Scranton's city budget, which is scheduled to be presented today by Mayor Chris Doherty to city council, promises to contain something taxpayers have seen only once in the past 12 years: a double-digit tax increase.
The city's Act 47 recovery plan adopted in August set a potential budget framework for the next three years of tax hikes of 12 percent in 2013, 45 percent in 2014, and 11 percent in 2015.
The mayor and council have been working together to introduce a joint budget. Both sides have said that, despite court-ordered dedicated millage increases to pay back $20 million in unfunded debt sought this year, the tax hike for 2013 would be capped at 12 percent.
A 12 percent hike for next year also assumes the city is allowed by a court to impose a 1 percent commuter tax that would raise $2.5 million in 2013. The city has a Dec. 10 court hearing on the commuter tax request.
As for having a double-digit tax increase, the mayor said, "We deal with it and move ahead. The city is doing well in other areas. In safety, quality of life and economic development, we're doing well. We just have these financial challenges" to overcome.
Resident Marie Schumacher, a regular attendee of council meetings who keeps close tabs on city finances, said she does not see how the tax hike for 2013 could end up at only 12 percent.
"It's got to be higher," Ms. Schumacher said. "I'd probably be in dire shock if they stick to the 12."
The last time city taxpayers saw a double-digit tax increase in the city portion of their total tax bills was in 2007, when the city hike was 26 percent. Before that, the previous city tax increase was a 19 percent spike in 2000 under then-Mayor Jim Connors.
Mr. Connors' last two budget years, 2001 and 2002, had no tax increases.
That pattern was followed by Mr. Doherty during his first four years as mayor: 2003 through 2006 had no tax increases.
But after that six-year span of no city tax hikes, Mr. Doherty and a past council in 2007 imposed a 26 percent hike.
What followed from 2008 through 2010 was three more years without a city tax hike.
While taxes often remained flat during most Doherty years, budget increases and capital projects were covered by borrowing and refinancing.
"I had to rebuild the city, and that's what we focused on," the mayor said. "We made sure we invested in the city and that's what we did. If you're not willing to invest in yourself, who else would? That's why we have nice streets, nice parks and why we have low crime rates."
In 2011, a council "supermajority" led by council President Janet Evans overrode the mayor and reduced taxes by 11 percent.
For the 2012 budget, the Evans supermajority allowed a 5 percent tax increase, which was much less than the 29 percent hike the mayor had wanted.
"I proposed tax increases," Mr. Doherty said. "I vetoed tax decreases. Who vetoes tax decreases?"
Much of this year has been consumed by a mayor/council battle over revising the recovery plan and the size of tax hikes over the next three years. They eventually settled on a plan calling for a 79 percent cumulative tax hike over the next three years (12 percent in 2013, 44.7 percent in 2014 and 10.6 in 2015). This was described as a worst-case scenario that assumes a 1 percent countywide sales tax would never materialize, thus requiring higher property taxes to make up the difference of $5.5 million in non-existent sales taxes in 2014 and 2015.
But if a sales tax is enacted by the state Legislature and the city does have that extra $5.5 million in 2014 and 2015, then the recovery plan's cumulative tax increase would drop to 39 percent over three years (12 percent in 2013, 9.7 percent in 2014 and 13.3 percent in 2015).
From 1997 to 2012, the city's overall tax increase was less than county and school tax hikes over the period.
Ms. Schumacher said she doubts residents would be surprised by a double-digit city tax hike next year because it has been talked about now for months.
"We've got to take our medicine and move on," she said.
Contact the writer: jlockwood@timesshamrock.com