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Yatesville Borough Council votes to reopen bids on damaged retaining wall

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Speak and See Listings: May 6 to 12, 2015

WILKES-BARRE &#8212; Even if Gov. Tom Wolf&#8217;s ambitious education budget came through intact and boosted state money to Wilkes-Barre Area School District by a projected $2.37 million, that extra money would be wiped out by lost real estate tax revenue and increases in employee salaries and pension costs, Business Manager Leonard Przywara told board members at a budget committee meeting Tuesday.Przywara gave his annual caveat that everything was in flux and numbers are sure to change by the time the board must pass a final budget June 30, but he did float the idea of raising property taxes by the maximum allowed under state law, 2.7 percent, or 0.428 mills on top of the current rate of 15.871 mills.A mill is a $1 tax for every $1,000 of assessed property value. Przywara said that increase would generate almost $1.2 million more for the district while costing half the residents $27.15 or less extra a year.Several board members questioned whether the district can expect to see more money following planned expansion at or near the Mohegan Sun Pocono casino. Solicitor Ray Wendolowski noted the district had legal battles regarding evaluation of the casino before it was even built, and had reached an agreement on how much the district would get annually &#8212; a bit more than $2 million this year. That agreement expires next year, and Wendolowski said talks have begun about a possible replacement deal.Board Member Denise Thomas said any deal with the casino &#8220;had better have them paying at least 2.7 percent more,&#8221; or she would be unlikely to vote for a tax increase.Wendolowski said after the meeting that the district&#8217;s casino conundrum stems from legal questions about how to evaluate such facilities. Traditionally assessments are based on one of three factors: Construction cost, revenue generated at the facility or the sale price of comparable property.A state judge has already ruled in a case involving another casino that money coming into a casino can&#8217;t be part of the equation, and casino gambling is so new there are no &#8220;comparable property&#8221; sales available for comparison, Wendolowski said. The question for the school board will be whether to accept a new deal or to &#8220;roll the dice&#8221; and see what the courts ultimately decide the district should get.Przywara said the district will take in $73,362 less in real estate taxes this coming year thanks to successful appeals by property owners that got reductions in assessments, and to properties being bought by nonprofit organizations, such as the former Ramada Inn in Wilkes-Barre purchased by King&#8217;s College.Pryzwara also estimated a $1.75 million increase in contracted salaries, and a a $1.27 million increase in payments to the state-run pension fund. A state agency, not the district, sets the rate of pension fund payments as a percentage of payroll.The one bright spot: while health insurance premiums are set to rise about 3.3 percent, the district will save more than that thanks to a premium rebate worth about $700,000 in July. The district is insured through the Northeast Pennsylvania School District Health Insurance Trust, a consortium of area districts, and when the Trust has more money that it needs to cover several months cost, it distributes that money by letting members skip part or all of one month&#8217;s premium.Pryzwara also provided the board with a list of possible cost savings measures. Superintendent Bernard Prevuznak said a committee of administrators has been formed that is drawing up additional places money could be saved, thus reducing any tax increase.

Wilkes-Barre Area eyes tax increase