Scranton's plan for a commuter tax generated support, opposition and questions from residents during city council's meeting Thursday.
Resident Andy Sbaraglia, who has not been keen on the city's plan to impose a 1 percent commuter tax on nonresidents who work in the city, urged council to ensure that it would be applied fairly. He questioned whether certain segments, such as federal or county employees who work in the city, could somehow claim to be exempt from a commuter tax.
"The important thing with this whole commuter tax is that it be imposed fairly," Mr. Sbaraglia said. "Somewhere along the line, the exemptions from this commuter tax should be spelled out."
It's not clear if such exemptions would or could exist. The city's legislation for a commuter tax that was adopted Oct. 11 on an emergency basis does not address exemptions. Asked after the meeting if there could be exemptions to a city commuter tax, council President Janet Evans and council solicitor Boyd Hughes said they did not know.
"I really don't know. I think that's something that has to be researched," Mrs. Evans said. "If there are exemptions, I'm sure that they would have been created and mandated by the state" or federal governments.
"A municipality, I don't believe, would be the source to create exemptions to a commuter tax."
A commuter tax is one of the city's key alternatives to property tax hikes under its revised Act 47 recovery plan adopted Aug. 23. The city still needs approval from Lackawanna County Court to impose a commuter tax. Councilman Bob McGoff said that before the city goes to court for a commuter tax, it first needs to adopt other taxes that are planks of the recovery plan, including an amusement tax and an increase in the real estate transfer tax. Mrs. Evans agreed and said legislation for an amusement tax should be forthcoming shortly.
Debate over a commuter tax continued among city residents. Lee Morgan said it would be "unjustifiable and most certainly wrong," but Les Spindler and Fay Franus could not understand how city residents could oppose a commuter tax.
In other matters, Mrs. Evans also read a list of legal and professional fees that the city had incurred in past bond issues.
This was a response to a Times-Tribune article last month that reported amounts of fees paid to the city's attorneys and financial advisers from proceeds of a tax-anticipation note. Council then sought to find out how much the city paid in fees from proceeds of prior borrowings over the past decade. The point was to show that such fees are not uncommon, she said.
"Because all of these billed fees and expenses may not have not been made public by the local newspaper and the administration from 2003 through 2008, it is important to provide the information to taxpayers regarding all city finances, not only those that occurred this year," Mrs. Evans said. "Financing requires the work of multiple firms and their counsels, all of whom are compensated for their time and effort."
With Councilman Pat Rogan absent, Mrs. Evans, Mr. McGoff and councilmen Jack Loscombe and Frank Joyce voted 4-0 on each of the following matters:
n To table a resolution to provide a $150,000 loan at a 2.5 percent interest rate for a term of 15 years from Community Development Block Grant funds to 520 Madison Avenue Associates. The loan was tabled after resident Marie Schumacher said she checked the Pennsylvania Secretary of State's website and it did not have a 520 Madison Avenue Associates LLC, though it did have a 520 Madison Associates LLC. The county assessor's website lists the property as owned by Madison and Vine Associates, said Ms. Schumacher, who questioned whether the loan was going to someone other than the owner of the property, perhaps a lessee. Council agreed to table the loan and ask OECD to clarify the matter.
n To adopt a resolution to provide a $150,000 loan at a 2.5 percent interest rate for a term of 15 years from Community Development Block Grant funds to Freckles and Frills Inc., a child care learning center moving to 515 Fig St.
n To amend and accept the city's 2013 capital budget, a wish list of projects for which funding currently does not exist.
n To advance on second reading an amended ordinance, to correct road-segment numbering in a no-parking zone in the 900 block of North Washington Avenue.
n To introduce an ordinance to approve the transfer of a restaurant liquor license owned by Calanni's Inc. trading as Little Nikki's Pasta House at 77 Fallbrook St. in Carbondale, to Pass Rush LLC for use at Big House Tobacco Outlet at 200 Green Ridge St. Joseph Fadden III is requesting the license transfer to an existing business, the tobacco outlet, that he owns to create a restaurant and cigar lounge. The Pennsylvania Liquor Control Board requires a municipal governing body to pass an ordinance approving an inter-municipal transfer of a liquor license when a municipality has met its quota of liquor licenses.
Contact the writer: jlockwood@timesshamrock.com