In a split vote, Scranton City Council on Thursday introduced a $109.7 million budget for 2013 that contains a 12 percent property tax increase for residents and hikes in several other taxes, including a hoped-for commuter tax.
The council also took flak from some residents for hefty raises ranging between 19 and 33 percent in the budget for six employees, including council and administration solicitors, fire chief, business administrator and two administrative employees.
"This city is in such financial disaster. We're close to bankruptcy and we're giving raises up as high as 33 percent? It's just an outrage," resident Les Spindler told council. "This just cannot happen. You're not going to raise my taxes and give these other people raises."
Resident Tom Ungvarsky added, "I hope city council will reconsider and do what's right by the residents."
The budget was introduced in a 3-2 vote, with council President Janet Evans and members Frank Joyce and Jack Loscombe voting yes, and Pat Rogan and Bob McGoff voting no.
Mr. Rogan said he would try to eliminate the raises with a budget amendment during a second reading on Thursday.
"I don't believe when we are in dire straits we can be giving out raises of these amounts," Mr. Rogan said.
Mr. McGoff said he believes the raises are deserved but the timing is bad because the city is seeking court approval to impose a 1 percent commuter tax. A panel of three Lackawanna County Court judges will hear the commuter tax request on Dec. 10.
"I'm not sure that's the right message" to send to the court, Mr. McGoff said.
Mr. Joyce, the council finance chairman who participated in crafting the budget, said, "I plan on making amendments to the raises that were doled out." He continued: "I believe these raises should be scaled down or eliminated for certain employees," and raises should be given only to those who worked tirelessly during this year's financial crisis. He did not identify which employees he had in mind for raises.
Mrs. Evans and Mr. Loscombe did not specifically address the issue of the large pay raises. Mrs. Evans said the budget is "not a done deal" and council is amenable to amendments. Mr. Loscombe said he would reserve his comments on the budget until next week's second reading when amendments could first be offered.
If advanced on second reading Thursday, the budget then would be up for adoption on Dec. 13.
Mr. Joyce also gave a slideshow overview of the budget and said, "My goal was to take a proactive approach to the budget and work with the administration that the budget issued would not be greatly amended."
The spending plan for 2013 is $24.3 million higher than the $85.3 million budget of 2012, or a 29 percent increase. Mr. Joyce said the budget's steep rise is attributed to new borrowing and refinancing necessary to cover a landmark state Supreme Court arbitration award of $17 million due to the city's police and fire unions, to provide a $5 million increase in the city's mandatory minimum pension obligation, and to pay off interest of a $14 million tax-anticipation note the city will obtain next year.
Council also took actions on other financial measures that would be revenue generators in the 2013 budget.
Council voted 5-0 to advance on second reading an ordinance for a new amusement tax that is one of the alternative revenues in the city's revised Act 47 recovery plan. This ordinance would impose a 5 percent tax on face-value of admission tickets of for-profit entities. City officials initially had been planning a 10 percent tax but scaled it down. The language of the amusement tax ordinance that was introduced was all-encompassing, but council also voted 5-0 to amend the ordinance Thursday to exempt functions of public schools and governmental entities that charge and collect ticket money. The council also intends a further amendment on Thursday to exempt private schools from the amusement tax. The council has estimated that an amusement tax would generate $200,000 in 2013.
Council voted 4-1, with Mr. Rogan dissenting, to introduce a new $25 fee for delinquent tax searches, delinquent and current refuse fee searches and lien/condemnation searches.
Council also voted 5-0 to introduce a measure to increase fines and penalties for false police/fire alarms. There would be no fine for a first offense, but a $500 fine for second and third offenses and a $1,000 fine for anything after a third offense. The current false alarm fines were not immediately available, but the increases are significant and meant to help control the problem of false alarms, Mrs. Evans said.
In other matters, the council voted 5-0 on each of the following:
n To adopt resolutions to reappoint Nancy Bisignani and John Moore to additional five-year terms each on the city's Historical Architecture Review Board. Their terms ended Oct. 11 and their new terms would end Oct. 11, 2017.
n To adopt a resolution to accept a recommendation of the Historical Architecture Review Board to approve a vinyl banner within a sign panel recess at Bella Faccias Personalized Chocolates and Gifts at 516 Lackawanna Ave. The applicant for the sign is Magical Markers Vinyl Graphics of South Abington Twp.
n To advance on second reading an ordinance to vacate an unopened right of way in the 200 block of McDonough Street, between Greg Court and Colliery Avenue, so adjacent homeowners can acquire an equal share of the property as annexations to their existing parcels.
n To introduce a measure updating old stormwater management plans so they comply with modern state DEP regulations.
n To introduce a measure to enter into an agreement with the state to increase state funds for the Rockwell Avenue Bridge project. The crumbling, 107-year-old bridge in Scranton was closed indefinitely on April 25 due to its unsafe condition, city officials had said. Built in 1905, the stone-arch bridge carries heavily traveled Rockwell Avenue over Leggetts Creek near West Market Street. The span has been deteriorating for years and has been in the works to be replaced, but a crumbling stone headwall and cracks in stone support columns required an emergency closure.
n To introduce a measure to apply for $2 million in state gaming funds to use on paving projects throughout the city.
n To introduce a resolution to amend a prior resolution providing a $150,000 Community Development Block Grant loan to Freckles and Frills child care learning center. The amendment includes a loan guarantee of Early Development Associates Inc. that was inadvertently omitted by the city Office of Economic and Community Development in October when council adopted the original resolution, Mrs. Evans said.
Contact the writer: jlockwood@timesshamrock.com