passenger, 9-year-old Cody Tolley, was not injured, Sgt. McCool said.

There was no property damage. Ms. Swartz will be cited for a traffic violation, he said.

NEW YORK - A notable piece of small business news on Capitol Hill this year isn't about a bill - it's about a tax proposal that could lift some of the uncertainty owners have been complaining about.

Under a proposal announced last week by House Ways and Means Committee Chairman Dave Camp, R-Mich., a popular tax deduction for equipment purchases would become permanent and be set at $250,000, aside from annual adjustments for inflation. Known as the Section 179 deduction, it's scheduled to drop to $25,000 next year after having been at $500,000 from 2010 through 2013.

If the proposal becomes law, it could give owners some predictability - something they've been clamoring for given the large list of other uncertainties they've been sacked with such as health care, minimum wage and the economy. The deduction has fluctuated in recent years and has made it difficult for small businesses to plan.

Not knowing what the deduction will be forces business owners to play a sort of roulette - do they buy a drill press or an SUV before the end of the year and take advantage of the current deduction, or wait to see what the new year brings?

There are ramifications for the broader economy that go beyond the boost from spending on equipment. If small business owners have a better idea of how much money they might save on their taxes, they might feel more secure and then expand and hire. Small businesses account for more than 99 percent of U.S. companies, and they employ about half the country's workforce, or about 60 million people.

One of the greatest sources of uncertainty about the deduction is the fact that Congress has been erratic in setting the amount of the deduction and sometimes has made changes retroactively. In January, Congress gave final approval to a bill that boosted the 2013 deduction to $500,000 from a planned $25,000 - but many owners had already made purchases in 2012 expecting a smaller deduction in the coming year.

"People were making decisions they normally wouldn't be making at the end of last year," said Brian Burt, an attorney with the law firm Snell & Wilmer in Phoenix. His clients include small businesses in the manufacturing, financial services and software industries.

"That uncertainty makes for bad decision making," Mr. Burt said. One of his clients, a consumer products manufacturer, bought new machines at the end of the year to increase its capacity. Another manufacturing client invested in new software.

The deduction, named after a section of the federal tax law, allows small businesses to deduct up front the costs of equipment such as vehicles, manufacturing machines, furniture and computers. The deduction is important and popular because it allows small businesses to get a tax savings on the entire cost of equipment in the year it was purchased. Without it, they would have to depreciate the costs over a period of years which varies according to the type of equipment. Companies that get a refund get a boost in their cash flow from their tax savings.

"The Section 179 proposal is pretty big because it affects everybody," said John Arensmeyer, the CEO of Small Business Majority, a group that lobbies on behalf of small businesses.

The deduction was created as part of the Economic Recovery Tax Act of 1981 - a law passed to help the country emerge from the 1980 recession. In 1982, the year it took effect, the deduction was $5,000. Congress increased it through the years until it reached $125,000 in 2007. It doubled to $250,000 in 2008-09 because of the Great Recession, and subsequently rose to $500,000.

Camp St. Andrew

Lindsay Baker has joined the staff at the camp. She is a Scranton native.

CareGivers America

Christine DiChiara, a graduate of York College of Pennsylvania, and Denise Henry, a graduate of University of Scranton, have been hired as internal marketing coordinators in Clarks Summit

Susan Aulisio has been hired as a hospice clinical director in Clarks Summit.

Delaware Valley

Martin Gaughan has been appointed to the position of Delaware Valley School Police Officer. He was sworn in by Pike County President Judge Joseph F. Kameen. He has more than 25 years of law enforcement experience from the Pennsylvania State Police and Pike County office of the district attorney's Detective Bureau.

Dempsey Uniform & Linen Supply

Patrick Dempsey, chairman of the company headquartered in Jessup, was named a distinguished citizen by the Northeastern Pennsylvania Council, Boy Scouts of America, at its annual award dinner. Mr. Dempsey co-founded the company with his brother, Richard J. Dempsey, in Dunmore in 1959. Mr. Dempsey is a graduate industrial engineer of Lehigh University with an MBA from the University of Scranton. In 1955, he completed the American Institute of Laundering School of Laundry Operation & Management. He is married to Karen Ann Bewick since 1968. They are parents of six children and grandparents of eight.

Fusion Hair Design

Megan Sullivan has been named the new marketing assistant for Fusion Hair Design. She is a junior at the University of Scranton. Ms. Sullivan will play a vital role in expanding the salon's name recognition in the community.

Hendrick Companies

Tony Rovinski has been promoted to vice president, director of manufacturing, for the Carbondale and Elgin, Ill., facilities. He has a degree from Luzerne County Community College and has a PACCAR-Six Sigma Black Belt.

Bruce Caldwell was named vice president, director of sales and marketing, for the Carbondale and Elgin, Ill., facilities. He has a Bachelor of Science in industrial management and a Bachelor of Science in industrial marketing from University of Akron in Ohio.

Highlights

Kent L. Brown Jr. of Honesdale and Shirley Wendlandt of Mullin, Texas, have been honored for their 35 years of service on the Highlights board of directors. Mr. Brown and Ms. Wendlandt retire from the board this month. They were instrumental in developing a rotating board program that provides board experience for the 13-member third generation of the Myers family and now the 27-member fourth generation. Mr. Brown also served as editor of Highlights magazine from 1980 to 2001. Mr. Brown is the head of the Highlights Foundation, a nonprofit that works on improving the quality of children's literature by helping authors and illustrators hone their craft.

Janney Montgomery Scott LLC

Adam D. Shelp, financial adviser, has become a chartered retirement planning counselor. The professional designation is granted by the College for Financial Planning and equips financial planning professionals with the specialized knowledge and skills necessary to guide their clients through a smooth transition into retirement. Mr. Shelp joined Janney in 2011. He is a graduate of Bloomsburg University.

King's College

Tina Arendash of McAdoo joined King's College as a college counselor in the counseling center. She will provide individual and group counseling of students, consult with faculty and staff on student-related issues, provide on-call services and crisis intervention for students, and assist in the development of counseling center outreach programs in specialized areas. After earning a bachelor's degree in social work from Elizabethtown College, Ms. Arendash earned a master's degree in social work at Marywood University, where she was a graduate research award recipient for a paper on adolescent dating violence. She also completed a field placement at Hazleton General Hospital and has been a Pennsylvania Licensed Social Worker since 2006.

Misericordia University

James Siberski, M.S., C.M.C., CRmT, assistant professor and coordinator of the Gerontology Education Center for Professional Development, will be a guest speaker at the Alzheimer's Association Greater Pennsylvania Chapter Conference, "A Practical Look at Alzheimer's." Mr. Siberski will present the workshop "Navigating the Psychosocial Staircase." Mr. Siberski received his Bachelor of Arts in psychology from Wilkes University and his master's degree in human service administration from Misericordia University.

Penn State Worthington Scranton

Dr. Michael D. Michalisin, professor of management and business program coordinator at Penn State Worthington Scranton camp, examined key determinants of an individual's willingness to use new technology before acquisition, to identify critical factors that influence their willingness to use new information technologies. The research was published in the Journal of Strategic Innovation and Sustainability. In addition to Dr. Michalisin, co-authors were Edward D. Conrad, Henderson State University; and Steven J. Karau, Southern Illinois University.

PNC Financial Services Group

Robert Q. Reilly will succeed Richard J. Johnson as chief financial officer. Mr. Reilly has led PNC's Asset Management Group since 2005. He will assume his new position upon the retirement of Mr. Johnson, who will leave PNC in the third quarter. He has a bachelor's degree in finance from Georgetown University. Succeeding Mr. Reilly as head of AMG and joining PNC's executive committee will be Orlando C. Esposito, current corporate banking executive vice president. Mr. Esposito is responsible for growing corporate finance and middle market clients in the Northeast, including the states of Delaware, New Jersey and Pennsylvania, as well as the Akron, Cleveland and Youngstown, Ohio, markets. He has a bachelor's degree in accounting from Philadelphia University and an MBA from Villanova University.

SUBMIT PEOPLE ON THE MOVE items to business@times shamrock.com or The Times-Tribune, 149 Penn Ave., Scranton, PA 18503.

Summit hosted

The Northeastern PA Industrial Resource Center and Northern Tier Industry and Education Consortium hosted a regional business-education partnership summit at the NEPIRC office in Hanover Twp. The status of industry-education partnerships in the area was discussed and the focus of the meeting was to create awareness of existing career readiness resources and opportunities for collaboration to address unmet student needs.

Graphic design award received: Discover Pike PA was named the winner in the editorial design category of the Graphic Design USA annual American Graphic Design Awards.

Health plan now accepted: Commonwealth Health and Geisinger Health Plan announced that they reached an agreement giving Geisinger Health Plan members access to Wilkes-Barre General Hospital and the hospital's network of outpatient sites throughout the region effective immediately.

Location selected: Lackawanna College has announced that it will establish the School of Petroleum and Natural Gas in its New Milford location, and will offer two associate of science degrees in petroleum and natural gas technology and natural gas compression support technology. The center will continue to offer general education and business courses as well as continuing education programming. For details, call 465-2344 or visit lackawanna.edu.

Award recipients announced: AAA North Penn has announced that four lodgings and one restaurant have received the AAA Four Diamond Award designation for 2013. Lodging and restaurants receiving the rating include Patsel's Restaurant, Clarks Summit; the French Manor Lodge and Restaurant, Sterling; the Settlers Inn and Restaurant, Hawley; the Lodge at Woodloch, Hawley; and Mount Airy Casino Resort, Paradise Twp.

Partnership official: Green Field Energy Solutions has officially partnered with SolarWorld, one of the world's largest solar energy businesses.

Bank invests in community: First National Community Bank met the needs of more than 300 nonprofit organizations and promoted financial literacy to 1,000-plus students in 2012. The numbers reflect the bank's commitment to the Community Reinvestment Act, which encourages financial institutions to help meet the credit needs of the communities in which they operate.

New campaign initiated: O'Donnell Law Offices, Kingston, has launched a new campaign, "Walk-In Wednesdays," designed to provide immediate access for accident victims who have been injured and need an attorney. The campaign will run until April 3. Any injured person needing an attorney can walk into O'Donnell Law Offices on Wednesdays without an appointment.

University recognized: Marywood University was named to the 2013 President's Higher Education Community Service Honor Roll by the Corporation for National and Community Service. This is the sixth straight year that Marywood has received the distinction.

SUBMIT BUSINESS BUZZ items to business@times shamrock.com or The Times-Tribune, 149 Penn Ave., Scranton, PA 18503.

The sounds of hammers and crowbars in use could be heard from outside 726 Prospect Ave. on Saturday morning.

Volunteers for Habitat for Humanity of Lackawanna County started the organization's latest project, as they began to turn a vacant house into a renovated home for an area family.

After a brief orientation, a couple dozen volunteers put on hard hats and facemasks and started to carry doors and debris to a dumpster outside.

"We've had a tremendous amount of support to get this project under way," said Matthew Tirella, president of the board of the local Habitat chapter.

The Kraft family of Oaks, Montgomery County, donated the property to Habitat, which is in the final stages of selecting a family that will live in the home. Habitat's last project was a home at 1711 Prospect Ave. finished in 2012 - the first home the local organization completed in about eight years. Since the chapter dissolved in 2004 after financial problems, it has been entirely restructured and has an all-volunteer leadership team. Organizers hope the new project is complete within the next year.

Before the volunteers got to work Saturday, Scranton police shut the 700 block of Prospect Avenue as organizers and community leaders spoke to the group assembled.

Parker Hill Community Church is the project's sponsoring organization.

"It's an exciting day," Pastor Paul McGuinness said. "We're thrilled to be part of it."

Scranton Mayor Chris Doherty said the project will help efforts to revitalize South Scranton.

"When we talk about restoring the pride ... you invest your pride by coming here and making this possible," he told the volunteers. "Homeownership is the key to any city."

For information on how to donate or volunteer, visit www.habitatlackawanna.org.

Contact the writer: shofius@timesshamrock.com, @hofiushallTT on Twitter

In municipal finance, debt is not necessarily a four-letter word.

However, if it balloons to the point of drowning a struggling city, it could be, experts said.

Northeast Pennsylvania cities are finding themselves caught between having to provide necessary services but no longer being able to afford them, and so they have borrowed to get by. Like businesses, municipalities are concerned with revenue, expenses, debt and cash flow, and if any one runs into trouble, financial distress is not far behind, said Gerald Cross, executive director of the nonprofit Pennsylvania Economy League, a coordinator of distressed municipalities in the Keystone State.

In some financially ailing cities throughout Pennsylvania, "The revenue side is in danger of being swamped completely by the expenditure side," Mr. Cross said.

In Lackawanna and Luzerne counties, the total debt of the six cities - Scranton, Wilkes-Barre, Hazleton, Carbondale, Pittston and Nanticoke - is $250 million. The bulk of the collective cities' debt is from Scranton, which has $148 million.

The scenario often goes like this: A municipality's hands are tied by employee contracts that lock in salaries and raises while costs of benefits and pensions are soaring. Services - police and fire protection, trash pickup, road paving and snow plowing - must be delivered, but revenue and tax bases have been stagnant, if not declining, for years.

Where does the money come from to pay all of the bills? Raising taxes can only go so far. Hiking them too high may cause a spike in delinquencies, chase homeowners and businesses out of town or deter new ones from coming in, and lead to even less revenue.

So, deficits may recur and become "structural," and often are papered over with borrowing. That may be doable, but only to a certain point. Debt could become a serious problem if it is relied upon each year to pay routine operating expenses and eats up an increasingly larger share of a municipal-budget pie. And this could create more budget holes that often are filled with more borrowing.

Municipal debt is generally measured by comparing annual payments with the overall budget, said Joe Boyle of PEL. Payments equating to 10 percent or below of budgeted expenses are "acceptable and general practice" while payments of 15 percent or more of a budget generate "real concern," he said.

"If you're spending 70 percent on salary, benefits and health care and add 18 percent (of debt payments), you're already at nearly 90 percent," Mr. Boyle said. "What are you going to cut?"

Like a homeowner needing a mortgage or a motorist requiring a car loan, a city issuing bonds or notes may be practical ways to raise funds for any number of reasons, and becoming debt-free is not necessarily feasible, said Teri Ooms, director of the Institute for Public Policy & Economic Development, a Wilkes-Barre-based research and analysis agency.

"Debt is not necessarily a four-letter word. I don't think any government will be debt-free, (and debt may be OK) as long as it's a manageable debt to cover," Ms. Ooms said. "If debt is used to meet daily cash flow for any length of time, then you've got a major problem. Certainly, debt is one way to take things on, but it shouldn't be the resource you keep going back to for more and more."

"When you have increases in expenses without a concurrent increase in revenues, communities start borrowing and you end up in debt," Ms. Ooms continued. "The problem we have (in many cities) is that the (underlying financial) problem wasn't addressed early on and it snowballed, and now we have this wild animal that's out of control."

n Scranton

Such a scenario largely has been the story of Scranton for decades. In 1992, after years of budget imbalance, the city was officially designated as financially distressed under state Act 47. Lacking teeth, however, and undermined by a 2011 state Supreme Court ruling, the act has not been a fix for Scranton.

It was in 2002, and with aging infrastructure and bloated budgets, that the Electric City began borrowing tens of millions of dollars and has since accumulated $148 million in debt ($100 million in principal, $48 million in interest).

An annual operating budget of $111 million includes $10 million in debt service that accounts for 9 percent of the budget.

In notes and/or bonds, Scranton borrowed the following amounts, which include principals and interests:

- $7.3 million in 2002 to purchase the city's streetlights.

- $77.1 million from four bond issues in 2003 to fund workers' compensation and pension obligations, build new DPW and police facilities, upgrade parks and pay for costs related to flooding and paving.

- $2.3 million in 2004 to cover routine municipal operations.

- $14.4 million in 2006 to cover routine municipal operations.

- $8.8 million in 2008 to cover routine municipal operations.

- $30.8 million in 2012 for operations, coming from two bonds and one note for refinancing and two packages of 'unfunded debt' that had to be approved by a court.

- $7.3 million so far this year for refinancing.

And, Scranton still needs to borrow some $22.5 million this year to pay a $17 million landmark 2011 state Supreme Court arbitration award to the city's fire and police unions, and a $5.5 million increase in mandatory minimum pension contributions.

"A couple of the bonds were for capital improvements - new DPW and police headquarters, paving, upgrade of parks. The other ones have been operational borrowing and refinancing," Scranton Business Administrator Ryan McGowan said. "The last couple of loans have been to meet operational needs. You have to make good on vendor payments and there are contractual obligations that need to be met."

The $148 million of debt in Scranton also does not take into account another approximately $150 million in debt of city authorities for which the city ultimately would be on the hook because the city backs them.

"The difficulty for cities like Scranton is this idea that you have these liabilities because expenses have outpaced revenues for a number of years," said Public financing expert Tracy Gordon, Ph.D., a fellow in the economic studies program at the Brookings Institution in Washington, D.C.

She added that as debt rises the cost of debt also may increase.

"You could see a decline in services, difficulty in accessing capital markets or pay exorbitant interest rates," she said.

Indeed, Scranton ran into such difficulties last year securing financing to get through the year. First, wary banks shied away from lending the city money after it had failed to pay a debt on time in 2011; and then a default of city-backed debt of the Scranton Parking Authority in June led to the city later having to pay a premium in higher interest rates to land a private-placement bond.

Wilkes-Barre

Wilkes-Barre has $69.2 million in city debt. Its annual $44.9 million budget includes $7.7 million in debt service, or 17 percent of the budget.

City officials are quick to emphasize debt isn't always a bad thing. Borrowed money, along with grants, has allowed the city to take on big-budget capital projects, such as the $14 million Coal Street improvement project and the $28 million downtown transportation center. It's also a way to save money by refinancing existing debt.

However, some experts say Wilkes-Barre's debt might be too high. About 17.5 percent of the city's 2013 general fund budget will go toward paying off its debt. "When you hit 15 percent, you're in trouble with the guidelines," said Mr. Cross of PEL. "It's a warning sign."

Wilkes-Barre's debt comes primarily from general obligation bonds, which are bought by investors and repaid with interest over an extended period of time. Wilkes-Barre is paying off 19 different bonds, most of which were used to fund capital projects or refinance older bonds.

Last year, the city issued bonds for a $5.9 million energy savings project that is expected to pay for itself, plus save the city an additional $3.9 million over the course of the next 20 years. City spokesman Drew McLaughlin said the city also took advantage of rock-bottom interest rates to refinance old bonds to save $300,000.

"Our overall strategy is to restructure to save money, and make long-term investments to improve the city and put the city on a more sustainable path," Mr. McLaughlin said.

Dave Fiorenza, an instructor at the Villanova University School of Business who has worked with several Pennsylvania townships, said capital projects are usually good long-term investments for cities. But he said as cities take on more debt, they must look for ways to pay it off. There isn't much economic development in Wilkes-Barre, Mr. Fiorenza said, which means the burden on taxpayers could grow if the debt burgeons.

"Investors will be concerned and look long-term whether there will be growth in the city," Mr. Fiorenza said. "What will be the driving force to take Wilkes-Barre to the next level in the next five to 10 years?"

Mr. Cross said excessive borrowing can also reduce the city's ability to pay for services, like hiring more police officers or paving streets, since the city's highest budget priority is paying off its debt.

"That means services come second to debt service," Mr. Cross said. "If debt service becomes too expensive, services become secondary, and citizens should be concerned about that."

The city has also used bonds to pull itself out of financial binds. In 2011, the city borrowed money to make payments on an older set of bonds. Delaying that payment cost the city $626,000 in extra interest. Mr. McLaughlin said the city was dealing with stagnant revenues resulting from the recession, and buying more time to pay off the debt was in the city's best interest.

Hazleton

Hazleton operates on a $8.6 million general fund budget, but owes more than $13.3 million in long-term debt through 2025. It's $1.2 million in annual debt service is 14 percent of this year's budget and will continue for at least 12 more years.

While the outstanding balance is straining a cash-strapped city that's struggling to provide services and pay labor contracts, Mr. Boyle, of PEL, said the city's in relatively good shape in terms of managing its debt.

"I think if (Hazleton officials) keep making progress, at some point in the next four or five years they might be able to refinance and get it at a better rate," he said. "But they're not in bad shape."

A large portion of long-term debt stems from refinancing old borrowings. But, the city's most recent borrowing stems from the city's inability to pay tax anticipation notes that it secured in 2010 and 2011, Acting City Administrator Steve Hahn said.

The added debt led to a substantial increase in a portion of property taxes that is reserved for debt service. The debt-related millage rate climbed from 0.54 mills in 2012 to 1.3 mills this year - and was part of an overall property tax hike of 45 percent.

While refinancing typically leads to lower interest rates - and smaller annual payments - Mr. Hahn said municipalities should weigh those savings with expenses incurred during the process. Otherwise, communities could be extending interest payments on refinanced bonds or loans without significantly paying down the principle, he said.

While municipal leaders are quick to point out lower interest rates, Mr. Hahn said it's important for communities to consider closing costs, extended interest payments and other fees associated with refinancing.

"Any time you refinance, you carry that debt out further," Mr. Hahn said. "Sometimes if you keep cycling those types of things out - they claim there's better interest rates - but when you look (at some arrangements) you'll see that $50,000 or more went to lawyers for closings. Sometimes, there's a discount on the bonds. The brokerage companies end up making money on this, too."

Mounting debt led to the city's latest borrowing - a $5.6 million guaranteed lease-revenue note secured in June 2011 through the redevelopment authority.

PEL consultants who were working with the city at the time to develop a strategic financial plan said that while the borrowing was needed to avoid a default on a previously-secured tax anticipation note, they cautioned that continued reliance on such borrowings "cannot be sustained and leads to larger deficits."

That borrowing prompted the city to more than double taxes levied for the city's debt service fund, which climbed from 0.54 mills in 2012 to 1.3 mills this year.

Carbondale

Carbondale has $8.6 million in city debt, which includes the principal and interest. An annual $6.3 million budget includes $1.1 million in debt service, or 17 percent of the budget.

Along with funding capital projects and meeting pension obligations, Carbondale had to seek court approval for unfunded debt to make ends meet in recent years, Mayor Justin Taylor said.

"The city basically runs with a structural deficit every year," though it's been reduced in recent years from $500,000 to around $250,000, he said. "We've had some unfortunate situations where we've had to do three unfunded borrowings over the past 10 years."

A large chunk of Carbondale's debt was incurred in 2006 when the city borrowed $3.6 million to fund its pension obligations. That was a large amount for the small city, and its single largest borrowing, but one that officials deemed was necessary to not delay pension obligations.

"Every year we were seeing our MMO (mandatory minimum pension obligation) increasing," Mr. Taylor said. "We said we just need to bite the bullet, borrow the money and dump it into the pension plan so we see some stability. Most other municipalities probably didn't do that, but thankfully we did it when we did. We put it in the (stock) market when it was good."

The city also has cut expenses but has grappled with revenue estimates not being realized.

"Your best budget and projections go out the window when people don't pay their taxes," Mr. Taylor said. "Our biggest issue in Carbondale is people who don't pay their taxes or fees."

The city has implemented a new fee for fire protection and offered three veteran police officers a retirement incentive, he said.

Carbondale also raised taxes this year by 1.03 mills, the first increase in years, from the former level of 28.97 mills, to bring the rate up to the city's statutory maximum of 30 mills, he said.

The city's largest source of taxes, wage taxes, were not raised because they are already higher than surrounding towns, he said. At 1.6 percent for the city and .5 percent for the school district, the total earned-income tax on Carbondale city residents is 2.1 percent, he said.

As such, officials must weigh a balance when it comes to increasing wage taxes, said Mr. Taylor, adding, "Sure, we can raise EIT, but when does it become cost prohibitive for people to live and move here."

"Municipal finance is an odd animal. There's so many nuances to it and things you really have no control over, and that's the unfortunate part," Mr. Taylor said.

Pittston

Pittston has $8 million in city debt. An annual budget of $6.6 million includes $376,000 in debt service, or nearly 6 percent of the budget.

Pittston's borrowing abilities are more limited than Wilkes-Barre's because its budget is smaller. City administrator Joe Moskovitz said capital projects are still a priority, but they have to be within the city's budget.

"We're not a wealthy community, but that doesn't mean we shouldn't be investing in our community," Mr. Moskovitz said.

Pittston will pay $376,488 toward its debt, which is 5.7 percent of its $6.6 million budget. The city doesn't issue bonds and only takes on loans.

Of Pittston's $8 million in debt, $2 million was used to refund older obligations. Mr. Moskovitz said the borrowing paid for equipment and capital projects, including improvements to its fire station.

The city is also looking to take advantage of federal loans to improve its library and city hall. The $1.9 million in loans, provided to the city by the United States Department of Agriculture, will be paid off over 40 years at 3 percent interest. Mr. Moskovitz said this project is an example of the city taking advantage of opportunities that fit its financial needs.

"When this mayor (Jason Klush) was elected, he said we were going to invest our community," Mr. Moskovitz said. "You need to be very conservative about your borrowing, but now is the time to invest in our infrastructure."

Nanticoke

Nanticoke has $2.6 million in city debt. An annual budget of $4.9 million includes $528,000 in debt service, or nearly 11 percent of the budget.

Financial problems for Nanticoke began in 2004 when the city borrowed money simply to pay operating expenses.

The city was already taxing property owners at the highest rate allowed by law.

"When you're borrowing just to keep up operations, you're on the road to being distressed," said Mr. Boyle of PEL.

Outstanding debt once defined the city, which the state Department of Community and Economic Development declared financially distressed under state Act 47 in May 2006.

A recovery plan helped Nanticoke improve its financial outlook to where it no longer borrows money to pay day-to-day expenses. It's one reason why the city is expected to be released from distressed status by next year.

"Nanticoke made substantial progress and should be let out of Act 47 by 2014," Mr. Boyle said. ""We will do an amendment (to the recovery plan) this year specifically showing how the city has made the progress they needed to."

This year, Nanticoke has a $4.9 million general fund budget, with principle and interest payments toward debt accounting for $528,337. The city owes $2.6 million through 2019, when its final annual debt payment will be only $238,638.

According to Pam Heard, city manager, Nanticoke's problems with debt began when it borrowed money to complete various sewer and road repairs, and then to pay "operating expenses incurred during the periods prior to the city going to Act 47."

"All of our debt is old debt. It has rolled over so many times," Ms. Heard said.

Although its finances are improving, Nanticoke's debt obligation could become prolonged if officials move forward with much-needed capital projects, for which the city could borrow money in the future.

"They were not able to do capital projects because they were distressed financially," Mr. Boyle said.

Otherwise, the city would have to complete projects such as roadwork with state and federal grants that require a local match.

"It is very difficult to pull the funds from interest," Mr. Boyle said. "It is difficult for a municipality the size of Nanticoke to have money laying around to pay for major road projects."

Overcoming debt

How, then, can struggling cities overcome debt?

"The solutions are limited. I hate to say it, but bankruptcy is one of them. It is an option under Chapter 9" for municipalities, Ms. Ooms said.

Still, it's not clear whether the state would allow a municipality to file for bankruptcy. When Harrisburg tried it recently, the state stepped in and instead appointed a receiver to oversee that city's municipal finances. There have been around only a dozen municipal bankruptcies in the nation since the Great Depression, Ms. Gordon said.

The idea of bankruptcy has been raised in Scranton, but Scranton's leaders have not embraced it as an option. They fear it would label the city with a Scarlet letter, kill property values of homes and businesses and create an exodus.

Ms. Ooms also said cities must do more long-term planning and 'Plan B' budgeting, such that if a 'Plan A' fails there would be an alternative. However, such planning often is lacking because financially-strapped cities are understaffed and don't have the resources to do it, she said.

"It's a matter of putting out the fires today that we can't look to tomorrow," Ms. Ooms said.

PEL fills the planning void for distressed cities, but cities don't necessarily heed PEL's advice and it cannot force them to, Ms. Ooms noted.

Raising taxes often is a political non-starter, but some cities have had no choice. Hazleton this year passed a 45 percent property tax increase, some of which was due to increased debt service. Scranton's revised Act 47 recovery plan of 2012 calls for 79 percent tax increases over three years, and that amount may not even fill the void as various alternative revenues in the plan are speculative and may not be realized.

Mr. Cross has advocated for a regional approach among municipalities to pay for services.

"In my mind, the answer long-term is to fund services from a wider area. We do it with schools and counties. We don't do it with municipalities."

Under a regional provision of services, municipalities would remain intact and distinct and would not merge, he said. Rather, costs of service would be spread out over a larger area and savings would come from an economies of scale, Mr. Cross said. Still, it would likely be a tough sell, as municipalities would have to agree to contribute a portion of their assessed tax bases to pay for a regionalized service and would not be able to back out, he said.

Such a concept may be more difficult to implement with police and fire departments because of their contract safeguards under state Act 111, but sharing of DPW services may be more feasible, Mr. Cross said.

"People understand plowing streets across (municipal) boundary lines," Mr. Cross said.

Ms. Ooms agreed that municipalities are going to have to embrace collaboration and cooperation, and new laws from Harrisburg also may be required to fix the state's antiquated municipal systems.

"I think it's time for some out-of-the-box solutions because the old ways aren't working," Ms. Ooms said. "There's no one fix-it... solution. It's certainly not something anyone's going to see overnight."

Sam Galski, Shawn Kellmer and Chris Hong, staff writers, contributed to this story.

Contact the writer: jlockwood@timesshamrock.com.

Tuesday: Business financing seminar, Northeastern Pennsylvania Alliance in conjunction with DCED, 2 to 4 p.m., Woodlands Inn & Resort, Plains Twp. To register for free, visit www.nepa-alliance.org or contact Donna Brdaric, dbrdaric@ nepa-alliance.org or at 866-758-1929. n Greater Hazleton Chamber of Commerce Women's Networking Committee luncheon programs noon to 1 p.m. at the Comfort Inn, 58 Route 93, West Hazleton. Guest speaker will be Cheryl Ryan, project specialist Interiors from Lowes. The event will include a buffet style lunch. Cost to attend is $16 for chamber members and $21 for non members. Proceeds benefit the Women's Empowerment Grant Fund. Reservations required by registering online, contacting Julie at 455-1509, or emailing jferry@hazletonchamber.org. n Pocono District of Penn State Extension Technology Tuesdays, Feed Storage and Handling System Design webinar, 8:30 to 10 a.m. Free online workshop designed for dairy producers, their employees and advisers. Registration is free, but is required no later than noon on Monday. Register 888-373-7232 or online at surveymonkey.com/s/ technologytuesdays. n The Northeast Pennsylvania Manufacturers and Employers Association two new trainings on 6-S - Adding Safety and Single Minute Exchange of Dies, first training from 9 a.m. to noon; and second training from 1 to 4 p.m., at the Top of the 80's, Hazleton. Courses are worth three Strategic HRCI Recertification Credits upon completion. Cost of the each training is $105 for members and $210 for non-members. For details, call 622-0992 or email Chris Robbins at crobbins@ maea.biz. - Wilkes University Small Business Development Center The First Step: Starting Your Own Business seminar at 6 p.m., at Wilkes University Marts Gymnasium Building on the second floor, Room 213, 274 S. Franklin St., Wilkes-Barre. Contract Virginia at 408-4340 or sbdc@wilkes.edu, to register. n Team Pennsylvania Foundation Northeastern Pennsylvania Industry Roundtable, 2 to 4 p.m. at Commonwealth Medical College Auditorium, 525 Pine St., Scranton. DCED Secretary Alan Walker and other economic development leaders will discuss issues affecting the regional and state economy. For details or to register, visit teampa.com/nepa-forum.

Wednesday: DCED On the Road Luncheon, information tables open at 11 a.m.; lunch at noon, at Genetti Inn and Suites, Route 309, Hazleton. Free event. For more information, email Cindy Black at ciblack@pa.gov.

Thursday: Greater Honesdale Partnership monthly business owners' and employees get-together, 7:30 a.m., at A&A Auto Parts Store, Route 6.

April 2: Penn State Extension Pesticide Credit Workshop for farmers in need of obtaining credits from 7 to 9 p.m., at the East Bridgewater Community Church, Route 167, outside of Montrose. For details, 278-1158.

April 3: DBi Services job fair from noon to 4:30 p.m. at corporate headquarters, North Conahan Drive, Hazleton. Positions include general laborers, CDL drivers and gas/diesel mechanics. For details or to apply, visit dbiservices.com/careers.

April 4: Navigating the Affordable Health Care Act seminar hosted by the Greater Honesdale Partnership, 6 to 8 p.m., Wayne Bank, 717 Main St., Honesdale. Seminar is free and open to the public. Advance registration is required by Thursday , by contacting Jackie Murphy at A Stitch In Time, 253-6864, astitchintime2@gmail.com; or Gail Tucker at the GHP, 253-5492, ghp@visit honesdalepa.com.

SUBMIT BUSINESS BRIEFCASE items to business@times shamrock.com; Business Editor, The Times-Tribune, 149 Penn Ave., Scranton, PA 18503; or via fax to 348-9135.

Sant' Andrea grooves into '70s

Attendees will be grooving into the 1970s when the 70th Annual Sant' Andrea Society Charity Ball gets under way Friday, April 19, at the Scranton Cultural Center at the Masonic Temple.

Josh Mast and Paul Blackledge and Jeff D'Angelo's Design Group will help those reveling in the Cultural Center's ballroom time-travel back a few decades, and those attendees may just be sporting the fashions of that time.

The event is being planned by Sant' Andrea officers, including Beth Colarossi, president; Kathy Mihok, vice president; Ann D'Arienzo, treasurer; and Noelle Lynett, secretary; as well as Dr. Cathy McGrath, chairwoman, and with the blessing of the Rev. Bernard McIlhenney, society moderator. It includes a sit-down dinner catered by Constantino's followed by a night of dancing to the music of AM Radio. A silent auction will feature items from local businesses and '70s-inspired memorabilia.

The ball is the major fundraiser for Sant' Andrea, with proceeds benefitting the education of Jesuit Priests.

Shelter renamed

Catholic Charities of the Archdiocese of Newark, N.J., officially designated its Newark-based emergency family shelter in honor of Scranton natives Joseph Jr. and Judith Fidati Calabro on Friday. Previously known as the St. Rocco's Family Residence, the Joseph and Judith Calabro Family Residence is located at 368 S. Seventh St. in Newark, which is where the ceremony was conducted.

The Calabros are the late parents of Dr. Joseph J. Calabro, also a native of Scranton, who was on hand to see his parents honored.

The founder and president/CEO of Physicians' Practice Enhancement, a medical practice management group, Dr. Calabro and his family have continued his parents' lifelong commitment to serving the underprivileged through their lifetime of community service, culminating with the bequeathal of the 59-bed emergency family shelter which provides a secure temporary living environment for those in need.

"Dr. Calabro has shown his deep commitment to Catholic Charities over many years. The Joseph and Judith Calabro Family Residence, which is named in Dr. Calabro's parents' honor, will help emphasize the importance of urban health in homelessness and social services," said Dr. Phillip Frese, CEO of Catholic Charities of the Archdiocese of Newark.

A professor and chairman of emergency medicine at the Seton Hall University School of Health and Medical Sciences, Dr. Calabro has roots that run deep throughout the Newark and Scranton/Carbondale communities. His uncle owns the Circle Drive-In movie theater, one of the longest-running drive-ins in America.

High notes

Scranton Mayor Chris and Donna Doherty were among the guests at a White House reception as well as Vice President Joe Biden's St. Patrick's Day breakfast for Irish Prime Minister Enda Kenny last week in Washington, D.C. Mr. Biden held the belated annual St. Patrick's Day breakfast celebration for the Taoiseach at his Naval Observatory residence after returning from Rome, where he attended Pope Francis' installation Mass. Along with Irish food and song, Mr. Biden, who lived in Scranton's Green Ridge section as a child, read a poem by his grandfather, Edward Francis Blewitt, said Chris, who noted that he and Donna paid for their trip to Washington, which also included a visit to the USS Scranton, whose new commander, Seth Burton, visited his submarine's namessake city in November. Chris also noted that Mr. Biden revealed at the breakfast that he is 5/8 Irish, which he said he learned from research done for the story, "Joey From Scranton - Vice President Biden's Irish Roots," written by by Megan Smolenyak for the April/May issue of "Irish Times."

- TERRY BONIFANTI

BOSTON - If there's a last frontier for U.S. investors, it's Africa. The world's second-most populous continent is an afterthought for anyone looking to construct a diversified portfolio of foreign stocks.

Consider that there are just two mutual funds specializing in African stocks, compared more than 100 focusing on Europe. About three-dozen focus on a single country, China. So much for the vast African continent and its underground wealth from oil, minerals and metals.

Another sign of Africa's low profile is the dearth of information about the stocks of its top publicly traded companies. Check the business pages of a newspaper or an investing website, and it's relatively easy to find data on the performance of indexes from most foreign countries or regions. But you'll probably have to look elsewhere to find references to the few African indexes, such as the MSCI Emerging Frontier Markets Africa or the Dow Jones Africa Titans 50.

"It's probably the world's last great untapped market," says Derrick Irwin, co-manager of the Wells Fargo Advantage Emerging Markets Equity fund.

Unlike the two Africa-focused funds, Irwin's four-star-rated fund is geographically diversified, owning stocks across a broad swath of the world's fastest-growing economies.

He sees growing opportunities in African stocks as well as foreign companies that do business on the continent, and it's not just because of its well-known natural resources. He sees the greatest potential in its 1 billion people and the expansion of Africa's middle class.

One indicator of that potential: Nigerian sales of Guinness beer now surpass those in Ireland, despite the dry stout's origins in Dublin. That's made Africa's most populous country a key growth market for Guinness parent Diageo, based in the United Kingdom.

While Mr. Irwin didn't patronize many bars during a recent trip to Nigeria, it was clear in the grocery stores "that Guinness and Heineken dominate the market," Mr. Irwin says.

Many investors have been scared off by Africa's widespread poverty and its seemingly intractable political instability and corruption. In North Africa, the Arab Spring uprisings that began a couple years ago helped several countries move toward democracy. But turmoil persists in countries such as Egypt, making them unattractive to potential investors.

That's one reason why investing in Africa requires a strong will. Expect sharp ups and downs in performance.

In a recent interview at his Boston office, Mr. Irwin discussed the risks and rewards of investing in Africa. Below are excerpts, edited for clarity:

Q: What are Africa's key strengths, from the standpoint of U.S. investors?

A: There's huge growth potential. The top five African economies have more than 400 million people. Across sub-Saharan Africa there are more than 425 million cellphone subscribers.

Despite the growth, foreign companies have very low penetration into Africa. It's been ignored, and it's still perceived by outsiders as a bit of a basket case. But it's no longer the debt-ridden continent that it used to be, with corrupt dictators running most countries. There are now well over 20 democratically elected governments in Africa, compared with about three in the 1980s. I don't want to sugarcoat it in any way, because there are problems, including extreme poverty. But it's a much different place than it used to be.

Q: As an American consumer, I don't see any African brand names on the shelves, or any visible indications that African companies have a substantial presence in the global economy. Am I missing something?

A: It's there, it's just that Americans don't see it. A lot of the trade with African countries is with other emerging markets in places like China, India and Turkey. That trade has increased about tenfold over the past decade.

Q: So why hasn't U.S. investing in Africa taken off?

A: Africa is one of those markets where the story looks so good on paper that it often gets disassociated from the investment realities. For example, Nigeria has unspeakably bad infrastructure. Traffic is horrible. And it's incredibly hard for foreigners who want to invest directly in Nigeria. One reason is the bureaucracy. All the worst aspects of the old British bureaucracy are still in place, but with an economy that's 50 times larger than it was in the colonial era. If you're visiting a company's management, you're not getting past the gates or front desk unless you have the proper paperwork. And it's hard to overstate the corruption and cronyism.

Students at Scranton's William Prescott Elementary School will get out of school about three weeks earlier than other students in the district.

Now they may have a place to go.

The Boys and Girls Clubs of Northeastern Pennsylvania will offer a day camp program for Prescott students, who will be done with school on May 17 so mold abatement work can be done.

"We saw the need," said Tricia DiBiasi Thomas, executive director of the organization.

From May 20 to June 7, the club will be open from 8 a.m. to 5:30 p.m., and with support from the Wilkes-Barre-based Commission on Economic Opportunity will serve breakfast, lunch and a snack. The club is located at 609 Ash St., less than a mile from the school.

Since fall, the school day at Prescott has been lengthened by about 45 minutes a day to allow for the May dismissal. With acceptable air-quality tests, officials decided to keep students in the school and do extensive work during the summer to rid the building of any mold.

The agency is still finalizing plans, and parents will receive information by the beginning of May, Ms. DiBiasi Thomas said. Registration will be open to the first 100 kids, ages 6 to 12. The program is free, but children must have a $25 club membership to attend. The membership will be valid through May 2014.

The program will be similar to the club's summer day camp program, in which children spend time doing arts and crafts and activities in the club's gym, computer room and game room, Ms. DiBiasi Thomas said.

Contact the writer: shofius@timesshamrock.com, @hofiushallTT on Twitter

DUNMORE - A remarkable state championship run for the Holy Cross boys basketball team ended with a warm embrace and loud cheers from a throng of supporters gathered outside the high school Saturday night.

Family, friends and faculty ignored the chilly temperatures to form a long line alongside East Drinker Street near the school to greet the players and coaches before their bus arrived from the Giant Center in Hershey, where they had taken on Beaver Falls for the PIAA class AA boys championship game.

The Holy Cross team lost the game by six points, but parents and school officials said they were proud nonetheless. With the remnants of tears in her eyes, Ann Joyce waited patiently for her son Corey to return.

"They were outstanding. They were what a team should be," said Mrs. Joyce, who had a button picture of Corey in his basketball uniform pinned to her shirt. "I'm glad they have all these good memories."

Shortly before sunset, the blare of Dunmore police and fire sirens, the team's escort, signaled they had come home.

"We are H.C. We are H.C.," yelled cheerleaders and students as the bus pulled up to the curb.

At least 100 supporters broke out in a loud applause and whistles as the door of the bus swung open and the players began making their way outside. Tears fell from their eyes, yet amid the sadness were high-fives, hugs and pats on the back for a job well done.

"They played their hearts out. They played their best," said the school's principal, Ben Tolerico. "We'll do our best to make them realize how proud we are of them."

After winding their way through their fans, the players settled inside the school to have a couple of slices of pizza and cold cuts. Around the school hung banners welcoming them home.

More cheers of "We are Holy Cross" rang out from time to time in the auditorium.

"I'm so proud they went so far," said Leslie Nelson, whose son, Erik, is on the team. "They are an amazing group of kids. And they should be proud."

Contact the writer: smcconnell@timesshamrock.com, @smcconnellTT on Twitter

ALTOONA, Pa. (AP) — A company has announced plans to build a $200 million gas-to-liquid fuel processing plant in western Pennsylvania.

The (Altoona) Mirror (http://bit.ly/WXh6z7 ) says Marcellus GTL LLC of Gilberton plans to begin construction of the Blair County plant later this year and finish in 2015.

Officials said it will take natural gas and produce about 84,000 gallons per day of gasoline and propane, which will be marketed locally as transportation fuel and heating.

Company president John Rich Jr. called the facility the first of its kind in the country. Officials said they hope to show that energy can be developed responsibility and improve lives.

Local politicians and development officials said the plant will have 30 full-time workers and there will be 120 construction jobs at the peak over the two-year development.