Scranton's 2013 budget began the new year Wednesday with a $350,000 question mark, as the city did not receive any bids for a new market-based revenue opportunity program expected to raise that much money by selling ads on city property, officials said.
The program, which has been undertaken in other cities in the state, is one of the alternative revenues to property taxes in the city's revised Act 47 recovery plan that was adopted in August and formed the basis of the 2013 budget.
The city has included $353,421 in MBRO revenue in the 2013 budget and was accepting bids for a three-year MBRO program for 2013-15, with a two-year option. A list of the city's physical assets, such as police vehicles, garbage trucks and buildings, would have been provided to prospective bidders to see what they would have proposed for using such assets to raise revenue for the city.
However, no bids were received by Wednesday's deadline, said city Purchasing Agent Eileen Hurchick.
"We'll probably do a rebid" of the MBRO program, said city Business Administrator Ryan McGowan.
If no bids are received a second time, the city then could try direct negotiation with marketing firms, he said.
The MBRO is the latest questionable alternative revenue that could cause shortfalls in the 2013 budget.
The city also has budgeted $1.3 million for payments in lieu of taxes from nonprofits that are hoped to be received but for which no commitments have been given. The city last year received $204,000 in nonprofit payments, and shortfalls in the 2013 goal would be made up from a $1 million contingency line item, officials have said.
The city also has budgeted $2.5 million from a commuter tax that was rejected last month by a panel of county judges. This budget shortfall may be made up either by tacking $2.5 million onto an anticipated leaseback borrowing package, or through the sale of an unspecified city asset, officials have said.
Contact the writer: jlockwood@timesshamrock.com