Luzerne County Government

January 30, 2010

Property tax up 15 %

Commissioners can’t find enough cuts for lower hikePaying down whopping $466 million debt will be toughPlan has no borrowing, debt restructuring

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
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Luzerne County commissioners Maryanne Petrilla and Thomas Cooney say they were unable to find enough cuts and revenue to keep the tax increase at 10 percent, so they voted Friday to pass a proposed amended 2010 budget that tacks on an additional 5 percent hike.

If the amended budget passes on Feb. 12, county taxes will be 5.215 mills, up from last year’s 4.5347.

The owner of a $100,000 property would pay about $68 more in county taxes compared to last year, with a bill increasing from $453 to $521.

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

The original $124.8 million spending plan, passed Dec. 31, had contained a $6 million hole because the salary portion of most department budgets was cut by 6.7 percent. Cooney, Petrilla and other county officials have been meeting with departments since then to try to identify ways to close the gap.

Cooney said after Friday’s meeting that departments came up with nearly $3 million in cuts and new revenue.

Commissioners had two options to fill the remaining void: force cuts or raise taxes more.

They opted for the increase, introducing a $127.5 million package that restored funding that had been stripped from many offices in the original budget.

The county had received $75.8 million from property taxes in 2009, and $87.1 million is anticipated with this year’s 15 percent increase.

Cooney noted that the increase won’t come close to covering the county’s increased debt repayments, which grew from $10.2 million last year to $21.7 million this year.

He said he wants to use any unexpected windfalls to pay down the $466 million owed.

“If we’re fortunate enough to sell Valley Crest, I’d like to apply that revenue to the debt,” Cooney said, referring to the county’s former nursing home site in Plains Township.

The audience was packed with angry taxpayers and some of the 15 employees who were furloughed, effective Friday.

Petrilla said commissioners did “everything we possibly could” to avoid a tax increase.

“We’ve been at this since October,” she said. “It’s a result of reckless spending and reckless borrowing, and we’re committed to getting this county on sound financial footing.”

Petrilla said it’s the first year in “a long, long time” that the budget was balanced without borrowing or debt restructuring.

“To me that’s a phenomenal accomplishment. We are finally going to have a credit rating with our banks. We haven’t had one in a long time, and that’s why we’re paying such exorbitant interest rates,” Petrilla said.

Her voice got shaky when she addressed the layoffs, which resulted in the closure of Moon Lake Park and elimination of other services.

“Those employees are very, very dear to me, and I find it very difficult that we have to lay people off,” she said, reiterating that commissioners made a commitment that taxes would not be raised without eliminating non-essential services.

Now-furloughed Moon Lake director Clif Madrack had complained Thursday that nobody from the administration thanked furloughed workers for their service.

Petrilla said during the meeting that she will attempt to return furloughed workers to the county if others retire or leave.

“I’m sorry to the people who are being laid off,” she said.

Union head Paula Schnelly, who was in the audience, said after the meeting that she disagrees with the county’s decision.

“Their whole reason for laying these people off was because they were only going to raise taxes 10 percent, but then they go to 15 percent today, which completely changed everything,” said Schnelly, who represents the American Federation of State, County and Municipal Employees (AFSCME) union.

The layoff of 11 union workers saved about $345,000, she said.

Minority Commissioner Stephen A. Urban voted against the amended budget proposal, saying he still believes the county could find enough cuts and revenue to avoid a tax increase altogether.

The amended budget will be on public display until it is adopted at 10 a.m. Feb. 12. A copy has also been posted on the county’s Web site at www.luzernecounty.org.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

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