Scranton Mayor Chris Doherty presented Thursday to city council a $109.6 million budget that contains a 12 percent real-estate tax hike.
Though formally proposed by the mayor, the budget had been prepared jointly by his administration and the council. Cooperation between both sides on the budget proposal was a change from the prior two budgets that were marked by heated battles, council revisions, mayoral vetoes and council overrides of vetoes.
"This is the first step in our financial blueprint as we move the city forward, and I appreciate the cooperation of council," Mr. Doherty said.
A precursor of the budget had been hashed out earlier this year during the mayor/council war over revising the city's Act 47 recovery plan, which called for a 12 percent real estate tax hike on city residents and various other tax increases and/or new taxes, such as commuter and amusement taxes.
"As promised, the real estate tax in the budget was limited to 12 percent," council finance chairman Frank Joyce said.
City Business Administrator Ryan McGowan said, "Obviously, we worked together on this budget. It's been a tough process. Hopefully it's another step in moving this city forward."
The spending plan for 2013 is $24.3 million higher than the $85.3 million budget of 2012, or a 29 percent increase. Mr. McGowan and Mr. Joyce said the budget's steep rise is attributed to new borrowing and refinancing necessary to cover a landmark state Supreme Court arbitration award of $17 million due to the city's police and fire unions, to provide a $5 million increase in the city's mandatory minimum pension obligation, and to pay off interest of a $14 million tax-anticipation note the city will obtain next year.
Police overtime also was increased from $120,000 this year to $550,000 next year, Mr. Joyce said.
There are no layoffs or salary cuts in the budget. It also calls for 10 percent cuts in departmental spending.
Council President Janet Evans blamed the mayor for the massive borrowing that the city must now undertake to prevent a total financial collapse of the city after years of "unbridled" spending by the mayor.
"City council is not the source of the borrowing," Mrs. Evans said.
The budget provides for three new positions, a rental registration coordinator in the Department of Licensing, Inspections and Permits, and a financial analyst and a senior accountant in the Business Administration Department, Mr. McGowan said.
The city's millage rate for land of 96.701 mills this year will increase 12 percent to 108.305 next year.
The millage rate for improvements of 21.03 mills this year also will rise 12 percent, to 23.553 mills.
Due to the Thanksgiving holiday next Thursday, there won't be a council meeting that night.
As a result, the budget will be introduced by council on Nov. 29, and then would be up for a second reading on Dec. 6 and up for adoption on Dec. 13, Mr. Joyce said.
Contact the writer: jlockwood@timesshamrock.com
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