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Report: Wilkes-Barre/Scranton car buyers may be in over their heads

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Horse meat and genitals hidden in juice boxes seized by customs agents

<p>WILKES-BARRE &#8212; The city got off to a good start financially in January, but Mayor Tony George said he&#8217;s still looking at last year&#8217;s numbers and how they will affect his $47.1 million balanced budget for this year.</p><p>The draft financial report for the first month showed a positive balance for the general fund budget, largely due to the $3 million Tax Anticipation Note the city annually takes out to carry it through the first quarter until tax revenues start coming in.</p><p>The report listed $3.8 million in revenues and $2.2 million in expenses, leaving a balance of $1.6 million as of Jan. 31. But expenses are understated by approximately $500,000 in health insurance premiums that have not yet been posted, noted Brett Kittrick, the city&#8217;s finance director.</p><p>The draft also showed a $1.9 million deficit from last year, a figure the mayor said he expects to shrink as 2016 revenues are booked under the accrual accounting system used by the city.</p><p>Still George said he expects the deficit won&#8217;t be erased due to &#8220;phantom numbers&#8221; that he warned were plugged into the 2016 budget from the previous administration of Tom Leighton.</p><p>George on Thursday estimated the deficit would be between a $1 million and $1.5 million. &#8220;We&#8217;re going to have to pay that from this year&#8217;s budget,&#8221; he said.</p><p>There&#8217;s little wiggle room in his 2017 budget that was crafted with the unrealistic revenue projections from the previous year in mind. George did not get his first proposed budget approved and compromised with city council to cut revenues and expenses by $771,571 each and lower his property tax hike to 19.7 mills from 30 mills. The tax hike is budgeted to bring in an additional $1.6 million in revenues compared to 2016.</p><p>A mill is a $1 tax for every $1,000 of assessed property value. With the tax increase, the millage climbed to 141.33 mills. The owner of property with an assessed value of $79,500 &#8212; the median in the city &#8212; will pay $12 more per month or $144 a year at the higher millage rate.</p><p>The new millage rate did not go into effect until late in January, and less than 1 percent of the property taxes were collected.</p><p>Among the revenues that contributed to the total for the month were:</p><p>&#8226; $450,508 in Earned Income Tax, 3.5 percent of $12.7 million budgeted.</p><p>&#8226; $115,466 in building inspection fees, 11.5 percent of $1 million budgeted.</p><p>&#8226; $34,299 in parking meter fees, 6.5 percent of $525,000 budgeted.</p><p>Contributing to the expense total were:</p><p>&#8226; $25,000 for lawsuit settlements, 50 percent of $50,000 budgeted.</p><p>&#8226; $101,281 for excess workers&#8217; compensation insurance coverage, 91 percent of $111,000 budgeted.</p><p>&#8226; $2,500 for K-9 medical insurance, 62.5 percent of $4,000 budgeted.</p><p>&#8226; $51,067 for blue garbage bags used by residents, 46 percent of $110,000 budgeted.</p><p>&#8226; $109,500 in Act 120 payments to members of the police department, 93.5 percent of $117,000 budgeted.</p><p>&#8226; $105,000 in Act 120 payments to members of the fire department, 100 percent of the budgeted amount.</p><p>Police receive an annual payment of $1,500. Firefighters and ambulance personnel have a parity clause with police in their collective bargaining agreements and receive the same amount. The payments originated from a settlement nearly 20 years ago that subcontracted the parking enforcement work included in the police union&#8217;s collective bargaining agreement.</p><style>
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<div class="metaInfo"><bylineMeta><p>By Jerry Lynott</p><p>jlynott@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott</p></shirttailMeta></div>

Wilkes-Barre Mayor Tony George says last year’s deficit will affect ‘17 budget