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<p>WILKES-BARRE &#8212; Mayor Tony George&#8217;s proposed $50.4 million budget for 2019 doesn&#8217;t contain a property tax increase, but it does have an abundance of hope among the line-item entries to balance it.</p><p>George acknowledged he fell short of the $1.1 million in revenues budgeted this year from the sale of city-owned property, but will give it another try.</p><p>&#8220;That hasn&#8217;t come to fruition. But right now we&#8217;re in the process of hopefully selling the parkade and the First National Bank building on the Square and that will give us $1.5, $1.6 million. And that would help balance the budget,&#8221; George said during his budget presentation Monday at City Hall.</p><p>The picture George painted of a city with its finances in order differed from that of a municipality facing a nearly $2 million deficit. He asked for assistance under Act 47, but the state Department of Community and Economic Development denied his petition and told him to exhaust all his options before seeking financially distressed status for Wilkes-Barre.</p><p>Reading between the lines of his address, there could be another try at Act 47.</p><p>&#8220;However, it is imperative to recognize that the budget is not structurally sound for the future. The inclusion of one-time revenue sources will assist us in 2019, but we must find ways to replace those revenue streams beyond then,&#8221; George said.</p><p>&#8220;Right now we, hopefully we can stay out of (Act 47), but it depends upon the sale of these properties and the raises we get through the other unions, how much we can afford,&#8221; George said.</p><p>The Wilkes-Barre Parking Authority intends to make an offer of $1.5 million for the Park &amp; Lock East parkade.</p><p>&#8220;That&#8217;s the appraised value,&#8221; said Tom Torbik, executive director of the Authority. Torbik said he plans to present for approval by the authority&#8217;s board at its meeting Tuesday a letter of intent to purchase the parkade.</p><p>The price is less than the $2 million offered earlier this year from Washington &amp; Market Street Properties LLC, made up of the owners of the downtown office building next to the parkade. Council did not vote on the sale, but showed no indication it would support selling an asset that was generating revenue and almost paid for.</p><p>Council approved the sale of the vacant bank building nearly two years ago. Developer George Albert, through his company Albert Holdings 1 LLC, offered to buy it for $700,000 and turn it into an innovation center for technology startups.</p><p>But city Administrator Ted Wampole said that deal never closed and Albert is no longer in the running for the property. &#8220;Several people are looking at it. None that we&#8217;re willing to disclose,&#8221; Wampole said.</p><p>The city secured more than $1.3 million in state grants to stabilize the structure built in 1906. Two years ago, Gov. Tom Wolf paid a visit to the building and added another $1 million in the form of a Redevelopment Capital Assistance Program grant. The grant carries a $1 million match.</p><p>The state funds are still available even though there has been no movement by Albert, Wampole said. &#8220;The RCAP is assigned to that building,&#8221; he said.</p><p><strong>Salaries, benefits huge chunk</strong></p><p>The next step is for city council to schedule a public hearing and eventual vote on the budget. Council chairman Tony Brooks and councilwoman Beth Gilbert stated on their Facebook pages that they would not support a budget with a tax increase.</p><p>The millage will stay at 141.33 mills and bring in $11,475,000 in property tax revenue, down from the $11.6 million budgeted this year. A mill is a $1 tax on every $1,000 of assessed property value. Wilkes-Barre is the only municipality in Luzerne County that uses its own assessments. All the others use the county&#8217;s assessments.</p><p>The city relies on the earned income tax to balance the budget. The 3 percent EIT is budgeted to raise $13,880,000 in revenues, up from $13.1 million this year.</p><p>The budget also contains a $10 per household increase in the recycling fee. The market for recycled materials &#8220;has been turned upside down&#8221; due to &#8220;trade tensions&#8221; and the fee will rise to $60 from $50, the mayor said.</p><p>Salaries and benefits, including pensions, are budgeted at a combined total of $34,291,004 and account for approximately 68 percent of the expenditures. This year they have a combined total of $33,948,3456.</p><p>Health care costs will rise 7.5 percent next year and only the police union will receive a 3 percent salary increase. The pay hike is contained in its contract that expires at the end of 2019. Contract negotiations are underway with the three other unions.</p><p>The fire department will have approximately 10 vacancies by year&#8217;s end that the mayor said he will not fill &#8220;to make the budget sound.&#8221;</p><p>&#8220;I think at one time they were down to 57 men within the last administration. We&#8217;re budgeted at 63,&#8221; the mayor said.</p><style>
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<div class="neCaption">Mayor Tony George presented a $50.4 million balanced budget for 2019 on Monday that does not contain a property tax increase. Council still has to vote to approve it. </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2018/10/web1_TTL101618Budget1-2.jpg</photo0><caption0>Mayor Tony George presented a $50.4 million balanced budget for 2019 on Monday that does not contain a property tax increase. Council still has to vote to approve it. </caption0><photoCredit0>Aimee Dilger | Times Leader </photoCredit0></div><div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2018/10/web1_TTL101618Budget3-2.jpg">
<div class="neCaption">The proposed 2019 general fund budget for Wilkes-Barre relies on $1.1 million in revenue from the sale of city-owned property to balance the plan. </div></div><div class="metaInfo"><photo1>https://www.timesleader.com/wp-content/uploads/2018/10/web1_TTL101618Budget3-2.jpg</photo1><caption1>The proposed 2019 general fund budget for Wilkes-Barre relies on $1.1 million in revenue from the sale of city-owned property to balance the plan. </caption1><photoCredit1>Aimee Dilger | Times Leader </photoCredit1></div><div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2018/10/web1_TTL101618Budget2-2.jpg">
<div class="neCaption">Councilman Mike Belusko, left, and council chairman Tony Brooks, middle, listened Monday as Wilkes-Barre Mayor Tony George presented a $50.4 million balanced budget for 2019 that does not contain a property tax hike. </div></div><div class="metaInfo"><photo2>https://www.timesleader.com/wp-content/uploads/2018/10/web1_TTL101618Budget2-2.jpg</photo2><caption2>Councilman Mike Belusko, left, and council chairman Tony Brooks, middle, listened Monday as Wilkes-Barre Mayor Tony George presented a $50.4 million balanced budget for 2019 that does not contain a property tax hike. </caption2><photoCredit2>Aimee Dilger | Times Leader </photoCredit2></div></div>
<div class="metaInfo"><bylineMeta><p>By Jerry Lynott</p><p>jlynott@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><factboxMeta><p>Here&#8217;s a look at some of the line items in Mayor Tony George&#8217;s proposed 2019 balanced general fund budget and how they compare to this year.</p><p>&#8226; <strong>Overall </strong><strong>budget</strong>: $50,434,206 vs. $49,465,459 this year</p><p>&#8226; <strong>Parking meter </strong><strong>revenues</strong>: $750,000 vs. $1 million this year</p><p>&#8226; <strong>Garbage bag </strong><strong>revenues</strong>: $1.6 million vs. $1,630,000 this year</p><p>&#8226; <strong>Firefighting </strong><strong>overtime</strong>: $150,000 vs. $50,000 this year</p><p>&#8226; <strong>Waste collection </strong><strong>overtime</strong>: $150,000 vs. $75,000 this year</p><p>&#8226; <strong>Bonded and unbonded </strong><strong>debt</strong>: $72,355,211 as of Jan. 1, 2019 vs. $70,160,281 at Dec. 31, 2019</p></factboxMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.</p></shirttailMeta></div>

WB Mayor George proposes $50.4M balanced budget, no property tax hike for 2019