In a 3-2 vote, Scranton City Council advanced on second reading Thursday night a $109.7 million budget for 2013 that contains a 12 percent property tax increase for residents, hikes in several other taxes and a new commuter tax.
Two council members, Frank Joyce and Pat Rogan, indicated that next week they would offer amendments to eliminate the proposed raises for six employees. Those raises, which range between 19 and 33 percent, would be for council and administration solicitors, fire chief, business administrator and two administrative employees.
"I'd like to eliminate all of the raises," Mr. Joyce said. Mr. Rogan said, "I'm very glad my colleagues agree with taking out the raises."
Several residents said they were planning to rail against the raises, but Mr. Joyce's announcement took the wind out of their sails.
"I really don't have much to say," Les Spindler said. "I commend you for making these amendments and taking those raises out."
The raises that Mr. Joyce will seek to eliminate include $15,000 each for administration solicitor Paul Kelly and council solicitor Boyd Hughes, $16,258 for Fire Chief Tom Davis, and $10,000 each for Business Administrator Ryan McGowan, finance manager Mary Lou Murray and human services director Gina McAndrew.
Mr. McGoff, who also has said the timing is not right for the raises, asked that each amendment be voted upon individually. Mr. Hughes was absent from the council meeting.
Regarding advancing the budget on a second reading, council President Janet Evans, Mr. Joyce and Councilman Jack Loscombe voted yes, while Councilmen Bob McGoff and Mr. Rogan voted no.
The budget, which had been introduced Nov. 29 by the same 3-2 vote, is expected to be up for adoption on Thursday, when amendments first would be offered.
The spending plan for 2013 is $24.3 million higher than the $85.3 million budget of 2012, or a 29 percent increase. Officials have attributed the budget's steep rise 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, to pay interest of a $14 million tax-anticipation note the city will obtain next year and to pay contractual raises of city employees.
Council also voted 5-0 to introduce an ordinance authorizing a $14 million tax anticipation note for 2013. TANs are routine short-term loans that municipalities borrow to cover cash-flow gaps. Next year's TAN would come from the same bank, Amalgamated Bank of New York and Washington, D.C., that in late August loaned the city a $6.25 million TAN arranged by the city fire union.
In other matters, the council voted 5-0 on the following:
n To adopt an ordinance creating 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 amended the ordinance to scale it down to 5 percent. Certain entities would be exempt from charging and collecting an amusement tax, including public and private schools/student activities, free amateur performances, nonprofit organizations, and national, state, county or local governments. The council has estimated that an amusement tax, at 10 percent, would generate $200,000 in 2013, and has included that amount in the 2013 budget, even though the amended ordinance imposes a 5 percent amusement tax. Asked why the amusement tax revenue in the budget was not also cut in half, Mr. Joyce said the $200,000 was the amount proposed by the administration.
n To advance on second reading an ordinance 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.
n To adopt 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 advance on second reading an ordinance updating old stormwater management plans so they comply with modern state DEP regulations.
n To adopt a resolution 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 adopt a resolution to apply for $2 million in state gaming funds to use on paving projects throughout the city.
n To adopt 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.
Council also voted 4-1, with Mr. Rogan dissenting, to advance on second reading an ordinance to impose a new $25 fee for delinquent tax searches, delinquent and current refuse fee searches and lien/condemnation searches.
Contact the writer: jlockwood@timesshamrock.com