HT News

November 3, 2009

Layoffs, tax hikes part of Hazleton plans

One of budget proposals has lower taxes by including laying off 6 cops for 6 months

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer
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HAZLETON – A homeowner in the city with a $30,000-per-year job and a home valued at $100,000 could expect to pay another $235 in taxes and fees next year, according to a budget proposal Mayor Lou Barletta released to council on Monday.

Barletta’s administration also released a second budget scenario that includes the layoff of six police officers for six months, reducing the tax hike by $20 to $215 for that homeowner.

Both scenarios include a combination of layoffs and a reduction in hours for six months for some City Hall and Highway Department workers.

Acting City Administrator Mary Ellen Lieb said the purpose of the second scenario was not to endorse police layoffs, but rather to show proponents of police layoffs that laying off officers would save owners of a $100,000 property only $20.

“Anyone who knows the mayor well enough knows that the mayor has been opposed to police layoffs forever,” Lieb said.

Both scenarios also include increasing the annual garbage fee from $208 to $240 and increasing the earned income tax collected to cover pension obligations from 0.4 percent to 0.75 percent. The EIT increase results in a $35 increase for every $10,000 earned.

The scenario with City Hall and Highway Department layoffs assumes a real estate tax increase from 1.40 mills to 2.38 mills – a $98 increase for every $100,000 in assessed property value.

The scenario that adds police layoffs to the mix assumes a smaller increase in real estate tax – from 1.40 mills to 2.18 mills – a $78 increase for every $100,000 in assessed value.

A mill is a $1 tax on every $1,000 of assessed property value.

Minority Councilman Bob Nilles said Lieb “did a good job putting (the budget) together” and reducing proposed revenues to more realistic figures.

But Nilles criticized the administration for failing to present realistic budgets in 2007 through 2009, accusing Barletta of instead “pyramiding” city debt. He said audits found a $635,000 deficit in 2007 and a $1 million shortfall in 2008, and it was agreed at a budget meeting in August that the city was already facing a $1.9 million deficit for 2009.

The budget is expected to be discussed at a public council meeting at 6:30 p.m. Thursday at City Hall, 40 N. Church St., Hazleton.

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