Scranton City Council on Thursday unanimously introduced a $21 million bond ordinance to fund new debt and an increase in mandatory pension contributions and refinance old debt.
While the introduction was unanimous, council had questions about the bond proposal and agreed to ask administration officials to attend an upcoming caucus to explain it.
Mayor Chris Doherty wanted council to adopt on an emergency basis this legislation and another ordinance for a dedicated tax increase to pay for $9.75 million in unfunded debt, council President Janet Evans said.
However, because council received the ordinances late Wednesday, she said, council and its solicitor, Boyd Hughes, had not had enough time to review them and refused to enact them on an emergency basis - which requires introducing, advancing and adopting them all at the same meeting.
Regarding the dedicated millage, council voted 4-1 - with Mrs. Evans and Councilmen Frank Joyce, Jack Loscombe and Bob McGoff voting yes and Councilman Pat Rogan dissenting - to introduce an ordinance to "levy a real estate tax millage increase for a period of 10 years" dedicated to pay back the $9.75 million in unfunded debt that a Lackawanna County Court judge approved Oct. 31.
Asked whether this dedicated millage would result in an additional tax increase for 2013, beyond the 12 percent tax hike for 2013 that the city's recently revised recovery plan calls for, Mrs. Evans and council Finance Chairman Frank Joyce said no. The recovery plan's various other taxes would provide enough revenue to cover the $9.75 million in unfunded debt, they said.
"There's not going to be more than a 12 percent increase," Mrs. Evans said. "I have spoken with the mayor already about the tax increase, and we're sticking to our word - 12 percent."
Efforts to reach Mr. Doherty and city Business Administrator Ryan McGowan were unsuccessful.
Council also advanced ordinances to increase the real estate transfer, business privilege and mercantile taxes for 2013, and to keep both the garbage collection fee of $178 and the $52 Local Services Tax for emergency services the same next year.
The setting of these taxes and fees is usually done each January, after the city's annual budget has been adopted. However, they were introduced Nov. 1 in advance of the city seeking court approval on Dec. 10 for a 1 percent commuter tax. The city needs to be able to show the court that the city has taken steps to increase taxes on its own residents and businesses before taxing nonresidents, council members have said.
The increases in the real estate transfer, business privilege and mercantile taxes also are contained in the city's revised Act 47 recovery plan that was adopted in August. The increases also would return these taxes to their 2010 levels.
The real estate transfer tax would be raised from the current 2.8 percent to 2.9 percent, which would generate an additional $185,000 a year; while the business privilege and mercantile taxes each would be raised from their current 0.00087525 percent to 1 mill in 2013, which together would generate an additional $500,000 a year.
A mill is a $1 tax on every $1,000 of a property's assessed value.
Councilman Pat Rogan cast the lone no vote against advancing the increases to the real estate transfer, business privilege and mercantile taxes, and against the $178 garbage fee. The LST tax was unanimously advanced on second reading.
In other matters:
n Council voted 3-2, with Mr. Rogan and Councilman Bob McGoff dissenting, to adopt an ordinance to transfer a restaurant liquor license owned by Calanni's Inc., trading as Little Nikki's Pasta House, 77 Fallbrook St., Carbondale, to Pass Rush LLC for use at Big House Tobacco Outlet, 200 Green Ridge St. Joseph Fadden III requested the license transfer to his existing business, the tobacco outlet, to create a restaurant and cigar lounge. He and his attorney, Francis X. O'Brien, attended a public council caucus before the council meeting to explain Mr. Fadden's plans. Mr. McGoff and Mr. Rogan, who previously said residents had expressed concerns about the license transfer, remained opposed to the transfer despite Mr. Fadden's assurances to council. Mrs. Evans, Mr. Loscombe and Mr. Joyce were supportive of Mr. Fadden's proposal and approved the transfer.
n Council voted 5-0 to adopt an ordinance to prohibit truck traffic on Lake Scranton Road, from Route 307 northeast to Elmhurst Boulevard. Exemptions would include emergency and city DPW vehicles, local deliveries and military vehicles. The truck ban is being enacted due to concerns of homeowners in that area. The ordinance first was advanced on second reading before council suspended rules to vote on adopting it.
n Council voted 5-0 to introduce a measure to accept a $750 donation from Sanofi Pasteur to the city Fire Department.
n Council voted 5-0 to introduce a measure to appoint Mary Ann Wardell to the zoning board to fill a vacancy created by the Sept. 29 death of board Chairman Jim Williams. The term expires July 1.
n Council stated that the city received a $500 payment in lieu of taxes donation from the Harrison House Personal Care Home.
n Mr. Rogan read a letter from Lackawanna County Commissioner Patrick O'Malley, who said he was amenable to extending the 2013 first-tax-payment discount period by a month, from Feb. 28 to March 28, to help taxpayers who may be struggling to pay next year's expected city real estate tax hikes. At the Nov. 1 council meeting, Mr. Rogan read a letter from the county's chief financial officer who said extending the discount period was not feasible for the county because it would create a cash-flow shortage. Mr. Rogan on Nov. 1 had urged residents "to ratchet up the pressure" on the commissioners. Commissioner Jim Wansacz last week said the county would not extend the discount period and fired back at Mr. Rogan, calling him "misinformed" about the county's overall assistance to the city.
n Mr. Rogan challenged Mr. Doherty to release a poll he had done that he said showed residents blame council for the city's financial woes. Mr. Rogan was responding to a Nov. 3 article in The Times-Tribune about the mayor conducting the poll as part of weighing whether to seek re-election next year.
n Mr. Loscombe said bridge closures in the city are creating "logistical nightmares" for the Fire Department to respond to fires.
Contact the writer: jlockwood@timesshamrock.com