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WILKES-BARRE — The city council Thursday night shot down Mayor Tony George’s amended budget, sparing residents a property tax hike for this year.
George proposed a 25-mill tax increase to raise an estimated $2 million in revenues needed to cover what he said were shortfalls in the $51.5 million balanced budget from his predecessor Mayor Tom Leighton. Without the changes sought by the new mayor, the city will operate on Leighton’s 2016 budget approved by council last year that did not include a tax increase.
“I got to play the hand I’m dealt and that’s what I got to do and I have to work from there, ” George said after the public meeting attended by approximately 50 people.
Still he maintained some of the revenue projections in the budget were unrealistic and changes would be coming.
“I’m going to have to make cuts because we have to make payroll and we have to pay our bills,” George said.
The millage stands at 121.63 mills. A mill is $1 for every $1,000 of assessed property value. As of the end of December the city collected $10.14 million in property taxes, more than the $10.09 million budgeted last year but less than the $10.24 collected in 2014.
When it comes time to present his budget for 2017 in October, George said he’ll likely be back asking for a tax increase.
“The way it looks now, yes, unless we get a windfall some place or if I do make layoffs, how much those layoffs are,” George said.
He could be hearing from the same people who spoke out against his amendments, especially the tax hike.
James Burden said people can’t afford to pay more. “Come on Tony, let’s get with it,” he said.
Bob Kadluboski softened his criticism of the mayor from Tuesday night when George presented his changes. Instead Kadluboski turned his attention to council Chairman Bill Barrett and council Vice Chairman Mike Merritt, who voted for Leighton’s budget. George, who was a councilman last year, cast a vote against it, Kadluboski pointed out. “This isn’t his fault,” he said.
To get the public on their side, council and the mayor should take pay cuts, Kadluboski said. “The time has come to start cutting back. We can’t afford this no more,” he said.
A few residents offered alternatives to the property tax hike.
Carl Romanelli suggested the city look into abandoning the property tax and replacing it with a building fee that no property would be exempt from paying.
“When a per building fee is paid, government entities, nonprofits, churches, every building that occupies a piece of valuable city land will be subject to the fee, based on the size of the property in question and the type of property a fee percentage can be suggested,” Romanelli said.
Sam Troy called for setting up a committee of council members, the mayor and residents to look for ways to cut expenses before Monday, the deadline for a new budget to be adopted. Debbie McLain presented the Quality of Life ordinance from Scranton for council to consider as a means to raise revenue from citations for code enforcement and property violations.
Greg Freitas, a city firefighter union representive speaking as a resident, asked for clarification on a story published in the Citizens’ Voice newspaper that stated revenue projections were unrealistic because Leighton instructed city employees to balance the budget without a tax increase.
City Administrator Greg Barrouk, who held the appointed position under Leighton, responded. “Every mayor has their own agenda,” he said, adding there were some line items that Leighton did not think were important such as money for new police vehicles.
“So there were no department heads instructed to concoct a bogus budget for this year. Mayor Leighton did not instruct you to make a bogus budget this year?” Freitas asked.
“When it all comes down to it, it is a mayor’s budget. He sets forth the agenda for the employees and that was the mission, not to do a tax increase,” Barrouk said.
Freitas continued his questioning and wanted to know if 10 firefighters are going to be laid off this year. A grant used to hire firefighters runs out this year and the city must decide on whether to pick up the cost.
“We have to look and see how revenues come in,” Barrouk said.
After council’s vote against his proposed changes George said, “I ask council now before April when that firemen’s grant comes up to give me ideas on how we can increase revenue.”
Former councilman George Brown, who supported Leighton’s budget, attended the meeting. He lost in the May Democratic mayoral primary to George. Brown said the city has to be run like a business. Had he been elected he would have reduced his salary to $60,000 from $84,779 and looked at areas in the budget to cut.
Brown stood behind his vote and the budget. “If you’re asking me, ‘Could I run the city with the budget that we voted on in December? Absolutely,” he said.
In other business, council approved:
• The appointment of Maureen Collins as assistant city attorney at an annual cost of $52,500 plus benefits
• The purchase of a new vehicle for the fire inspector at a cost of $33,383 through the Community Development office
• The installation of a new pole by PPL Electric Utilities along the road that connects North Washington Street in the city with North Main Street in Plains Township.